DoD awards Penn State $10.4M for R&D in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $10,465,902 ($10.5M)
Contractor: THE Pennsylvania State University
Awarding Agency: Department of Defense
Start Date: 2023-08-16
End Date: 2026-08-15
Contract Duration: 1,095 days
Daily Burn Rate: $9.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OCTANE
Place of Performance
Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802
Plain-Language Summary
Department of Defense obligated $10.5 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: OCTANE Key points: 1. Contract awarded to a single university, indicating specialized research focus. 2. Significant funding for research and development suggests potential for innovation. 3. Cost-plus fixed-fee contract type may lead to cost overruns if not managed closely. 4. The R&D sector is critical for national security and technological advancement.
Value Assessment
Rating: good
The $10.4M award for a 3-year period appears reasonable for specialized R&D. Benchmarking against similar university research contracts is difficult due to unique project scopes, but the funding level is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the research and the unique capabilities of The Pennsylvania State University. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are directed towards advanced research, which can yield long-term benefits, but the lack of competition means potential savings may have been forgone.
Public Impact
Funding advanced scientific research at a major university. Potential for breakthroughs in physical, engineering, and life sciences. Supports academic research infrastructure and personnel. Investment in future technological capabilities for the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus fixed-fee contract type
Positive Signals
- Award to a reputable research institution
- Focus on critical R&D areas
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining a technological edge, with significant government investment annually.
Small Business Impact
This contract was awarded directly to a large university and does not appear to involve small business participation. The focus is on specialized research rather than broad service provision.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be critical to ensure the research objectives are met within the cost-plus fixed-fee structure and to manage any potential cost escalations.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus fixed-fee contract type
- Potential for cost overruns
- Lack of competitive benchmarking
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to THE PENNSYLVANIA STATE UNIVERSITY. OCTANE
Who is the contractor on this award?
The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $10.5 million.
What is the period of performance?
Start: 2023-08-16. End: 2026-08-15.
What specific research objectives does this contract aim to achieve, and how do they align with current DoD priorities?
The contract's specific research objectives are not detailed in the provided data. However, the NAICS code 541715 suggests research in physical, engineering, and life sciences. Alignment with DoD priorities would depend on the specific project's focus, such as materials science, advanced engineering, or biomedical research relevant to defense applications.
What are the potential risks associated with a sole-source, cost-plus fixed-fee contract for R&D?
The primary risks include a lack of competitive pricing, potentially leading to higher costs for taxpayers. The cost-plus fixed-fee structure can incentivize contractors to incur more costs to increase their fixed fee, and if not rigorously managed, could lead to budget overruns and reduced value for money.
How will the effectiveness of the research outcomes be measured and evaluated by the Department of the Navy?
Effectiveness will likely be measured through technical reviews, milestone achievements, and the delivery of research reports and prototypes. The Department of the Navy will need to establish clear performance metrics and evaluation criteria upfront to assess the scientific and practical value of the research conducted by Penn State.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 201 OLD MAIN, UNIVERSITY PARK, PA, 16802
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,999,664
Exercised Options: $23,999,664
Current Obligation: $10,465,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002418D6401
IDV Type: IDC
Timeline
Start Date: 2023-08-16
Current End Date: 2026-08-15
Potential End Date: 2026-08-15 00:00:00
Last Modified: 2025-12-17
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