DoD's Navy Awards $540.6M R&D Contract to Penn State for Physical, Engineering, and Life Sciences Research
Contract Overview
Contract Amount: $5,406,270 ($5.4M)
Contractor: THE Pennsylvania State University
Awarding Agency: Department of Defense
Start Date: 2025-07-23
End Date: 2028-07-22
Contract Duration: 1,095 days
Daily Burn Rate: $4.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SSN(X) TECHNOLOGY DEVELOPMENT FY25-27
Place of Performance
Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802
Plain-Language Summary
Department of Defense obligated $5.4 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: SSN(X) TECHNOLOGY DEVELOPMENT FY25-27 Key points: 1. Significant investment in advanced R&D, focusing on physical, engineering, and life sciences. 2. Sole-source award to a major research institution, potentially limiting broader innovation. 3. Long-term contract (3 years) suggests a sustained need for specialized research capabilities. 4. High dollar value indicates critical or complex research objectives.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables and comparable contracts for similar advanced R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. This limits price discovery and may not leverage the full range of available expertise, potentially leading to higher costs.
Taxpayer Impact: Taxpayer funds are being directed to a single entity without exploring competitive options, which could result in a less cost-effective outcome.
Public Impact
Advancement of critical scientific and engineering knowledge for national security. Potential for breakthroughs in physical, engineering, and life sciences impacting various sectors. Investment in a prominent research university, supporting academic and scientific infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long-term duration
- Sole-source award
Positive Signals
- Focus on critical R&D areas
- Award to a reputable research institution
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its often intangible outcomes and complex cost structures.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large university. Opportunities for small business subcontracting are not evident from the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is justified and that the research objectives are met efficiently and effectively within the allocated budget.
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
- Lack of competitive bidding
- Potential for cost overruns with Cost Plus Fixed Fee structure
- Limited transparency on specific research outcomes
- No apparent small business participation
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.4 million to THE PENNSYLVANIA STATE UNIVERSITY. SSN(X) TECHNOLOGY DEVELOPMENT FY25-27
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 $5.4 million.
What is the period of performance?
Start: 2025-07-23. End: 2028-07-22.
What specific research objectives are being pursued under this contract, and how do they align with current DoD priorities?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. Specific objectives are not detailed but likely align with broader Department of the Navy goals for technological superiority and innovation in areas such as advanced materials, complex systems engineering, or novel biological applications relevant to defense.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, specialized knowledge, or proprietary technology held by the contractor. For Penn State, this could relate to specific research facilities, established expertise, or ongoing foundational research. Fair and reasonable pricing would be assessed through cost analysis of the proposed budget and fixed fee.
How will the effectiveness and impact of the research conducted under this contract be measured and evaluated?
Effectiveness will likely be measured through milestone achievements, technical reports, prototypes, and peer-reviewed publications. The Navy's program office will oversee progress, ensuring alignment with research goals and assessing the potential transition of research findings into practical defense applications or further development.
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: $18,000,000
Exercised Options: $18,000,000
Current Obligation: $5,406,270
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: 2025-07-23
Current End Date: 2028-07-22
Potential End Date: 2028-07-22 00:00:00
Last Modified: 2025-12-04
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