DoD's $15.5M R&D contract with Advanced Scientific Concepts, LLC awarded without competition

Contract Overview

Contract Amount: $15,489,281 ($15.5M)

Contractor: Advanced Scientific Concepts, LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-29

End Date: 2026-10-22

Contract Duration: 1,911 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RELATIVE REFERENCE SENSOR REFRESH

Place of Performance

Location: SANTA BARBARA, SANTA BARBARA County, CALIFORNIA, 93101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to ADVANCED SCIENTIFIC CONCEPTS, LLC for work described as: RELATIVE REFERENCE SENSOR REFRESH Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract's duration of nearly 5 years suggests a long-term research and development effort. 3. Awarded to a single vendor, raising questions about the extent of market research and potential for better pricing. 4. The R&D focus in physical, engineering, and life sciences indicates a project with potentially high innovation and impact. 5. The contract is a definitive contract, suggesting a firm commitment for the specified period. 6. The vendor, Advanced Scientific Concepts, LLC, is the sole recipient, highlighting a potential lack of broader market engagement for this specific need.

Value Assessment

Rating: questionable

Benchmarking the value of this R&D contract is challenging without detailed technical specifications and deliverables. However, the cost-plus-fixed-fee structure, combined with a sole-source award, presents a risk of less competitive pricing. The absence of a competitive process means there's no direct comparison to other vendors' proposed costs for similar R&D services. Further analysis would require understanding the specific research objectives and the uniqueness of the capabilities offered by Advanced Scientific Concepts, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the Department of Defense likely identified Advanced Scientific Concepts, LLC as the only capable source for the required research and development. The lack of competition limits price discovery and may result in a higher cost to the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the government secured the best possible price for the research services.

Public Impact

The primary beneficiaries are likely the Department of Defense, through advancements in physical, engineering, and life sciences research. The contract aims to deliver innovative research and development outcomes, potentially leading to new technologies or scientific understanding. The geographic impact is centered in California, where the contractor is located, suggesting potential local economic benefits. Workforce implications may include specialized R&D personnel employed by Advanced Scientific Concepts, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Long contract duration requires sustained oversight to ensure progress and value.
Limited visibility into the specific R&D milestones and deliverables without further detail.

Positive Signals

Focus on critical R&D in physical, engineering, and life sciences areas.
Contract awarded to a specialized firm, potentially leveraging unique expertise.
Definitive contract structure provides a clear commitment for the research period.
Potential for significant technological advancements stemming from the research.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation. The market for specialized R&D services is often characterized by a limited number of highly skilled firms. Without specific details on the R&D area, it's difficult to benchmark against comparable spending, but R&D contracts can range significantly in value depending on the complexity and duration of the research.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific indication of subcontracting plans for small businesses (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The focus is on a large, definitive contract likely requiring specialized capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, a sub-agency of the Department of Defense. Accountability measures would be tied to the terms of the cost-plus-fixed-fee definitive contract, including progress reports, milestone achievements, and financial audits. Transparency is limited by the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Advanced Technology Development Contracts
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Sole-source award may indicate limited competition.
Cost-plus-fixed-fee contract type carries potential for cost overruns.
Lack of detailed public information on specific R&D objectives and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to ADVANCED SCIENTIFIC CONCEPTS, LLC. RELATIVE REFERENCE SENSOR REFRESH

Who is the contractor on this award?

The obligated recipient is ADVANCED SCIENTIFIC CONCEPTS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2021-07-29. End: 2026-10-22.

What specific research objectives does this contract aim to achieve, and how do they align with the Department of Defense's strategic priorities?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. However, the specific research objectives are not detailed. To assess alignment with DoD strategic priorities, one would need to consult the contract's statement of work (SOW) and compare its goals against current DoD research and development roadmaps, technology insertion plans, and national security objectives. For instance, if the research pertains to advanced materials, it might align with priorities for enhanced soldier protection or next-generation weapon systems. If it involves life sciences, it could relate to military medical advancements or personnel readiness. Without the SOW, this alignment remains speculative.

How was the determination made that Advanced Scientific Concepts, LLC was the sole capable source for this research, and what market research was conducted?

The contract was awarded as 'NOT COMPETED' (ct: NOT COMPETED), signifying a sole-source procurement. The determination that Advanced Scientific Concepts, LLC was the sole capable source would typically stem from extensive market research conducted by the contracting agency (Department of the Navy). This research might involve identifying unique intellectual property, specialized facilities, proprietary technologies, or critical expertise possessed exclusively by this contractor. The justification for a sole-source award must be documented and approved, often requiring a formal Justification and Approval (J&A) document. This document would detail the market research methods used, the findings, and why no other sources were deemed capable of meeting the requirement. Without access to this J&A, the specifics of the market research and the basis for sole-source selection remain undisclosed.

What are the key performance indicators (KPIs) and deliverables expected under this contract, and how will their achievement be measured?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. As a 'Research and Development' contract (nd: Research and Development in the Physical, Engineering, and Life Sciences), the deliverables are likely to include research reports, prototypes, data sets, scientific publications, or technical briefings. Measurement of achievement would typically be outlined in the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These documents would define the technical requirements, quality standards, and acceptance criteria. The contracting officer's representative (COR) would be responsible for monitoring progress against these metrics and formally accepting deliverables. The cost-plus-fixed-fee (pt: COST PLUS FIXED FEE) nature implies that the contractor is reimbursed for allowable costs plus a negotiated fixed fee, contingent upon meeting performance expectations.

What is the historical spending pattern with Advanced Scientific Concepts, LLC by the Department of Defense or other federal agencies?

To determine the historical spending pattern with Advanced Scientific Concepts, LLC, a search of federal procurement databases such as FPDS-NG or USASpending.gov would be necessary. This would reveal the total value of contracts awarded to this vendor, the agencies involved, the types of services or goods procured, and the contract vehicles used. Analyzing this history can provide insights into the vendor's track record, their specialization, and the government's reliance on their services. For example, a pattern of sole-source R&D awards might suggest a niche capability, while a history of competitive awards could indicate broader market competitiveness. Without this historical data, it's difficult to contextualize the current $15.5 million contract.

How does the cost-plus-fixed-fee (CPFF) structure of this contract compare to other R&D contracts of similar scope and duration, and what are the associated risks?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common for R&D efforts where the scope is not fully defined at the outset, allowing flexibility. However, it carries inherent risks. The government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize contractors to incur costs, as their fee is fixed regardless of the total cost. The primary risk for the government is cost overrun if the project scope expands or unforeseen challenges arise, leading to higher-than-anticipated total costs. Benchmarking CPFF contracts requires comparing the fixed fee percentage and the total estimated cost against similar R&D projects. A higher-than-average fixed fee or significantly escalating total costs without commensurate progress would be red flags.

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: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003021R1004

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 135 E ORTEGA ST STE A, SANTA BARBARA, CA, 93101

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,489,281

Exercised Options: $15,489,281

Current Obligation: $15,489,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline