Naval Surface Warfare Center awarded $17.1M R&D contract to Applied Energetics for advanced technology development

Contract Overview

Contract Amount: $17,144,907 ($17.1M)

Contractor: Applied Energetics, Inc

Awarding Agency: Department of Defense

Start Date: 2005-04-07

End Date: 2005-06-05

Contract Duration: 59 days

Daily Burn Rate: $290.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200507!A02725!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C8939 !A!N! !N! ! !20050407!20050607!111653205!111653205!111653205!N!IONATRON, INC !3590 E COLUMBIA ST !TUCSON !AZ!85714!77000!019!04!TUCSON !PIMA !ARIZONA !+000001616877!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !N!Z!D!N!U!1!001!N!6A!Z!Y!Z! ! !N!B!N!N! !B!B! !A!A!000!A!B!N! ! ! ! !5700!F2MTBX!0001! !

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85714

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to APPLIED ENERGETICS, INC for work described as: 200507!A02725!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C8939 !A!N! !N! ! !20050407!20050607!111653205!111653205!111653205!N!IONATRON, INC !3590 E COLUMBIA ST !TUCSON !AZ!85714!77000!019!04!TUCSON !PIMA… Key points: 1. Contract focused on advanced technology development within Research and Development. 2. Sole-source award indicates limited competition, potentially impacting price. 3. Contract duration of 59 days suggests a focused, short-term project. 4. Awarded by the Department of the Navy, highlighting defense sector focus. 5. The contractor, Applied Energetics, Inc., is positioned within the advanced technology development sector.

Value Assessment

Rating: questionable

The contract value of $17.1 million for a 59-day period appears high, suggesting a significant per-diem cost. Without specific deliverables or performance metrics, it's difficult to benchmark the value for money. The cost-plus-fixed-fee structure can sometimes lead to cost overruns if not tightly managed. Further analysis of the specific R&D objectives and deliverables would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Applied Energetics, Inc., was solicited. This significantly limits competition and raises questions about whether the government obtained the best possible price and technical solution. Sole-source awards are typically justified when only one source possesses the required capabilities or when urgency precludes a competitive process.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive bidding, which could have driven down costs or led to a more innovative solution from a wider pool of contractors.

Public Impact

The primary beneficiary is likely the Department of the Navy, which will receive advanced technology solutions. The contract supports the development of advanced technologies, potentially enhancing naval capabilities. The geographic impact is primarily within Arizona, where the contractor is located. Workforce implications are likely concentrated at Applied Energetics, Inc., in Tucson, Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially innovation.
High contract value for a short duration warrants scrutiny of cost-effectiveness.
Cost-plus-fixed-fee contract type can introduce cost escalation risks if not managed diligently.

Positive Signals

Focus on advanced technology development aligns with strategic defense needs.
Contract awarded to a specialized firm, Applied Energetics, Inc., suggesting specific expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced technology development. The market for such specialized R&D is often characterized by a limited number of highly skilled firms. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the advanced technology being developed, but significant government investment in defense R&D is common.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. As a sole-source award to a specific company, it is unlikely that small businesses were directly involved in the primary contract execution, though they might be suppliers to the prime contractor.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Naval Surface Warfare Center's contracting officers and technical representatives. Accountability measures would be tied to the achievement of milestones and deliverables outlined in the Cost Plus Fixed Fee contract. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Naval Research and Development Programs
Advanced Technology Development Contracts
Department of Defense Research & Development Spending

Risk Flags

Sole-source award raises concerns about competition and potential cost savings.
High value for a short contract duration warrants scrutiny of cost-effectiveness.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to APPLIED ENERGETICS, INC. 200507!A02725!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0016405C8939 !A!N! !N! ! !20050407!20050607!111653205!111653205!111653205!N!IONATRON, INC !3590 E COLUMBIA ST !TUCSON !AZ!85714!77000!019!04!TUCSON !PIMA !ARIZONA !+000001616877!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !20200

Who is the contractor on this award?

The obligated recipient is APPLIED ENERGETICS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2005-04-07. End: 2005-06-05.

What specific advanced technologies were developed under this contract?

The provided data indicates the contract was for 'RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV' and falls under the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific nature of the advanced technologies developed is not detailed in the summary data. Further investigation into contract line item numbers (CLINs) or associated technical reports would be necessary to identify the precise technological advancements pursued under this $17.1 million award.

How does the $17.1 million value compare to similar advanced technology development contracts?

Benchmarking this $17.1 million contract is challenging without knowing the specific technological domain and the scope of work. However, for a duration of approximately two months (59 days), this represents a substantial investment. Contracts for advanced R&D can vary widely in cost depending on complexity, novelty, and required resources. A direct comparison would require identifying contracts with similar objectives, contractor capabilities, and project timelines within the Department of Defense or other federal agencies.

What were the key performance indicators (KPIs) or deliverables for this contract?

The provided data does not specify the key performance indicators or deliverables for this contract. As a Cost Plus Fixed Fee (CPFF) contract for Research and Development, the deliverables would typically involve technical reports, prototypes, feasibility studies, or demonstrations of new technologies. The success of the contract would be measured against the achievement of these defined objectives within the agreed-upon timeline and budget.

What is the track record of Applied Energetics, Inc. with the Department of Defense?

Applied Energetics, Inc. is listed as the contractor for this specific award. To assess their broader track record with the Department of Defense, a review of historical contract awards, performance reviews, and any past issues or successes would be necessary. This single award provides limited insight into their overall performance, reliability, and expertise in fulfilling defense contracts.

Why was this contract awarded on a sole-source basis?

Sole-source awards are typically granted when only one responsible source is available or capable of meeting the government's requirements. Reasons can include unique capabilities, proprietary technology, urgent and compelling needs that preclude full and open competition, or specific follow-on work where only the original contractor can perform. Without further documentation from the awarding agency (Department of the Navy), the specific justification for this sole-source award remains unknown.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3590 E COLUMBIA ST, TUCSON, AZ, 85714

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,144,966

Exercised Options: $17,144,966

Current Obligation: $17,144,907

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline