DoD's $9.8M R&D contract for laser transportable demonstrator vehicle awarded to Applied Energetics, Inc

Contract Overview

Contract Amount: $9,839,094 ($9.8M)

Contractor: Applied Energetics, Inc

Awarding Agency: Department of Defense

Start Date: 2007-04-23

End Date: 2011-04-30

Contract Duration: 1,468 days

Daily Burn Rate: $6.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT (R&D) IN OF LASER TRANSPORTABLE DEMONSTRATOR VEHICLE; PHYSICS EXPERIMENTS

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85714

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to APPLIED ENERGETICS, INC for work described as: RESEARCH AND DEVELOPMENT (R&D) IN OF LASER TRANSPORTABLE DEMONSTRATOR VEHICLE; PHYSICS EXPERIMENTS Key points: 1. Contract awarded for research and development in physics experiments related to laser transportable demonstrator vehicles. 2. The contract was a sole-source award, raising questions about potential price competition. 3. The contract duration of approximately four years suggests a significant R&D effort. 4. The award was made by the Department of the Navy, part of the broader Department of Defense. 5. The North American Industry Classification System (NAICS) code 541710 indicates a focus on physical, engineering, and life sciences research. 6. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not closely monitored.

Value Assessment

Rating: questionable

Benchmarking the value of this R&D contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to assess if the fixed fee adequately compensated the contractor for the effort or if the government secured the best possible price. The CPFF structure means the government bears the risk of cost overruns, which could inflate the final expenditure beyond the initial estimate. Further analysis would require comparing the contractor's proposed costs and fee structure to industry standards for similar R&D projects, which are not readily available.

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 approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), they limit the government's ability to explore alternative solutions and potentially achieve lower prices through competition. The lack of multiple bidders means there was no direct price comparison to ensure optimal value for taxpayer funds.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanism inherent in competitive bidding.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which will receive the developed laser transportable demonstrator vehicle technology. The contract aims to advance research in physics experiments and laser technology, potentially leading to future defense capabilities. The geographic impact is primarily within Arizona, where Applied Energetics, Inc. is located, though the ultimate application of the technology could be global. The contract supports specialized R&D roles within Applied Energetics, Inc., contributing to the high-tech scientific workforce.

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 (CPFF) contract type shifts cost overrun risk to the government.
Lack of transparency in the sole-source justification makes it difficult to assess necessity.
Specialized nature of R&D makes direct cost comparisons challenging.

Positive Signals

Contract supports critical research and development in advanced laser technology for defense applications.
Award to a single entity may allow for focused expertise and accelerated development.
The contract duration suggests a commitment to thorough research and validation.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced physics and engineering for defense applications. The market for specialized defense R&D is characterized by high barriers to entry, significant government investment, and a focus on innovation. Comparable spending benchmarks are difficult to establish due to the unique nature of laser transportable demonstrator vehicles, but R&D spending within the DoD is substantial, often involving complex, long-term projects. This contract represents a small fraction of the overall defense R&D budget but contributes to the development of potentially groundbreaking technologies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the contractor, Applied Energetics, Inc., is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus of this award was on the prime contractor's capabilities, with limited direct implications for the small business ecosystem unless Applied Energetics voluntarily engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Given the R&D nature and CPFF structure, rigorous oversight of costs, progress, and adherence to research objectives would be crucial. Transparency regarding the sole-source justification and the contractor's performance metrics would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Navy Advanced Technology Programs
Laser and Directed Energy Systems
Physics Research Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award may indicate limited competition.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk for the government.
Specialized R&D subject matter makes independent cost validation difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to APPLIED ENERGETICS, INC. RESEARCH AND DEVELOPMENT (R&D) IN OF LASER TRANSPORTABLE DEMONSTRATOR VEHICLE; PHYSICS EXPERIMENTS

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 $9.8 million.

What is the period of performance?

Start: 2007-04-23. End: 2011-04-30.

What specific technological advancements or capabilities is this contract intended to achieve for the Department of the Navy?

The contract aims to develop a 'laser transportable demonstrator vehicle' and conduct associated physics experiments. While the exact specifications are proprietary, the objective is likely to explore the feasibility and performance of mobile laser systems for potential military applications. This could include areas such as directed energy weapons, advanced sensor platforms, or communication systems. The 'demonstrator' aspect suggests a focus on proving the concept and technology's viability before potential full-scale development or procurement. The physics experiments would underpin the theoretical and practical understanding required to optimize the laser's performance, power requirements, and operational parameters within a transportable platform.

Can the value of this $9.8 million contract be benchmarked against similar R&D efforts in laser technology or transportable systems?

Benchmarking this $9.8 million contract is challenging due to its specialized nature and sole-source award. Direct comparisons are difficult without knowing the specific technological maturity, scope of work, and performance metrics. However, R&D contracts for advanced defense technologies can range widely in cost. Contracts focused on early-stage feasibility studies might be in the low millions, while those involving prototype development and testing of complex systems could reach tens or hundreds of millions. The fact that this is a sole-source, CPFF contract means that external price validation is limited. A thorough benchmark would require access to detailed cost breakdowns from Applied Energetics and comparison with other DoD R&D efforts in related fields, considering factors like contractor overhead, labor rates, and material costs.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to a higher price than could be achieved through bidding. The government does not benefit from the price discovery process inherent in open competition. Secondly, the CPFF structure shifts the financial risk of cost overruns to the government. While the contractor's fee is fixed, their costs are reimbursed. If the R&D proves more expensive than initially estimated, the government will bear those additional costs, up to the contract's ceiling. This necessitates robust government oversight to monitor expenditures and ensure the contractor remains efficient and focused on achieving the project's objectives within a reasonable cost framework.

What is the track record of Applied Energetics, Inc. in performing similar government R&D contracts?

Information regarding Applied Energetics, Inc.'s specific track record with government R&D contracts of this nature is not detailed in the provided data. However, their existence as a recipient of a Department of the Navy contract suggests they possess relevant technical capabilities and have navigated the federal procurement process. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the types and values of previous contracts, and their success in delivering on those commitments. Without this detailed history, it's difficult to definitively assess their reliability and expertise for this specific R&D endeavor.

How does this contract fit into the broader landscape of US government spending on laser technology and directed energy research?

This $9.8 million contract represents a specific investment within the broader US government spending on laser technology and directed energy (DE). The Department of Defense, across its branches (Army, Navy, Air Force) and agencies like DARPA, is a major funder of DE research, driven by potential applications in areas such as missile defense, counter-drone systems, and non-lethal weapons. While this particular contract focuses on a 'transportable demonstrator vehicle,' it aligns with the strategic goal of developing mobile and versatile DE capabilities. Total government spending on DE R&D is in the hundreds of millions annually, making this contract a focused, albeit significant, contribution to that overall effort.

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

Solicitation ID: N0016407R8901

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3590 E COLUMBIA ST, TUCSON, AZ, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,839,094

Exercised Options: $9,839,094

Current Obligation: $9,839,094

Contract Characteristics

Cost or Pricing Data: NO

Timeline