DoD's $13.6M R&D contract with REALLAER, L.L.C. awarded under full and open competition

Contract Overview

Contract Amount: $13,665,767 ($13.7M)

Contractor: Reallaer, L.L.C

Awarding Agency: Department of Defense

Start Date: 2007-05-21

End Date: 2013-05-20

Contract Duration: 2,191 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 55-7184-06

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to REALLAER, L.L.C for work described as: 55-7184-06 Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract was competed under a full and open process, suggesting broad market access. 3. A Cost Plus Fixed Fee (CPFF) contract type was utilized, which can incentivize cost control. 4. The contract duration was 6 years, indicating a significant, long-term research effort. 5. The award was made by the Department of the Navy, a major component of the DoD. 6. The contract was awarded in the District of Columbia. 7. The contract was not set aside for small businesses. 8. The contract value of $13.6M falls within a moderate range for R&D contracts of this duration.

Value Assessment

Rating: good

The contract value of $13.6 million over six years averages approximately $2.27 million per year. This appears reasonable for specialized research and development services within the physical, engineering, and life sciences sectors, especially considering the potential for complex, long-term projects. Benchmarking against similar R&D contracts would provide a more precise assessment, but the annual spend does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no) suggests a degree of competition, though the exact number of proposals received and their quality are not detailed. A full and open competition generally promotes price discovery and allows the government to select from the widest possible pool of qualified contractors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, which could lead to inflated costs.

Public Impact

This contract supports advancements in physical, engineering, and life sciences research, potentially benefiting national security and technological innovation. The research outcomes could lead to new technologies or improved processes for the Department of the Navy. The contract's geographic impact is centered in the District of Columbia, where the contractor is located. Workforce implications include employment for researchers, scientists, and support staff involved in the R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
Limited competition (two bidders) might indicate potential barriers to entry for other firms or a niche market.
The specific nature of the R&D is not detailed, making it difficult to assess the direct impact or potential risks.
Long contract duration (6 years) increases exposure to changing technological landscapes and potential scope creep.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
The CPFF structure, if managed well, can provide cost certainty for the government.
The contract supports critical R&D for the Department of the Navy.
The contractor, REALLAER, L.L.C., has secured a significant R&D award, indicating capability.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in the physical, engineering, and life sciences. This sector is characterized by innovation, intellectual property, and often long development cycles. Federal spending in R&D is crucial for maintaining technological superiority and driving economic growth. Comparable spending benchmarks for R&D contracts can vary widely based on the specific scientific discipline, project complexity, and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that the primary award went to a larger entity or a firm that did not qualify for small business status. The absence of small business set-asides or subcontracting plans suggests that the direct impact on the small business ecosystem for this specific contract may be limited, unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs against the fixed fee. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Department of the Navy Science and Technology Programs
Federal Research and Development Contracts
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Contract type (CPFF) requires careful cost monitoring.
Limited number of bidders may warrant further investigation into market dynamics.
R&D projects inherently carry technical and programmatic risks.
Long duration increases exposure to evolving requirements and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to REALLAER, L.L.C. 55-7184-06

Who is the contractor on this award?

The obligated recipient is REALLAER, L.L.C.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2007-05-21. End: 2013-05-20.

What is the track record of REALLAER, L.L.C. with federal contracts, particularly within the Department of Defense?

Information on REALLAER, L.L.C.'s specific track record with federal contracts, beyond this single award, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases like SAM.gov or FPDS to review past awards, performance evaluations (e.g., CPARS), and any history of contract modifications or disputes. Understanding their past performance, especially in similar R&D areas for the Department of the Navy or other DoD components, is crucial for assessing reliability and capability. Without this broader context, this $13.6 million contract represents a significant, but isolated, data point for the company's federal engagement.

How does the $13.6 million value compare to similar R&D contracts awarded by the Department of the Navy for physical, engineering, and life sciences research?

The $13.6 million contract value over a 6-year period equates to an average annual spend of approximately $2.27 million. This figure falls within a moderate range for specialized R&D efforts. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and scientific focus within the Department of the Navy's portfolio. Factors such as the novelty of the research, required expertise, and potential for technological breakthroughs can significantly influence contract values. Without access to a detailed database of comparable contracts, it's challenging to definitively state if this represents a high, low, or average investment. Nonetheless, the value does not appear exceptionally high or low at first glance for a multi-year R&D initiative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The primary risks associated with a CPFF contract type for R&D projects revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with an incentive to manage costs efficiently to maximize profit, the government bears the risk of cost overruns if the actual costs exceed the estimated costs. For R&D, where the path to success is often uncertain and unforeseen challenges are common, estimating costs accurately can be difficult. This can lead to the government paying more than initially anticipated. Additionally, the CPFF structure might incentivize the contractor to incur costs to ensure the fixed fee is covered, potentially leading to less aggressive cost management than in other contract types. Robust oversight and clear definition of work are critical to mitigate these risks.

What is the expected program effectiveness or outcome based on the contract details?

The contract details specify 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) for the Department of the Navy. The effectiveness and outcomes are inherently tied to the success of the research itself, which is not detailed. Potential outcomes could range from developing new materials, improving existing technologies, understanding complex biological processes, or creating innovative engineering solutions relevant to naval operations. The CPFF structure suggests a focus on achieving specific research objectives rather than delivering a tangible product at a fixed price. Program effectiveness will ultimately be measured by the scientific and technological advancements achieved and their applicability to the Navy's mission, which requires ongoing evaluation beyond the contract award data.

How has federal spending in R&D, particularly within the physical, engineering, and life sciences, trended over the past decade?

Federal spending in Research and Development (R&D), particularly within the physical, engineering, and life sciences, has generally seen an upward trend over the past decade, albeit with fluctuations influenced by budget priorities and economic conditions. Agencies like the Department of Defense (DoD), National Institutes of Health (NIH), and National Science Foundation (NSF) are major contributors. The DoD, specifically, invests heavily in R&D to maintain technological superiority. While overall R&D spending has grown, the allocation across different scientific disciplines can shift based on national priorities, such as advancements in AI, cybersecurity, biotechnology, and advanced materials. This specific contract aligns with the DoD's consistent focus on leveraging scientific and technological innovation for defense applications.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7440 STONE CT, SAINT LEONARD, MD, 05

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

Financial Breakdown

Contract Ceiling: $15,401,531

Exercised Options: $15,401,531

Current Obligation: $13,665,767

Contract Characteristics

Cost or Pricing Data: YES

Timeline