DoD's $29.3M R&D contract with NOVA RESEARCH, INC. awarded under full and open competition

Contract Overview

Contract Amount: $29,315,654 ($29.3M)

Contractor: Nova Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-01

End Date: 2013-11-30

Contract Duration: 2,313 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 61-0182-07

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 $29.3 million to NOVA RESEARCH, INC. for work described as: 61-0182-07 Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Utilized a cost-plus-fixed-fee payment structure. 3. Contract duration spanned over 6 years. 4. Awarded by the Department of the Navy, indicating a focus on naval research needs. 5. The contract was competed after excluding other sources, suggesting a specific rationale for the approach. 6. No small business set-aside was applied. 7. The contract value is substantial, reflecting significant investment in R&D.

Value Assessment

Rating: fair

The contract's value of $29.3 million over 6 years represents a significant investment in R&D. Benchmarking this specific contract's value-for-money is challenging without detailed performance metrics and comparison to similar, highly specialized R&D efforts. The cost-plus-fixed-fee structure implies that costs were reimbursed, plus a predetermined profit, which can sometimes lead to less cost control compared to fixed-price contracts. However, for R&D, this structure is often necessary due to inherent uncertainties.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the initial intent was full and open competition, certain sources were later excluded. The rationale for this exclusion is not detailed but could stem from specific technical requirements, prior performance, or other factors. The limited competition aspect means that the number of potential bidders was restricted, which could impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain sources, potentially increasing the overall cost of the research.

Public Impact

The primary beneficiaries are likely the Department of the Navy and potentially the broader U.S. defense capabilities through advancements in physical, engineering, and life sciences. The services delivered are advanced research and development, aiming to push the boundaries of scientific and technological understanding. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the research outcomes could have national or global implications. Workforce implications include highly skilled scientists, engineers, and researchers employed by NOVA RESEARCH, INC. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after source exclusion may have reduced price competitiveness.
Cost-plus-fixed-fee contracts can sometimes incentivize higher spending if not closely monitored.
The specific R&D outcomes and their ultimate utility are not detailed, making value assessment difficult.

Positive Signals

Awarded to a single contractor, NOVA RESEARCH, INC., suggesting specialized expertise.
The contract duration of over 6 years indicates a long-term commitment to a specific research area.
The contract was awarded by the Department of the Navy, a major defense entity, implying strategic importance.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and capabilities. The market for specialized R&D services is often characterized by a limited number of highly qualified firms. Comparable spending benchmarks would depend heavily on the specific sub-discipline of R&D, but significant government investment in defense-related R&D is common.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of significant subcontracting to small businesses. The award to NOVA RESEARCH, INC., a single entity, suggests a focus on specialized capabilities that may not be readily available from smaller firms or that the prime contractor possesses the necessary expertise internally. This could mean limited direct opportunities for small businesses within this specific contract's scope.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures would be tied to the achievement of research milestones and adherence to the cost-plus-fixed-fee agreement. Transparency is generally facilitated through contract databases, but detailed R&D progress reports are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Naval Research Laboratory Contracts
Advanced Technology Development Contracts
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Limited competition after source exclusion
Potential for reduced price competition
Cost-plus-fixed-fee structure requires robust oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to NOVA RESEARCH, INC.. 61-0182-07

Who is the contractor on this award?

The obligated recipient is NOVA RESEARCH, 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 $29.3 million.

What is the period of performance?

Start: 2007-08-01. End: 2013-11-30.

What was the specific rationale for excluding certain sources after initially intending full and open competition?

The contract's description 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a deviation from a standard full and open process. While the exact reasons are not provided in the summary data, common justifications for excluding sources after an initial open solicitation include: the need for highly specialized knowledge or capabilities possessed by only a few remaining offerors, unique technical requirements that only certain firms could meet, or findings during the evaluation process that narrowed the field significantly. It's also possible that after initial proposals were received, a decision was made to proceed with a smaller, more focused group based on evolving project needs or a re-evaluation of technical merit. Without further documentation, the precise driver remains speculative but suggests a deliberate narrowing of the competitive pool for specific, likely technical, reasons.

How does the cost-plus-fixed-fee (CPFF) structure typically impact R&D contract costs and oversight?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common in R&D due to the inherent uncertainty and evolving nature of research projects. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure incentivizes the contractor to complete the work but provides less direct incentive for cost savings compared to fixed-price contracts. Oversight is crucial to ensure that costs are allowable, reasonable, and allocable. The government must diligently monitor expenditures, review progress reports, and ensure the contractor is operating efficiently within the scope of the research objectives. While it offers flexibility for R&D, it requires robust government oversight to manage potential cost overruns and ensure value for taxpayer money.

What are the potential risks associated with a contract awarded after excluding sources?

Awarding a contract after excluding sources, even if initially intended as full and open, carries potential risks. Primarily, it can limit the breadth of innovation and technical approaches considered, as fewer entities are involved in the final competition. This reduced competition may lead to less favorable pricing for the government, as the pressure to offer the most competitive bid is diminished. Furthermore, it raises questions about the fairness and transparency of the procurement process, potentially leading to protests or scrutiny. The rationale for exclusion must be well-documented and justifiable to ensure the government is obtaining the best value and adhering to procurement regulations.

Can the R&D outcomes of this contract be benchmarked against other similar government-funded research projects?

Benchmarking the specific R&D outcomes of this contract against other similar government-funded projects is challenging without detailed information on the research's specific focus, deliverables, and impact. While the contract falls under 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710), this is a broad category. To perform a meaningful benchmark, one would need to compare the scientific advancements, technological prototypes, patents, or publications generated by this contract against those from other DoD or agency R&D contracts in closely related fields. Factors like the novelty of the research, the stage of development (basic research vs. applied research), and the ultimate transition of findings into practical applications would be key comparison points.

What is the significance of the contract being a 'DEFINITIVE CONTRACT'?

A 'Definitive Contract' is a standard, fully negotiated contract that specifies all the terms and conditions, including price, quantity, and delivery. In the context of this R&D award, it signifies that the agreement with NOVA RESEARCH, INC. was finalized with all essential elements determined at the time of award. This contrasts with other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts, which may leave certain parameters open for future determination. For a large R&D effort spanning several years, a definitive contract provides a clear framework and commitment from both parties, establishing the scope, cost ceiling, and fee structure upfront, which is crucial for long-term planning and execution.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1900 ELKIN ST STE 230, ALEXANDRIA, VA, 22308

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $34,929,228

Exercised Options: $34,929,228

Current Obligation: $29,315,654

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline