DoD's $19.78M R&D contract with Applied Technology, Inc. awarded in 2008 for physical sciences research

Contract Overview

Contract Amount: $19,780,089 ($19.8M)

Contractor: Applied Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-28

End Date: 2014-08-25

Contract Duration: 2,280 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 56-9332-08

Place of Performance

Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to APPLIED TECHNOLOGY, INC. for work described as: 56-9332-08 Key points: 1. Contract awarded for research and development in physical sciences, indicating a focus on innovation. 2. The contract duration of 2280 days (approx. 6.2 years) suggests a long-term project. 3. Awarded by the Department of the Navy, aligning with defense-related research objectives. 4. The contract type 'COST PLUS FIXED FEE' can incentivize cost control while allowing for flexibility. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to specialized scientific services. 6. The contract was awarded under full and open competition, suggesting a broad search for qualified contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable R&D projects. The Cost Plus Fixed Fee (CPFF) structure means the final cost could vary, but the fixed fee provides some predictability. The initial award amount of $19.78 million for a nearly 6.2-year R&D effort suggests a moderate annual investment in research. Without more data on deliverables and outcomes, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Navy sought proposals from all responsible sources. The presence of two bidders suggests a competitive environment, though the specific details of the bidding process and the nature of the competition (e.g., number of proposals received, evaluation criteria) are not provided. This level of competition is generally favorable for price discovery.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by ensuring a wide pool of capable contractors are considered.

Public Impact

The primary beneficiaries are likely the Department of Defense and the U.S. Navy, gaining advancements in physical sciences relevant to defense applications. The contract supports research and development activities, potentially leading to new technologies or improved existing ones. The geographic impact is primarily within Virginia, where Applied Technology, Inc. is located, suggesting potential local economic benefits. The contract likely involves a workforce of scientists, engineers, and research support staff, contributing to specialized employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the R&D conducted.
The CPFF contract type can sometimes lead to cost overruns if not managed carefully, although the fixed fee component provides some control.
Limited information on the specific research areas means the strategic alignment and potential impact are not fully clear.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
The contract duration suggests a commitment to a significant research endeavor.
The NAICS code indicates a focus on specialized scientific and technical services, potentially leading to valuable innovations.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences. The R&D sector is crucial for technological advancement and national security. The Department of Defense is a major investor in R&D, with significant spending allocated to areas like advanced materials, physics, and engineering. Comparable spending benchmarks for R&D contracts can vary widely based on the specific scientific discipline and project scope, but this award represents a substantial investment in a particular area of physical sciences research.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus was on full and open competition, likely targeting larger or more specialized firms capable of undertaking complex R&D.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress towards research objectives. Transparency is facilitated by the contract award data being publicly available, though specific research outcomes and detailed financial breakdowns may be subject to proprietary or national security considerations. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Long-term R&D contracts carry inherent uncertainty regarding outcomes and technological relevance.
CPFF contract type requires diligent oversight to ensure cost control.
Limited public information on specific deliverables hinders detailed performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to APPLIED TECHNOLOGY, INC.. 56-9332-08

Who is the contractor on this award?

The obligated recipient is APPLIED TECHNOLOGY, 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 $19.8 million.

What is the period of performance?

Start: 2008-05-28. End: 2014-08-25.

What was the specific research focus of this contract?

The contract's NAICS code (541712) specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the award data does not detail the precise research subject, it indicates a focus on fundamental or applied research within physics, engineering, or life sciences, excluding biotechnology. Given the awarding agency is the Department of the Navy, the research likely aimed to address defense-related challenges or opportunities in these scientific domains, potentially involving areas like materials science, propulsion, sensor technology, or advanced manufacturing processes.

How does the $19.78 million award compare to similar R&D contracts?

Comparing this $19.78 million contract requires context on the specific R&D area and duration. For a nearly 6.2-year (2280 days) R&D effort in physical sciences awarded by the DoD, this figure represents a moderate investment. Larger, more complex R&D programs, especially those involving cutting-edge technology development or large-scale testing, can easily exceed hundreds of millions or even billions of dollars. Conversely, smaller, more focused research projects might be awarded for amounts significantly less than $20 million. Without knowing the exact scope and deliverables, it's difficult to definitively benchmark, but it suggests a substantial, multi-year commitment to a specific research objective.

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

Cost Plus Fixed Fee (CPFF) contracts for R&D present a unique risk profile. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs. While the fixed fee provides some predictability for the contractor's profit, it doesn't directly tie profit to cost savings. This can lead to scope creep or less rigorous cost management if not closely monitored. For the contractor, the risk lies in accurately estimating the allowable costs and ensuring the fixed fee adequately compensates for the effort and risk involved in R&D, which is inherently uncertain. Effective oversight and clear definition of work are crucial to mitigate these risks.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification imply about the contract's objectives?

This classification implies that the contract's objectives are centered on advancing scientific knowledge and applying it to practical problems within the physical sciences (e.g., physics, chemistry, materials science), engineering disciplines (e.g., mechanical, electrical, civil), and life sciences (e.g., biology, physiology, environmental science), with the exclusion of biotechnology. For the Department of the Navy, this suggests the research could be aimed at developing new materials for naval applications, improving engineering designs for vessels or equipment, enhancing sensor capabilities, or understanding environmental factors relevant to naval operations. The focus is on innovation and discovery that can potentially lead to technological superiority or operational advantages.

How does the contract's duration (2280 days) impact its assessment?

The contract duration of 2280 days, approximately 6.2 years, indicates a long-term commitment to a research and development project. This extended timeline is typical for R&D efforts that require significant investigation, experimentation, and iterative development. It suggests that the project is complex and may involve multiple phases or milestones. From an assessment perspective, this duration allows for deeper exploration of scientific concepts and potential for more significant breakthroughs compared to shorter-term contracts. However, it also increases the risk of project scope changes, technological obsolescence, or shifts in strategic priorities over the life of the contract, necessitating robust program management and oversight.

Industry Classification

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

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: 5384 STRAWBERRY LANE, KING GEORGE, VA, 07

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,780,089

Exercised Options: $19,780,089

Current Obligation: $19,780,089

Contract Characteristics

Cost or Pricing Data: NO

Timeline