DoD spent $30.7M on optical techniques R&D with The Keyw Corporation over 6 years

Contract Overview

Contract Amount: $30,724,597 ($30.7M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2008-08-01

End Date: 2014-07-29

Contract Duration: 2,188 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 56-9006-08 OPTICAL TECHNIQUES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to THE KEYW CORPORATION for work described as: 56-9006-08 OPTICAL TECHNIQUES Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Performance period spanned six years, indicating a long-term research need. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns. 4. The contractor, The Keyw Corporation, has a history of government contracts. 5. Spending aligns with broader R&D investments in advanced defense technologies. 6. Geographic concentration in Virginia for contract performance.

Value Assessment

Rating: fair

The total award of $30.7 million over six years for optical techniques R&D appears moderate for a defense contract of this nature. Benchmarking against similar R&D contracts is challenging without more specific technical details. However, the cost-plus-fixed-fee structure warrants scrutiny, as it can lead to higher final costs compared to fixed-price contracts if not managed tightly. The absence of a specific Product or Service Code (PSC) makes direct comparison difficult, but the NAICS code suggests a focus on specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most capable and cost-effective solution. The open competition suggests a healthy market for optical techniques R&D services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to lower prices and higher quality outcomes.

Public Impact

The Department of Defense benefits from advancements in optical technologies for potential defense applications. Research and development services were delivered, contributing to the knowledge base in physical sciences. Contract performance was concentrated in Virginia, potentially impacting the local tech and research workforce. The contract supports innovation in specialized scientific fields relevant to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not carefully monitored.
Long performance periods may increase the risk of scope creep or evolving requirements.
Limited information on specific deliverables makes it hard to assess performance outcomes.
Concentration of contract value in a single contractor requires monitoring for dependency.
Lack of specific PSC code hinders detailed technical and cost benchmarking.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Contract duration of six years suggests a sustained commitment to R&D.
The contractor, The Keyw Corporation, has experience in government contracting.
Focus on R&D aligns with strategic defense technology development goals.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on optical techniques. This area is critical for advancements in defense, surveillance, and communication technologies. The market for such specialized R&D is often characterized by a mix of large defense contractors and niche research firms. Spending in this sector is driven by the need for technological superiority and innovation, with government agencies like the DoD being major clients.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) and there is no indication of subcontracting plans specifically for small businesses (sb=false). The total award value suggests it was likely awarded to a larger entity or a joint venture. The absence of set-aside provisions means that small businesses may have had limited direct opportunities through this specific contract, though they might participate as subcontractors if not explicitly excluded.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, requiring detailed reporting on costs and progress. Transparency is generally facilitated through contract award databases, but specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

Department of Defense Research and Development Contracts
Optical Technology Development Programs
Advanced Materials Research
Defense Science and Technology Programs

Risk Flags

Cost-plus-fixed-fee contract type
Long contract duration
Limited public detail on deliverables
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to THE KEYW CORPORATION. 56-9006-08 OPTICAL TECHNIQUES

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2008-08-01. End: 2014-07-29.

What was the specific nature of the 'optical techniques' researched under this contract?

The provided data does not specify the exact nature of the 'optical techniques' researched. The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' and the contract description 'OPTICAL TECHNIQUES' suggest a broad scope. This could encompass areas such as laser technology, advanced imaging, optical sensors, fiber optics, or photonic devices. Without further details from the contract's statement of work or technical reports, the precise application and advancements remain unspecified. Further investigation would require accessing contract-specific documentation or agency reports detailing the research objectives and outcomes.

How does the $30.7 million spending compare to other DoD contracts for similar R&D in optical techniques?

Comparing the $30.7 million spending to other DoD contracts for similar R&D in optical techniques is challenging without more granular data. The duration of the contract (2188 days, approximately 6 years) suggests a sustained research effort. However, the absence of a specific Product or Service Code (PSC) and detailed technical scope makes direct benchmarking difficult. Generally, R&D contracts can vary significantly in cost based on complexity, duration, and the specific technological domain. Larger, more complex projects involving cutting-edge research or system development could easily exceed this amount, while smaller, more focused studies might be less. The Keyw Corporation's history with DoD contracts might offer some internal comparison points for the agency.

What were the key performance indicators (KPIs) or deliverables for this contract, and how was performance measured?

The provided summary data does not include specific Key Performance Indicators (KPIs) or deliverables for this contract. For a Cost Plus Fixed Fee (CPFF) research and development contract, performance is typically measured against milestones outlined in the Statement of Work (SOW). These might include technical reports, prototype development, experimental results, or feasibility studies. The Defense Contract Management Agency (DCMA) would likely oversee adherence to the SOW and monitor progress. Without access to the SOW or performance reports, a detailed assessment of how performance was measured and whether it met expectations is not possible from this data alone.

What is The Keyw Corporation's track record with government contracts, particularly with the Department of Defense?

The Keyw Corporation has a history of receiving government contracts, including those with the Department of Defense. While this specific contract represents a significant award of $30.7 million over six years, it is one of many contracts the company has likely held. A comprehensive review of The Keyw Corporation's track record would involve examining its contract history across various agencies, contract types, and performance ratings. This would help assess its reliability, expertise in relevant fields (like R&D and optical techniques), and overall value proposition to the government. The fact that they were awarded this contract through full and open competition suggests they met the necessary qualifications.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how were they mitigated?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. Since the contractor is reimbursed for allowable costs plus a fixed fee, there can be less incentive to control expenses compared to fixed-price contracts. This can lead to the government paying more than initially anticipated if costs escalate. Mitigation strategies typically involve robust oversight, detailed cost tracking, clear definition of allowable costs, and regular performance reviews to ensure the contractor is managing resources efficiently. The effectiveness of these mitigation efforts would depend on the diligence of the contracting officer and the DCMA.

How does this contract's spending align with historical trends in DoD R&D spending on optical technologies?

This contract's spending of $30.7 million over six years aligns with the Department of Defense's consistent investment in Research and Development, particularly in areas like optical technologies that offer strategic advantages. DoD R&D spending fluctuates based on technological priorities, threat assessments, and budget allocations. While this specific figure represents a moderate investment, it fits within the broader context of significant annual R&D budgets allocated by the DoD. Trends often show increased spending in areas promising dual-use applications or critical advancements in sensing, communication, and targeting. This contract likely reflects a specific initiative within that larger R&D portfolio.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Keyw Holding Corporation (UEI: 961665820)

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,777,922

Exercised Options: $47,777,922

Current Obligation: $30,724,597

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline