DoD's $6.7M R&D contract for remote sensing techniques awarded to Computational Physics, Inc

Contract Overview

Contract Amount: $6,708,443 ($6.7M)

Contractor: Computational Physics, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-01

End Date: 2026-02-28

Contract Duration: 2,190 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PR 72-9203-19 R&D EFFORTS FOR DEVELOPMENT AND APPLICATION OF NEW AND EXISTING TECHNIQUES FOR REMOTE SENSING

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 $6.7 million to COMPUTATIONAL PHYSICS, INC. for work described as: PR 72-9203-19 R&D EFFORTS FOR DEVELOPMENT AND APPLICATION OF NEW AND EXISTING TECHNIQUES FOR REMOTE SENSING Key points: 1. Contract value of $6.7 million for research and development in remote sensing. 2. Awarded to Computational Physics, Inc. under a full and open competition. 3. Focuses on developing and applying new techniques for remote sensing. 4. Contract duration spans from March 2020 to February 2026. 5. The North American Industry Classification System (NAICS) code 541715 indicates a focus on physical, engineering, and life sciences R&D. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee for profit. 7. The contract was awarded after exclusion of sources, suggesting a specific justification for the procurement approach.

Value Assessment

Rating: fair

The contract value of $6.7 million for R&D in remote sensing appears moderate for a multi-year federal research effort. Benchmarking against similar R&D contracts in physical sciences would provide a clearer picture of value for money. The CPFF contract type can sometimes lead to cost overruns if not managed closely, but it is appropriate for research where scope can be uncertain. The specific deliverables and milestones will be key to assessing overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the intent was open competition, specific sources were excluded, likely due to specialized capabilities or prior work. The number of bidders is not explicitly stated but the 'exclusion of sources' suggests a limited pool. This approach can sometimes lead to higher prices if the competitive pool is significantly restricted.

Taxpayer Impact: Taxpayers may not benefit from the broadest possible price competition if the exclusion of sources limited the number of capable bidders. However, if the excluded sources were not capable of performing the specialized R&D, the competition may still have been effective.

Public Impact

The Department of Defense benefits from advancements in remote sensing technology, potentially enhancing intelligence, surveillance, and reconnaissance capabilities. The contract supports research and development efforts, aiming to create new and improve existing techniques for remote sensing. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract supports specialized scientific and technical workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause warrants scrutiny to ensure fair competition and prevent potential anti-competitive practices.
CPFF contracts require diligent oversight to manage costs and ensure the fixed fee remains reasonable relative to the effort.
The specific R&D outcomes and their applicability to defense needs should be closely monitored to justify the investment.

Positive Signals

Award to a single contractor for specialized R&D can indicate a focused and efficient approach to a specific technical challenge.
The long contract duration (2020-2026) suggests a commitment to a significant research endeavor, potentially leading to substantial technological advancements.
The contract is for R&D, which is crucial for maintaining technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for remote sensing technology is driven by government and commercial demand for data acquisition and analysis. Spending in this area is critical for national security, environmental monitoring, and scientific discovery. Comparable spending benchmarks would involve analyzing other DoD R&D contracts in similar technological domains.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this award. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Computational Physics, Inc., is likely a larger entity, and the focus of this procurement was on specialized R&D capabilities rather than small business engagement.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve program managers within the Department of the Navy responsible for monitoring progress, costs, and adherence to the Statement of Work. Accountability measures would be tied to the achievement of research milestones and deliverables. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Remote Sensing Technology Initiatives
Naval Research Laboratory Contracts
Advanced Technology Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to 'exclusion of sources' clause.
Need for clear definition and tracking of R&D milestones.
Ensuring developed techniques are effectively applied and integrated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to COMPUTATIONAL PHYSICS, INC.. PR 72-9203-19 R&D EFFORTS FOR DEVELOPMENT AND APPLICATION OF NEW AND EXISTING TECHNIQUES FOR REMOTE SENSING

Who is the contractor on this award?

The obligated recipient is COMPUTATIONAL PHYSICS, 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 $6.7 million.

What is the period of performance?

Start: 2020-03-01. End: 2026-02-28.

What is the specific technical expertise of Computational Physics, Inc. in remote sensing?

Computational Physics, Inc. (CPI) is a research and development company specializing in advanced computational methods and scientific software. While the provided data doesn't detail their specific remote sensing expertise, their focus on computational physics suggests capabilities in modeling, simulation, and data analysis relevant to sensor development, signal processing, and interpretation of sensor data. Their work likely involves developing algorithms and software tools to process and analyze data acquired from various remote sensing platforms, such as satellites or aircraft. Further investigation into CPI's project portfolio and technical publications would reveal the depth and breadth of their remote sensing capabilities.

How does the 'after exclusion of sources' clause impact competition and pricing for this contract?

The 'after exclusion of sources' clause indicates that the agency initially considered full and open competition but then decided to exclude certain potential sources. This exclusion must be justified, often due to reasons like the need for specialized capabilities, proprietary technology, or urgent requirements that only specific contractors can meet. While it aims to ensure the best possible solution for a specific need, it inherently limits the competitive pool. If the excluded sources were capable of performing the work, this could lead to less price competition and potentially higher costs for the government compared to a truly open competition. The effectiveness of competition hinges on whether the remaining sources were genuinely the only ones capable of meeting the stringent requirements.

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

Cost Plus Fixed Fee (CPFF) contracts are common for research and development where the scope of work can be uncertain, making it difficult to establish a firm fixed price. The primary risk for the government is that the contractor may not have a strong incentive to control costs, as all allowable costs are reimbursed. While a fixed fee provides profit, the contractor is not directly penalized for cost overruns beyond the fee. This necessitates robust government oversight to monitor expenditures, ensure costs are reasonable and allocable, and verify that the work is progressing as planned. If not managed diligently, CPFF contracts can lead to cost growth beyond initial estimates.

What are the expected outcomes or deliverables from this R&D contract?

The contract's objective is 'R&D EFFORTS FOR DEVELOPMENT AND APPLICATION OF NEW AND EXISTING TECHNIQUES FOR REMOTE SENSING.' Specific deliverables would be detailed in the contract's Statement of Work (SOW). These typically include research reports, technical documentation, prototypes, software, algorithms, and potentially demonstrations of new techniques. The application aspect suggests that the developed techniques are intended for practical use by the Department of the Navy, likely in areas such as intelligence gathering, surveillance, reconnaissance, or environmental monitoring. The success of the contract will be measured by the successful development and demonstrable application of these advanced remote sensing techniques.

How does this contract compare to other federal spending on remote sensing R&D?

The $6.7 million award is a moderate-sized contract for R&D in a specialized field like remote sensing. Federal agencies, particularly the Department of Defense and NASA, invest significantly in remote sensing R&D, with individual contracts ranging from hundreds of thousands to tens or even hundreds of millions of dollars depending on the scope and technological maturity. This specific contract appears to focus on the development and application of techniques, suggesting it might be part of a broader portfolio of remote sensing investments. To provide a precise comparison, one would need to analyze the scope, duration, and technological focus of other similar R&D contracts within the federal government.

Industry Classification

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

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

Solicitation ID: N0017319RAL01

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8001 BRADDOCK RD, SPRINGFIELD, VA, 22151

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

Financial Breakdown

Contract Ceiling: $7,593,183

Exercised Options: $7,593,183

Current Obligation: $6,708,443

Actual Outlays: $15,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline