Dod's $7.17M R&D Contract for Geospace Remote Sensing Awarded to Computational Physics, Inc

Contract Overview

Contract Amount: $7,173,306 ($7.2M)

Contractor: Computational Physics, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-01

End Date: 2027-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $3.9K/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: GEOSPACE REMOTE SENSING R&D, ENGINEERING.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.2 million to COMPUTATIONAL PHYSICS, INC. for work described as: GEOSPACE REMOTE SENSING R&D, ENGINEERING. Key points: 1. Contract awarded for advanced remote sensing research and development. 2. Focus on physical, engineering, and life sciences R&D. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Long duration of 5 years suggests a complex, multi-phase project. 5. Awarded by the Department of the Navy, a significant defense spender. 6. The contract is for R&D in a highly specialized scientific field.

Value Assessment

Rating: fair

The contract's value of $7.17 million over five years averages to approximately $1.43 million annually. Benchmarking this against similar R&D contracts in specialized fields like remote sensing is challenging without more specific data on the scope of work. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's allowable costs plus a fixed fee, which can sometimes lead to less price discipline compared to fixed-price contracts. However, for R&D, this structure can be appropriate to incentivize innovation and manage uncertainty.

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 a broad solicitation may have occurred, specific sources were excluded, potentially limiting the competitive pool. The number of bidders is not specified, but the exclusion of sources suggests a less robust competition than a truly full and open process. This could impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Limited competition may result in higher prices for taxpayers as the government might not receive the most cost-effective proposals. It also raises questions about whether all capable vendors had a fair opportunity to bid.

Public Impact

The Department of Defense benefits from advancements in remote sensing technology for intelligence, surveillance, and reconnaissance. Services delivered include research and development in physical, engineering, and life sciences related to geospace. The geographic impact is primarily within the United States, supporting national security interests. Workforce implications include highly skilled scientists and engineers in specialized R&D roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
CPFF contract type carries inherent risk of cost overruns.
Exclusion of sources may limit access to innovative solutions.

Positive Signals

Focus on critical R&D for national security.
Long-term contract allows for sustained research efforts.
Award to a specialized firm suggests expertise in the field.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to geospace remote sensing. The market for such specialized R&D is often characterized by a limited number of highly qualified firms. Comparable spending benchmarks are difficult to establish without knowing the precise technological advancements sought, but defense R&D spending in this area is significant, driven by national security requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of geospace remote sensing R&D, it is unlikely that small businesses would be the primary awardees unless they are highly specialized subcontractors. The impact on the small business ecosystem would be minimal unless specific subcontracting plans are mandated and fulfilled.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract awards databases, though specific project details may be sensitive for national security reasons. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) projects
National Reconnaissance Office (NRO) programs
National Oceanic and Atmospheric Administration (NOAA) research
NASA Earth Science Division programs

Risk Flags

Limited competition
Cost Plus Fixed Fee contract type
Potential for technological obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.2 million to COMPUTATIONAL PHYSICS, INC.. GEOSPACE REMOTE SENSING R&D, ENGINEERING.

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 $7.2 million.

What is the period of performance?

Start: 2022-02-01. End: 2027-01-31.

What is the specific technological advancement sought by the Department of the Navy in geospace remote sensing?

The provided data does not specify the exact technological advancement sought. However, 'GEOSPACE REMOTE SENSING R&D, ENGINEERING' suggests a focus on understanding and monitoring phenomena related to Earth's atmosphere, ionosphere, magnetosphere, and their interactions with space. This could encompass areas like satellite-based observation systems, advanced sensor development, data processing algorithms for space weather prediction, or improved methods for detecting and characterizing objects in near-Earth space. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541715) further indicates a broad scope within scientific and engineering disciplines.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are its implications?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not fully defined or is subject to significant uncertainty. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred and pays a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set upfront, and from cost-reimbursement contracts with incentive fees. CPFF incentivizes the contractor to control costs to maximize their fee, but it also places the risk of cost overruns on the government. For R&D, it allows for flexibility to explore innovative approaches without the contractor bearing the full financial risk of failure, which can encourage more ambitious research.

What is the track record of COMPUTATIONAL PHYSICS, INC. with government contracts, particularly in R&D?

Information on COMPUTATIONAL PHYSICS, INC.'s specific track record with government contracts, especially within the Department of Defense or for geospace remote sensing R&D, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any reported issues or successes on previous government awards. Their award on this $7.17 million contract suggests they possess the necessary qualifications and capabilities deemed essential by the Department of the Navy for this specialized R&D effort. Further due diligence would involve examining their financial stability and technical expertise in related fields.

What are the potential risks associated with a 5-year contract duration for this type of R&D?

A 5-year duration for a geospace remote sensing R&D contract presents several potential risks. Firstly, technological advancements can occur rapidly; by the end of the contract, the developed technologies might be outdated or superseded by newer innovations. Secondly, the extended timeline increases the risk of scope creep or shifts in program priorities within the Department of Defense, potentially leading to contract modifications or inefficiencies. Thirdly, maintaining consistent performance and motivation from the contractor over such a long period can be challenging. Finally, the longer the contract, the greater the cumulative financial exposure for the government, making effective oversight and performance management crucial throughout its life.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' classification impact the competitive landscape and potential value for money?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' classification indicates a nuanced approach to competition. While it suggests an initial broad solicitation, the subsequent exclusion of specific sources implies that only a subset of potential offerors were considered for the final award. This can limit the diversity of proposals received and potentially reduce the pressure on bidders to offer the most competitive pricing. The value for money achieved under such a scenario depends heavily on the justification for excluding sources and whether the remaining pool still offered sufficient competition to drive down costs and encourage innovation. If the exclusions were arbitrary or unnecessary, it could lead to suboptimal outcomes for the government and taxpayers.

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 › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N0017321RRJ05

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8001 BRADDOCK RD STE 210, SPRINGFIELD, VA, 22151

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

Financial Breakdown

Contract Ceiling: $12,691,413

Exercised Options: $12,691,413

Current Obligation: $7,173,306

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline