DoD's $13.9M R&D contract with Nova Research, Inc. awarded for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $13,889,692 ($13.9M)

Contractor: Nova Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-28

End Date: 2026-07-27

Contract Duration: 1,460 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT EFFORT

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 $13.9 million to NOVA RESEARCH, INC. for work described as: RESEARCH AND DEVELOPMENT EFFORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Nova Research, Inc. is the sole awardee, indicating specific expertise or capability. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The duration of 1460 days (4 years) suggests a long-term research objective. 5. The contract falls under NAICS code 541715, a broad category for R&D services. 6. The base award amount is $9.51M, with potential for growth to the ceiling of $13.9M. 7. No small business set-aside was applied, indicating the competition was open to all eligible offerors.

Value Assessment

Rating: fair

Benchmarking the value of R&D contracts is complex due to the inherent uncertainty and specialized nature of the work. The Cost Plus Fixed Fee structure means the government pays actual costs plus a negotiated fee, which can lead to cost overruns if not managed tightly. Comparing this contract's value requires understanding the specific research objectives and the novelty of the work. Without detailed performance metrics or comparable project costs, assessing true value-for-money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the process suggests a deliberate effort to solicit proposals from a wide range of qualified entities. This approach is generally expected to yield competitive pricing and innovative solutions by allowing market forces to drive the selection of the best value.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at a fair and reasonable price through a robust bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the advancement of scientific knowledge in physical, engineering, and life sciences. The services delivered are research and development efforts, contributing to innovation and technological advancement. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications may include employment for scientists, researchers, and support staff at Nova Research, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
The broad scope of R&D can make it difficult to define success metrics upfront, potentially leading to scope creep or unmet objectives.
Reliance on a single contractor for a multi-year R&D effort carries inherent risks if performance falters or unforeseen challenges arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely identified a capable contractor.
The contract is for R&D, which by its nature aims to push technological boundaries and create future value.
The fixed fee component provides some cost certainty for the government, as a portion of the contractor's profit is predetermined.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, a critical area for defense innovation. This sector is characterized by high specialization, significant investment, and a focus on scientific advancement. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D projects, but the Department of Defense is a major investor in this space, funding a wide array of research initiatives to maintain technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to Nova Research, Inc., without specific size information provided, suggests it may be a large business or that the competition was not restricted to small businesses. There is no explicit indication of subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve regular reviews of incurred costs, progress reports on research milestones, and performance evaluations by the contracting officer's representative. The Department of the Navy is responsible for ensuring accountability and transparency. The fixed fee component requires careful monitoring to ensure it remains commensurate with the effort and risk involved. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
R&D contracts carry inherent uncertainty in scope and outcomes.
Potential for cost overruns in CPFF structures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to NOVA RESEARCH, INC.. RESEARCH AND DEVELOPMENT EFFORT

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 $13.9 million.

What is the period of performance?

Start: 2022-07-28. End: 2026-07-27.

What is Nova Research, Inc.'s track record with the Department of Defense and similar R&D contracts?

Information regarding Nova Research, Inc.'s specific track record with the Department of Defense and its performance on similar R&D contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes. Generally, agencies assess past performance as a key factor in award decisions, but the specifics of Nova Research, Inc.'s history would need to be independently verified through contract databases and agency records. This would include examining the types of R&D projects they have undertaken, their success rates, and their adherence to budget and schedule on previous government contracts.

How does the estimated value of this contract compare to similar R&D efforts in physical, engineering, and life sciences?

Benchmarking the $13.9 million ceiling value of this R&D contract against similar efforts is challenging without more specific details on the research scope and objectives. R&D projects vary widely in complexity, duration, and required resources. However, the NAICS code 541715 covers a broad spectrum of scientific research. To provide a meaningful comparison, one would need to identify contracts with similar research areas, durations, and contract types (e.g., Cost Plus Fixed Fee) awarded by the DoD or other agencies. Factors such as the novelty of the research, the required expertise, and the potential for technological breakthroughs significantly influence contract values in this domain.

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

The primary risks with a CPFF contract for R&D include potential cost overruns if the contractor's actual costs exceed estimates, and the risk that the fixed fee may not adequately compensate for the contractor's effort or risk, or conversely, may be excessive. For R&D, the inherent uncertainty of research outcomes adds another layer of risk, making it difficult to precisely define scope and anticipate all costs. Mitigation strategies typically involve robust government oversight of contractor expenditures, detailed progress reporting, clearly defined milestones, and strong negotiation of the fixed fee based on thorough cost analysis and risk assessment. The government must actively manage the contract to ensure costs are reasonable and allocable to the contract effort.

What are the key performance indicators (KPIs) likely to be used to measure the success of this R&D contract?

Key performance indicators for this R&D contract would likely focus on the achievement of specific research objectives, technical milestones, and deliverables outlined in the contract statement of work. These could include the successful development of prototypes, validation of scientific hypotheses, generation of research data, publication of findings, or the creation of intellectual property. The timeliness of progress reports and adherence to project schedules would also be critical. Given the nature of R&D, KPIs might also encompass the innovative nature of the solutions developed and their potential for future application or transition into operational systems. The government's contracting officer's representative (COR) would typically monitor these KPIs.

How has federal spending in NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) trended over the past five years?

Federal spending within NAICS code 541715 has generally shown a consistent upward trend over the past five years, driven by significant investments from agencies like the Department of Defense, Department of Health and Human Services, and the National Science Foundation. This growth reflects a national priority on scientific advancement and technological innovation across various fields. Specific trends within sub-sectors like physical, engineering, and life sciences can fluctuate based on emerging threats, technological breakthroughs, and strategic research initiatives. Detailed analysis would require examining specific agency budgets and contract awards within this code to identify precise growth rates and areas of increased investment.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017321RZL05

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

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

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

Financial Breakdown

Contract Ceiling: $22,198,312

Exercised Options: $17,531,726

Current Obligation: $13,889,692

Actual Outlays: $70,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline