DoD's $30M R&D contract to Utah State University's Space Dynamics Lab for specialized research

Contract Overview

Contract Amount: $29,998,351 ($30.0M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2024-07-22

End Date: 2026-07-21

Contract Duration: 729 days

Daily Burn Rate: $41.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SDL UARC 22D2005 TASK ORDER #2.

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: SDL UARC 22D2005 TASK ORDER #2. Key points: 1. Contract awarded for specialized research and development, indicating a need for unique expertise. 2. The contract's duration of 729 days suggests a project requiring sustained effort and development. 3. Awarded as a 'Not Competed' action, raising questions about the justification for avoiding broader competition. 4. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost overruns if not closely monitored. 5. The specific NAICS code (541715) points to a focus on physical, engineering, and life sciences research. 6. The contract is a delivery order under a larger IDIQ, suggesting it's part of a broader strategic acquisition.

Value Assessment

Rating: questionable

Benchmarking the value of this $30 million contract is challenging without more detailed cost breakdowns and comparisons to similar specialized R&D efforts. The 'Cost Plus Fixed Fee' (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if the fixed fee is disproportionately high relative to the effort or if oversight is insufficient. Without data on the contractor's historical performance on similar contracts or a clear understanding of the unique requirements driving the cost, it's difficult to definitively assess value for money. The absence of competition further complicates a direct price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'Not Competed' justification, indicating that a full and open competition was not pursued. The specific reasons for this sole-source award are not detailed in the provided data, but typically such justifications are based on factors like unique capabilities, urgent needs, or the existence of a prior contract vehicle that limits competition. The lack of competition means that potential alternative providers were not considered, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: When a contract is not competed, taxpayers may not benefit from the cost savings that can arise from competitive bidding. This can result in the government paying a premium for goods or services that could have been acquired at a lower price through a competitive process.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive specialized research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved capabilities. The geographic impact is centered in Utah, where Utah State University's Space Dynamics Laboratory is located. The contract likely involves highly skilled researchers and scientists, contributing to the specialized workforce in the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and missed opportunities for innovative solutions from a wider market.
The 'Cost Plus Fixed Fee' structure requires robust oversight to prevent cost overruns and ensure efficient use of funds.
Limited transparency into the justification for a sole-source award hinders public understanding of procurement decisions.
The specialized nature of the R&D may make it difficult to benchmark performance and value against publicly available data.

Positive Signals

Utah State University's Space Dynamics Laboratory is a recognized research institution, suggesting a high level of technical expertise.
The contract is a delivery order under an existing IDIQ, implying a pre-vetted contractor and a streamlined acquisition process.
The long duration indicates a commitment to a specific research objective, potentially leading to significant advancements.
The focus on R&D aligns with the DoD's strategic goals for technological superiority.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized R&D services, particularly for defense applications, is often characterized by a limited number of highly specialized contractors. Government spending in this area is crucial for maintaining technological superiority, but it also presents challenges in ensuring fair pricing and broad access to opportunities. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the DoD or other federal agencies to similar institutions for comparable research areas.

Small Business Impact

This contract does not appear to have a small business set-aside provision, as indicated by 'ss': false and 'sb': false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus is on a large research institution, suggesting that the primary work will be performed by the prime contractor. This means that opportunities for small businesses to participate as subcontractors on this particular contract are unlikely unless initiated by the prime contractor independently.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a 'Cost Plus Fixed Fee' contract, rigorous financial oversight and performance monitoring are critical to ensure that costs are reasonable and that the research objectives are being met efficiently. Transparency is limited by the sole-source nature of the award, but reporting requirements within the contract itself should provide some level of insight into progress and expenditures. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Naval Research Laboratory Contracts
University Affiliated Research Centers (UARCs)
Advanced Technology Development Contracts
Science and Technology Reinvention Programs (STIRP)

Risk Flags

Sole-source award justification requires scrutiny.
Cost Plus Fixed Fee requires robust cost monitoring.
Limited public data on specific R&D objectives.
Potential for cost overruns without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. SDL UARC 22D2005 TASK ORDER #2.

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2024-07-22. End: 2026-07-21.

What is the specific research objective of this contract and why was Utah State University's Space Dynamics Laboratory selected?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. The specific research objective is not detailed, but the selection of Utah State University's Space Dynamics Laboratory (SDL) as a sole-source award suggests they possess unique capabilities, specialized facilities, or proprietary knowledge essential for this particular R&D effort. SDL is a recognized University Affiliated Research Center (UARC) with extensive experience in space science, engineering, and technology development, often supporting critical national security missions. The justification for a sole-source award would typically elaborate on these unique qualifications, demonstrating why no other source could fulfill the requirement effectively.

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

The 'Cost Plus Fixed Fee' (CPFF) contract type is common for research and development efforts where the scope of work may evolve or is not precisely defined at the outset. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable to the contract. Compared to fixed-price contracts, CPFF offers more flexibility for R&D but carries a higher risk of cost overruns if oversight is not rigorous. It differs from 'Cost Plus Incentive Fee' (CPIF) contracts, which include provisions for adjusting the fee based on performance against cost targets.

What is the historical spending pattern for Utah State University's Space Dynamics Laboratory with the Department of Defense?

While the provided data pertains to a single contract, Utah State University's Space Dynamics Laboratory (SDL) has a long-standing relationship with the Department of Defense (DoD) and other federal agencies, particularly in the realm of space science and technology. As a University Affiliated Research Center (UARC), SDL has historically received substantial funding for research and development projects supporting national security and space exploration. Analyzing SDL's contract history would reveal a pattern of significant awards, often through competitive processes but also including sole-source or limited-competition awards for specialized expertise. Their cumulative contract value with the DoD over the years likely runs into hundreds of millions, if not billions, of dollars, reflecting their critical role in advancing defense-related R&D.

What are the potential risks associated with awarding a $30 million R&D contract on a sole-source basis?

Awarding a $30 million R&D contract on a sole-source basis carries several potential risks. Firstly, the government may not achieve the best possible price due to the lack of competitive pressure, potentially leading to higher costs for taxpayers. Secondly, the absence of competition can stifle innovation by excluding potentially more capable or cost-effective solutions from other qualified contractors. Thirdly, it raises concerns about transparency and fairness in the procurement process, potentially leading to perceptions of favoritism or a lack of due diligence. Finally, without a competitive benchmark, it can be more challenging to assess the true value for money and the contractor's performance against market alternatives. Robust justification and stringent oversight are crucial to mitigate these risks.

How does this contract fit into the broader landscape of federal R&D spending, particularly within the Department of Defense?

This $30 million contract represents a small but significant portion of the Department of Defense's overall Research, Development, Test, and Evaluation (RDT&E) budget, which typically amounts to tens of billions of dollars annually. Federal R&D spending is a critical investment in maintaining national security, technological superiority, and economic competitiveness. Contracts like this, focused on specialized physical, engineering, and life sciences, contribute to the DoD's strategic goals by advancing foundational knowledge and developing cutting-edge technologies. The R&D sector is highly competitive, with significant government funding directed towards universities, non-profit research institutions (like UARCs), and private industry to foster innovation across a wide spectrum of scientific and engineering disciplines.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0017324RCT02

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 416 E INNOVATION AVE, NORTH LOGAN, UT, 84341

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,999,969

Exercised Options: $29,999,969

Current Obligation: $29,998,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0017322D2005

IDV Type: IDC

Timeline