DoD Awards $8.6M R&D Contract to Zivko Aeronautics for Naval Postgraduate School Services

Contract Overview

Contract Amount: $8,663,466 ($8.7M)

Contractor: Zivko Aeronautics Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-29

End Date: 2026-03-28

Contract Duration: 1,825 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF:OT:IGF SERVICES FOR NAVAL POST GRADUATE SCHOOL.

Place of Performance

Location: MARINA, MONTEREY County, CALIFORNIA, 93933

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $8.7 million to ZIVKO AERONAUTICS INC for work described as: IGF:OT:IGF SERVICES FOR NAVAL POST GRADUATE SCHOOL. Key points: 1. Contract focuses on specialized R&D services for the Naval Postgraduate School. 2. Zivko Aeronautics Inc. is the sole awardee, raising questions about competition. 3. The contract's cost-plus-fixed-fee structure requires careful monitoring for cost overruns. 4. Spending falls within the broad R&D sector, specifically physical and engineering sciences.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs if not managed effectively. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competition.

Public Impact

Supports advanced research and development critical for naval innovation. Potential for technological advancements that could benefit national security. Limited public visibility due to the specialized nature of the R&D services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost-plus-fixed-fee contract type can incentivize cost overruns.
  • Lack of small business participation noted.

Positive Signals

  • Supports critical R&D for the Department of Defense.
  • Long-term contract duration provides stability for research efforts.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires rigorous oversight to ensure value.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting goals for small businesses. This represents a missed opportunity to support small business innovation within the defense R&D ecosystem.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and managing costs effectively. The Department of the Navy should ensure robust performance monitoring.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award
  • Cost-plus-fixed-fee contract type
  • No small business participation
  • Limited public information on specific R&D scope

Tags

research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.7 million to ZIVKO AERONAUTICS INC. IGF:OT:IGF SERVICES FOR NAVAL POST GRADUATE SCHOOL.

Who is the contractor on this award?

The obligated recipient is ZIVKO AERONAUTICS 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 $8.7 million.

What is the period of performance?

Start: 2021-03-29. End: 2026-03-28.

What specific R&D activities are encompassed by this contract, and how do they align with the Naval Postgraduate School's strategic objectives?

The contract details are limited, but it pertains to 'IGF SERVICES' for the Naval Postgraduate School. Further inquiry would be needed to ascertain the precise nature of these research and development activities and their direct contribution to the school's educational and research mission, particularly in physical, engineering, and life sciences.

Given the sole-source award, what measures are in place to mitigate the risk of inflated pricing and ensure fair market value?

As a sole-source award, price competition is absent. Mitigation strategies should include rigorous cost analysis by the contracting officer, comparison to historical data for similar services, and potentially independent cost estimates. The CPFF structure necessitates close monitoring of actual costs incurred by the contractor.

How will the effectiveness of the R&D services provided under this contract be measured and evaluated to ensure successful outcomes?

Effectiveness will likely be measured through performance metrics defined in the contract, such as milestones achieved, deliverables completed, and adherence to research protocols. Regular progress reports and technical reviews by the Naval Postgraduate School's technical point of contact are crucial for assessing the quality and impact of the R&D.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042121R0121

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 502 AIRPORT RD HANGAR 6, GUTHRIE, OK, 73044

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

Financial Breakdown

Contract Ceiling: $14,581,190

Exercised Options: $14,581,190

Current Obligation: $8,663,466

Actual Outlays: $78,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-03-29

Current End Date: 2026-03-28

Potential End Date: 2026-03-28 00:00:00

Last Modified: 2025-12-23

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