DoD Awards $22.3M for Next-Gen Tactical Edge R&D to Fuse Integration, Inc
Contract Overview
Contract Amount: $22,273,180 ($22.3M)
Contractor: Fuse Integration, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-10
End Date: 2030-04-09
Contract Duration: 1,825 days
Daily Burn Rate: $12.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: RESEARCH AND DEVELOPMENT SERVICES FOR NEXT-GEN TACTICAL EDGE EXPERIMENTATION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92111
Plain-Language Summary
Department of Defense obligated $22.3 million to FUSE INTEGRATION, INC. for work described as: RESEARCH AND DEVELOPMENT SERVICES FOR NEXT-GEN TACTICAL EDGE EXPERIMENTATION Key points: 1. Significant investment in advanced tactical edge R&D. 2. Single award to Fuse Integration, Inc. raises competition questions. 3. Long-term contract (5 years) suggests critical, ongoing need. 4. Focus on computer systems design services within the defense sector.
Value Assessment
Rating: questionable
The contract value of $22.3M over five years for specialized R&D services needs careful benchmarking against similar DoD contracts. Without more data on the specific deliverables and the novelty of the research, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these R&D services, impacting overall taxpayer value.
Public Impact
Advancement in military technology could enhance national security capabilities. Potential for innovation in data processing and communication at the tactical edge. Long-term commitment may signal a strategic shift in defense technology investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in cost-plus contracts
- Long contract duration without clear performance metrics
Positive Signals
- Investment in critical next-generation technology
- Potential for significant technological advancements
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on computer systems design services for advanced military applications. Spending benchmarks for similar R&D efforts in defense are highly variable but typically represent a significant portion of the defense budget.
Small Business Impact
The contract was awarded to Fuse Integration, Inc. and there is no indication of small business participation. Further analysis would be needed to determine if subcontracting opportunities were explored or mandated.
Oversight & Accountability
Given the sole-source nature and the long duration, robust oversight will be crucial to ensure cost control, adherence to scope, and achievement of R&D objectives. Regular performance reviews and audits are recommended.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Cost-plus contract type can lead to cost overruns
- Long contract duration may not adapt to evolving technology
- Limited transparency on specific R&D objectives and deliverables
Tags
computer-systems-design-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.3 million to FUSE INTEGRATION, INC.. RESEARCH AND DEVELOPMENT SERVICES FOR NEXT-GEN TACTICAL EDGE EXPERIMENTATION
Who is the contractor on this award?
The obligated recipient is FUSE INTEGRATION, 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 $22.3 million.
What is the period of performance?
Start: 2025-04-10. End: 2030-04-09.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, critical urgency, or lack of available alternatives. Without specific documentation, it's presumed the Department of the Navy identified Fuse Integration, Inc. as the only viable source. Ensuring fair and reasonable pricing in such scenarios relies heavily on government cost analysis, historical data, and potentially independent cost estimates.
What are the key performance indicators (KPIs) for this R&D contract, and how will success be measured over its five-year duration?
Measuring success in R&D contracts, especially those focused on experimentation, can be challenging. Key performance indicators might include the successful development of prototypes, achievement of specific technological milestones, successful integration testing, and the generation of actionable research findings. The government must establish clear, measurable, achievable, relevant, and time-bound (SMART) goals to effectively track progress and evaluate the contractor's performance.
How does this investment align with the Department of Defense's broader strategic goals for modernizing tactical edge capabilities?
This investment likely aligns with the DoD's strategic imperative to maintain technological superiority by enhancing capabilities at the tactical edge, where data processing and decision-making are critical. Modernizing these systems aims to improve battlefield awareness, C2 capabilities, and the effectiveness of warfighters by leveraging advanced technologies like AI, machine learning, and secure communications in contested environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4863 SHAWLINE STREET SUITE D, SAN DIEGO, CA, 92111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $99,854,629
Exercised Options: $30,454,781
Current Obligation: $22,273,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042122G0002
IDV Type: BOA
Timeline
Start Date: 2025-04-10
Current End Date: 2030-04-09
Potential End Date: 2030-04-09 00:00:00
Last Modified: 2026-01-15
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