DoD's $15.6M R&D Contract with Frontier Technology Inc. Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $15,569,182 ($15.6M)
Contractor: Frontier Technology Inc
Awarding Agency: Department of Defense
Start Date: 2019-07-12
End Date: 2024-07-11
Contract Duration: 1,826 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: EPLM
Place of Performance
Location: PORT HUENEME, VENTURA County, CALIFORNIA, 93041
Plain-Language Summary
Department of Defense obligated $15.6 million to FRONTIER TECHNOLOGY INC for work described as: EPLM Key points: 1. Significant R&D spending on a single vendor raises questions about market alternatives. 2. The 'NOT COMPETED' award method limits price discovery and potentially inflates costs. 3. Lack of small business participation noted, despite potential for specialized R&D support. 4. The contract's duration and cost-plus structure warrant close monitoring for efficiency.
Value Assessment
Rating: questionable
The contract's cost-plus fixed fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar R&D contracts awarded competitively is challenging due to the unique nature of the work and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as 'NOT COMPETED', this sole-source contract bypasses competitive procedures. This significantly limits price discovery and may lead to suboptimal pricing as there is no market pressure to ensure cost-effectiveness.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding, potentially diverting funds from other critical government needs.
Public Impact
Research and Development funding allocated without competitive bidding. Potential for higher costs due to lack of market competition. Limited opportunities for small businesses in specialized R&D sectors. Long contract duration raises concerns about sustained value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award method
- Cost-plus contract type
- Long contract duration
- No small business participation
Positive Signals
- Focus on specialized R&D
- Potential for innovation
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Federal R&D spending often involves high-risk, high-reward projects, but competitive sourcing is crucial to ensure efficient use of taxpayer funds in this sector.
Small Business Impact
The contract does not appear to involve small businesses, which is a concern given the government's emphasis on supporting small business innovation. Exploring subcontracting opportunities could enhance small business participation in future R&D efforts.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is performing efficiently and that costs are reasonable. Regular reviews of progress and expenditures are critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business involvement
- Long contract duration
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to FRONTIER TECHNOLOGY INC. EPLM
Who is the contractor on this award?
The obligated recipient is FRONTIER TECHNOLOGY 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 $15.6 million.
What is the period of performance?
Start: 2019-07-12. End: 2024-07-11.
What specific justification was provided for the sole-source award, and does it align with federal acquisition regulations for non-competitive procurements?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of sources. Without access to the specific justification document, it's impossible to verify its alignment with FAR requirements. However, the 'NOT COMPETED' designation strongly suggests a deviation from standard competitive processes, requiring a strong rationale to ensure fair pricing and value.
How does the cost-plus fixed fee structure ensure cost control and prevent potential overruns in this R&D context?
Cost-plus fixed fee contracts aim to provide the contractor with a guaranteed profit margin while covering all allowable costs. However, they can incentivize cost overruns if not closely monitored, as the contractor's profit is fixed regardless of the final cost. Robust oversight, detailed cost tracking, and clear performance metrics are essential to mitigate this risk and ensure value for money.
What are the key performance indicators (KPIs) for this contract, and how is the contractor's performance being measured against them?
Key performance indicators for R&D contracts typically focus on milestones, deliverables, technical advancements, and adherence to project timelines. The effectiveness of this contract hinges on clearly defined and measurable KPIs that reflect the project's objectives. Regular performance reviews and objective assessments are crucial to ensure the contractor is meeting expectations and delivering the intended research outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6339417R0029
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4141 COLONEL GLENN HWY STE 140, BEAVERCREEK, OH, 45431
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,583,946
Exercised Options: $28,592,962
Current Obligation: $15,569,182
Actual Outlays: $1,631,556
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6339417D0003
IDV Type: IDC
Timeline
Start Date: 2019-07-12
Current End Date: 2024-07-11
Potential End Date: 2024-07-11 00:00:00
Last Modified: 2025-12-03
More Contracts from Frontier Technology Inc
- This IS a Sbir III Contract in Support of the DOD, Stemming From Previous Sbir Phase I & II Topics Including AF06-016, MDA09-021, N05-039, N07-010, A06-035 and Osd07-Cr4. PSC Code AC62 Ended PER PSC Manual Effective OCT 2020. Replacing With PSC AC32 — $267.7M (General Services Administration)
- Life Cycle Decision Support Analysis Tools — $180.7M (Department of Defense)
- Satisfies the Minimum Guarantee — $60.2M (Department of Defense)
- Usaf Space and Missile Center (SMC) Engineering Directorate (EN) Systems Engineering and Life Cycle Decision Support Award — $50.2M (General Services Administration)
- Cyber/O1d RED Team Support Services to Support Cotf RED Team Status — $35.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)