DARPA's Subterranean Challenge awarded $27M to Strategic Analysis, Inc. to advance subterranean mapping technologies

Contract Overview

Contract Amount: $27,019,705 ($27.0M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-21

End Date: 2023-08-20

Contract Duration: 1,825 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: DARPA SUBTERRANEAN CHALLENGE SEEKS TO ADVANCE TECHNOLOGIES THROUGH BOTH SYSTEMS AND VIRTUAL COMPETITIONS THAT WILL DRAMATICALLY OUTPERFORM CURRENT APPROACHES OF MANUALLY AND LABORIOUSLY MAPPING AND SEARCHING SUBTERRANEAN ENVIRONMENTS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to STRATEGIC ANALYSIS, INC. for work described as: DARPA SUBTERRANEAN CHALLENGE SEEKS TO ADVANCE TECHNOLOGIES THROUGH BOTH SYSTEMS AND VIRTUAL COMPETITIONS THAT WILL DRAMATICALLY OUTPERFORM CURRENT APPROACHES OF MANUALLY AND LABORIOUSLY MAPPING AND SEARCHING SUBTERRANEAN ENVIRONMENTS. Key points: 1. The contract aims to significantly improve manual and laborious mapping and searching of subterranean environments. 2. Focus on advancing technologies through both systems and virtual competitions. 3. Performance period spans five years, indicating a long-term investment in technology development. 4. The award type is a Delivery Order, suggesting it's part of a larger contract vehicle. 5. The contract is for Engineering Services, aligning with the technological development goals. 6. No small business set-asides were involved, suggesting a focus on specialized capabilities.

Value Assessment

Rating: good

The contract value of approximately $27 million over five years for advanced subterranean mapping technology development appears reasonable given the cutting-edge nature of the research. Benchmarking against similar R&D contracts in advanced robotics and AI would provide further context, but the scope suggests a significant investment in innovation. The 'COST NO FEE' contract type implies that the government will reimburse allowable costs, with the contractor's profit margin determined separately or through negotiation, which can be a fair approach for research-intensive projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive innovation and ensure that the most capable contractor is selected. The number of bidders is not specified, but the full and open nature suggests a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and more innovative solutions, maximizing the return on investment for advanced research.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other agencies requiring advanced subterranean mapping capabilities for security and exploration. The services delivered include the development and advancement of technologies for mapping and searching underground environments. The geographic impact is national, focusing on technological advancement rather than a specific physical location. Workforce implications may include highly skilled engineers, researchers, and technicians in specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in research and development projects if not closely managed.
Risk of technology not meeting performance expectations or timelines.
Dependence on a single contractor for a critical technological advancement.

Positive Signals

Awarded through full and open competition, suggesting a strong pool of qualified bidders.
Focus on advancing critical national security capabilities.
Long-term contract duration allows for sustained development and refinement of technologies.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on advanced research and development for defense applications. The market for specialized engineering services supporting defense R&D is significant, driven by the need for technological superiority. Comparable spending benchmarks would involve looking at other DARPA or DoD contracts for advanced technology development, particularly in areas like robotics, AI, and autonomous systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the nature of the work requires specialized expertise or large-scale capabilities typically found in larger, established firms. The lack of small business involvement means that opportunities for smaller innovative companies in this specific contract are limited.

Oversight & Accountability

Oversight is likely provided by the Department of Defense, potentially through the Defense Contract Management Agency (DCMA) given the contract's nature. Accountability measures would be tied to the achievement of specific technological milestones and deliverables outlined in the contract. Transparency is generally maintained through contract awards databases, though detailed project specifics may be classified or proprietary.

Related Government Programs

DARPA Advanced Robotics Programs
DoD Unmanned Systems Research
National Geospatial-Intelligence Agency (NGA) Mapping Technologies

Risk Flags

Potential for R&D project scope creep
Technological obsolescence risk
Dependency on key personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to STRATEGIC ANALYSIS, INC.. DARPA SUBTERRANEAN CHALLENGE SEEKS TO ADVANCE TECHNOLOGIES THROUGH BOTH SYSTEMS AND VIRTUAL COMPETITIONS THAT WILL DRAMATICALLY OUTPERFORM CURRENT APPROACHES OF MANUALLY AND LABORIOUSLY MAPPING AND SEARCHING SUBTERRANEAN ENVIRONMENTS.

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2018-08-21. End: 2023-08-20.

What is the track record of Strategic Analysis, Inc. in similar advanced technology development contracts?

Strategic Analysis, Inc. (SAI) has a history of supporting government agencies, including the Department of Defense, with a range of analytical and technical services. While specific details on their track record with DARPA's Subterranean Challenge are not publicly detailed in this award notice, SAI's broader portfolio often includes research, analysis, and systems engineering support for complex defense programs. Their experience likely encompasses project management, technical consulting, and contributing to the development of advanced capabilities. Further investigation into their past performance on cost-no-fee or research-intensive contracts would provide a more precise assessment of their suitability for this specific challenge.

How does the $27 million contract value compare to other DARPA R&D initiatives in advanced technology?

The $27 million contract value for DARPA's Subterranean Challenge is within a typical range for significant research and development initiatives undertaken by the agency. DARPA projects often involve substantial investment to push the boundaries of science and technology. For instance, other DARPA programs in areas like artificial intelligence, hypersonics, or advanced materials can range from tens to hundreds of millions of dollars over their lifecycle. The value reflects the complexity, duration, and specialized expertise required for developing novel solutions to challenging problems, such as advanced subterranean mapping.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract are inherent to advanced research and development: technological feasibility, schedule delays, and cost overruns. The 'COST NO FEE' contract type, while allowing flexibility, requires diligent oversight to ensure costs remain reasonable and aligned with project goals. Mitigation strategies likely include rigorous milestone tracking, regular technical reviews, and performance metrics defined in the contract. DARPA's proven project management approach, which often involves iterative development and adaptation, also serves as a key risk mitigation factor. The selection of Strategic Analysis, Inc. through full and open competition suggests a belief in their capability to manage these risks.

What is the expected effectiveness of the technologies developed under this contract for real-world subterranean operations?

The effectiveness of the technologies developed under this contract is expected to be transformative, aiming to 'dramatically outperform current approaches.' The Subterranean Challenge specifically targets the limitations of manual and laborious methods for mapping and searching underground environments, which are critical for military operations, disaster response, and infrastructure inspection. By fostering innovation through systems and virtual competitions, DARPA seeks breakthroughs in areas like autonomous navigation, sensor fusion, and real-time data processing for complex, GPS-denied environments. The success will be measured by the performance improvements demonstrated in these competitions and their potential for future operational deployment.

How has DARPA's spending on subterranean technology evolved over the past five years?

Information on DARPA's specific spending evolution on subterranean technology over the past five years is not directly available from this single contract award. However, the initiation of a significant five-year, $27 million program like the Subterranean Challenge indicates a strategic focus and likely an increase in investment in this domain. DARPA's mission is to make pivotal investments in breakthrough technologies for national security. The growing complexity of global security challenges and the increasing importance of underground infrastructure and operations suggest a sustained or growing interest in advancing capabilities in this area across the defense sector.

What are the implications of the 'COST NO FEE' contract type for contractor performance and government oversight?

The 'COST NO FEE' contract type means the government agrees to pay the contractor's allowable costs incurred in performing the contract, but the contractor does not receive a separate fee or profit on top of those costs. This structure is often used for research and development contracts where the final outcome and profit margins can be uncertain. For contractor performance, it incentivizes efficient cost management, as any savings on allowable costs directly benefit the contractor if structured with a target cost and sharing arrangement, or simply reduce the government's expenditure if it's a pure cost reimbursement. For government oversight, it necessitates robust auditing and monitoring of incurred costs to ensure they are reasonable, allocable, and allowable, requiring diligent financial management and compliance checks by the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R3146

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4075 WILSON BLVD STE 200, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $38,159,579

Exercised Options: $38,000,000

Current Obligation: $27,019,705

Actual Outlays: $568,955

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,323,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7938

IDV Type: IDC

Timeline