DoD's $19M R&D contract with STARA TECHNOLOGIES, INC. awarded under full and open competition

Contract Overview

Contract Amount: $18,994,457 ($19.0M)

Contractor: Stara Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-02-01

End Date: 2015-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 25

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT SERVICES

Place of Performance

Location: GILBERT, MARICOPA County, ARIZONA, 85233

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to STARA TECHNOLOGIES, INC. for work described as: RESEARCH AND DEVELOPMENT SERVICES Key points: 1. Contract awarded for research and development services, indicating investment in innovation. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed closely. 4. The duration of 1825 days (5 years) suggests a long-term project with potential for evolving requirements. 5. The base contract value is approximately $18.99 million, with a potential for growth. 6. The contract was awarded to STARA TECHNOLOGIES, INC., a company with a track record in R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. However, for R&D, where scope can be uncertain, CPFF can be appropriate. The base award of $18.99M over 5 years averages to about $3.8M per year, which is within a reasonable range for specialized R&D services, but a detailed cost breakdown and comparison to similar R&D efforts would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 25 bids suggests a robust level of interest and competition for this R&D opportunity. A high number of bidders generally supports the government's ability to obtain competitive pricing and innovative solutions, as contractors vie to win the award.

Taxpayer Impact: A competitive award process like this is beneficial for taxpayers as it drives down prices and encourages contractors to offer their best value, ensuring that federal funds are used efficiently for research and development.

Public Impact

The primary beneficiaries are the Department of Defense, which gains access to advanced research and development capabilities. The contract supports the development of new technologies and scientific advancements within the physical, engineering, and life sciences. The geographic impact is primarily within Arizona, where STARA TECHNOLOGIES, INC. is located. The contract likely supports a workforce of scientists, engineers, and technical personnel involved in research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type may not provide sufficient incentive for cost efficiency.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the R&D.
The long contract duration could lead to scope creep or misalignment with evolving technological needs if not actively managed.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
A significant number of bids (25) suggests strong market interest and potential for competitive pricing.
The contract supports critical research and development for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The R&D sector is crucial for technological advancement and national security. Spending in this area is often characterized by long-term investments, high uncertainty, and the pursuit of novel solutions. Comparable spending benchmarks would depend heavily on the specific R&D area, but government investment in defense-related R&D is substantial and ongoing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary focus appears to be on larger, established R&D providers capable of undertaking complex research projects. The impact on the small business ecosystem would be indirect, potentially through competition for talent or by fostering innovation that could later be commercialized by smaller entities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract's terms, including reporting requirements and adherence to the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract databases and reporting, though specific R&D details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Science and Technology Support Services
Engineering and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Lack of specific performance metrics makes value assessment difficult.
R&D outcomes are inherently uncertain, posing a risk to project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to STARA TECHNOLOGIES, INC.. RESEARCH AND DEVELOPMENT SERVICES

Who is the contractor on this award?

The obligated recipient is STARA TECHNOLOGIES, 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 $19.0 million.

What is the period of performance?

Start: 2010-02-01. End: 2015-01-31.

What specific research and development activities were undertaken under this contract?

The contract, NAICS code 541712, specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' However, the provided data does not detail the specific projects or research areas pursued by STARA TECHNOLOGIES, INC. under this $18.99 million award. Typically, R&D contracts of this nature would involve activities such as theoretical analysis, experimentation, prototyping, and testing aimed at advancing scientific knowledge or developing new technologies relevant to defense applications. Without access to the contract's SOW (Statement of Work) or interim/final reports, the precise nature of the R&D remains unspecified in this dataset.

How does the $18.99 million contract value compare to similar R&D contracts awarded by the DoD?

Comparing the $18.99 million value requires context regarding the specific R&D domain and the scope of work. The Department of Defense awards a vast range of R&D contracts, from small, targeted research grants to multi-billion dollar programs. For a 5-year contract focused on physical, engineering, or life sciences R&D, $18.99 million represents a moderate investment. It is not exceptionally large compared to major defense acquisition programs but is substantial enough to fund significant research efforts. Benchmarking would necessitate identifying contracts with similar NAICS codes, durations, and specific research objectives within the DoD or other federal agencies.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a CPFF contract, especially in R&D, is the potential for cost overruns. While the contractor's fee is fixed, the government bears the risk of actual costs exceeding estimates. This structure can reduce the contractor's incentive to control costs rigorously, as they are reimbursed for incurred expenses. For R&D, where outcomes and timelines can be uncertain, CPFF is often used to facilitate exploration. However, robust oversight, clear milestones, and detailed cost tracking are essential to mitigate the risk of the government paying more than necessary for the research outcomes achieved.

What was the historical spending pattern for STARA TECHNOLOGIES, INC. with the Department of Defense prior to this award?

The provided data does not include historical spending patterns for STARA TECHNOLOGIES, INC. with the Department of Defense. This specific contract was awarded in February 2010. To assess historical spending, one would need to query federal procurement databases (like FPDS or USASpending) for all contracts awarded to STARA TECHNOLOGIES, INC. by the DoD over a relevant period preceding and following this award. This would reveal the volume, value, and types of contracts previously held by the company, providing insight into their track record and relationship with the agency.

How does the competition level (25 bidders) impact the potential for innovation and cost-effectiveness?

A high number of bidders, such as the 25 received for this contract, generally indicates a healthy and competitive market for the R&D services sought. This level of competition typically drives down prices as contractors strive to offer the most attractive proposals to win the award. Furthermore, a diverse pool of bidders increases the likelihood that the government will receive a wide range of innovative approaches and technical solutions. The agency can select the proposal that best balances technical merit, cost-effectiveness, and innovative potential, ultimately benefiting the taxpayer and the advancement of defense capabilities.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 25

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 61 S WILLIAM DILLARD DR, GILBERT, AZ, 85233

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

Financial Breakdown

Contract Ceiling: $19,991,335

Exercised Options: $19,991,335

Current Obligation: $18,994,457

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline