DoD's $25.8M R&D Contract with Bascom Hunter Technologies Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $25,800,818 ($25.8M)

Contractor: Bascom Hunter Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-20

End Date: 2026-02-21

Contract Duration: 1,312 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70809

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to BASCOM HUNTER TECHNOLOGIES, INC. for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Contract value appears reasonable given the specialized nature of R&D services. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. Performance risk is moderate, typical for R&D projects with defined phases. 4. This contract supports advanced research within the physical sciences sector. 5. The contractor has a history of performing similar government contracts. 6. Geographic focus is Louisiana, with potential for local economic impact.

Value Assessment

Rating: good

The contract's total value of $25.8 million over approximately 3.5 years suggests a moderate annual spend for specialized R&D. Benchmarking against similar R&D contracts in the physical sciences is challenging due to the unique nature of each project. However, the cost-plus-fixed-fee structure implies that Bascom Hunter Technologies will be reimbursed for allowable costs plus a negotiated fixed fee, which can provide cost control if managed effectively. The initial award amount of $1.97 million indicates a phased approach to funding, allowing for oversight and adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation was broad, specific sources were later excluded. This suggests a potentially limited pool of qualified bidders. The number of bidders is not specified, but the exclusion of sources implies that the competition may not have been as robust as a truly full and open competition. This can sometimes lead to higher prices than if a wider range of competitors were involved.

Taxpayer Impact: Limited competition can mean taxpayers may not benefit from the lowest possible price achievable through maximum market participation. The government may have paid a premium due to fewer viable options.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive advanced research outcomes. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is concentrated in Louisiana, potentially creating or sustaining high-skilled jobs. The contract supports innovation and technological advancement within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
The cost-plus-fixed-fee structure requires diligent oversight to manage costs effectively.
The exclusion of sources in the competition process warrants further investigation into justification.

Positive Signals

The contract supports critical R&D objectives for the Department of the Navy.
Bascom Hunter Technologies is likely selected based on specialized expertise in the R&D domain.
The phased funding approach allows for performance monitoring and adaptive management.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This is a critical area for defense modernization, driving innovation in materials, systems, and operational capabilities. The market for defense R&D is characterized by high barriers to entry, requiring specialized knowledge, facilities, and security clearances. Spending in this area is often project-specific and driven by evolving national security requirements.

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 arising from a set-aside provision. However, the prime contractor, Bascom Hunter Technologies, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting and technical representatives. They will monitor expenditures against the contract ceiling, review progress reports, and ensure adherence to the research scope. Accountability is built into the fixed fee component, incentivizing the contractor to manage costs efficiently. Transparency may be limited due to the sensitive nature of defense R&D, but contract award details and performance metrics are typically available through federal procurement databases.

Related Government Programs

Department of Defense Research and Development
Naval Research and Development Programs
Physical Sciences Research Contracts
Engineering R&D Services
Life Sciences Research Contracts

Risk Flags

Limited competition identified.
Cost-plus contract type requires diligent oversight.
Exclusion of sources in competition needs justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to BASCOM HUNTER TECHNOLOGIES, INC.. RESEARCH AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is BASCOM HUNTER TECHNOLOGIES, 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 $25.8 million.

What is the period of performance?

Start: 2022-07-20. End: 2026-02-21.

What is the track record of Bascom Hunter Technologies with the Department of Defense?

Bascom Hunter Technologies, Inc. has a history of performing contracts with the Department of Defense. While the provided data does not detail the full scope or success of past contracts, the award of this significant R&D contract suggests a positive past performance evaluation. Federal procurement databases would contain more granular information on their prior awards, including contract types, values, and agencies served. A review of these records would reveal their experience in similar research areas and their ability to meet contractual obligations, which is crucial for assessing the risk associated with this current award.

How does the value of this contract compare to similar R&D efforts within the Navy?

Comparing the $25.8 million value of this contract to similar R&D efforts within the Navy requires access to a broader dataset of comparable contracts. R&D projects are highly variable in scope, duration, and complexity, making direct comparisons difficult. However, contracts for specialized scientific research and development, particularly those involving advanced technologies or unique methodologies, can range from a few million to tens or even hundreds of millions of dollars. The value of this contract appears moderate for a multi-year R&D initiative, suggesting it addresses a specific, defined research objective rather than a broad, exploratory program.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with this CPFF contract revolve around cost control and scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost-plus' element means the government bears the risk of allowable cost overruns. If the research proves more complex or expensive than initially anticipated, the total cost to the government could exceed initial projections. Effective oversight is critical to ensure that all costs incurred are reasonable, allocable, and necessary for the research. Scope creep, where the research objectives expand beyond the original agreement without a corresponding adjustment in price or fee, is another significant risk that requires vigilant management by the government's technical team.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for ensuring value?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value is mixed. While it starts with the intent of broad competition, the subsequent exclusion of sources inherently limits the number of potential bidders. This method is typically used when specific capabilities or security requirements necessitate a smaller, specialized pool of contractors. If the exclusion is well-justified and the remaining bidders are still competitive, good value can be achieved. However, if the exclusions are arbitrary or reduce competition too severely, it can lead to higher prices and less innovation, thereby diminishing taxpayer value compared to a truly open competition.

What is the historical spending trend for NAICS code 541715 by the Department of the Navy?

Analyzing the historical spending trend for NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of the Navy requires access to historical federal procurement data. Generally, the Department of the Navy, like other branches of the DoD, invests significantly in R&D to maintain technological superiority. Spending in this sector fluctuates based on strategic priorities, technological advancements, and budget allocations. A detailed analysis would involve examining annual spending patterns over several fiscal years to identify trends, major contract awards, and shifts in research focus within the physical, engineering, and life sciences domains.

What are the implications of the contract duration (1312 days) on project management and cost?

A contract duration of 1312 days (approximately 3.6 years) for an R&D project indicates a substantial undertaking requiring sustained effort and potentially iterative development. This longer duration allows for deeper exploration of research questions, more thorough testing, and adaptation to emerging findings. From a project management perspective, it necessitates robust planning, milestone tracking, and regular performance reviews. For cost, a longer duration can spread the overall cost over a longer period, potentially easing annual budget impacts. However, it also increases the exposure to potential cost fluctuations and the need for consistent oversight throughout the project lifecycle.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5501 BASCOM WAY, BATON ROUGE, LA, 70809

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

Financial Breakdown

Contract Ceiling: $25,800,818

Exercised Options: $25,800,818

Current Obligation: $25,800,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline