DoD's $15.3M R&D Contract Awarded to Sealaindaire Technologies Faces Competition Concerns
Contract Overview
Contract Amount: $15,315,110 ($15.3M)
Contractor: Sealandaire Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-02
End Date: 2027-12-22
Contract Duration: 1,846 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT
Place of Performance
Location: JACKSON, JACKSON County, MICHIGAN, 49203
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to SEALANDAIRE TECHNOLOGIES, INC. for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Significant R&D investment by the Department of the Navy. 2. Limited competition raises questions about price discovery and value. 3. Potential risk associated with a sole-source award for advanced research. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without a competitive benchmark, assessing the pricing's fairness against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as a sole-source contract, indicating a lack of competition. This method limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these research and development services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific R&D area could have broader implications for national security or technological advancement. Future contracts in this domain might be influenced by this sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical R&D for the Department of the Navy
- Long-term contract duration allows for sustained research efforts
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was considered or possible.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering on research objectives efficiently and that costs are reasonable. Accountability mechanisms should be robust.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition
- Cost Plus Fixed Fee contract type can inflate costs
- Lack of transparency on pricing benchmarks
- Potential for cost overruns without strict oversight
Tags
research-and-development-in-the-physical, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to SEALANDAIRE TECHNOLOGIES, INC.. RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is SEALANDAIRE 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 $15.3 million.
What is the period of performance?
Start: 2022-12-02. End: 2027-12-22.
What specific factors justified the sole-source award, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, critical need, or lack of available sources. Without detailed documentation, it's difficult to assess if alternatives were thoroughly explored. This lack of competition raises concerns about whether the government secured the best possible price and value for its investment in research and development.
How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns?
Monitoring a Cost Plus Fixed Fee contract requires rigorous financial oversight, regular audits, and clear performance metrics. The government must ensure that all costs claimed by Sealaindaire Technologies are allowable, allocable, and reasonable. Establishing a strong baseline and tracking progress against it is crucial to managing the fixed fee component effectively and mitigating potential cost escalations.
What is the expected return on investment or technological advancement from this $15.3 million R&D expenditure?
The expected return on investment for R&D contracts is often measured in terms of technological breakthroughs, enhanced capabilities, or scientific advancements. Specific deliverables and milestones should be clearly defined in the contract. Without insight into these objectives, it's challenging to quantify the ultimate value or effectiveness of this significant expenditure for the Department of the Navy.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 817 W HIGH ST, JACKSON, MI, 49203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,698,504
Exercised Options: $19,698,504
Current Obligation: $15,315,110
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833520G1049
IDV Type: BOA
Timeline
Start Date: 2022-12-02
Current End Date: 2027-12-22
Potential End Date: 2027-12-22 00:00:00
Last Modified: 2025-12-10
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