DoD's $23.1M R&D contract to R Squared Engineering LLC for physical sciences research shows moderate value

Contract Overview

Contract Amount: $23,147,993 ($23.1M)

Contractor: R Cubed Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2026-09-26

Contract Duration: 730 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: SBIR PHASE III RESEARCH AND DEVELOPMENT

Place of Performance

Location: PALMETTO, MANATEE County, FLORIDA, 34221

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to R CUBED ENGINEERING LLC for work described as: SBIR PHASE III RESEARCH AND DEVELOPMENT Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a deliberate selection process. 2. The fixed-price contract type aims to control costs, but performance risks remain for R&D projects. 3. Awarded to a single contractor, R Squared Engineering LLC, highlighting specialized capabilities. 4. The contract duration of 730 days allows for substantial project development and testing. 5. Focus on physical, engineering, and life sciences research aligns with critical defense needs. 6. Geographic concentration in Florida may indicate regional R&D strengths or specific facility requirements.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables. However, the $23.1 million award over two years for specialized research suggests a significant investment. Comparing it to similar R&D contracts within the Department of Defense for physical sciences would provide better context on whether the pricing reflects market rates for such advanced research and development efforts. The firm fixed-price structure implies a degree of cost certainty for the government, but the inherent risks in R&D could lead to cost overruns if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific criteria or circumstances led to the exclusion of certain potential sources before the final selection. The exact reasons for this exclusion are not detailed, but it suggests a more targeted procurement than a completely unrestricted open competition. The number of bidders is not specified, making it difficult to fully assess the breadth of competition and its impact on price discovery.

Taxpayer Impact: This procurement method, while potentially efficient for specialized needs, may limit the number of competitive offers received, potentially impacting the government's ability to secure the lowest possible price for taxpayers.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advancements in physical, engineering, and life sciences research. This contract supports the development of new technologies and scientific understanding crucial for national security. The research conducted could lead to improved defense capabilities and operational effectiveness. The contract is geographically focused in Florida, potentially benefiting the local R&D ecosystem and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D projects inherently carry a risk of not achieving desired outcomes within the allocated budget or timeline.
The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access.
Lack of specific performance metrics makes it difficult to assess the true value and success of the research.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
The two-year duration allows for substantial progress on complex research objectives.
Awarding to a single entity suggests specialized expertise is being leveraged for a critical need.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, driving advancements in materials, systems, and operational concepts. The market for defense R&D is characterized by high specialization, significant government investment, and a focus on long-term technological superiority. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar scientific research areas, considering factors like project scope, duration, and contractor expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to R Squared Engineering LLC, it is unlikely to directly benefit small businesses through set-asides. However, the prime contractor may engage small businesses as subcontractors for specialized services or supplies, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, a component of the Department of Defense. Accountability measures would be embedded in the contract's terms, including reporting requirements and performance milestones. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

SBIR Phase III Research and Development
Department of Defense Research and Development Contracts
Physical Sciences Research
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Competition Method: 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' requires further clarification on the rationale for exclusion.
R&D Risk: Inherent uncertainties in research and development projects can lead to budget and schedule overruns.
Performance Metrics: Lack of clearly defined, measurable performance indicators makes objective assessment of success difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to R CUBED ENGINEERING LLC. SBIR PHASE III RESEARCH AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is R CUBED ENGINEERING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-09-26.

What is the track record of R Squared Engineering LLC in securing and successfully completing government R&D contracts, particularly within the Department of Defense?

A thorough review of R Squared Engineering LLC's contract history with the federal government, particularly the Department of Defense, is essential. This would involve examining past awards, contract values, performance reviews, and any reported issues or successes. Understanding their experience with similar R&D projects, especially those involving physical, engineering, and life sciences, would provide insight into their capability to deliver on this current $23.1 million contract. A history of successful project completion and positive performance feedback would indicate a lower risk profile, while a pattern of delays, cost overruns, or unmet objectives would raise concerns about their ability to execute this complex R&D effort effectively within the specified timeline and budget.

How does the $23.1 million value of this contract compare to other R&D contracts awarded by the Department of Defense for similar research areas over the past five years?

To benchmark the value of this $23.1 million contract, a comparative analysis of similar Department of Defense (DoD) R&D contracts awarded over the last five years is necessary. This analysis should focus on contracts within the physical, engineering, and life sciences domains, with similar durations (approximately two years) and contract types (firm fixed-price). Examining the average award values, the range of spending, and the scope of work for comparable contracts would help determine if $23.1 million represents a fair market price for the anticipated research. If this contract's value is significantly higher or lower than the average for comparable projects, it could indicate potential overpricing, underfunding, or a unique scope of work that warrants further investigation.

What are the specific risks associated with this firm fixed-price R&D contract, and what mitigation strategies are in place?

Firm fixed-price contracts, while offering cost certainty, present inherent risks in R&D due to the unpredictable nature of scientific discovery and technological development. Key risks include the contractor potentially cutting corners to stay within budget, the possibility of scope creep if requirements are not clearly defined, and the risk that the research may not yield the desired outcomes within the allocated funds. Mitigation strategies should include robust project management by the government, clear and detailed statement of work, regular progress reviews, and well-defined milestones. The contract's structure should also allow for flexibility in addressing unforeseen technical challenges while maintaining cost control. The 'exclusion of sources' in the competition also introduces a risk that potentially more innovative or cost-effective solutions were not considered.

What are the expected program effectiveness and outcomes of this R&D contract, and how will they be measured?

The expected program effectiveness and outcomes of this R&D contract are centered on advancing knowledge and developing capabilities within the physical, engineering, and life sciences for defense applications. Specific outcomes would ideally be detailed in the contract's statement of work, outlining deliverables such as prototypes, research reports, data sets, or new methodologies. Measurement of effectiveness would rely on predefined metrics and milestones, such as the successful demonstration of a technology, the validation of a scientific theory, or the achievement of specific performance targets. Regular technical reviews and final project assessments by the contracting agency will be crucial for evaluating whether the research objectives were met and if the investment yielded the intended advancements for national security.

What are the historical spending patterns for R&D contracts in physical, engineering, and life sciences by the Department of the Navy, and how does this award fit within those trends?

Analyzing historical spending patterns for R&D contracts in physical, engineering, and life sciences by the Department of the Navy (DoN) is crucial for contextualizing this $23.1 million award. This would involve examining the DoN's budget allocations for R&D over several fiscal years, identifying trends in contract awards by value, duration, and research focus. Understanding the typical size and frequency of such contracts will help determine if this award is an outlier or aligns with established spending trends. It also helps assess whether the DoN is consistently investing in these critical scientific areas and if the current award represents a continuation or expansion of previous efforts. This historical perspective can inform whether the current spending level is adequate or potentially excessive for the stated research objectives.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 705 10TH AVE W # 102, PALMETTO, FL, 34221

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,147,993

Exercised Options: $23,147,993

Current Obligation: $23,147,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833522G0041

IDV Type: BOA

Timeline