DoD Awards NIRON MAGNETICS $12.5M for Research and Development in Physical Sciences
Contract Overview
Contract Amount: $12,489,500 ($12.5M)
Contractor: Niron Magnetics Inc
Awarding Agency: Department of Defense
Start Date: 2023-01-11
End Date: 2026-04-04
Contract Duration: 1,179 days
Daily Burn Rate: $10.6K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: NIRON EMERGENT III AWARD
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55413
Plain-Language Summary
Department of Defense obligated $12.5 million to NIRON MAGNETICS INC for work described as: NIRON EMERGENT III AWARD Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded by the Defense Logistics Agency, part of the Department of Defense. 3. The contract value is $12,489,500 with a duration of 1179 days. 4. This award falls under the Research and Development sector, specifically NAICS 541715.
Value Assessment
Rating: fair
The contract is a firm-fixed-price award for R&D services. Benchmarking R&D contract pricing is complex due to the inherent uncertainty and innovation involved. Without specific deliverables or comparable projects, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While competed, SAP may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for advanced materials research, aiming for technological advancement in defense.
Public Impact
Potential for advancements in materials science relevant to defense applications. Investment in domestic R&D capabilities within the United States. Supports innovation in the private sector for specialized defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- R&D contracts carry inherent risk of not achieving desired outcomes.
- Lack of detailed public information on specific R&D objectives.
Positive Signals
- Supports critical R&D for national defense.
- Firm-fixed-price contract provides cost certainty.
- Awarded to a specialized company in magnetics.
Sector Analysis
This contract falls within the Research and Development sector, focusing on physical sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to high risk and long development cycles.
Small Business Impact
The award was made to NIRON MAGNETICS INC, a firm located in Minnesota. Information regarding its size status (small or large business) is not provided in the data, nor is its specific role in subcontracting.
Oversight & Accountability
Oversight would typically be managed by the Defense Logistics Agency, ensuring adherence to contract terms and milestones. Accountability for R&D outcomes rests with the contractor, NIRON MAGNETICS INC.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for R&D failure.
- Limited competition under SAP.
- Lack of detailed public scope.
- Long contract duration increases risk exposure.
Tags
research-and-development-in-the-physical, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to NIRON MAGNETICS INC. NIRON EMERGENT III AWARD
Who is the contractor on this award?
The obligated recipient is NIRON MAGNETICS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $12.5 million.
What is the period of performance?
Start: 2023-01-11. End: 2026-04-04.
What specific technological advancements is this R&D contract expected to yield for the Department of Defense?
The contract aims to advance research and development in physical sciences, likely focusing on materials like advanced magnets, as indicated by the contractor's name. Specific expected outcomes are not detailed publicly but would typically relate to enhancing defense capabilities, improving equipment performance, or developing novel applications for military use.
What are the primary risks associated with this R&D contract, and how are they being mitigated?
The primary risks include the inherent uncertainty of R&D outcomes, potential cost overruns if not managed tightly, and the possibility of the technology not meeting defense requirements. Mitigation strategies likely involve phased research objectives, regular technical reviews by the DLA, and the firm-fixed-price structure to cap costs.
How does this contract contribute to the overall effectiveness of the Department of Defense's technological capabilities?
This contract contributes by investing in cutting-edge research that could lead to next-generation defense technologies. Advancements in areas like magnetics can impact everything from power systems to sensor technology, potentially providing a significant operational advantage and maintaining the DoD's technological edge.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 650 TAFT ST NE STE 400, MINNEAPOLIS, MN, 55413
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,489,500
Exercised Options: $12,489,500
Current Obligation: $12,489,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-11
Current End Date: 2026-04-04
Potential End Date: 2026-04-04 00:00:00
Last Modified: 2025-10-27
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