DoD's $7.5M R&D Contract for Physical Sciences Research Awarded to Sustainment Technologies Inc

Contract Overview

Contract Amount: $7,524,064 ($7.5M)

Contractor: Sustainment Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2026-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PART TO PROCESS AMTCHING DLIR SCM

Place of Performance

Location: DUNCAN, STEPHENS County, OKLAHOMA, 73533

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to SUSTAINMENT TECHNOLOGIES INC for work described as: PART TO PROCESS AMTCHING DLIR SCM Key points: 1. Contract focuses on advanced research and development in physical sciences, aligning with DoD's strategic innovation goals. 2. The award to Sustainment Technologies Inc. indicates a competitive selection process for specialized R&D capabilities. 3. Performance period of three years suggests a moderate-term commitment to the research objectives. 4. The contract type (Cost Plus Fixed Fee) is common for R&D where final costs are uncertain. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for technological advancement. 6. The contract's value is within a typical range for specialized R&D projects of this nature.

Value Assessment

Rating: good

The contract value of approximately $7.5 million over three years appears reasonable for specialized R&D services. Benchmarking against similar contracts in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) would provide a more precise assessment. However, given the nature of R&D, where innovation and discovery are key, the pricing structure needs to balance incentivizing the contractor with managing taxpayer funds effectively. The Cost Plus Fixed Fee structure allows for flexibility while providing a defined profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and encouraging a wider pool of contractors to offer their best value, ensuring that the government receives optimal outcomes for its investment.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive advancements in physical sciences research. The services delivered will contribute to the development of new technologies and scientific understanding relevant to national security. The geographic impact is primarily within the United States, supporting domestic innovation and research capabilities. Workforce implications include opportunities for scientists, engineers, and researchers employed by Sustainment Technologies Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
The success of R&D is inherently uncertain and may not yield desired breakthroughs within the contract period.
Reliance on a single contractor for specialized R&D may limit future competitive options if knowledge remains proprietary.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing structure.
The contractor, Sustainment Technologies Inc., has a track record that can be reviewed for performance history.
The contract is for R&D, a critical area for technological advancement and national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. This sector is crucial for innovation across various industries, including defense, technology, and manufacturing. The market for R&D services is highly specialized, with companies competing on expertise, intellectual property, and past performance. Government spending in this area often aims to foster breakthroughs that the private sector may not pursue due to high risk or long-term payoff horizons. Comparable spending benchmarks would typically be found within government R&D budgets allocated to specific scientific disciplines.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, Sustainment Technologies Inc. may choose to engage small businesses as subcontractors to leverage specialized capabilities or meet broader economic goals, which would be a positive signal for the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) and the relevant program offices within the Department of Defense. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is typically maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Defense Advanced Research Projects Agency (DARPA) Initiatives
National Science Foundation (NSF) Research Grants
Department of Energy (DOE) Scientific Research

Risk Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost escalations.
R&D outcomes are inherently uncertain; project success is not guaranteed.
Contract duration of three years may be insufficient for certain complex R&D objectives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to SUSTAINMENT TECHNOLOGIES INC. PART TO PROCESS AMTCHING DLIR SCM

Who is the contractor on this award?

The obligated recipient is SUSTAINMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-26.

What is the track record of Sustainment Technologies Inc. in performing similar R&D contracts for the Department of Defense?

Assessing the track record of Sustainment Technologies Inc. is crucial for understanding their capability to deliver on this $7.5 million R&D contract. A review of their past performance on similar contracts, particularly those involving physical sciences research and development for the DoD, would reveal their ability to meet technical requirements, manage budgets, and adhere to schedules. Data on contract awards, completion status, and any performance evaluations (e.g., CPARS reports) would provide insights into their reliability and expertise. A history of successful, on-time, and within-budget project completions would be a strong positive indicator, while a pattern of delays, cost overruns, or unmet technical specifications would raise concerns about their suitability for this new endeavor.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of value for money?

The Cost Plus Fixed Fee (CPFF) contract type is frequently used for research and development projects where the scope of work and final costs are difficult to predict precisely at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. Compared to other R&D contract types like Cost Plus Incentive Fee (CPIF), which offers bonuses for exceeding targets, or Firm-Fixed-Price (FFP), which is rare for R&D due to uncertainty, CPFF offers a balance. It provides flexibility for evolving research needs while offering a predictable profit margin for the contractor. For taxpayers, value for money depends heavily on robust oversight to ensure costs are reasonable and the fixed fee is appropriate for the risk and effort involved.

What are the key performance indicators (KPIs) likely to be used to measure the success of this R&D contract?

Key Performance Indicators (KPIs) for this R&D contract will likely focus on the scientific and technical progress achieved, rather than purely financial metrics, given its nature. These could include milestones related to research breakthroughs, successful experimentation, development of prototypes or models, and the generation of intellectual property. Specific, measurable, achievable, relevant, and time-bound (SMART) goals will be established in the contract's Statement of Work (SOW). For example, KPIs might track the successful validation of a new scientific principle, the efficiency improvement demonstrated by a developed technology, or the timely submission of research reports and findings. The 'OK' status for 'st' (status) and 'sn' (state) suggests no immediate performance issues, but ongoing monitoring of these R&D-specific KPIs will be essential throughout the contract's duration.

Are there any specific technological areas within physical sciences that this contract is likely targeting?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is broad. Without further details on the specific task order or statement of work, it's difficult to pinpoint exact technological areas. However, 'physical sciences' typically encompass disciplines like physics, chemistry, materials science, and earth sciences. Potential targets could include advanced materials development, novel energy storage solutions, quantum computing research, advanced sensor technologies, or fundamental research in areas like fluid dynamics or thermodynamics, all of which have significant implications for defense capabilities and technological advancement.

What is the historical spending trend for R&D contracts under NAICS code 541715 by the Department of Defense?

Historical spending trends for R&D contracts under NAICS code 541715 by the Department of Defense are generally substantial, reflecting the DoD's continuous need for technological superiority. The DoD is consistently one of the largest federal agencies awarding contracts in this category, driven by national security imperatives. Spending in this area fluctuates based on strategic priorities, emerging threats, and budget allocations. While this specific $7.5 million contract is a modest portion of the overall DoD R&D budget, it represents a commitment to advancing foundational scientific knowledge and engineering capabilities. Analyzing aggregated spending data for this NAICS code over several fiscal years would reveal patterns of investment in specific scientific domains and the overall scale of DoD's R&D endeavors.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7576 N HIGHWAY 81, DUNCAN, OK, 73533

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

Financial Breakdown

Contract Ceiling: $7,524,064

Exercised Options: $7,524,064

Current Obligation: $7,524,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline