DoD Awards Dirac Solutions $21.4M for Wireless Inventory Automation in DLA Centers
Contract Overview
Contract Amount: $21,433,977 ($21.4M)
Contractor: Dirac Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-25
End Date: 2026-12-31
Contract Duration: 827 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: DIRAC SOLUTIONS INC. SBIR III AWARD UNDER STRATEGIC DISTRIBUTION AND DISPOSITION (SDD) BAA FOR WIRELESS INVENTORY AUTOMATION FOR DLA DISTRIBUTION CENTERS.
Place of Performance
Location: PLEASANTON, ALAMEDA County, CALIFORNIA, 94588
Plain-Language Summary
Department of Defense obligated $21.4 million to DIRAC SOLUTIONS, INC. for work described as: DIRAC SOLUTIONS INC. SBIR III AWARD UNDER STRATEGIC DISTRIBUTION AND DISPOSITION (SDD) BAA FOR WIRELESS INVENTORY AUTOMATION FOR DLA DISTRIBUTION CENTERS. Key points: 1. Significant award for R&D in physical and engineering sciences. 2. Competition method suggests potential for price discovery. 3. Fixed Price Level of Effort contract type carries some risk. 4. Focus on logistics automation aligns with modernization trends.
Value Assessment
Rating: fair
The contract value of $21.4M for a 2.6-year duration appears reasonable for a research and development effort of this nature. Benchmarking against similar R&D contracts for logistics automation is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have impacted the final price by restricting the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D to improve military logistics efficiency, which could lead to long-term cost savings.
Public Impact
Enhances efficiency and accuracy of inventory management for the Defense Logistics Agency. Potential for broader application of wireless automation in other government logistics operations. Supports innovation in supply chain technology for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Fixed Price Level of Effort contract can incentivize overspending.
- R&D outcomes are inherently uncertain.
Positive Signals
- Addresses a critical need for logistics modernization.
- Potential for significant long-term operational cost savings.
- Award supports a specific technology development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but can be subject to higher risk due to the nature of innovation.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. This suggests larger, established firms or specific technology providers were likely considered for this specialized R&D effort.
Oversight & Accountability
The award was made by the Department of Defense's Defense Logistics Agency, which has established oversight mechanisms for R&D contracts. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a justification process was followed.
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
- Limited competition may lead to higher costs.
- Fixed Price Level of Effort contract risks inefficient spending.
- R&D projects have inherent uncertainty in outcomes.
- Potential for integration challenges with existing DLA systems.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.4 million to DIRAC SOLUTIONS, INC.. DIRAC SOLUTIONS INC. SBIR III AWARD UNDER STRATEGIC DISTRIBUTION AND DISPOSITION (SDD) BAA FOR WIRELESS INVENTORY AUTOMATION FOR DLA DISTRIBUTION CENTERS.
Who is the contractor on this award?
The obligated recipient is DIRAC SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $21.4 million.
What is the period of performance?
Start: 2024-09-25. End: 2026-12-31.
What is the projected return on investment for this wireless inventory automation system?
The projected ROI is not explicitly stated in the provided data. However, the goal of such systems is typically to reduce labor costs, minimize errors, improve inventory accuracy, and speed up fulfillment times, all of which contribute to long-term cost savings and operational efficiency for the DLA.
What are the specific risks associated with the 'Fixed Price Level of Effort' contract type in this R&D context?
A Fixed Price Level of Effort contract guarantees payment for a specified level of effort, regardless of the final outcome. In R&D, this can incentivize the contractor to expend the full effort even if breakthroughs occur early or if the project proves more challenging than anticipated, potentially leading to inefficient use of funds if not closely monitored.
How will the effectiveness of the wireless inventory automation be measured and validated?
Effectiveness is likely to be measured against predefined performance metrics outlined in the contract's Statement of Work. These could include improvements in inventory accuracy rates, reduction in manual data entry errors, increased speed of inventory checks, and successful integration with existing DLA systems. Validation would involve rigorous testing and demonstration phases.
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: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 5776 STONERIDGE MALL RD STE 290, PLEASANTON, CA, 94588
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,433,977
Exercised Options: $21,433,977
Current Obligation: $21,433,977
Actual Outlays: $2,685,375
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $15,986,856
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-25
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-10
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