DoD's $11.8M R&D contract for advanced computing awarded to Coherent Logix, Inc. after limited competition

Contract Overview

Contract Amount: $12,077,557 ($12.1M)

Contractor: Consistent Reasoning, Incorporated

Awarding Agency: Department of Defense

Start Date: 2004-09-22

End Date: 2007-09-26

Contract Duration: 1,099 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200412!001274!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1159 !A!N! !N! ! !20040922!20051230!118514855!118514855!118514855!N!COHERENT LOGIX, INCORPORATED !101 WEST 6TH STREET, SUITE!AUSTIN !TX!78701!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000364999!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !N!Z!A!N!J!2!002!K! !Z!N!Z! ! !N!B!N!N! ! !A! !B!A!00 !C!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WEST LAKE HILLS, TRAVIS County, TEXAS, 78746

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to CONSISTENT REASONING, INCORPORATED for work described as: 200412!001274!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1159 !A!N! !N! ! !20040922!20051230!118514855!118514855!118514855!N!COHERENT LOGIX, INCORPORATED !101 WEST 6TH STREET, SUITE!AUSTIN !TX!78701!05000!453!48!AUSTIN !TRAV… Key points: 1. The contract's value of $11.8 million for research and development in advanced computing appears reasonable given the specialized nature of the work. 2. Competition was limited, with only two bidders, which may have impacted price discovery and potentially led to a higher cost than a fully open competition. 3. The contract carries moderate risk due to the R&D nature, which inherently involves uncertainty in outcomes and timelines. 4. Performance context is within the Department of Defense's research initiatives, focusing on advanced computing capabilities. 5. The contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' sector, specifically targeting advanced computing. 6. The duration of 1099 days suggests a substantial project requiring sustained effort and development.

Value Assessment

Rating: fair

The contract value of $11.8 million for R&D in advanced computing is difficult to benchmark precisely without more data on comparable projects. However, given the specialized nature of developing advanced computing solutions for defense applications, the price appears within a plausible range. The firm-fixed-price structure suggests the government aimed to control costs, but the limited competition might have prevented achieving the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. Only two bidders participated in this process. This level of competition suggests that the market for this specific advanced computing solution might be niche, or that the pre-qualification process limited the pool of potential offerors. Limited competition can sometimes lead to less aggressive pricing.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing that a broader solicitation could have yielded. The government may have paid a premium due to the restricted number of viable offerors.

Public Impact

The primary beneficiaries are the Department of Defense, which will receive advanced computing capabilities to enhance its operational effectiveness. The services delivered include research and development in advanced computing, likely focusing on areas such as high-performance computing, artificial intelligence, or specialized processing. The geographic impact is primarily within the United States, with the contractor based in Austin, Texas, and the work supporting national defense initiatives. Workforce implications include employment for specialized engineers, researchers, and technical staff at Coherent Logix, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher costs for taxpayers.
The R&D nature of the contract introduces inherent uncertainty in project success and timely delivery.
Reliance on a single contractor for specialized advanced computing solutions could pose a long-term dependency risk.

Positive Signals

The contract is with a single entity, Coherent Logix, Inc., which may indicate specialized expertise in advanced computing.
The firm-fixed-price contract type provides cost certainty for the government.
The project duration of over three years suggests a commitment to developing a robust solution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced computing. The market for specialized defense-related computing solutions is often characterized by high barriers to entry due to intellectual property, security requirements, and the need for highly skilled personnel. Comparable spending benchmarks are difficult to establish without more specific details on the technology being developed, but R&D contracts of this magnitude are common within the DoD's pursuit of technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The focus on advanced computing R&D might inherently favor larger, more established technology firms with the necessary resources and expertise, potentially limiting opportunities for small businesses in this specific instance.

Oversight & Accountability

Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and quality standards. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified R&D outcomes. Transparency is facilitated through contract databases like FPDS, though detailed project progress reports are typically internal to the DoD.

Related Government Programs

DoD Research and Development Programs
Advanced Computing Initiatives
Defense Technology Development
Information Technology Research

Risk Flags

Limited competition may lead to higher costs.
R&D projects carry inherent technical and schedule risks.
Contract awarded after exclusion of sources requires justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to CONSISTENT REASONING, INCORPORATED. 200412!001274!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1159 !A!N! !N! ! !20040922!20051230!118514855!118514855!118514855!N!COHERENT LOGIX, INCORPORATED !101 WEST 6TH STREET, SUITE!AUSTIN !TX!78701!05000!453!48!AUSTIN !TRAVIS !TEXAS !+000000364999!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CONSISTENT REASONING, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2004-09-22. End: 2007-09-26.

What specific advanced computing capabilities is Coherent Logix, Inc. developing under this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' with a North American Industry Classification System (NAICS) code of 541710, which covers R&D in this broad category. While the contract title mentions 'TACOM - PICATINNY', suggesting a link to the U.S. Army's Tank-automotive and Armaments Command, the specific nature of the advanced computing solution is not detailed. It could range from specialized processors for sensor data analysis, AI/ML algorithm development for battlefield intelligence, or high-performance computing for simulation and modeling. Further investigation into contract line item numbers (CLINs) or related technical documentation would be necessary to ascertain the precise technological focus.

How does the $11.8 million contract value compare to similar R&D contracts in advanced computing for defense?

Benchmarking this $11.8 million contract is challenging without more granular data on comparable advanced computing R&D efforts within the Department of Defense. However, R&D contracts in this domain can vary significantly in cost based on the technology's maturity, the scope of work, and the duration. Contracts for foundational research might be smaller, while those for developing prototypes or advanced systems could easily reach tens or hundreds of millions of dollars. Given the 1099-day duration, $11.8 million suggests a focused effort on a specific technological advancement rather than a broad, multi-year program. It appears to be a moderate-sized investment for a specialized R&D project.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract are inherent to Research and Development projects: technical feasibility (will the technology work as intended?), schedule delays (R&D can be unpredictable), and cost overruns (though mitigated by the firm-fixed-price structure). Mitigation strategies likely include rigorous project management, regular technical reviews, and clear performance metrics defined in the contract. The limited competition also presents a risk of suboptimal pricing. The DoD's mitigation for this would be careful negotiation and potentially seeking competitive proposals for future phases if this R&D is successful.

What is the track record of Coherent Logix, Inc. in performing similar defense R&D contracts?

The provided data indicates Coherent Logix, Inc. as the contractor. To assess their track record, one would need to examine their past performance on government contracts, particularly those involving advanced computing and R&D for the Department of Defense. This would involve searching contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without access to this specific performance history, it's difficult to definitively assess their capabilities and reliability for this particular project.

What was the rationale for 'Full and Open Competition After Exclusion of Sources' instead of a purely full and open competition?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) designation suggests that the agency intended to compete the requirement broadly but had specific reasons to exclude certain potential sources. This could be due to unique capabilities, proprietary technology, or specific security requirements that only a limited number of firms could meet. The agency likely published a solicitation but received proposals only from, or determined that only certain sources met the criteria for, the two bidders ultimately considered. This approach aims to balance competition with the need for specialized solutions that might not be available from all potential offerors.

How does this contract fit into the broader landscape of DoD spending on advanced computing and R&D?

This $11.8 million contract represents a small fraction of the Department of Defense's overall R&D budget, which typically runs into the tens of billions of dollars annually. However, it signifies the DoD's ongoing investment in cutting-edge technologies critical for maintaining military superiority. Spending in advanced computing, including areas like artificial intelligence, machine learning, high-performance computing, and cybersecurity, is a strategic priority. This contract likely supports a specific initiative within a larger program aimed at enhancing warfighter capabilities through technological innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 101 WEST 6TH STREET, SUITE, AUSTIN, TX, 78701

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline