DoD's $12.1M SBIR Phase II contract for liquid hydrogen missile fuel awarded to Sentient Corp

Contract Overview

Contract Amount: $12,121,673 ($12.1M)

Contractor: Sentient Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-10

End Date: 2027-11-30

Contract Duration: 3,368 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF ARMY SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II EFFORT ENTITLED, "HIGH DENSITY LIQUID HYDROGEN MISSILE FUEL".

Place of Performance

Location: HARVEST, LIMESTONE County, ALABAMA, 35749

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to SENTIENT CORP for work described as: IGF::OT::IGF ARMY SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II EFFORT ENTITLED, "HIGH DENSITY LIQUID HYDROGEN MISSILE FUEL". Key points: 1. Contract focuses on advanced R&D for novel missile fuel technology. 2. Sentient Corp. is the sole awardee for this specific research effort. 3. Long contract duration suggests a complex, multi-year research and development process. 4. The contract type (Cost Plus Fixed Fee) is common for R&D where costs are uncertain. 5. Awarded by the Department of the Army, indicating a defense-specific application. 6. The contract is a definitive contract, suggesting a firm commitment for the specified period.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of direct comparable contracts. The Cost Plus Fixed Fee (CPFF) structure is typical for research where precise cost estimation is difficult, but it carries inherent risks of cost overruns. Without detailed cost breakdowns or performance metrics, a definitive value-for-money assessment is limited. However, the fixed fee component provides some incentive for the contractor to manage costs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the initial solicitation was broad, specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. The exact reasons for exclusion are not detailed, making it difficult to assess the true level of competition. A limited competition scenario can sometimes lead to less competitive pricing.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that a broader, more competitive bidding process might have yielded.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Army, seeking advancements in missile fuel technology. The service delivered is cutting-edge research and development in physical sciences and engineering. The geographic impact is primarily within Alabama, where Sentient Corp. is located. Workforce implications include specialized R&D jobs in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher costs for taxpayers.
The CPFF contract type can lead to cost overruns if not closely monitored.
The specialized nature of the R&D may limit the number of qualified contractors, impacting future competition.
Long contract duration increases the risk of scope creep or changing technological requirements.

Positive Signals

Focus on Small Business Innovation Research (SBIR) program aims to foster innovation from small businesses.
The contract addresses a critical defense need for advanced missile fuel.
The definitive contract structure provides stability for long-term R&D efforts.
Fixed fee component in CPFF provides some cost control incentive.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced propulsion and fuel technologies is highly specialized, often driven by government defense contracts. While precise market size data for liquid hydrogen missile fuel is not readily available, the broader aerospace and defense R&D market is substantial, with significant government investment. This contract represents a targeted investment in a niche but potentially critical area of defense technology.

Small Business Impact

While the contract is part of the Small Business Innovation Research (SBIR) program, the data indicates this is a Phase II effort. SBIR Phase II contracts are typically larger and more focused than Phase I. The contract is not explicitly a small business set-aside, but the SBIR program's intent is to foster innovation within small businesses. There is no direct information on subcontracting plans or their impact on the broader small business ecosystem from the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally limited for specific R&D projects due to proprietary and national security concerns.

Related Government Programs

Army SBIR Program
Missile Technology Development
Advanced Fuel Research
Department of Defense Research Contracts

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Long Contract Duration
Specialized R&D Area

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to SENTIENT CORP. IGF::OT::IGF ARMY SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II EFFORT ENTITLED, "HIGH DENSITY LIQUID HYDROGEN MISSILE FUEL".

Who is the contractor on this award?

The obligated recipient is SENTIENT CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2018-09-10. End: 2027-11-30.

What is the specific technological advancement sought by the Army with this contract?

The contract, "HIGH DENSITY LIQUID HYDROGEN MISSILE FUEL," indicates the Army is seeking advancements in developing a missile fuel that utilizes liquid hydrogen with a higher energy density. This could involve research into novel storage methods, fuel formulations, or combustion characteristics to improve missile performance, range, or payload capacity. The goal is likely to explore next-generation propulsion systems that offer advantages over current technologies, potentially leading to more capable and efficient missile systems for future defense applications.

How does the 'Full and Open Competition After Exclusion of Sources' process impact cost-effectiveness?

This procurement method suggests that while the initial solicitation was broad, specific criteria were used to exclude certain potential offerors before the final award. This exclusion could be based on technical capabilities, past performance, or other factors deemed critical for this specialized R&D. While it aims to ensure highly qualified contractors are considered, it inherently limits the pool of bidders compared to true full and open competition. Consequently, the government might not achieve the most competitive pricing possible, as the number of viable bidders is reduced, potentially leading to higher costs for taxpayers than if a wider range of qualified firms had competed.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

CPFF contracts are common in R&D due to the inherent uncertainty in estimating costs for novel research. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. If the contractor's actual costs exceed estimates, the government still pays those costs, plus the predetermined fee. This can lead to cost overruns if not managed diligently. However, the fixed fee does provide some incentive for the contractor to complete the work efficiently to maximize their profit margin on that fee.

What is the significance of this contract being part of the SBIR program?

This contract's inclusion under the Small Business Innovation Research (SBIR) program signifies the Department of the Army's commitment to leveraging innovation from small businesses to address specific technological needs. The SBIR program encourages small, high-tech firms to explore their technological potential and provides a pathway for them to transition their innovations into commercial products or further government development. For this Phase II effort, it indicates that Sentient Corp. likely demonstrated promising results in an earlier SBIR Phase I project, warranting further investment for more substantial research and development.

How does the contract duration (3368 days) influence risk assessment?

The extended duration of over nine years (from September 2018 to November 2027) for this R&D contract significantly increases the risk profile. Long-term research projects are susceptible to evolving technological landscapes, shifting strategic priorities within the Department of Defense, and potential changes in scientific understanding. There's a higher likelihood of scope creep, where project objectives may expand or change over time, potentially leading to cost increases and schedule delays. Furthermore, maintaining contractor focus and technical expertise over such an extended period can be challenging, requiring robust program management and oversight to ensure the project remains on track and relevant.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 27757 CRICKET LN, HARVEST, AL, 35749

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

Financial Breakdown

Contract Ceiling: $12,121,673

Exercised Options: $12,121,673

Current Obligation: $12,121,673

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline