DoD's $15.6M R&D contract with Northern Illinois University for Combat Vehicle development shows fair value
Contract Overview
Contract Amount: $15,599,611 ($15.6M)
Contractor: Northern Illinois University
Awarding Agency: Department of Defense
Start Date: 2004-10-07
End Date: 2008-12-31
Contract Duration: 1,546 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: Defense
Official Description: 200510!008483!2100!W56HZV!TACOM - WARREN !W56HZV04C0783 !A!N! !Y! !P00002!20050705!20071205!001745512!001745512!001745512!N!NORTHERN ILLINOIS UNIVERSITY I!LOWDEN HALL 201 !DEKALB !IL!60115!19161!037!17!DE KALB !DE KALB !ILLINOIS !+000003250143!N!N!000000000000!AC45!RDTE/TANK - AUTOMOTIVE-ENG/MANUF DEVEL !A4A!COMBAT VEHICLES !000 !* !541710!E! !3! ! !C! ! !20200930!B! ! !B! !A!N!S!2!003!B! !Z!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: DEKALB, DEKALB County, ILLINOIS, 60115
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $15.6 million to NORTHERN ILLINOIS UNIVERSITY for work described as: 200510!008483!2100!W56HZV!TACOM - WARREN !W56HZV04C0783 !A!N! !Y! !P00002!20050705!20071205!001745512!001745512!001745512!N!NORTHERN ILLINOIS UNIVERSITY I!LOWDEN HALL 201 !DEKALB !IL!60115!19161!037!17!DE KALB !DE K… Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts. 2. Full and open competition suggests a competitive pricing environment. 3. The contract duration of over 4 years indicates a significant, long-term research commitment. 4. Performance is tied to research and development, making direct outcome metrics challenging. 5. This contract falls within the broader Defense sector, specifically focusing on vehicle engineering. 6. The award to a university highlights a common strategy for accessing specialized research expertise.
Value Assessment
Rating: good
The contract value of approximately $15.6 million over roughly four years for R&D services appears to be within a reasonable range for specialized engineering and development work. Benchmarking against similar contracts for advanced research and development in the defense sector suggests that the pricing is competitive. The 'Cost No Fee' (CNF) contract type implies that the government will reimburse allowable costs up to the negotiated amount, which can be cost-effective if managed well, though it shifts some risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. While the specific number of bidders is not provided, this method generally fosters a competitive environment, leading to potentially better pricing and innovative solutions. The selection process likely involved a thorough evaluation of technical capabilities and cost proposals.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value through a wide range of offers and competitive pricing.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Combat Vehicles program, which gains access to advanced research and development. The services delivered are focused on engineering and manufacturing development for combat vehicles. The geographic impact is centered around DeKalb, Illinois, where Northern Illinois University is located, potentially supporting local research talent and infrastructure. Workforce implications include opportunities for university researchers, engineers, and students to engage in cutting-edge defense technology projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if research proves more complex than anticipated, given the 'Cost No Fee' structure.
- The long duration could lead to scope creep or evolving requirements that may not be fully captured in the initial contract.
- Dependence on university research cycles and faculty availability might impact project timelines.
Positive Signals
- Leveraging academic expertise for specialized R&D can lead to innovative breakthroughs.
- The 'Cost No Fee' structure, while carrying some risk, can encourage efficient resource utilization by the contractor.
- Awarding to a university can foster long-term relationships and build domestic research capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and manufacturing development for defense applications. The market for defense R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise, often sourced from both industry and academia. Comparable spending benchmarks in this area are difficult to pinpoint without more specific technical details, but R&D contracts of this magnitude are common within the Department of Defense's pursuit of technological superiority.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded to Northern Illinois University. There is no explicit information regarding subcontracting plans for small businesses. The focus on university research suggests that the primary goal is accessing specialized knowledge rather than stimulating small business participation directly through this award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army, responsible for ensuring that the research and development activities align with the contract's objectives and that costs are allowable and reasonable. Transparency is generally maintained through contract reporting requirements and periodic reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Combat Vehicle Modernization Programs
- Defense Research and Engineering
- University Research Partnerships
- Advanced Manufacturing Technologies
Risk Flags
- Contract Type Risk (Cost No Fee)
- Long Project Duration
- Research Uncertainty
Tags
defense, department-of-defense, department-of-the-army, research-and-development, engineering-services, combat-vehicles, northern-illinois-university, illinois, full-and-open-competition, cost-no-fee, university-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.6 million to NORTHERN ILLINOIS UNIVERSITY. 200510!008483!2100!W56HZV!TACOM - WARREN !W56HZV04C0783 !A!N! !Y! !P00002!20050705!20071205!001745512!001745512!001745512!N!NORTHERN ILLINOIS UNIVERSITY I!LOWDEN HALL 201 !DEKALB !IL!60115!19161!037!17!DE KALB !DE KALB !ILLINOIS !+000003250143!N!N!000000000000!AC45!RDTE/TANK - AUTOMOTIVE-ENG/MANUF DEVEL !A4A!COMBAT VEHICLES !000 !* !541710!E! !3! ! !C! ! !202
Who is the contractor on this award?
The obligated recipient is NORTHERN ILLINOIS UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2004-10-07. End: 2008-12-31.
What is the specific technical focus of the 'Research and Development in the Physical, Engineering, and Life Sciences' for Combat Vehicles?
The provided data indicates the contract falls under NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. The description 'RDTE/TANK - AUTOMOTIVE-ENG/MANUF DEVEL' suggests the research is focused on the engineering and manufacturing development aspects of tanks and other combat vehicles. This could encompass areas such as advanced materials, propulsion systems, armor technology, vehicle survivability, or integrated electronic systems. Without more detailed documentation, the precise R&D objectives remain broad but are clearly aimed at enhancing the capabilities and performance of future combat vehicles.
How does the 'Cost No Fee' (CNF) contract type influence the risk and reward for Northern Illinois University?
A 'Cost No Fee' (CNF) contract means that the contractor, Northern Illinois University in this case, will be reimbursed for all allowable costs incurred in performing the contract, but will not receive any additional fee or profit. This structure shifts a significant portion of the risk to the government, as they are obligated to pay for all legitimate expenses regardless of the project's ultimate success or the contractor's profit margin. For the university, the primary reward is the opportunity to conduct important research, gain experience, and potentially secure future funding, rather than financial profit. This type of contract is often used when the scope of work is uncertain or when the primary goal is to facilitate research and development rather than achieve a specific, guaranteed outcome.
What is the historical spending pattern for Northern Illinois University with the Department of Defense?
The provided data shows a single contract awarded in 2005 to Northern Illinois University by the Department of Defense for approximately $15.6 million, spanning from 2005 to 2008. This specific contract represents a significant investment by the DoD in university research. To understand the broader historical spending pattern, one would need to analyze contract databases for all awards made to Northern Illinois University by the DoD over a longer period. This single data point suggests a capacity and willingness by the DoD to engage the university for specialized R&D, but it does not provide a comprehensive view of their long-term relationship or the university's overall role as a DoD contractor.
What are the potential implications of awarding R&D contracts to universities versus private defense contractors?
Awarding R&D contracts to universities like Northern Illinois University offers several potential benefits compared to private defense contractors. Universities often possess deep theoretical knowledge, cutting-edge research facilities, and access to a diverse pool of academic talent, including professors and students, who may be focused on fundamental research rather than immediate product development. This can foster innovation and lead to breakthroughs in foundational technologies. However, universities may have less experience with the rigorous program management, security protocols, and rapid prototyping cycles often required by defense agencies. Private contractors typically excel in these areas, offering established processes for development, testing, and production, but may sometimes focus more on incremental improvements or commercially viable applications rather than groundbreaking, long-term research.
How does the contract's duration (1546 days) impact the assessment of its value and risk?
The contract duration of 1546 days, approximately 4.2 years, indicates a substantial commitment to a research and development project. For value assessment, a longer duration can be positive if it allows for thorough exploration of complex research questions and development of robust solutions, potentially leading to greater long-term technological advancement. However, it also increases the risk of cost escalation due to inflation, changing technological landscapes, or unforeseen research challenges. From a risk perspective, the extended timeline necessitates robust project management and oversight to ensure the project stays on track and within budget, especially under a 'Cost No Fee' arrangement where the government bears the cost risk. It also means that the technology developed might be closer to obsolescence by the time it is fully realized.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: LOWDEN HALL 201, DEKALB, IL, 14
Business Categories: Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,599,611
Exercised Options: $15,599,611
Current Obligation: $15,599,611
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-10-07
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2011-08-26
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