DoD's $10.8M R&D Contract for Automotive Tech Awarded to Firefly Energy Inc
Contract Overview
Contract Amount: $10,808,086 ($10.8M)
Contractor: Firefly Energy Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-08
End Date: 2009-02-07
Contract Duration: 730 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: R&D-TANK - AUTOMOTIVE-A RES/EXPL DE
Place of Performance
Location: PEORIA, PEORIA County, ILLINOIS, 61614
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $10.8 million to FIREFLY ENERGY INC. for work described as: R&D-TANK - AUTOMOTIVE-A RES/EXPL DE Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Sole-source award to Firefly Energy Inc. raises questions about competition. 3. Significant taxpayer investment in automotive R&D. 4. Contract duration of 730 days. 5. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which can lead to cost overruns as the contractor is reimbursed for costs without a fixed profit margin. Without a competitive bid, it's difficult to assess if the $10.8M price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for the research and development services.
Public Impact
Investment in advanced automotive technology research. Potential for innovation in the automotive sector. Taxpayer funds allocated to a specific company for R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus-no-fee contract type can incentivize higher spending.
- Lack of transparency in the procurement process.
Positive Signals
- Supports critical R&D in the automotive sector.
- Potential for technological advancements.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the contractor is meeting objectives efficiently and that taxpayer funds are being used appropriately. The 'Cost No Fee' structure requires diligent monitoring of expenditures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost-plus-no-fee contract type
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in procurement
Tags
research-and-development-in-the-physical, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to FIREFLY ENERGY INC.. R&D-TANK - AUTOMOTIVE-A RES/EXPL DE
Who is the contractor on this award?
The obligated recipient is FIREFLY ENERGY INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.8 million.
What is the period of performance?
Start: 2007-02-08. End: 2009-02-07.
What specific technological advancements are expected from this $10.8M R&D investment, and how will their success be measured?
The contract details do not specify the exact technological advancements sought. Success measurement would typically involve defined milestones, prototypes, or performance metrics outlined in the contract's statement of work. Without this information, it's difficult to assess the potential return on investment or the effectiveness of the R&D effort.
Given the sole-source nature, what steps were taken to ensure Firefly Energy Inc. was the most qualified and cost-effective provider?
Sole-source awards often bypass traditional competitive bidding. While agencies may justify them based on unique capabilities or urgent needs, the absence of competition raises concerns about whether alternative providers were considered or if the pricing was benchmarked against similar R&D efforts. Robust justification and documentation are crucial for such awards.
How does the 'Cost No Fee' contract structure impact the government's ability to control spending and ensure value for money in this R&D project?
A 'Cost No Fee' contract reimburses the contractor for all allowable costs but provides no additional profit. This can incentivize contractors to incur costs without necessarily driving efficiency or innovation, as their profit isn't tied to performance or cost savings. Government oversight is critical to scrutinize costs and ensure the project remains within budget and delivers intended outcomes.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 5407 N UNIVERSITY ST STE A, PEORIA, IL, 17
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $10,808,086
Exercised Options: $10,808,086
Current Obligation: $10,808,086
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-02-08
Current End Date: 2009-02-07
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2009-09-28
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