DoD's $19.9M R&D Contract with Michigan Tech for Mobility Support Lacks Competition

Contract Overview

Contract Amount: $19,903,521 ($19.9M)

Contractor: Michigan Technological University

Awarding Agency: Department of Defense

Start Date: 2008-09-04

End Date: 2014-09-20

Contract Duration: 2,207 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: ASSURED MOBILITY AND MANEUVER SUPPORT WORK DIRECTIVES.

Place of Performance

Location: HOUGHTON, HOUGHTON County, MICHIGAN, 49931

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to MICHIGAN TECHNOLOGICAL UNIVERSITY for work described as: ASSURED MOBILITY AND MANEUVER SUPPORT WORK DIRECTIVES. Key points: 1. Significant investment in R&D for physical and engineering sciences. 2. Sole-source award to Michigan Technological University raises competition concerns. 3. Long contract duration (2008-2014) suggests ongoing research needs. 4. Time and Materials pricing structure can pose cost control challenges.

Value Assessment

Rating: fair

The contract's value of $19.9M for R&D is substantial. Benchmarking against similar research contracts is difficult without more specific details on the work performed, but the lack of competition and T&M pricing suggest potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competitive bidding on this $19.9M contract means taxpayers may not have received the best possible value, as the government did not explore alternative pricing or solutions.

Public Impact

Research into mobility and maneuver support could lead to advancements in defense technology. The long-term nature of the contract indicates a sustained need for this specific research. Potential for intellectual property developed under this contract to benefit future military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Lack of small business participation

Positive Signals

Focus on critical R&D area
Established research institution as awardee

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure value and innovation.

Small Business Impact

There is no indication of small business participation in this contract, which is a concern given the importance of supporting small businesses in government contracting.

Oversight & Accountability

The sole-source nature of this award warrants closer oversight to ensure the research objectives were met efficiently and that the pricing was reasonable given the lack of competition.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Time and Materials pricing
No small business participation
Long contract duration without clear performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to MICHIGAN TECHNOLOGICAL UNIVERSITY. ASSURED MOBILITY AND MANEUVER SUPPORT WORK DIRECTIVES.

Who is the contractor on this award?

The obligated recipient is MICHIGAN TECHNOLOGICAL 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 $19.9 million.

What is the period of performance?

Start: 2008-09-04. End: 2014-09-20.

What specific research outcomes were achieved under this $19.9M contract, and how do they align with the Department of the Army's strategic mobility and maneuver goals?

The contract aimed to support research and development in physical and engineering sciences related to mobility and maneuver. Specific outcomes would detail advancements in areas like vehicle design, operational tactics, or logistical support systems. Evaluating alignment requires comparing the contract's deliverables against documented Army modernization priorities and operational requirements in these domains.

Given the sole-source award, what justification was provided for not seeking competitive bids, and how was the reasonableness of the $19.9M price determined?

Sole-source justifications typically cite unique capabilities, proprietary technology, or urgent needs that only one source can fulfill. The reasonableness of the price would likely be assessed through cost analysis, comparing the contractor's proposed costs against historical data, industry standards, or independent cost estimates. Without access to the justification and cost analysis, it's difficult to definitively assess the pricing.

What was the impact of the Time and Materials pricing structure on the final cost of this contract, and were there mechanisms in place to control potential cost overruns?

Time and Materials (T&M) contracts can lead to higher costs if not carefully managed, as they reimburse the contractor for direct labor hours and materials used. Mechanisms to control overruns might include labor hour limitations, fixed-price components for certain tasks, or stringent oversight of timesheets and material receipts. The final cost relative to initial estimates would indicate the effectiveness of these controls.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV08R0376

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1400 TOWNSEND DR, HOUGHTON, MI, 49931

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,483,521

Exercised Options: $19,903,521

Current Obligation: $19,903,521

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline