DoD awards $9M R&D contract to CAMGIAN CORPORATION for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $8,999,837 ($9.0M)

Contractor: Camgian Corporation

Awarding Agency: Department of Defense

Start Date: 2024-03-21

End Date: 2026-03-31

Contract Duration: 740 days

Daily Burn Rate: $12.2K/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: D-HESL

Place of Performance

Location: STARKVILLE, OKTIBBEHA County, MISSISSIPPI, 39759

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $9.0 million to CAMGIAN CORPORATION for work described as: D-HESL Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. CAMGIAN CORPORATION selected for this definitive contract. 3. Contract duration spans over two years, from March 2024 to March 2026. 4. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. This award represents a specific investment within the broader R&D sector. 6. The contract is a definitive contract, suggesting a framework for future orders. 7. The base value of the contract is approximately $1.2M, with potential for growth.

Value Assessment

Rating: fair

The contract's base value of $1.2M is a starting point for R&D efforts. Without knowing the specific deliverables and the scope of work, it's difficult to benchmark the value effectively. The Cost Plus Fixed Fee structure means that costs will be reimbursed, plus a fixed fee, which can sometimes lead to less price pressure compared to fixed-price contracts. Further analysis would require understanding the specific research objectives and comparing them to similar R&D investments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potentially limited pool of bidders. The specific reasons for exclusion are not detailed, which makes it hard to assess the true level of competition and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price than if a broader range of vendors had been considered. Taxpayers may not have received the most cost-effective solution due to the restricted bidding process.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives. The contract supports advancements in physical, engineering, and life sciences research. The geographic impact is centered in Mississippi, where the contractor is located. Workforce implications may include employment opportunities for researchers and support staff at CAMGIAN CORPORATION.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation.
Cost Plus Fixed Fee contract type can incentivize higher spending.
Exclusion of sources without clear justification warrants further scrutiny.

Positive Signals

Award to a specific contractor for specialized R&D.
Definitive contract structure allows for phased research and development.
Contract supports critical research areas for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing a wide range of scientific and technological advancements. The market for R&D services is competitive, with significant government investment. Comparable spending benchmarks would depend heavily on the specific research area and the novelty of the work being undertaken.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The impact on the broader small business ecosystem is likely minimal unless CAMGIAN CORPORATION voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures would be tied to the achievement of research milestones outlined in the contract. Transparency is generally facilitated through contract databases, but specific research details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Physical Sciences Research Contracts
Engineering Research Contracts
Life Sciences Research Contracts
Definitive Contract Awards

Risk Flags

Limited competition due to source exclusion.
Cost Plus Fixed Fee structure may lead to cost overruns.
Lack of detailed scope of work for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.0 million to CAMGIAN CORPORATION. D-HESL

Who is the contractor on this award?

The obligated recipient is CAMGIAN CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2024-03-21. End: 2026-03-31.

What is the track record of CAMGIAN CORPORATION in securing and executing government R&D contracts?

Information regarding CAMGIAN CORPORATION's specific track record in securing and executing government R&D contracts is not provided in the given data. A comprehensive assessment would require reviewing their past performance on similar contracts, including client satisfaction, adherence to timelines, and budget management. Analyzing their history with the Department of Defense or other federal agencies would offer insights into their capabilities and reliability as a contractor. Without this historical data, it's difficult to gauge their experience level and past successes or failures in delivering R&D outcomes.

How does the base value of $1.2M compare to similar R&D contracts in the physical, engineering, and life sciences sector?

Benchmarking the base value of $1.2M for this R&D contract requires context on the specific research objectives and scope. R&D contracts can vary significantly in cost based on the complexity, duration, and novelty of the research. For foundational research or early-stage exploration, $1.2M might be a reasonable starting point. However, for advanced development or large-scale testing, it could be considered modest. A true comparison would involve identifying contracts with similar scientific domains, research phases (e.g., basic, applied, developmental), and contractor capabilities. Without these specifics, the $1.2M figure is difficult to definitively categorize as high, low, or average.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is not, meaning the government bears the risk if costs exceed initial estimates. This can incentivize less cost-consciousness from the contractor compared to fixed-price contracts. For R&D, where outcomes can be uncertain, CPFF can be appropriate to encourage innovation without the contractor bearing excessive financial risk, but it necessitates robust government oversight to manage expenditures effectively.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for the effectiveness of the competition?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a nuanced approach to competition. While the intent is to allow all responsible sources to compete, the explicit mention of 'exclusion of sources' indicates that certain potential bidders were deliberately not considered. The effectiveness of the competition hinges on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or security concerns, the competition might still be effective among the remaining qualified sources. However, if the exclusions were arbitrary or lacked clear rationale, it could significantly limit competition, potentially leading to suboptimal pricing and reduced innovation. Transparency regarding the reasons for exclusion is crucial for assessing the true competitive landscape.

What are the potential implications of this contract on future R&D spending patterns within the Department of the Army?

This contract, valued at up to $9M with a base of $1.2M, represents a specific investment in physical, engineering, and life sciences R&D. Its implications on future spending patterns within the Department of the Army will depend on its success and the strategic priorities it addresses. If this research yields significant breakthroughs or proves highly cost-effective, it could encourage similar investments in related areas. Conversely, if the project faces challenges or does not meet expectations, it might lead to a re-evaluation of funding allocations for similar R&D initiatives. The 'definitive contract' nature also suggests it could be a precursor to larger, follow-on efforts, potentially shaping the Army's R&D portfolio in these scientific domains.

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 › C – National Defense R&D Services

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: 100 RESEARCH BLVD STE 313, STARKVILLE, MS, 39759

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,197,720

Exercised Options: $8,999,837

Current Obligation: $8,999,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline