DoD's $25.3M R&D contract with Eagle Applied Sciences, LLC, awarded in 2009, shows limited competition

Contract Overview

Contract Amount: $25,351,784 ($25.4M)

Contractor: Eagle Applied Sciences, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2014-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE YEAR - PERSONAL SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78216

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to EAGLE APPLIED SCIENCES, LLC for work described as: BASE YEAR - PERSONAL SERVICES Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract spans over 5 years, indicating a long-term need for these services. 3. Awarded as a definitive contract with a firm fixed price, suggesting cost certainty. 4. The North American Industry Classification System (NAICS) code 541712 points to specialized scientific research. 5. Contractor is Eagle Applied Sciences, LLC, based in Texas. 6. This contract was not competed, raising questions about potential value for money. 7. The base year value is approximately $25.3 million.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source R&D awards. The firm fixed price structure provides some cost control, but the lack of competition means there's no market-driven price discovery to ensure optimal value. The total value over its duration, including potential options, could be significantly higher than the base year, warranting closer scrutiny if additional funds were obligated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition. This typically occurs when only one responsible source can fulfill the requirement. The lack of competition limits the government's ability to solicit bids from multiple vendors, potentially leading to higher prices than if the contract had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the award, the government could not leverage market forces to secure the most cost-effective solution.

Public Impact

The Department of Defense benefits from specialized research and development services. Services delivered likely contribute to advancements in physical, engineering, and life sciences relevant to national security. The geographic impact is centered in Texas, where the contractor is located. Workforce implications include employment for scientists and researchers at Eagle Applied Sciences, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in suboptimal pricing.
Sole-source awards can limit innovation by excluding potentially more capable or cost-effective providers.
Transparency is reduced without a competitive bidding process.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Long contract duration suggests a sustained and critical need for the services.
Specialized NAICS code indicates a focus on high-value, technical R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This is a critical area for defense innovation. Comparable spending in this sector often involves significant investment in cutting-edge technologies and scientific exploration. The market size for specialized R&D services for the government is substantial, driven by national security and technological advancement needs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is unlikely that small business participation was a primary consideration in the initial award decision, though the contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and program managers. Accountability measures are inherent in the firm fixed price structure, which obligates the contractor to deliver specific outcomes. Transparency is limited due to the sole-source nature of the award, with less public visibility compared to competed contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Scientific and Technical Services Contracts
Sole-Source Defense Contracts
Research and Development in Physical Sciences
Research and Development in Engineering Sciences
Research and Development in Life Sciences

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to EAGLE APPLIED SCIENCES, LLC. BASE YEAR - PERSONAL SERVICES

Who is the contractor on this award?

The obligated recipient is EAGLE APPLIED SCIENCES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-03-31.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is the standard designation for sole-source awards. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source justifications are based on factors such as the uniqueness of the technology or service, the contractor's specialized expertise, or the urgency of the requirement where only one source can realistically meet the need within the required timeframe. Without further documentation, the precise rationale remains unknown, but it implies that the Department of the Army determined that Eagle Applied Sciences, LLC was the only responsible source capable of fulfilling the research and development requirements.

How does the base year cost of approximately $25.3 million compare to similar R&D contracts awarded by the DoD?

Directly comparing the $25.3 million base year cost to similar R&D contracts is difficult without knowing the specific scope of work and the duration of the base year. However, for specialized R&D services, particularly those involving advanced physical, engineering, or life sciences, costs in the tens of millions of dollars for a base year are not uncommon, especially for long-term projects. The fact that this was a sole-source award means that a competitive benchmark for price is absent. To assess value, one would need to compare the deliverables and outcomes achieved against the cost, and potentially against internal R&D efforts or alternative solutions if they existed.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risk associated with a sole-source R&D contract of this magnitude is the potential for inflated costs due to the lack of competitive pressure. Without competing the award, the government cannot be certain it is receiving the best possible price. Another risk is that the contractor may have less incentive to innovate or perform efficiently, as there are no competitors to outperform. Furthermore, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions difficult or costly. Finally, the lack of transparency inherent in sole-source awards can raise concerns about fairness and potential impropriety.

What was the overall duration and total value of this contract, including all options?

The provided data indicates a contract duration of 1643 days, which translates to approximately 4.5 years. The start date was September 30, 2009, and the end date was March 31, 2014. The data explicitly states a 'BASE YEAR' value of $25,351,783.85. However, the data does not specify if there were any option periods exercised or the total value of the contract if options were included. Therefore, while the base year cost is clear, the total obligated amount over the entire contract period, including any potential exercised options, is not provided.

What specific R&D areas does NAICS code 541712 cover, and how does this contract align?

NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' covers establishments primarily engaged in conducting research and development in these fields. This includes basic and applied research, and experimental development. Examples include R&D in areas like materials science, aerospace engineering, environmental science, and medical research (excluding biotechnology). This contract aligns directly with this code, indicating that Eagle Applied Sciences, LLC was contracted to perform research and development activities within these scientific and engineering domains for the Department of the Army.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation (UEI: 060036357)

Address: 200 CONCORD PLAZA DR STE 430, SAN ANTONIO, TX, 78216

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,972,013

Exercised Options: $25,972,013

Current Obligation: $25,351,784

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: YES

Timeline