Dod's $48M Base (hapcat) Phase 1 Contract Awarded to North Wind Test LLC
Contract Overview
Contract Amount: $47,989,893 ($48.0M)
Contractor: North Wind Test LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-29
End Date: 2018-12-07
Contract Duration: 2,991 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASE (HAPCAT) PHASE 1
Place of Performance
Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55107
Plain-Language Summary
Department of Defense obligated $48.0 million to NORTH WIND TEST LLC for work described as: BASE (HAPCAT) PHASE 1 Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The duration of the contract was nearly 8 years, indicating a long-term project. 5. The contract was awarded to a single entity, NORTH WIND TEST LLC.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while common for R&D, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts of this duration and scope is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct impact of price discovery on the final cost.
Taxpayer Impact: Taxpayer funds are being used for research and development. The effectiveness and ultimate value of the research will determine the true taxpayer impact.
Public Impact
This contract supports research and development efforts within the Department of Defense. The long contract duration suggests a significant and potentially complex research project. The specific nature of the R&D (BASE (HAPCAT) PHASE 1) is not detailed, limiting public understanding of its direct benefits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts.
- Long contract duration (nearly 8 years) increases exposure to potential cost increases and scope creep.
- Lack of specific details on the R&D project makes it difficult to assess its value and necessity.
Positive Signals
- Awarded under full and open competition, indicating a potentially fair and competitive process.
- Supports critical research and development for the Department of Defense.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for technological advancement but can be highly variable in terms of return on investment.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). This suggests the contract was likely awarded to a larger entity capable of handling the scope of work.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard federal procurement oversight processes would apply, but specific oversight details for this contract are not provided.
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
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific R&D project details.
- No indication of small business participation.
- Potential for cost overruns inherent in CPFF contracts.
Tags
research-and-development-in-the-physical, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.0 million to NORTH WIND TEST LLC. BASE (HAPCAT) PHASE 1
Who is the contractor on this award?
The obligated recipient is NORTH WIND TEST 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 $48.0 million.
What is the period of performance?
Start: 2010-09-29. End: 2018-12-07.
What was the specific objective and expected outcome of the BASE (HAPCAT) PHASE 1 research and development?
The provided data lacks specific details regarding the objective and expected outcomes of the BASE (HAPCAT) PHASE 1 research. Understanding the precise goals of this R&D effort is crucial for evaluating its necessity, potential impact, and whether the allocated $48 million was an appropriate investment for the anticipated results.
How did the Cost Plus Fixed Fee structure impact the final cost compared to potential fixed-price alternatives for this R&D project?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While suitable for R&D where costs are uncertain, it shifts cost risk to the government. Without knowing the actual costs incurred and the fixed fee, it's impossible to definitively say if it was more or less expensive than a fixed-price bid, but CPFF generally offers less incentive for cost control.
What is the measurable effectiveness or return on investment for the research conducted under this contract?
The data provided does not include information on the effectiveness or return on investment (ROI) of the research conducted. Assessing the value of R&D contracts often takes years and depends on the successful application or commercialization of the research findings. Without post-contract analysis or documented outcomes, the effectiveness remains undetermined.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cthc LLC
Address: 358 E FILLMORE AVE, SAINT PAUL, MN, 55107
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,044,784
Exercised Options: $47,989,893
Current Obligation: $47,989,893
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-29
Current End Date: 2018-12-07
Potential End Date: 2018-12-07 00:00:00
Last Modified: 2025-04-01
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