DoD Awards $31.7M R&D Contract to NORTH WIND TEST LLC for Physical, Engineering, and Life Sciences Research
Contract Overview
Contract Amount: $31,741,236 ($31.7M)
Contractor: North Wind Test LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-30
End Date: 2021-09-28
Contract Duration: 2,008 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASE - CONTRACT AWARD IGF::CL::IGF
Place of Performance
Location: SAINT PAUL, RAMSEY County, MINNESOTA, 55107
Plain-Language Summary
Department of Defense obligated $31.7 million to NORTH WIND TEST LLC for work described as: BASE - CONTRACT AWARD IGF::CL::IGF Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences. 2. Full and open competition was utilized. 3. The contract has a duration of 5 years. 4. The awardee is NORTH WIND TEST LLC. 5. The total value is $31,741,235.80.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value needs to be assessed against the deliverables and market rates for similar R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing, but the specific R&D nature may limit the number of truly comparable bids.
Taxpayer Impact: Taxpayer funds are being used for research and development, which can yield long-term benefits but requires careful oversight to ensure value for money.
Public Impact
Supports scientific advancement in physical, engineering, and life sciences. Potential for technological innovation and economic growth. Funds allocated for research could lead to new discoveries or improved processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration may increase risk of scope creep or changing requirements.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical R&D activities.
- Clear awardee identified.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for innovation but can be highly variable in terms of return on investment and requires specialized oversight.
Small Business Impact
The awardee, NORTH WIND TEST LLC, is not indicated as a small business. The contract was awarded under full and open competition, which may or may not have included specific set-asides or opportunities for small business participation.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency. Oversight will be critical to ensure the R&D objectives are met within budget and to monitor the Cost Plus Fixed Fee structure effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
- Limited insight into specific R&D objectives.
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 $31.7 million to NORTH WIND TEST LLC. BASE - CONTRACT AWARD IGF::CL::IGF
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2016-03-30. End: 2021-09-28.
What specific R&D objectives are being pursued under this contract, and how will their achievement be measured to ensure value for money?
The contract aims to advance research in physical, engineering, and life sciences. Measuring value requires clearly defined milestones, deliverables, and performance metrics tied to the specific R&D goals. Without these, assessing the return on the $31.7 million investment becomes challenging and relies heavily on the agency's internal evaluation processes.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
The fixed fee provides a ceiling for the contractor's profit, but the 'cost plus' element allows for reimbursement of actual costs. Robust oversight by the Defense Contract Management Agency, including regular audits and reviews of incurred costs, is essential. Clear contract clauses defining allowable costs and performance standards are also critical to prevent unnecessary expenditures.
How does the R&D conducted under this contract align with broader strategic goals of the Department of Defense, and what is the anticipated long-term impact?
The alignment with strategic goals is not explicitly detailed in the provided data. However, R&D in these scientific fields often supports advancements in defense technology, materials science, or operational capabilities. The long-term impact could range from enhanced national security through technological superiority to potential dual-use applications benefiting the civilian sector.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cthc LLC (UEI: 080552303)
Address: 358 E FILLMORE AVE, SAINT PAUL, MN, 55107
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,741,236
Exercised Options: $31,741,236
Current Obligation: $31,741,236
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-03-30
Current End Date: 2021-09-28
Potential End Date: 2021-09-28 00:00:00
Last Modified: 2021-11-30
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