DoD's $10.4M R&D contract for advanced cavitation power technology awarded to Burst Laboratories, Inc

Contract Overview

Contract Amount: $10,375,502 ($10.4M)

Contractor: Burst Laboratories, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-29

End Date: 2011-04-30

Contract Duration: 1,401 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AS PROPOSED IN BAA PROPOSAL ENTITLED "ADVANCED CAVITATION POWER TECHNOLOGY".

Place of Performance

Location: GRASS VALLEY, NEVADA County, CALIFORNIA, 95945

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to BURST LABORATORIES, INC. for work described as: AS PROPOSED IN BAA PROPOSAL ENTITLED "ADVANCED CAVITATION POWER TECHNOLOGY". Key points: 1. Contract awarded via full and open competition, suggesting a potentially competitive pricing environment. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risk. 3. Research and Development (R&D) focus indicates investment in innovation, with outcomes potentially impacting future defense capabilities. 4. The contract duration of 1401 days (approx. 3.8 years) allows for substantial project development and testing. 5. Awarded to a single contractor, Burst Laboratories, Inc., highlighting specialized capabilities in this niche R&D area. 6. The North American Industry Classification System (NAICS) code 541710 points to significant R&D activity within the physical, engineering, and life sciences sector.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's allowable costs plus a fixed fee. While this can encourage efficiency, it doesn't guarantee the lowest possible cost. Benchmarking this specific R&D effort against similar advanced cavitation power technology projects is challenging due to the specialized nature of the work. However, the fixed fee component provides some predictability in contractor profit. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit proposals. This suggests a robust competitive process was intended. The data does not specify the number of bids received, but the designation implies that multiple entities had the opportunity to compete. A competitive process generally aids in price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing for the research and development services.

Public Impact

The primary beneficiaries are the Department of Defense and potentially future military personnel who could benefit from advancements in power technology. The contract aims to deliver research and development services related to advanced cavitation power technology. The geographic impact is primarily within California, where the contractor is located, but the technological advancements could have broader national security implications. The contract supports specialized R&D roles, potentially creating or sustaining high-skilled jobs in the scientific and engineering fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not closely monitored.
The specialized nature of R&D makes it difficult to benchmark costs and ensure optimal value.
The long duration of the contract increases the risk of scope creep or changing technological requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment.
Focus on advanced technology development aligns with strategic defense modernization goals.
The fixed fee component provides some cost certainty regarding contractor profit.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in the physical, engineering, and life sciences. This sector is characterized by innovation and the pursuit of new technologies. Spending in this area by the Department of Defense is crucial for maintaining a technological edge. Comparable spending benchmarks are difficult to establish without more specific details on the cavitation technology, but R&D contracts can range from millions to billions depending on the scope and maturity of the technology.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Burst Laboratories, Inc., may engage small businesses as subcontractors, but this information is not detailed in the award data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractors meet performance, cost, and schedule requirements. The CPFF contract type necessitates close monitoring of allowable costs and the fixed fee. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the Department of Defense's Inspector General if specific concerns arise.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Materials Research
Naval Technology Development
Energy Systems Research

Risk Flags

Cost Overruns Risk (CPFF)
Technological Obsolescence
Scope Creep
Performance Monitoring Over Extended Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to BURST LABORATORIES, INC.. AS PROPOSED IN BAA PROPOSAL ENTITLED "ADVANCED CAVITATION POWER TECHNOLOGY".

Who is the contractor on this award?

The obligated recipient is BURST LABORATORIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2007-06-29. End: 2011-04-30.

What is the specific nature of the 'advanced cavitation power technology' being researched?

The contract description states it is 'AS PROPOSED IN BAA PROPOSAL ENTITLED "ADVANCED CAVITATION POWER TECHNOLOGY".' Cavitation is the formation of vapor-filled cavities in liquids, often associated with rapid changes in pressure. Advanced cavitation power technology likely refers to research into harnessing or controlling these phenomena for energy generation, propulsion, or other power-related applications. This could involve studying acoustic cavitation, hydrodynamic cavitation, or other methods to induce and utilize cavitation effects. The specific application and technological approach would be detailed in the contractor's proposal, which is not publicly available in this data extract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development where the scope is not fully defined or is expected to evolve. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee, representing profit. This differs from Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance targets, or Firm-Fixed-Price (FFP), which is less common for R&D due to inherent uncertainties. CPFF provides cost certainty for the government regarding profit but less certainty on total cost compared to FFP. It incentivizes the contractor to control costs to protect their fixed fee, but the government bears the risk of cost overruns beyond the estimated cost.

What are the potential risks associated with a 1401-day R&D contract?

A contract duration of 1401 days (approximately 3.8 years) for R&D presents several risks. Firstly, technological obsolescence is a significant concern; the technology being developed might be surpassed by advancements elsewhere before the contract concludes. Secondly, the evolving nature of R&D means the initial objectives might become irrelevant or require substantial modification, leading to scope creep and potential cost increases. Thirdly, maintaining contractor focus and performance over such an extended period can be challenging. Finally, economic or geopolitical shifts could alter the perceived importance or funding priorities for the technology, impacting the project's continuation or ultimate utility.

What is Burst Laboratories, Inc.'s track record with government R&D contracts?

The provided data identifies Burst Laboratories, Inc. as the contractor for this specific Department of Defense contract. However, it does not offer details about their broader track record, including past performance on other government R&D contracts, their history of successful project completion, or their financial stability. A comprehensive assessment of their track record would require accessing databases like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) to review their history with other agencies and contracts.

How does the $10.4 million award compare to typical R&D spending in this field?

The $10.4 million award for advanced cavitation power technology is a significant investment, but its relative size depends heavily on the specific sub-field and the maturity of the technology. R&D spending in specialized areas like advanced physics or engineering can vary widely. For instance, basic research might involve smaller grants, while developing a prototype for a complex system could easily reach tens or hundreds of millions. Without more context on the specific technological goals and the number of research phases involved, it's difficult to definitively benchmark this $10.4 million against broader R&D spending trends. However, it represents a substantial commitment by the DoD to explore this particular technological avenue.

What oversight mechanisms are in place for a Cost Plus Fixed Fee contract of this magnitude?

For a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($10.4 million), oversight typically involves rigorous monitoring by the contracting agency, likely the Department of Defense through its contracting officers and potentially the Defense Contract Management Agency (DCMA). Key oversight activities include regular reviews of the contractor's incurred costs to ensure allowability, allocability, and reasonableness; monitoring progress against the Statement of Work (SOW); and ensuring the fixed fee is earned appropriately. The contractor is usually required to submit detailed cost reports and progress updates. The contracting officer's representative (COR) plays a crucial role in day-to-day oversight. Inspector General audits may also be conducted if specific concerns about waste, fraud, or abuse arise.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Burst Laboratories Inc.

Address: 13366-H GRASS VALLEY AVE, GRASS VALLEY, CA, 95945

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $37,945,759

Exercised Options: $10,375,602

Current Obligation: $10,375,502

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline