DoD's $197.6M R&D Contract with Deka Research & Development Co. Awarded in 2006

Contract Overview

Contract Amount: $18,090,096 ($18.1M)

Contractor: Deka Research & Development CO

Awarding Agency: Department of Defense

Start Date: 2006-01-20

End Date: 2008-06-30

Contract Duration: 892 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200604!600137!2100!W911NF!USA MATERIEL COMMAND ACQUISITION!W911NF06C0001 !A!N! !N! ! !20060120!20060228!197605293!197605293!197605293!N!DEKA RESEARCH & DEVELOPMENT CO!340 COMMERCIAL ST !MANCHESTER !NH!03101!45140!011!33!MANCHESTER !HILLSBOROUGH !N.H. !+000002363662!N!N!000011577471!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!U!2!012!E! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: MANCHESTER, HILLSBOROUGH County, NEW HAMPSHIRE, 03101

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to DEKA RESEARCH & DEVELOPMENT CO for work described as: 200604!600137!2100!W911NF!USA MATERIEL COMMAND ACQUISITION!W911NF06C0001 !A!N! !N! ! !20060120!20060228!197605293!197605293!197605293!N!DEKA RESEARCH & DEVELOPMENT CO!340 COMMERCIAL ST !MANCHESTER !NH!03101!45140!011!33!MANCHESTER !HILL… Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Significant investment in basic research, indicating a focus on foundational scientific advancement. 3. The contract's duration of over two years suggests a complex or long-term research objective. 4. Awarded by the Department of the Army, highlighting its relevance to military technological needs. 5. The 'Cost Plus Fixed Fee' pricing structure can incentivize contractor efficiency while managing risk. 6. The North American Industry Classification System (NAICS) code 541710 points to a specialized R&D market.

Value Assessment

Rating: fair

The contract value of $197.6 million for a period of approximately two years is substantial for R&D. Benchmarking this against similar basic research contracts is challenging without more specific project details. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that while the fee is fixed, the costs are reimbursed, which can lead to cost overruns if not managed tightly. Without data on the final cost versus the estimated cost, 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 After Exclusion of Sources,' which implies a competitive process was initiated, but specific sources may have been excluded based on certain criteria. The presence of 12 bidders suggests a healthy level of interest and competition for this R&D opportunity. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award. The exclusion of sources, however, warrants scrutiny to ensure it did not unduly limit competition.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the U.S. Army, gaining access to advanced research and development. The contract supports the delivery of fundamental research outcomes that could lead to future technological advancements. The geographic impact is centered in Manchester, New Hampshire, where Deka Research & Development Co. is located, potentially creating local employment and economic activity. Workforce implications include the employment of scientists, engineers, and support staff at Deka Research & Development Co. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously monitored.
The 'Exclusion of Sources' clause in the competition type requires careful review to ensure fairness and prevent undue limitation of bidders.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality and impact of the R&D outcomes.
The long duration and significant value could indicate a high-risk, high-reward research endeavor where success is not guaranteed.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
A substantial number of bidders (12) suggests strong market interest and a competitive environment.
The contract supports basic research, which is crucial for long-term technological superiority and innovation.
The fixed fee component of the contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically basic research in physical, engineering, and life sciences. The market for defense-related R&D is highly specialized, with a mix of large defense contractors and smaller, niche research firms. Spending in this area is critical for maintaining technological advantage, and contracts are often long-term and high-value due to the nature of scientific inquiry. Comparable spending benchmarks would depend on the specific sub-field of research, but significant government investment in basic science is a consistent feature of defense budgets.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large value and specialized nature of the R&D, it is possible that subcontracting opportunities may exist for small businesses, but this is not explicitly stated. The primary contractor, Deka Research & Development Co., is a private entity, and its size relative to small business definitions would need further investigation. Without explicit set-aside goals or subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting activity within the Department of the Army, likely the USA Materiel Command Acquisition. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Basic Research Initiatives
Advanced Technology Development Contracts
Physical Sciences Research Funding
Engineering Research Grants
Life Sciences Research Contracts

Risk Flags

Potential for cost overruns in CPFF contracts.
Justification for 'Exclusion of Sources' requires review.
Lack of detailed performance metrics.
Long contract duration may indicate high R&D risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to DEKA RESEARCH & DEVELOPMENT CO. 200604!600137!2100!W911NF!USA MATERIEL COMMAND ACQUISITION!W911NF06C0001 !A!N! !N! ! !20060120!20060228!197605293!197605293!197605293!N!DEKA RESEARCH & DEVELOPMENT CO!340 COMMERCIAL ST !MANCHESTER !NH!03101!45140!011!33!MANCHESTER !HILLSBOROUGH !N.H. !+000002363662!N!N!000011577471!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is DEKA RESEARCH & DEVELOPMENT CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2006-01-20. End: 2008-06-30.

What was the specific research objective or technological area funded by this contract?

The contract, NAICS code 541710, broadly covers 'Research and Development in the Physical, Engineering, and Life Sciences.' While the award description mentions 'RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH,' the precise objective is not detailed in the provided data. Basic research aims to advance fundamental knowledge and understanding, often without a specific commercial or military application in immediate view. This could range from materials science, advanced computing, biotechnology, or novel physics principles. Without further documentation, the exact focus remains unspecified, but it is categorized under basic research, suggesting a long-term, exploratory nature.

How does the $197.6 million value compare to typical R&D contracts of similar scope and duration?

A contract value of $197.6 million over approximately two years (January 2006 to June 2008) is substantial, even for defense R&D. Basic research contracts can vary widely in cost depending on the complexity, required personnel, equipment, and potential for breakthroughs. While large, it's not unprecedented for major foundational research initiatives funded by agencies like DARPA or specific service branches. However, without knowing the specific technical domain and the number of research institutions involved, a direct comparison is difficult. Generally, contracts of this magnitude suggest a project with significant potential impact or a broad scope across multiple scientific disciplines.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risk with a CPFF contract, especially for basic research, is the potential for cost overruns. While the contractor's fee is fixed, the government reimburses allowable costs. In basic research, the path to achieving objectives can be unpredictable, leading to unexpected expenses in personnel, materials, or equipment. If the contractor does not manage costs efficiently, the total expenditure could exceed initial estimates significantly, even though the fixed fee remains constant. Effective oversight by the government is crucial to monitor costs, ensure efficiency, and prevent unnecessary spending. The CPFF structure aims to balance risk, providing incentive for the contractor to control costs while ensuring the government covers necessary expenses for the research.

What does the 'Full and Open Competition After Exclusion of Sources' procurement method imply?

This procurement method indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that certain potential bidders were subsequently excluded from the competition based on specific, documented reasons. These reasons could include factors like security clearances, specialized capabilities, or prior performance issues. While it implies a competitive process was initiated, the exclusion of sources warrants scrutiny to ensure that the exclusions were justified, fair, and did not unduly restrict competition, potentially impacting the government's ability to secure the best value. The fact that 12 bidders were considered suggests that the exclusion did not cripple the competitive landscape.

What is the significance of the NAICS code 541710 for this contract?

The North American Industry Classification System (NAICS) code 541710 designates 'Research and Development in the Physical, Engineering, and Life Sciences.' This classification is crucial as it defines the specific industry sector and type of work being procured. It signals that the contract is focused on scientific inquiry and innovation rather than the production of goods or standard services. This code helps in categorizing the contract for statistical purposes, identifying relevant industry players, and understanding the market dynamics for specialized R&D services. Contracts under this code often involve highly skilled personnel and significant investment in laboratories and equipment.

How has spending in the 'Research and Development in Physical, Engineering, and Life Sciences' sector evolved since this contract was awarded?

Since this contract was awarded in 2006, federal spending in the R&D sector, particularly within physical, engineering, and life sciences, has generally seen fluctuations influenced by budget priorities, national security needs, and economic conditions. Defense R&D spending, a significant portion of the total, has remained a priority, though subject to appropriations cycles and strategic shifts. There has been a continued emphasis on areas like artificial intelligence, cybersecurity, advanced materials, and biotechnology. While specific year-over-year comparisons require detailed budget analysis, the overall trend indicates sustained, albeit variable, investment in scientific and technological advancement across these domains, reflecting their importance for both national security and economic competitiveness.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 340 COMMERCIAL ST, MANCHESTER, NH, 01

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline