Department of Defense awards $21.8M R&D contract to Evolva, Inc. for physical sciences research

Contract Overview

Contract Amount: $21,804,157 ($21.8M)

Contractor: Evolva, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-29

End Date: 2012-01-28

Contract Duration: 1,369 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROPOSAL NO. 53436-CH

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94306

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to EVOLVA, INC. for work described as: PROPOSAL NO. 53436-CH Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. A duration of 1369 days suggests a long-term research project. 4. The contract was awarded under full and open competition. 5. The North American Industry Classification System (NAICS) code 541712 points to specialized scientific research. 6. The contractor, Evolva, Inc., is based in California. 7. The contract was awarded by the Department of the Army. 8. The contract value is approximately $21.8 million.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost control, but the "cost plus" nature inherently carries risk for the government if costs escalate beyond initial projections. Comparing this to similar R&D contracts would require access to proprietary cost data and specific research outcomes, which are not publicly available. The total award amount of $21.8 million for a nearly four-year research project in specialized physical sciences appears within a reasonable range for complex R&D, but the ultimate value depends on the success of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. However, the specific number of bidders (two) is on the lower side for a full and open competition, which could suggest a niche market or limited number of qualified contractors for this specific type of research.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value for the government's investment in research and development.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader scientific community through the dissemination of research findings. The contract aims to advance research and development in physical, engineering, and life sciences. The geographic impact is primarily centered in California, where the contractor is located, but the research outcomes could have national or global implications. Workforce implications include employment for scientists, researchers, and support staff at Evolva, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely managed.
Limited number of bidders (2) in a full and open competition may indicate a niche market or potential lack of robust competition.
Long contract duration (1369 days) increases the risk of scope creep or changing research priorities.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and success of the R&D.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contract supports critical research and development for the Department of Defense.
The fixed fee component provides some level of cost certainty for the government.
The contractor is based in California, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541712, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a highly specialized area often involving significant investment and long lead times. The market for such R&D services is typically characterized by a mix of large, established research institutions and specialized smaller firms. Government spending in this sector is crucial for technological advancement and national security. Comparable spending benchmarks would depend heavily on the specific sub-field of research being undertaken.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not detailed in this summary, but typically, larger prime contractors are encouraged or required to subcontract portions of their work to small businesses where feasible. The impact on the small business ecosystem is likely minimal for this particular award, given the focus on a prime contractor and the nature of specialized R&D.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, which awarded the contract. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring Evolva, Inc. to report on costs incurred and progress made towards research objectives. Transparency is limited by the proprietary nature of R&D, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Physical Sciences Research Grants
Engineering Research and Development
Life Sciences Research Initiatives

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited number of bidders (2) in a full and open competition.
Specific research objectives and deliverables are not detailed in the summary.
Contractor's past performance on similar R&D contracts is not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to EVOLVA, INC.. PROPOSAL NO. 53436-CH

Who is the contractor on this award?

The obligated recipient is EVOLVA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2008-04-29. End: 2012-01-28.

What is the specific research objective of this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. However, the specific research objective or the precise scientific domain is not detailed in the summary data. This level of detail is typically found in the contract's statement of work (SOW), which outlines the tasks, deliverables, and expected outcomes. Without the SOW, it's impossible to know the exact nature of the research, such as whether it pertains to materials science, advanced manufacturing, energy systems, or other specialized fields within the broader R&D category.

How does the $21.8 million award compare to similar R&D contracts in the physical sciences?

Comparing the $21.8 million award for this nearly four-year contract requires context on the specific R&D area and the scope of work. R&D contracts can vary dramatically in cost based on the complexity, novelty, and required resources. For highly specialized or fundamental research, this amount could be considered moderate. For more applied research with defined deliverables, it might be substantial. Benchmarking would necessitate identifying contracts with similar NAICS codes, duration, and agency (e.g., DoD, NSF, DoE) and analyzing their award values. Publicly available data often lacks the granular detail needed for precise comparisons, but this award appears within a plausible range for significant R&D efforts.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the research proves more complex or time-consuming than initially estimated, the total cost to the government can escalate significantly. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate these risks. For R&D, where outcomes can be uncertain, CPFF contracts aim to incentivize the contractor to perform the work while allowing flexibility to adapt to unforeseen challenges, but they require diligent management.

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

Information regarding Evolva, Inc.'s specific track record with government R&D contracts is not detailed in the provided summary data. To assess their track record, one would need to examine their past performance on similar federal contracts, including their success in meeting technical objectives, staying within budget, and adhering to timelines. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) might contain relevant historical data, but this requires specific searches and access. Without this information, it's difficult to evaluate their experience and reliability for this particular R&D endeavor.

How has federal spending in the physical sciences R&D sector trended in recent years?

Federal spending in the physical sciences R&D sector has generally seen consistent, albeit sometimes fluctuating, investment, driven by national security, economic competitiveness, and scientific advancement priorities. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), and Department of Energy (DoE) are major funders. Trends often reflect shifts in national priorities, such as increased focus on areas like artificial intelligence, advanced materials, quantum computing, and clean energy technologies. While specific figures for 'physical sciences' can be broad, overall federal R&D obligations typically represent a significant portion of the federal budget, with R&D in science and engineering fields remaining a priority.

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: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Evolva Holding SA

Address: 200 PAGE MILL RD, SUITE 100, PALO ALTO, CA, 94306

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,805,708

Exercised Options: $22,805,708

Current Obligation: $21,804,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline