DARPA awards $22.7M R&D contract to Sotera Defense Solutions for Counter-Improvised Explosive Device technology

Contract Overview

Contract Amount: $22,731,507 ($22.7M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2016-01-21

End Date: 2019-04-22

Contract Duration: 1,187 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF NEW DARPA CONTRACT - SOTERA DEFENSE SOLUTIONS INC - TDA FOR COIN

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to THE KEYW CORPORATION for work described as: IGF::OT::IGF NEW DARPA CONTRACT - SOTERA DEFENSE SOLUTIONS INC - TDA FOR COIN Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Sotera Defense Solutions Inc. is the primary contractor. 3. The contract has a duration of 1187 days. 4. Awarded by the Department of Defense, specifically the Department of the Army. 5. This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences category. 6. The contract type is a Definitive Contract with a Cost Plus Fixed Fee payment structure. 7. The contract was awarded via Full and Open Competition.

Value Assessment

Rating: fair

The contract value of $22.7 million for a nearly 3.5-year R&D effort appears within a reasonable range for specialized defense research. However, without specific benchmarks for similar TDA (Tactical Decision Aid) or counter-IED technology development contracts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure carries inherent risk of cost overruns, which needs careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and innovation. The presence of multiple bidders suggests a healthy market for this type of specialized R&D.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and potentially drives down costs through market forces.

Public Impact

This contract aims to advance technologies related to countering improvised explosive devices (IEDs), potentially enhancing soldier safety. The research and development will likely benefit military personnel operating in environments where IEDs are a threat. The geographic impact is primarily within the United States, where the research and development will be conducted, but the ultimate beneficiaries are deployed forces. The contract may lead to the development of new tools and techniques that could impact military doctrine and training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict adherence to a budget, potentially leading to overspending if not closely managed.
  • The specific nature of R&D can lead to unforeseen challenges and delays, impacting the overall cost and timeline.
  • The effectiveness of the developed technology in real-world counter-IED scenarios will be a key factor in determining the ultimate value of this investment.

Positive Signals

  • Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
  • The contract focuses on a critical area of defense research (counter-IED), addressing a significant operational need.
  • The long-term nature of the contract allows for sustained research and development efforts.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on defense applications. The market for counter-IED technologies is specialized, driven by government demand for solutions to evolving threats. Comparable spending benchmarks would typically be found within other defense R&D contracts for advanced technology development, often involving complex systems integration and specialized scientific expertise.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a definitive contract awarded through full and open competition, the primary focus was likely on technical capability and overall best value, rather than specific small business participation goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Inspector General's office may conduct audits or investigations into cost, performance, and compliance. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive.

Related Government Programs

  • DARPA Research and Development Programs
  • Department of Defense Counter-IED Initiatives
  • Advanced Technology Development Contracts
  • Cost Plus Fixed Fee Contracts

Risk Flags

  • Cost Overrun Risk (CPFF)
  • R&D Uncertainty
  • Effectiveness Measurement Challenges

Tags

research-and-development, department-of-defense, darpa, department-of-the-army, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, counter-improvised-explosive-device, counter-insurgency, tactical-decision-aid, maryland, sotera-defense-solutions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to THE KEYW CORPORATION. IGF::OT::IGF NEW DARPA CONTRACT - SOTERA DEFENSE SOLUTIONS INC - TDA FOR COIN

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2016-01-21. End: 2019-04-22.

What is the specific technological objective of this DARPA contract awarded to Sotera Defense Solutions?

This contract, awarded by DARPA (Defense Advanced Research Projects Agency) to Sotera Defense Solutions Inc., is for Research and Development in the Physical, Engineering, and Life Sciences (NAICS code 541712). The data indicates it's a TDA (Tactical Decision Aid) for COIN (Counter-Insurgency). This suggests the contract aims to develop or enhance systems that provide real-time tactical information and decision support to military personnel engaged in counter-insurgency operations, likely focusing on threats such as improvised explosive devices (IEDs). The goal is to improve situational awareness and enable more effective responses in complex operational environments.

How does the $22.7 million contract value compare to similar R&D efforts in counter-IED technology?

Benchmarking the $22.7 million value for this specific DARPA contract requires access to proprietary or detailed public data on similar counter-IED R&D efforts. However, R&D contracts, especially those managed by DARPA, often involve cutting-edge, high-risk, high-reward research. Values can range significantly based on the scope, duration, and technological complexity. For a contract spanning nearly 3.5 years (1187 days) focused on advanced tactical decision aids for counter-insurgency, $22.7 million is plausible, but without direct comparisons, it's difficult to definitively label it as high or low. It represents a significant investment in a critical defense capability.

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

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Sotera Defense Solutions, present specific risks, particularly in R&D contexts. The 'cost-plus' element means the government reimburses the contractor for allowable costs incurred, plus a fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government bears the brunt of cost overruns. For R&D, where the scope and technical challenges are often uncertain, this can lead to costs exceeding initial estimates. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What does 'Full and Open Competition' imply for the selection of Sotera Defense Solutions?

The designation 'Full and Open Competition' signifies that the Department of Defense utilized a procurement process that allowed all qualified sources to submit proposals. This implies that the contract was not restricted to a specific group of contractors or set aside for small businesses. The selection of Sotera Defense Solutions means their proposal was deemed the best value (technical merit, cost, etc.) among all competing offers. This process is designed to maximize competition, foster innovation, and ensure the government obtains the most advantageous solution for its requirements.

What is the historical spending pattern for DARPA in the R&D sector related to counter-insurgency?

DARPA has a long history of investing heavily in research and development across various defense domains, including counter-insurgency (COIN) and counter-improvised explosive device (C-IED) technologies. Their spending patterns typically reflect a focus on breakthrough technologies and innovative approaches rather than incremental improvements. Historically, DARPA has funded numerous projects aimed at enhancing soldier protection, improving intelligence gathering, and developing advanced operational tools for asymmetric warfare scenarios. While specific annual spending figures for COIN R&D fluctuate based on evolving threats and strategic priorities, DARPA consistently allocates significant resources to maintain technological superiority in these critical areas.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W911NF12R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $32,811,420

Exercised Options: $32,811,420

Current Obligation: $22,731,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2016-01-21

Current End Date: 2019-04-22

Potential End Date: 2019-04-22 00:00:00

Last Modified: 2025-12-31

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