Army's $7.4M VESPER contract awarded to XTREMIS, Inc. for virtual spectrum research
Contract Overview
Contract Amount: $7,394,618 ($7.4M)
Contractor: Xtremis, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-24
End Date: 2029-09-29
Contract Duration: 1,831 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: BAA FROM SOLICITATION NUMBER W911NF-23-S-0001-0002, TITLED VIRTUALIZED ENVIRONMENT FOR SPECTRUM EXPERIMENTATION AND RESEARCH (VESPER)
Place of Performance
Location: WEST FORK, WASHINGTON County, ARKANSAS, 72774
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to XTREMIS, INC. for work described as: BAA FROM SOLICITATION NUMBER W911NF-23-S-0001-0002, TITLED VIRTUALIZED ENVIRONMENT FOR SPECTRUM EXPERIMENTATION AND RESEARCH (VESPER) Key points: 1. Contract aims to advance virtualized environments for spectrum experimentation, a critical area for defense technology. 2. The firm-fixed-price structure provides cost certainty for the government. 3. Awarded under full and open competition, suggesting a robust market for these specialized R&D services. 4. The contract duration of over five years indicates a long-term need for these research capabilities. 5. Focus on R&D in physical, engineering, and life sciences aligns with strategic defense modernization efforts. 6. The relatively small award amount for a five-year R&D effort may warrant further scrutiny on scope and deliverables.
Value Assessment
Rating: good
The contract value of approximately $7.4 million over five years for specialized R&D appears reasonable when considering the complexity of virtualized environments for spectrum experimentation. Benchmarking against similar advanced research contracts in defense, this value falls within a typical range for focused, long-term projects. The firm-fixed-price nature of the award helps control costs for the government, although the ultimate value will depend on the successful completion of research objectives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors were solicited and had the opportunity to bid. The solicitation process likely involved a thorough evaluation of technical proposals and pricing. The presence of multiple bidders generally fosters competitive pricing and encourages innovation as contractors vie for the award.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider pool of innovative solutions, ensuring the government receives the best value for its investment.
Public Impact
The Department of the Army benefits from advancements in virtual spectrum experimentation capabilities. This contract supports research and development in advanced physical and engineering sciences. The geographic impact is primarily within the contractor's operational base, with potential for broader defense applications. Workforce implications include specialized R&D roles for scientists and engineers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term R&D projects if not tightly managed.
- Ensuring deliverables meet evolving technological requirements over the five-year period.
- Dependence on key personnel for specialized research expertise.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Awarded through full and open competition, indicating market readiness and potential for innovation.
- Long-term nature of the contract suggests a sustained strategic need.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences. The market for virtual environment and spectrum experimentation technologies is growing, driven by defense modernization needs. Comparable spending in this niche R&D area can vary significantly based on project scope, but this award represents a focused investment in a critical technological capability.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee, XTREMIS, Inc., is likely a larger entity or that the nature of the specialized R&D did not lend itself to small business participation in the prime contract. Further review of the solicitation details would be needed to confirm subcontracting plans.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Army. Accountability measures will be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific research findings may be subject to classification.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Futures Command Initiatives
- Spectrum Warfare Research
- Virtual Environment Simulation Technologies
Risk Flags
- Long-term R&D contracts carry inherent technical and schedule risks.
- Need to ensure continued relevance of research objectives given rapid technological change.
Tags
research-and-development, department-of-the-army, full-and-open-competition, firm-fixed-price, information-technology, spectrum-management, virtual-environment, defense-contract, arkansas, xtremis-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to XTREMIS, INC.. BAA FROM SOLICITATION NUMBER W911NF-23-S-0001-0002, TITLED VIRTUALIZED ENVIRONMENT FOR SPECTRUM EXPERIMENTATION AND RESEARCH (VESPER)
Who is the contractor on this award?
The obligated recipient is XTREMIS, 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 $7.4 million.
What is the period of performance?
Start: 2024-09-24. End: 2029-09-29.
What is the specific technical objective of the VESPER program?
The Virtualized Environment for Spectrum Experimentation and Research (VESPER) program aims to develop and utilize advanced virtualized environments to conduct research and experimentation related to electromagnetic spectrum operations. This includes simulating complex spectrum scenarios, testing new spectrum management techniques, and evaluating the performance of communication and sensing systems in a controlled, virtual setting. The goal is to accelerate the understanding and innovation in spectrum utilization, which is critical for modern military operations, electronic warfare, and future communication technologies.
How does the $7.4 million award compare to similar R&D contracts in the defense sector?
The $7.4 million award for a five-year R&D contract focused on virtual spectrum experimentation is on the moderate side for defense R&D. Larger, more complex programs can easily reach tens or hundreds of millions of dollars. However, for a highly specialized research effort like VESPER, this value suggests a focused scope. It is comparable to other targeted research initiatives that aim to mature specific technologies or explore novel concepts rather than large-scale system development. The firm-fixed-price structure also implies a well-defined scope, which can influence the overall award value.
What are the primary risks associated with this contract for XTREMIS, Inc.?
The primary risks for XTREMIS, Inc. revolve around the inherent uncertainties of research and development. This includes the risk of not achieving the desired research outcomes or technical breakthroughs within the project timeline and budget. There's also a risk associated with the rapid evolution of technology; the virtual environment and spectrum technologies may advance significantly during the five-year contract period, potentially making the initial research objectives less relevant or requiring substantial adaptation. Furthermore, managing the firm-fixed-price contract requires careful cost control to ensure profitability, especially if unforeseen technical challenges arise.
What is the historical spending pattern for similar R&D in spectrum technologies by the Department of the Army?
The Department of the Army, like other branches of the DoD, has a history of investing significantly in research and development related to electromagnetic spectrum technologies. This includes funding for spectrum sensing, management, warfare, and advanced communication systems. Spending patterns often fluctuate based on strategic priorities and technological advancements. While specific historical data for 'virtualized environment for spectrum experimentation' is niche, overall investment in spectrum-related R&D has been consistent, driven by the increasing importance of the electromagnetic spectrum in both civilian and military domains. Contracts in this area can range from small, exploratory grants to multi-million dollar development efforts.
What are the potential performance metrics or milestones for this contract?
Performance metrics and milestones for the VESPER contract would likely be detailed in the Statement of Work (SOW). Typical milestones for such an R&D contract might include the successful development and validation of the virtualized environment, the demonstration of specific spectrum simulation capabilities, the generation of research reports detailing experimental findings, and the successful integration of new algorithms or techniques. Performance could also be measured by the accuracy of simulations compared to real-world spectrum behavior, the efficiency of the virtual environment in processing data, and the ability to support various experimental scenarios as defined by the Army.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: W911NF23S0001
Offers Received: 999
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1025 33RD ST NW, WASHINGTON, DC, 20007
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $49,482,232
Exercised Options: $18,188,868
Current Obligation: $7,394,618
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-24
Current End Date: 2029-09-29
Potential End Date: 2029-09-29 00:00:00
Last Modified: 2025-12-30
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