DoD's $18.9M R&D Contract with University of Maine System Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $18,914,110 ($18.9M)
Contractor: University of Maine System
Awarding Agency: Department of Defense
Start Date: 2020-06-18
End Date: 2025-10-31
Contract Duration: 1,961 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT
Place of Performance
Location: ORONO, PENOBSCOT County, MAINE, 04469
State: Maine Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to UNIVERSITY OF MAINE SYSTEM for work described as: RESEARCH AND DEVELOPMENT Key points: 1. The contract's value of $18.9 million for R&D in physical, engineering, and life sciences is substantial. 2. Full and open competition was cited, but the specific award type and duration warrant further examination. 3. Potential risks include the long duration (1961 days) and the 'Cost No Fee' pricing structure. 4. The sector is R&D, specifically within physical, engineering, and life sciences, excluding niche areas.
Value Assessment
Rating: questionable
The 'Cost No Fee' structure raises concerns about incentivizing cost efficiency. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the definitive contract award to the University of Maine System suggests a specific entity was selected. The impact on price discovery is unclear without knowing the bidding process details.
Taxpayer Impact: The taxpayer impact is significant given the $18.9 million expenditure. Ensuring value for money is crucial, especially with a 'Cost No Fee' arrangement.
Public Impact
Taxpayers are funding advanced research in physical, engineering, and life sciences. The long contract duration could indicate a complex, multi-phase research project. The 'Cost No Fee' structure means the government bears all costs, regardless of project success. The University of Maine System is the sole recipient of these funds for this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee pricing
- Long contract duration
- Lack of clear performance metrics in summary
Positive Signals
- Awarded under Full and Open Competition
- Supports critical R&D sector
Sector Analysis
This contract falls within the broad Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for innovation but requires careful oversight to ensure taxpayer funds are used effectively.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a university system. Opportunities for small business subcontracting are not apparent from the provided data.
Oversight & Accountability
The 'Cost No Fee' structure necessitates robust oversight to ensure that costs are reasonable and that the research objectives are being met efficiently. Accountability for project outcomes is paramount.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost No Fee pricing structure
- Long contract duration (1961 days)
- Lack of specific performance metrics in summary data
- Potential for cost overruns without contractor financial risk
- Limited insight into the competitive bidding process details
Tags
research-and-development-in-the-physical, department-of-defense, me, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to UNIVERSITY OF MAINE SYSTEM. RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF MAINE SYSTEM.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2020-06-18. End: 2025-10-31.
What specific research objectives does this $18.9 million contract aim to achieve, and how will their successful completion be measured?
The contract details are limited, but it falls under NAICS code 541715 for R&D in physical, engineering, and life sciences. Measuring success will likely depend on achieving specific research milestones, publications, or technological advancements outlined in the full contract. Without access to the detailed SOW, precise metrics remain unknown.
Given the 'Cost No Fee' structure, what mechanisms are in place to prevent cost overruns and ensure the government receives value for its investment?
The 'Cost No Fee' structure places the financial risk on the government. Oversight mechanisms would typically include regular progress reviews, audits of expenditures, and potentially termination clauses if milestones are not met. However, the absence of a fee means the contractor has less direct financial incentive to control costs beyond meeting contractual requirements.
How does the 'full and open competition' process for this $18.9 million R&D contract ensure optimal selection and pricing compared to other potential awardees?
Full and open competition theoretically allows any qualified entity to bid, fostering a competitive environment that should lead to better pricing and selection. However, the specifics of the evaluation criteria and the number of bids received are crucial. For R&D, technical merit often plays a significant role, and the 'best value' determination can be complex, potentially leading to awards based on factors beyond just the lowest cost.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: W911QY15R0016
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 5717 CORBETT HALL RM 422, ORONO, ME, 04469
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $18,914,110
Exercised Options: $18,914,110
Current Obligation: $18,914,110
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-06-18
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-06-26
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