DoD's $9.3M R&D contract for expandable shelters awarded to Compotech Inc. without competition

Contract Overview

Contract Amount: $9,267,354 ($9.3M)

Contractor: Compotech Inc

Awarding Agency: Department of Defense

Start Date: 2025-01-17

End Date: 2026-04-16

Contract Duration: 454 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS) DESIGN REFINEMENT, FABRICATION OF ADDITIONAL UNITS, TRAINING AND SUPPORT

Place of Performance

Location: BREWER, PENOBSCOT County, MAINE, 04412

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to COMPOTECH INC for work described as: EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS) DESIGN REFINEMENT, FABRICATION OF ADDITIONAL UNITS, TRAINING AND SUPPORT Key points: 1. Contract focuses on research, development, fabrication, training, and support for expandable shelters. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. The contract duration of 454 days suggests a focused effort on design refinement and initial fabrication. 4. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 5. The contract is a Firm Fixed Price type, aiming to control costs for the government. 6. The awardee, Compotech Inc., is the sole entity for this specific R&D effort.

Value Assessment

Rating: questionable

Benchmarking the value of this R&D contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to assess if the $9.3 million price represents optimal value for money. The contract's scope includes design refinement and fabrication of additional units, suggesting a progression from initial concept to tangible output. Further analysis would require understanding the specific technological advancements and the cost of comparable, albeit potentially less advanced, shelter systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Compotech Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not yield the most cost-effective outcome for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The government relies on the awarded contractor's proposed pricing without the leverage of alternative offers.

Public Impact

The Department of the Army will benefit from advancements in expandable shelter technology. Services delivered include design refinement, fabrication of prototype or initial production units, training, and ongoing support. The geographic impact is primarily within the Department of Defense's operational theaters, with potential applications for deployed personnel. Workforce implications may include specialized engineering and fabrication roles within Compotech Inc. and potentially for training personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the selection process due to no-bid award.
Potential for cost overruns if not closely managed, given the absence of competitive pressure.

Positive Signals

Firm Fixed Price contract type helps to cap costs for the government.
Focus on R&D suggests potential for innovative and improved military equipment.
Contract includes training and support, indicating a comprehensive approach to technology integration.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The market for military shelters is specialized, driven by defense procurement needs for rapidly deployable and robust structures. While specific market size data for expandable shelter R&D is not readily available, the broader defense R&D spending is substantial, with significant investment in materials science, engineering, and tactical equipment.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to Compotech Inc., there is no indication of subcontracting opportunities being specifically allocated to small businesses within this particular contract. The focus is on the prime contractor's capabilities for this specialized R&D effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified outcomes within the agreed budget. Transparency may be limited due to the sole-source nature of the award, but contract performance data and milestones should be available through federal procurement databases.

Related Government Programs

Military Shelter Systems
Deployable Infrastructure
Rapidly Erectable Structures
Defense Research and Development Programs
Tactical Equipment Procurement

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to COMPOTECH INC. EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS) DESIGN REFINEMENT, FABRICATION OF ADDITIONAL UNITS, TRAINING AND SUPPORT

Who is the contractor on this award?

The obligated recipient is COMPOTECH 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 $9.3 million.

What is the period of performance?

Start: 2025-01-17. End: 2026-04-16.

What is Compotech Inc.'s track record with similar sole-source R&D contracts for military equipment?

Information regarding Compotech Inc.'s specific track record with similar sole-source R&D contracts for military equipment is not detailed in the provided data. A comprehensive review would require accessing historical contract databases and analyzing past performance reviews. Generally, sole-source awards are granted when a contractor possesses unique capabilities, intellectual property, or has demonstrated exceptional performance on prior related efforts. Without further data, it's difficult to assess their specific expertise in this niche R&D area or their history of successful sole-source engagements. The current contract's focus on 'EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS)' suggests a specialized area of development.

How does the $9.3 million cost compare to the development of similar advanced shelter systems?

Direct cost comparisons for the development of 'EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS)' are difficult without access to proprietary development costs or detailed specifications of comparable systems. The $9.3 million figure covers design refinement, fabrication of additional units, training, and support over a 454-day period. Factors influencing this cost include the complexity of the design, the materials used, the required performance specifications (e.g., environmental resistance, deployment speed), and the novelty of the technology. Given this is a sole-source award for R&D, the price is based on the contractor's proposal rather than competitive bids, making external benchmarking challenging. The government would typically rely on internal cost estimates or historical data for similar, though not identical, R&D efforts to validate the pricing.

What are the primary risks associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract include potential cost inefficiencies due to the lack of competitive bidding, where the government may not achieve the lowest possible price. There's also a risk of scope creep if the design refinement process leads to unforeseen complexities or additional requirements not initially budgeted for. Contractor performance risk is always present; if Compotech Inc. fails to meet technical milestones or delivery schedules, it could delay the program. Furthermore, the specialized nature of the technology means that if Compotech Inc. encounters insurmountable technical challenges, alternative solutions might be scarce or require a new, competitive R&D effort, leading to significant program delays and increased costs.

What is the expected program effectiveness and impact of the E-PACS technology?

The expected program effectiveness of the E-PACS technology hinges on its ability to deliver enhanced capabilities in terms of rapid deployment, user-friendliness, and durability compared to existing shelter solutions. If successful, the technology could significantly improve the logistical support and living conditions for deployed military personnel by providing more robust and easily deployable shelters. The impact could be a reduction in setup time, improved protection against environmental factors, and potentially lower lifecycle costs if the design proves durable and maintenance-friendly. The training and support components of the contract are crucial for ensuring that military units can effectively utilize and maintain the E-PACS, maximizing their operational benefit.

What are the historical spending patterns for similar expandable shelter research and development efforts by the Department of Defense?

Historical spending patterns for similar expandable shelter R&D efforts by the Department of Defense are not explicitly detailed in the provided data. However, defense R&D spending is generally substantial, with significant allocations towards improving soldier systems, logistics, and base infrastructure. Contracts for shelter systems can range widely in value depending on the technological sophistication, quantity, and specific requirements. Past investments in rapidly deployable or modular shelter systems would provide a baseline, but the 'EXTENDABLE - PANELIZED AND COLLAPSIBLE SHELTER (E-PACS)' designation suggests a potentially novel or advanced iteration. Analyzing broader DoD R&D budgets for tactical equipment and infrastructure over the past decade would offer context, but specific figures for comparable shelter R&D would require deeper database research.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 BAKER BLVD, BREWER, ME, 04412

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,267,354

Exercised Options: $9,267,354

Current Obligation: $9,267,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline