DoD's $149M R&D contract to Concepts Eti Inc. awarded in 2004, spanning over six years

Contract Overview

Contract Amount: $14,914,970 ($14.9M)

Contractor: Concepts ETI Inc.

Awarding Agency: Department of Defense

Start Date: 2004-04-29

End Date: 2010-06-30

Contract Duration: 2,253 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Place of Performance

Location: WHITE RIVER JUNCTION, WINDSOR County, VERMONT, 05001

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to CONCEPTS ETI INC. for work described as: Key points: 1. The contract's long duration and sole-source award warrant scrutiny for potential value. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. The firm fixed-price structure offers cost certainty but may limit flexibility. 4. Performance context is limited without specific deliverables or outcomes. 5. This contract falls within the Research and Development sector, focusing on physical, engineering, and life sciences. 6. The award to a single entity raises questions about market breadth and alternative solutions.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of specific performance metrics and the long duration. Awarded in 2004, the $149 million price tag over six years suggests an average annual spend of approximately $25 million. Without comparable sole-source R&D contracts in the same niche, it's difficult to definitively assess if this represents good value for money. The firm fixed-price nature provides cost predictability, but the absence of competitive pressure could have led to inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Concepts Eti Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple interested parties submitting proposals. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not yield the best possible pricing for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through robust competition, potentially leading to higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are likely the research and development initiatives funded by the Department of the Army. Services delivered encompass research and development in physical, engineering, and life sciences. The geographic impact is not specified but likely centers around the contractor's facilities or designated research sites. Workforce implications would include employment for scientists, engineers, and support staff at Concepts Eti Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal resource allocation.
The extended contract duration without clear performance milestones could indicate a lack of agility or evolving requirements.
Limited transparency on the specific R&D objectives and outcomes makes it difficult to assess true impact.
Sole-source awards can stifle innovation by not exploring alternative solutions from the broader market.

Positive Signals

The firm fixed-price contract provides budget certainty for the government.
The contract's focus on R&D aligns with the Department of Defense's need for technological advancement.
A long-term relationship with a single contractor can foster deep expertise in a specialized area.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710, which covers R&D in the Physical, Engineering, and Life Sciences. This sector is critical for national security and technological advancement. Government spending in R&D is often characterized by long project cycles, high upfront investment, and the inherent uncertainty of innovation. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but R&D contracts can range from millions to billions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement. This means the primary contract value flows directly to the prime contractor, Concepts Eti Inc., with limited direct benefit or mandated inclusion for the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve program managers within the Department of the Army responsible for monitoring progress and ensuring compliance with contract terms. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver within the agreed-upon cost. Transparency is limited due to the sole-source nature and the proprietary aspects often associated with R&D projects. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award lacks competitive justification.
Extended contract duration without clear performance indicators.
Limited transparency on specific R&D outcomes.
Potential for uncompetitive pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to CONCEPTS ETI INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CONCEPTS ETI 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 $14.9 million.

What is the period of performance?

Start: 2004-04-29. End: 2010-06-30.

What specific research and development activities were undertaken under this contract?

The contract, awarded under NAICS code 541710, pertains to 'Research and Development in the Physical, Engineering, and Life Sciences.' However, the provided data does not specify the exact nature of the R&D activities. These could range from fundamental scientific inquiry to applied research and experimental development in areas such as materials science, advanced manufacturing, biotechnology, or complex systems engineering. Without further documentation, the precise scientific or technological advancements pursued remain undisclosed. The long duration and sole-source nature suggest a potentially complex or highly specialized area of research critical to the Department of the Army's mission.

How does the $149 million contract value compare to similar R&D efforts within the Department of Defense?

Direct comparison of the $149 million contract value is difficult without knowing the specific R&D domain and the scope of work. However, R&D spending within the DoD is substantial, often involving large, multi-year contracts. For context, the DoD's overall R&D budget typically runs into the tens of billions of dollars annually. A $149 million contract over six years, averaging $25 million per year, is a significant investment but falls within the range of major R&D initiatives. The sole-source nature, however, prevents a direct comparison to competitively bid R&D contracts, which might have yielded different pricing structures or scopes.

What were the justifications for awarding this contract on a sole-source basis?

Sole-source contract awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. Common justifications include the existence of unique capabilities, proprietary technology, urgent and compelling requirements where competition is not feasible, or when the contract is a follow-on to a previous competitive award where only one contractor possesses the necessary knowledge or infrastructure. For this specific contract, the justification for Concepts Eti Inc. being the sole source is not detailed in the provided data. It could stem from specialized expertise, patented technology, or a critical need that only this contractor could fulfill at the time of award.

What performance metrics or milestones were associated with this contract?

The provided data does not include specific performance metrics or milestones for this contract. For R&D contracts, performance is often measured against the achievement of specific research objectives, the successful development of prototypes, the validation of scientific hypotheses, or the delivery of technical reports and data. The firm fixed-price nature implies that the contractor is obligated to deliver the agreed-upon scope of work for the stated price. However, without access to the contract's statement of work or performance clauses, it's impossible to detail the exact measures used to assess Concepts Eti Inc.'s performance over the contract's six-year duration.

What is the track record of Concepts Eti Inc. with federal contracts, particularly with the Department of Defense?

Concepts Eti Inc. has been awarded federal contracts, including this significant R&D contract with the Department of the Army. The data indicates this was a sole-source award valued at $149 million, spanning from 2004 to 2010. Further analysis of federal procurement databases would be needed to ascertain the full scope of their contract history, including other agencies served, types of services rendered, and their performance ratings on past contracts. Understanding their broader track record, including any other sole-source awards or competitive wins, would provide a more comprehensive view of their relationship with the federal government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 217 BILLINGS FARM ROAD, WILDER, VT, 00

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline