DoD's $28.6M contract with Primal Innovation for R&D shows fair value, but limited competition data raises questions

Contract Overview

Contract Amount: $28,557,947 ($28.6M)

Contractor: Primal Innovation, LLC

Awarding Agency: Department of Defense

Start Date: 2010-12-16

End Date: 2012-12-31

Contract Duration: 746 days

Daily Burn Rate: $38.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: U438120 BAA 10-4718 PRIMAL INNOVATION

Place of Performance

Location: SANFORD, SEMINOLE County, FLORIDA, 32771

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $28.6 million to PRIMAL INNOVATION, LLC for work described as: U438120 BAA 10-4718 PRIMAL INNOVATION Key points: 1. Contract value of $28.6M for research and development appears reasonable given the scope. 2. The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. 3. Limited public data on specific deliverables makes a precise value-for-money assessment challenging. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The contract duration of approximately two years is typical for R&D projects of this nature. 6. The contractor, Primal Innovation, LLC, is a relatively small entity in the federal contracting landscape. 7. The contract's focus on physical, engineering, and life sciences R&D aligns with defense modernization needs.

Value Assessment

Rating: fair

The contract's total value of $28.6 million for research and development is within a typical range for specialized defense R&D projects. Benchmarking against similar contracts is difficult without more specific details on the research outcomes and deliverables. However, the firm fixed-price structure suggests that the government secured a defined scope at a set price, which can be advantageous. The award amount relative to the contract's duration and stated purpose appears to be a fair allocation of resources, though a definitive assessment of value requires deeper insight into the technical achievements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. While the number of bids received is not explicitly stated, the 'full and open' designation implies a competitive process designed to achieve the best value. This approach generally fosters price discovery and encourages multiple vendors to offer their best terms and technical solutions.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. Army, receiving advancements in physical, engineering, and life sciences research. The contract supports research and development activities, aiming to produce innovative solutions for defense applications. The geographic impact is primarily within Florida, where the contractor is located, though the research outcomes could have national defense implications. Workforce implications include employment for researchers, scientists, and support staff at Primal Innovation, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed public information on specific research deliverables hinders a comprehensive assessment of performance and impact.
The contractor, Primal Innovation, LLC, may have limited capacity or track record compared to larger defense contractors, potentially posing execution risks.
The broad nature of 'Research and Development' can sometimes lead to scope creep or unforeseen challenges in achieving defined objectives.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust selection process.
The firm fixed-price contract type provides cost certainty for the government.
The research focus aligns with critical defense needs, potentially leading to significant technological advancements.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is crucial for defense modernization, enabling the development of new technologies and capabilities. The total federal spending on R&D is substantial, with defense R&D comprising a significant portion. This contract represents a small investment within the broader defense R&D landscape, aimed at fostering innovation and maintaining a technological edge.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The contractor, Primal Innovation, LLC, is likely a small business itself, but the award does not indicate a deliberate strategy to utilize the federal contracting ecosystem to boost small business participation beyond the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver defined research outcomes. Transparency is limited by the proprietary nature of R&D, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Advanced Technology Development Contracts
Physical Sciences Research Grants
Engineering Research and Development

Risk Flags

Limited public detail on R&D deliverables
Contractor's specific track record and capacity not fully detailed
Potential for R&D project scope creep or unforeseen challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.6 million to PRIMAL INNOVATION, LLC. U438120 BAA 10-4718 PRIMAL INNOVATION

Who is the contractor on this award?

The obligated recipient is PRIMAL INNOVATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2010-12-16. End: 2012-12-31.

What specific research outcomes or technological advancements were expected from this $28.6 million contract with Primal Innovation?

The provided data indicates the contract (BAA 10-4718) was for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. However, specific research outcomes, deliverables, or technological advancements are not detailed in the summary data. Such information is typically found in the contract's statement of work or technical exhibits, which are not publicly accessible in this abbreviated format. Without these specifics, it's impossible to detail the precise advancements sought. The contract's broad description suggests a focus on foundational or applied research intended to enhance defense capabilities, potentially in areas like materials science, advanced manufacturing, sensor technology, or complex systems engineering, but the exact nature remains unspecified.

How does the $28.6 million contract value compare to similar R&D contracts awarded by the Department of Defense for physical and engineering sciences?

Comparing the $28.6 million contract value requires context regarding the specific R&D area and the scope of work. The Department of Defense awards numerous R&D contracts, ranging from small, targeted research grants to multi-billion dollar programs. For a definitive comparison, one would need to identify contracts with similar NAICS codes (541712), similar research objectives (physical, engineering, life sciences), and similar contract types (e.g., definitive contracts, BAA awards). Given the duration of approximately two years (746 days), $28.6 million represents a significant investment per year, suggesting a project of substantial scope or complexity. Without access to a comprehensive database of comparable contracts with detailed scope information, it's challenging to definitively state whether this value is high, low, or average. However, it falls within the range of significant R&D investments for specialized technological development.

What are the potential risks associated with awarding a research and development contract of this magnitude to Primal Innovation, LLC?

Potential risks associated with awarding a $28.6 million R&D contract to Primal Innovation, LLC, could include contractor capacity, technical expertise, and financial stability. While the data indicates 'full and open competition,' suggesting a vetting process, the contractor's size and specific track record in delivering complex R&D projects are not detailed. If Primal Innovation is a smaller entity, it might face challenges in scaling resources, managing large subcontracts, or absorbing unexpected costs if the project encounters significant technical hurdles. Furthermore, the inherent uncertainty in R&D means that achieving the desired outcomes is not guaranteed, posing a risk of not realizing the full return on investment. The firm fixed-price nature, while beneficial for cost control, could also incentivize the contractor to cut corners if facing financial pressure, potentially impacting research quality or thoroughness.

What does the 'FULL AND OPEN COMPETITION' designation imply about the selection process and potential value for taxpayers?

The 'FULL AND OPEN COMPETITION' designation signifies that the Department of the Army solicited proposals from all responsible sources capable of meeting the contract requirements. This process is designed to maximize competition, thereby encouraging vendors to offer their best technical solutions and pricing. For taxpayers, this generally implies a greater likelihood of achieving value for money, as competitive pressures tend to drive down costs and improve the quality of services or products. It also ensures that the government is not unduly restricted to a single provider, fostering a more dynamic and efficient marketplace. While it doesn't guarantee the lowest price, it establishes a robust framework for selecting the most advantageous offer.

What is the historical spending pattern for Primal Innovation, LLC with the Department of Defense or other federal agencies?

The provided data indicates a single contract award to Primal Innovation, LLC, by the Department of Defense totaling $28,557,947.34, with a start date of 2010-12-16 and an end date of 2012-12-31. This suggests that this specific contract represents a significant portion, if not the entirety, of Primal Innovation's known federal contract history within the provided dataset. Without access to broader federal procurement databases (like FPDS or SAM.gov), it is difficult to ascertain a comprehensive historical spending pattern. This single, large award could indicate a specialized capability that the DoD sought, or it could be an outlier. Further investigation into Primal Innovation's contracting history across all federal agencies would be necessary to establish a trend or pattern.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 TECH DR, SANFORD, FL, 32771

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,962,838

Exercised Options: $28,962,838

Current Obligation: $28,557,947

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline