DoD awards $24.2M R&D contract to Semper Valens Solutions for FFP labor over 5 years

Contract Overview

Contract Amount: $24,227,485 ($24.2M)

Contractor: Semper Valens Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-08-29

End Date: 2026-09-29

Contract Duration: 1,857 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: CSLA FOR FFP LABOR BASE YEAR AND FOUR OPTION PERIODS.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SEMPER VALENS SOLUTIONS, INC. for work described as: CSLA FOR FFP LABOR BASE YEAR AND FOUR OPTION PERIODS. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Firm Fixed Price (FFP) structure shifts cost risk to the contractor. 3. Full and Open Competition suggests a competitive bidding process. 4. Contract duration of over 5 years indicates a long-term need for services. 5. The contract is a Delivery Order under a larger award, suggesting a phased approach. 6. The base year and four option periods allow for flexibility and potential growth. 7. The contract is not set aside for small businesses, indicating a larger scope or specific requirements. 8. The primary place of performance is Arizona.

Value Assessment

Rating: good

The contract's Firm Fixed Price (FFP) structure is generally favorable for the government, as it caps costs and transfers risk to the contractor. Benchmarking the per-unit cost is difficult without more specific details on the labor categories and hours. However, the total award of $24.2 million over five years for R&D services in specialized scientific fields appears within a reasonable range for such complex work, especially given the competitive nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process designed to solicit the best value. The number of bidders is not specified, but the competitive nature of this type of award generally leads to more favorable pricing for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive rates for its investments.

Public Impact

The Department of Defense benefits from advanced research and development capabilities. Specialized scientific and engineering services are delivered to support national security objectives. The primary geographic impact is in Arizona, where the work will be performed. The contract supports a workforce of scientists, engineers, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite FFP.
Dependence on contractor's ability to deliver innovative R&D outcomes.
Long-term nature of the contract may require ongoing budget allocation.
Risk of contractor performance issues impacting critical R&D timelines.

Positive Signals

Firm Fixed Price structure mitigates cost uncertainty for the government.
Full and Open Competition suggests a competitive environment leading to better value.
Contract duration allows for sustained focus on complex R&D objectives.
Delivery Order structure provides flexibility in tasking and funding.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation. The market for R&D services is highly specialized, with a mix of large corporations and niche firms. The total federal spending on R&D is substantial, and contracts like this represent investments in future technological capabilities. Comparable spending benchmarks would depend on the specific scientific disciplines involved.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'sb: false'. This suggests that the scope of work or the required expertise may have been beyond the typical capabilities or capacity of small businesses, or that the competition was open to all responsible sources regardless of size. There is no explicit mention of subcontracting requirements for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Initiatives
Federal R&D Spending
Advanced Technology Development Contracts

Risk Flags

Potential for R&D project delays
Contractor performance risk
Scope creep management
Long-term budget allocation dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SEMPER VALENS SOLUTIONS, INC.. CSLA FOR FFP LABOR BASE YEAR AND FOUR OPTION PERIODS.

Who is the contractor on this award?

The obligated recipient is SEMPER VALENS SOLUTIONS, 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 $24.2 million.

What is the period of performance?

Start: 2021-08-29. End: 2026-09-29.

What is the specific nature of the R&D being conducted under this contract?

The contract, identified by NAICS code 541715, pertains to 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' While the description 'CSLA FOR FFP LABOR BASE YEAR AND FOUR OPTION PERIODS' is broad, it indicates that the core of the contract involves providing labor for research and development activities within these scientific domains. Specific project details, deliverables, and research areas would typically be outlined in the Statement of Work (SOW) attached to the Delivery Order, which is not publicly available in this data snippet. The contract's focus on FFP labor suggests a need for skilled personnel to execute defined research tasks rather than procuring a specific end-product.

How does the $24.2 million award compare to similar R&D contracts in the physical, engineering, and life sciences sector?

Benchmarking the $24.2 million award requires comparing it to contracts with similar scope, duration, and scientific focus. Contracts for R&D in physical, engineering, and life sciences can vary significantly in value. For instance, basic research efforts might be smaller, while advanced development of complex systems or technologies could reach hundreds of millions or even billions. Given this contract's five-year duration and its award through full and open competition, $24.2 million appears to be a moderate-sized award for specialized R&D services. Without knowing the specific sub-disciplines (e.g., materials science, aerospace engineering, biomedical research) and the level of maturity of the R&D, a precise comparison is challenging. However, it suggests a focused effort rather than a broad, multi-billion dollar program.

What are the primary risks associated with this Firm Fixed Price (FFP) contract structure for the government?

While FFP contracts are generally advantageous for the government by capping costs, risks can still exist. The primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or if their initial cost estimates were too low. This is particularly relevant in R&D where outcomes are inherently uncertain. Scope creep, if not managed tightly through contract modifications, can also lead to disputes and potential cost increases, despite the FFP nature. Furthermore, if the contractor lacks the necessary expertise or resources, they might fail to deliver the expected R&D outcomes, leading to delays or a need to re-compete the work, which incurs additional costs and time.

What does the 'Delivery Order' designation imply about the overall contract vehicle?

The 'Delivery Order' (DO) designation signifies that this $24.2 million award is not a standalone contract but rather a task order issued against a previously awarded Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means that Semper Valens Solutions likely won a larger, overarching contract that allows the Department of Defense (or specifically the Department of the Army in this case) to issue multiple delivery orders for specific services or products over a defined period. This structure provides flexibility for the government to procure services as needed, and for the contractor, it offers a potential stream of work. The $24.2 million represents the total value obligated for this specific delivery order.

How does the contract's duration of over five years impact its significance for the contractor and the government?

A contract duration of over five years (base year plus four option periods) provides significant stability and predictability for both the contractor and the government. For Semper Valens Solutions, it offers a substantial revenue stream and allows for long-term planning, investment in personnel, and development of specialized capabilities. For the Department of the Army, it ensures continuity of R&D support for potentially critical projects without the constant need for frequent re-competition. This extended period is often indicative of projects requiring sustained effort, complex development cycles, or ongoing scientific inquiry where short-term contracts would be inefficient and disruptive. It also allows for deeper integration of the contractor's expertise into the government's research objectives.

What is the significance of the NAICS code 541715 and its exclusion of Nanotechnology and Biotechnology?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences,' is a broad category. The specific exclusion of 'Nanotechnology and Biotechnology' indicates that this contract is focused on R&D within other established scientific fields. This could include areas like advanced materials, aerospace engineering, robotics, environmental science, or specific branches of biology and chemistry that do not fall under the nanotechnology or biotechnology umbrellas. This precise classification helps in understanding the technological domain the contract aims to advance and allows for more accurate benchmarking against spending in related, but distinct, R&D sectors.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91RUS21R0028

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2413 GLENN DR, CANYON LAKE, TX, 78133

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,284,294

Exercised Options: $27,266,384

Current Obligation: $24,227,485

Actual Outlays: $37,699

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0010

IDV Type: IDC

Timeline