University of Hawaii awarded $124.7M for R&D, with a significant portion for applied research

Contract Overview

Contract Amount: $124,739,539 ($124.7M)

Contractor: University of Hawaii

Awarding Agency: Department of Defense

Start Date: 2001-09-28

End Date: 2011-09-30

Contract Duration: 3,654 days

Daily Burn Rate: $34.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: R&D

Official Description: 200112!000598!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960101D0083 !A!N!*!N!0002 !20010928!20040930!965088057!155016041!009438664!N!UNIVERSITY OF HAWAII !2530 DOLE STREET !HONOLULU !HI!96822!17000!003!15!HONOLULU !HONOLULU !HAWAII !+000000936322!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541513!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!S!2!002!B! !Z!N!Z! ! !N!U!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96822

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $124.7 million to UNIVERSITY OF HAWAII for work described as: 200112!000598!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960101D0083 !A!N!*!N!0002 !20010928!20040930!965088057!155016041!009438664!N!UNIVERSITY OF HAWAII !2530 DOLE STREET !HONOLULU !HI!96822!17000!003!15!HONOLULU !HONOLULU !HAWAII !+000000936322!N!N!000000000000!AD92!RDTE/OTHER… Key points: 1. Contract awarded for research and development, indicating investment in innovation and future capabilities. 2. The contract spans over 10 years, suggesting a long-term commitment to the research objectives. 3. Full and open competition was utilized, implying a robust selection process and potential for competitive pricing. 4. The primary contractor is a university, suggesting a focus on academic research and development rather than commercial product delivery. 5. The contract type is 'Cost No Fee', which means the contractor is reimbursed for allowable costs but does not receive a profit. 6. The contract supports the Department of Defense, highlighting its role in national security research.

Value Assessment

Rating: good

The total award amount of $124.7 million over approximately 10 years represents a substantial investment in research and development. Benchmarking this against similar large-scale R&D contracts is challenging without more specific details on the research scope. However, the 'Cost No Fee' contract type suggests a focus on cost recovery for the university rather than profit generation, which can be a favorable structure for taxpayer value in R&D settings where outcomes are uncertain. The absence of a fee might indicate a unique relationship or a specific program objective where profit is not the primary driver.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This process is designed to foster a competitive environment, which typically leads to better pricing and a wider selection of qualified contractors. The fact that a university was selected suggests they offered the most advantageous technical and cost solution among the competitors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a rigorous selection process and competitive pricing.

Public Impact

The University of Hawaii is the primary beneficiary, receiving significant funding for its research activities. The contract supports advanced research and development, potentially leading to technological advancements. The geographic impact is centered in Hawaii, supporting local research infrastructure and personnel. The contract likely involves researchers, scientists, and support staff at the university, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) could lead to cost overruns if not managed effectively.
Cost-reimbursement contracts can sometimes incentivize spending, though the 'Cost No Fee' structure mitigates profit motive.
Research and Development outcomes are inherently uncertain, making it difficult to guarantee a specific return on investment.

Positive Signals

Awarded through full and open competition, suggesting a competitive and potentially cost-effective process.
Contractor is a university, often focused on advancing knowledge rather than profit, which can align with public interest.
Long-term funding provides stability for critical research projects.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Department of Defense is a major investor in R&D to maintain technological superiority. Comparable spending benchmarks would depend heavily on the specific scientific disciplines and technological areas being researched, but significant government investment in defense-related R&D is common.

Small Business Impact

There is no indication of small business set-asides for this contract. As the primary awardee is a university, subcontracting opportunities for small businesses would depend on the university's procurement practices and the nature of the research. It's possible that specialized research needs could be subcontracted to small businesses, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense, likely the Department of the Navy given the data. The 'Cost No Fee' structure requires careful monitoring of expenditures to ensure they are allowable and reasonable. Transparency would depend on the classification of the research; unclassified R&D typically has reporting requirements.

Related Government Programs

Department of Defense Research and Development Programs
Applied Research Initiatives
University Research Partnerships
Naval Research Laboratory Contracts

Risk Flags

Long contract duration may increase risk of cost escalation.
Research and Development outcomes are inherently uncertain.
Cost-reimbursement contracts require diligent oversight to manage spending.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $124.7 million to UNIVERSITY OF HAWAII. 200112!000598!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960101D0083 !A!N!*!N!0002 !20010928!20040930!965088057!155016041!009438664!N!UNIVERSITY OF HAWAII !2530 DOLE STREET !HONOLULU !HI!96822!17000!003!15!HONOLULU !HONOLULU !HAWAII !+000000936322!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541513!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!S!2!002!B! !Z!N!Z! ! !N!U!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001!

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF HAWAII.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $124.7 million.

What is the period of performance?

Start: 2001-09-28. End: 2011-09-30.

What specific research areas are covered under this contract?

The provided data indicates the contract falls under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) and is categorized as 'RDTE/OTHER DEFENSE-APPLIED RESEARCH'. While the specific sub-disciplines are not detailed, this suggests the research likely pertains to areas critical for national defense, potentially including materials science, aerospace engineering, electronics, cybersecurity, or other scientific fields relevant to military applications. Further details would be found in the contract's Statement of Work (SOW).

How does the 'Cost No Fee' structure impact the contractor and the government?

The 'Cost No Fee' (CNF) contract type means the contractor, in this case, the University of Hawaii, will be reimbursed for all allowable costs incurred in performing the contract, but will not receive any profit. This structure is often used when the government is contracting with non-profit organizations or educational institutions for research where the primary goal is knowledge advancement rather than commercial gain. For the government, it can potentially lead to lower overall costs as profit is excluded. For the contractor, it ensures cost recovery but removes the incentive for maximizing profit, focusing efforts on fulfilling the research objectives.

What is the significance of the contract duration of over 10 years?

A contract duration exceeding 10 years (3654 days) for research and development signifies a long-term strategic investment by the Department of Defense. Such extended periods are common for foundational research projects where scientific breakthroughs may take considerable time to achieve. This duration allows for sustained effort, iterative development, and the potential for deep exploration of complex scientific questions. It also provides stability for the research team and infrastructure at the University of Hawaii, enabling them to plan and execute multi-phase research objectives without the constant pressure of short-term funding cycles.

What is the historical spending pattern for similar R&D contracts with the University of Hawaii?

Analyzing historical spending patterns for similar R&D contracts with the University of Hawaii would require access to a broader database of federal contract awards. However, this $124.7 million award is substantial and suggests a significant, long-term relationship between the university and the Department of Defense for research services. Without specific historical data, it's difficult to establish a trend, but such a large award indicates the university is a key player in securing federal R&D funding within its specialized fields.

What are the potential risks associated with a 'Cost No Fee' R&D contract of this magnitude?

Key risks include potential cost overruns if project scope expands or unforeseen technical challenges arise, as the government bears the cost of allowable expenses. There's also the risk that the research may not yield the desired outcomes or technological advancements, given the inherent uncertainty in R&D. Effective oversight is crucial to ensure costs remain reasonable and allocable to the contract. Additionally, the long duration could expose the project to shifts in technological priorities or funding availability within the DoD, although the initial award suggests a strong commitment.

How does this contract compare to other defense R&D spending in Hawaii?

This contract represents a significant portion of defense R&D spending potentially allocated to Hawaii. The University of Hawaii's role as a primary contractor for a $124.7 million award underscores its importance as a research institution within the state supporting national defense objectives. Comparing it to other defense R&D spending in Hawaii would involve aggregating awards to other institutions, private companies, or government facilities within the state, which is beyond the scope of this single contract's data.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Hawaii Systems (UEI: 009438664)

Address: 2425 CAMPUS RD SINCLAIR LIBRARY RM 1, HONOLULU, HI, 96822

Business Categories: Category Business, Educational Institution, Government, Higher Education, Higher Education (Minority Serving), U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F2960101D0083

IDV Type: IDC

Timeline