DoD's $19M investment in alternative energy R&D by Concurrent Technologies Corp shows mixed value

Contract Overview

Contract Amount: $18,998,909 ($19.0M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2009-09-17

End Date: 2015-12-30

Contract Duration: 2,295 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ALTERNATIVE ENERGY TECHNOLOGIES

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to CONCURRENT TECHNOLOGIES CORP for work described as: ALTERNATIVE ENERGY TECHNOLOGIES Key points: 1. Contract awarded via full and open competition, suggesting a competitive market. 2. Performance period of 2295 days indicates a long-term R&D effort. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns. 4. Focus on alternative energy technologies aligns with strategic national interests. 5. Limited data on specific deliverables makes a precise value-for-money assessment challenging. 6. Small business participation was not a stated requirement, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The total award of $18,998,909 for R&D in alternative energy technologies over approximately 6.3 years presents a moderate per-year investment. Benchmarking this against similar R&D contracts in the energy sector is difficult without specific details on the research scope and deliverables. The cost-plus-fixed-fee structure, while common for R&D, carries inherent risks of cost escalation if not tightly managed. The value proposition hinges on the successful development and eventual adoption of the alternative energy technologies researched.

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 were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of 4 delivery orders suggests ongoing work and potential for multiple competitive bids over the contract's life, though the initial award mechanism is key.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader energy sector through advancements in alternative energy. The contract supports research and development activities aimed at creating new or improved alternative energy solutions. The geographic impact is primarily within Pennsylvania, where Concurrent Technologies Corp is located, but the research outcomes could have national implications. Workforce implications include employment for researchers, engineers, and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to higher costs if not managed diligently.
Lack of specific performance metrics makes it hard to gauge R&D success and value.
Long performance period increases the risk of technology obsolescence or shifting priorities.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Focus on alternative energy aligns with critical national security and environmental goals.
Concurrent Technologies Corp has a track record in defense-related R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The market for alternative energy R&D is dynamic, driven by government funding, private investment, and global energy demands. Comparable spending benchmarks are difficult to establish without knowing the specific technological focus, but significant government investment in energy R&D is common across various agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). This suggests that the primary focus was on securing the best technical solution through open competition, rather than specifically promoting small business involvement. While large prime contractors may engage small businesses as subcontractors, there's no explicit mechanism here to ensure or track their participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance with terms and conditions. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, but specific R&D progress reports may be less publicly accessible due to proprietary or national security concerns.

Related Government Programs

Department of Energy Research and Development Programs
Advanced Research Projects Agency (ARPA) Energy
Department of Defense Science and Technology Programs
National Science Foundation Engineering Grants

Risk Flags

Cost-plus-fixed-fee contract type
Long contract duration
Lack of specific deliverable details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to CONCURRENT TECHNOLOGIES CORP. ALTERNATIVE ENERGY TECHNOLOGIES

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2009-09-17. End: 2015-12-30.

What specific alternative energy technologies were researched under this contract?

The provided data does not specify the exact alternative energy technologies researched. The contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' and the description is 'ALTERNATIVE ENERGY TECHNOLOGIES.' This broad categorization suggests the research could encompass a range of areas such as solar, wind, geothermal, advanced biofuels, energy storage, or novel energy conversion methods. Further details would likely be found in the contract's statement of work or technical reports, which are not publicly available in this dataset.

How does the $19 million total award compare to typical R&D spending in this sector?

The total award of approximately $19 million over roughly 6.3 years (2295 days) represents an average annual investment of about $3 million. This figure is moderate within the broader landscape of federal R&D spending, particularly in areas like defense and energy where large-scale projects can reach hundreds of millions or even billions of dollars. However, for a specific R&D project focused on a niche area of alternative energy, this amount could be substantial. Benchmarking requires comparing it to similar-scoped projects within the Department of Defense or other agencies focused on energy innovation, considering the specific technological maturity and goals.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Concurrent Technologies Corp, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the project encounters unforeseen technical challenges or scope creep, the contractor may incur costs exceeding initial estimates. This structure can incentivize the contractor to control costs to maximize their fee, but it also places a significant oversight burden on the government to ensure costs are reasonable and allocable. For R&D, where outcomes are inherently uncertain, CPFF can be appropriate but requires diligent monitoring.

What was the track record of Concurrent Technologies Corporation prior to this award?

Concurrent Technologies Corporation (CTC) has a significant history of performing research, development, and engineering services, particularly for the Department of Defense and other government agencies. Prior to this specific $19 million award starting in 2009, CTC had established itself as a reputable R&D organization. Their work often involves advanced materials, manufacturing, energy, and defense applications. While specific performance metrics for past contracts aren't detailed here, their continued ability to win competitive R&D contracts suggests a generally positive track record and capability in delivering technical solutions.

How does the 'full and open competition' impact taxpayer value for this contract?

Awarding this contract through 'full and open competition' generally enhances taxpayer value. This process allows any responsible source to submit a bid, fostering a competitive environment. Competition typically drives down prices, encourages innovation, and ensures that the government selects the offer that provides the best overall value, considering both technical merit and cost. For this $19 million R&D contract, competition likely ensured that Concurrent Technologies Corp submitted a proposal that was both technically sound and competitively priced relative to other potential offerors in the alternative energy R&D space.

What are the potential long-term implications of this R&D investment?

The long-term implications of this R&D investment are potentially significant but uncertain, typical of research endeavors. If successful, the developed alternative energy technologies could lead to reduced reliance on fossil fuels for military operations, enhanced energy security, and potentially commercialization opportunities. This could translate into cost savings for the DoD in the future through more efficient or sustainable energy sources. Furthermore, advancements in this field can contribute to broader national goals related to climate change mitigation and energy independence. However, R&D is inherently risky, and there's no guarantee of a commercially viable or operationally effective outcome.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,998,909

Exercised Options: $18,998,909

Current Obligation: $18,998,909

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA865009D5601

IDV Type: IDC

Timeline