DoD awards Penn State $30M for Propulsor R&D, raising questions on competition and value

Contract Overview

Contract Amount: $29,868,068 ($29.9M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2015-02-02

End Date: 2018-05-31

Contract Duration: 1,214 days

Daily Burn Rate: $24.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF ARL/PSU OHIO REPLACEMENT PROPULSOR AND SHAFTING SUPPORT

Place of Performance

Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: IGF::OT::IGF ARL/PSU OHIO REPLACEMENT PROPULSOR AND SHAFTING SUPPORT Key points: 1. Significant investment in advanced propulsion R&D. 2. Sole-source award to a single academic institution. 3. Potential for high cost due to lack of competition. 4. Focus on specialized physical and engineering sciences.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure for R&D can be expensive. Without competitive bidding, it's difficult to assess if the $29.8M price reflects fair market value for the propulsor and shafting support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to The Pennsylvania State University. This limits price discovery and potentially inflates costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are directed to a single entity without exploring potentially more cost-effective options through competition.

Public Impact

Advancement in naval propulsion technology could benefit national security. Potential for knowledge transfer and academic-industry collaboration. Funding directed to a major research university, supporting scientific advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Sole-source award

Positive Signals

Supports critical R&D
Partnership with a leading research institution

Sector Analysis

This contract falls under Research and Development in Physical, Engineering, and Life Sciences. The $29.8M award is substantial for a single R&D project, especially when awarded sole-source.

Small Business Impact

The contract was not awarded to any small businesses, indicating no direct benefit to this sector from this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair value and that competitive alternatives were appropriately considered.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus contract type can lead to cost overruns.
Limited transparency on justification for sole-source.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to THE PENNSYLVANIA STATE UNIVERSITY. IGF::OT::IGF ARL/PSU OHIO REPLACEMENT PROPULSOR AND SHAFTING SUPPORT

Who is the contractor on this award?

The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2015-02-02. End: 2018-05-31.

Was a full and open competition truly not feasible for this specialized propulsor and shafting R&D?

The data indicates a sole-source award, suggesting that competitive alternatives were either not pursued or deemed unsuitable. Further investigation would be needed to confirm if the unique nature of the research or the specific capabilities of Penn State justified bypassing a competitive process, or if market research was insufficient.

What is the projected long-term cost-effectiveness of this sole-source R&D investment?

The long-term cost-effectiveness is uncertain due to the sole-source nature. While the research may yield valuable advancements, the lack of competition means the initial $29.8M might be higher than necessary. Future contracts related to this R&D should prioritize competition to ensure value.

How will the effectiveness of the research be measured and validated?

Effectiveness will likely be measured through milestones and deliverables outlined in the Cost Plus Fixed Fee contract. Independent technical reviews by the Department of the Navy will be crucial to validate the research outcomes and ensure alignment with the program's objectives for propulsor and shafting development.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 408 OLD MAIN, UNIVERSITY PARK, PA, 16802

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,602,732

Exercised Options: $33,602,732

Current Obligation: $29,868,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002412D6404

IDV Type: IDC

Timeline