DoD's $44.2M R&D Contract with Penn State: Long Duration, Limited Competition
Contract Overview
Contract Amount: $44,249,355 ($44.2M)
Contractor: THE Pennsylvania State University
Awarding Agency: Department of Defense
Start Date: 2006-06-07
End Date: 2014-05-05
Contract Duration: 2,889 days
Daily Burn Rate: $15.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802
Plain-Language Summary
Department of Defense obligated $44.2 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: Key points: 1. Significant investment in R&D, specifically in physical, engineering, and life sciences. 2. Contract awarded to a single entity, raising questions about competition. 3. Long contract duration (2889 days) may indicate complex or ongoing research needs. 4. The 'NOT COMPETED' status highlights a potential lack of market research or justification for sole-source.
Value Assessment
Rating: questionable
The contract value of $44.2M over nearly 8 years suggests a substantial investment. Without specific deliverables or benchmarks for similar R&D efforts, assessing value for money is difficult. The 'COST PLUS FIXED FEE' structure can incentivize cost overruns if not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED', indicating a sole-source award. This limits price discovery and potentially excludes more innovative or cost-effective solutions from other providers. The justification for this approach is not provided.
Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a competitively awarded contract. Without transparency on the justification for sole-sourcing, the full impact on taxpayer funds is unclear.
Public Impact
Research and Development: Funds advanced scientific and technological capabilities for the Department of the Navy. Academic Partnership: Strengthens ties between government and a major research university. Long-Term Investment: Suggests a commitment to a specific research area over an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fee Structure
- Long Contract Duration
- Lack of Transparency on Justification
Positive Signals
- Supports R&D
- Partnership with University
Sector Analysis
This contract falls under Research and Development (NAICS 541710), a critical area for technological advancement. Spending in this sector is often characterized by innovation and long lead times, but also by the potential for cost overruns and the need for robust oversight to ensure value.
Small Business Impact
The contract was awarded to The Pennsylvania State University, a large research institution. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector.
Oversight & Accountability
The 'NOT COMPETED' status raises concerns about the adequacy of oversight in ensuring fair and open competition. Further review would be needed to understand the justification provided for the sole-source award and the mechanisms in place to manage costs and performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency.
- Cost-plus contract type carries inherent cost overrun risk.
- Long duration may obscure performance issues.
- No indication of small business participation.
- Potential for missed opportunities from competitive bidding.
Tags
research-and-development-in-the-physical, department-of-defense, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.2 million to THE PENNSYLVANIA STATE UNIVERSITY. See the official description on USAspending.
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 $44.2 million.
What is the period of performance?
Start: 2006-06-07. End: 2014-05-05.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification (e.g., unique capabilities, urgent need). Without this, it's impossible to definitively assess if alternatives were considered or if this was the most appropriate path, potentially impacting value for money.
How was the 'COST PLUS FIXED FEE' structure managed to ensure cost control and prevent potential overruns over the 2889-day period?
Cost Plus Fixed Fee contracts require rigorous oversight to manage costs effectively. Key oversight mechanisms would include detailed progress reports, independent cost reviews, and clear performance metrics. The effectiveness of this contract's management hinges on the agency's ability to monitor expenditures closely and ensure the fixed fee remained appropriate given the work performed.
What are the key research outcomes or deliverables expected from this $44.2M investment, and how will their success be measured?
The provided data lacks specific details on the research outcomes or deliverables. Measuring the success of R&D contracts typically involves evaluating the achievement of scientific milestones, the development of prototypes, or the publication of findings. Without defined metrics, assessing the ultimate effectiveness and return on investment for taxpayers is challenging.
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 › C – National Defense R&D Services
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, 15
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Parent Contract
Parent Award PIID: N0002402D6604
IDV Type: IDC
Timeline
Start Date: 2006-06-07
Current End Date: 2014-05-05
Potential End Date: 2014-05-05 00:00:00
Last Modified: 2014-06-16
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