DoD's $39M contract for cold spray repair of aircraft structures awarded to Penn State University

Contract Overview

Contract Amount: $39,004,343 ($39.0M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2017-02-22

End Date: 2020-07-21

Contract Duration: 1,245 days

Daily Burn Rate: $31.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF COLD SPRAY REPAIR OF AL606I DOOR AND STRUCTURES

Place of Performance

Location: STATE COLLEGE, CENTRE County, PENNSYLVANIA, 16804

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: IGF::OT::IGF COLD SPRAY REPAIR OF AL606I DOOR AND STRUCTURES Key points: 1. The contract value represents a significant investment in advanced materials repair technologies. 2. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 3. The sole-source nature of the award warrants scrutiny regarding potential cost efficiencies. 4. The duration of the contract suggests a long-term commitment to this specific repair capability. 5. Performance context is limited without specific details on the repair outcomes and effectiveness. 6. The contract's focus on physical and engineering sciences aligns with critical defense needs.

Value Assessment

Rating: questionable

Benchmarking the value of this specific research and development contract is challenging due to its specialized nature. Without comparable sole-source awards for similar cold spray repair technologies, assessing value for money is difficult. The cost-plus-fixed-fee structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial projections. Further analysis would require understanding the specific research milestones and deliverables tied to the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach is typically justified when only one responsible source is available or when there's a compelling reason to award to a specific entity, such as unique capabilities or prior research investment. The lack of competition limits the potential for price discovery and may result in higher costs compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. This could lead to a higher overall expenditure for the government on this specific research and development effort.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through the advancement of aircraft structural repair capabilities. The contract delivers research and development services focused on innovative cold spray repair techniques for aluminum alloys. The geographic impact is primarily within Pennsylvania, where The Pennsylvania State University is located, but the technological advancements have national defense implications. Workforce implications include potential employment opportunities for researchers, engineers, and technicians at the university specializing in materials science and aerospace engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost-plus-fixed-fee contract structure requires diligent oversight to manage costs effectively.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the research.
The specialized nature of the repair technology may limit its broader applicability or scalability.

Positive Signals

Focus on innovative cold spray technology addresses a critical need for advanced aircraft repair.
Award to a reputable research institution like Penn State suggests a commitment to high-quality R&D.
The contract duration indicates a sustained effort to develop and mature this repair capability.
Potential for significant improvements in aircraft maintenance efficiency and lifespan extension.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced materials repair technologies, such as cold spray, is growing, driven by the need for more efficient and cost-effective maintenance solutions in aerospace and defense. Comparable spending benchmarks are difficult to establish for highly specialized R&D efforts, but investments in materials science and engineering are crucial for maintaining a technological edge.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of the award to a large research institution, the primary focus is on specialized research capabilities rather than broad service delivery where small businesses typically play a larger subcontracting role. There is no explicit information provided regarding subcontracting plans with small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The cost-plus-fixed-fee structure necessitates regular reviews of incurred costs and progress towards research objectives. Transparency is dependent on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of R&D outcomes. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Naval Air Systems Command (NAVAIR) Contracts
Advanced Materials Research
Aerospace Engineering Services
Cold Spray Technology Development

Risk Flags

Sole-source award may limit cost competition.
Cost-plus-fixed-fee structure requires robust oversight.
Limited public information on specific performance metrics and outcomes.
Specialized R&D nature makes direct value comparison difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to THE PENNSYLVANIA STATE UNIVERSITY. IGF::OT::IGF COLD SPRAY REPAIR OF AL606I DOOR AND STRUCTURES

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 $39.0 million.

What is the period of performance?

Start: 2017-02-22. End: 2020-07-21.

What is the specific technical objective of the cold spray repair for AL6061 door and structures?

The specific technical objective of the cold spray repair for AL6061 door and structures is to develop and validate an advanced repair methodology for aircraft components made of aluminum alloys. Cold spray is a solid-state process that deposits metallic particles onto a substrate at high velocity, allowing for the repair of cracks, wear, and corrosion without significantly altering the material's properties through heat. For AL6061 aluminum alloy doors and structures, this technology aims to restore structural integrity, extend component lifespan, and potentially reduce the need for costly replacements. The research likely focuses on optimizing spray parameters, material feedstock, and post-deposition treatments to ensure the repaired areas meet stringent aerospace performance and safety standards.

How does the cost-plus-fixed-fee (CPFF) structure influence the financial risk for both the government and the contractor?

The Cost-Plus-Fixed-Fee (CPFF) contract structure shifts a significant portion of the financial risk to the government. Under CPFF, the contractor is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee. This means the government bears the risk of cost overruns if the project's expenses exceed initial estimates. The contractor's risk is primarily limited to ensuring the work is completed within the scope and to the required standards to earn the fixed fee. While the fee is fixed, the contractor has an incentive to manage costs efficiently to maximize their profit margin, but the government ultimately absorbs the cost uncertainty. This structure is often used for research and development where the scope and costs can be difficult to define precisely upfront.

What are the potential long-term implications of this contract for the advancement of cold spray technology in the defense sector?

This contract has the potential to significantly advance the application and adoption of cold spray technology within the defense sector. By investing in research and development with a reputable institution like Penn State, the Department of the Navy is signaling a commitment to exploring and maturing this innovative repair method. Successful outcomes could lead to the development of standardized repair procedures, specialized equipment, and a skilled workforce capable of utilizing cold spray for a wider range of aircraft components. This could result in substantial cost savings through extended component life, reduced maintenance downtime, and decreased reliance on traditional, potentially more labor-intensive or less effective repair techniques. Furthermore, it could spur further innovation and investment in cold spray technology across other military branches and potentially the commercial aerospace industry.

Given the sole-source award, what mechanisms are in place to ensure the contractor, Penn State University, is performing effectively and efficiently?

Despite the sole-source award, several mechanisms are typically in place to ensure effective and efficient performance. The contract itself will outline specific performance metrics, deliverables, and reporting requirements. The Department of the Navy will assign a Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC) responsible for monitoring the contractor's technical progress, ensuring adherence to the statement of work, and verifying the quality of work performed. Regular progress reviews, milestone assessments, and financial audits are standard procedures. For a CPFF contract, rigorous oversight of incurred costs is crucial to ensure only allowable and reasonable expenses are reimbursed. The fixed fee also provides an incentive for the contractor to perform efficiently to maximize their profit.

Are there any known track records or past performance issues associated with The Pennsylvania State University in executing similar large-scale defense research contracts?

The Pennsylvania State University (Penn State) has a long and established history of conducting significant research and development for various government agencies, including the Department of Defense. They are a major research university with extensive experience in engineering, materials science, and related fields. While specific performance details for every contract are not publicly available, Penn State generally has a strong reputation for its research capabilities and its ability to manage complex projects. Any issues encountered on past contracts would typically be documented in performance evaluations, which inform future source selection decisions. However, without access to specific contract performance data for Penn State on similar defense R&D projects, a definitive assessment of past performance issues is not possible from publicly available information.

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

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: $39,004,343

Exercised Options: $39,004,343

Current Obligation: $39,004,343

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002412D6404

IDV Type: IDC

Timeline