DoD's $88.4M R&D Contract with Penn State: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $88,397,417 ($88.4M)
Contractor: THE Pennsylvania State University
Awarding Agency: Department of Defense
Start Date: 2011-01-11
End Date: 2014-09-30
Contract Duration: 1,358 days
Daily Burn Rate: $65.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH&DEV.
Place of Performance
Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $88.4 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: RESEARCH&DEV. Key points: 1. The contract awarded to The Pennsylvania State University for R&D in physical, engineering, and life sciences represents a significant investment. 2. Lack of competition is a key factor, raising questions about potential price discovery and value for money. 3. The 'NOT COMPETED' status suggests a sole-source or limited competition scenario, requiring scrutiny. 4. The sector is Research & Development, a critical area for innovation and national security.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar R&D contracts awarded competitively would be necessary to determine if the fixed fee and overall cost are reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach can limit price discovery and potentially lead to higher costs compared to a fully competitive process.
Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible value for the $88.4 million invested in research and development.
Public Impact
Significant federal investment in university-based research and development. Potential for groundbreaking discoveries in physical, engineering, and life sciences. Questions surrounding the justification for not competing this substantial R&D contract. Impact on the broader research landscape and potential for future innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long duration for an R&D contract
Positive Signals
- Awarded to a reputable research institution
- Focus on critical R&D areas
Sector Analysis
This contract falls within the Research & Development sector, specifically focusing on physical, engineering, and life sciences. Federal spending in this area is crucial for technological advancement and national security, with benchmarks often varying widely based on the specific research scope and institution.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm any small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the justification for sole-source procurement is sound and that the fixed fee and overall costs are reasonable and well-managed throughout the contract's lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns in Cost Plus Fixed Fee contracts
- Difficulty in benchmarking pricing without competitive data
- Long contract duration may indicate scope creep or slow progress
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 $88.4 million to THE PENNSYLVANIA STATE UNIVERSITY. RESEARCH&DEV.
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 $88.4 million.
What is the period of performance?
Start: 2011-01-11. End: 2014-09-30.
What was the specific justification for awarding this R&D contract on a sole-source basis, and were alternative competitive approaches considered?
The data indicates the contract was 'NOT COMPETED.' A thorough review of the contract file would be necessary to ascertain the specific justification provided by the Department of the Navy. This typically involves demonstrating that only one source is capable of meeting the requirement or that exceptional circumstances preclude full and open competition, such as urgent and compelling needs or the unique capabilities of the research institution.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar R&D projects, and what mechanisms are in place to control overall costs?
Assessing the reasonableness of the fixed fee requires benchmarking against comparable R&D contracts awarded competitively. The Cost Plus Fixed Fee structure means the government pays the actual costs plus a predetermined profit. Oversight mechanisms should focus on scrutinizing allowable costs and ensuring efficient project execution to prevent cost overruns beyond the fixed fee.
What are the expected deliverables and milestones for this R&D contract, and how will the Department of the Navy measure the effectiveness and impact of the research outcomes?
The provided data does not detail specific deliverables or milestones. Effective oversight would involve establishing clear performance metrics, regular progress reviews, and independent evaluation of the research outcomes against the contract's objectives to determine its scientific and technological impact.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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, 16802
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $88,397,417
Exercised Options: $88,397,417
Current Obligation: $88,397,417
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002402D6604
IDV Type: IDC
Timeline
Start Date: 2011-01-11
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2015-04-03
More Contracts from THE Pennsylvania State University
- System Design and Integration Agent Fy18-Fy21 — $115.8M (Department of Defense)
- Common Very Light Weight Torpedo EDM 2 Development for FY13 and FY 14 — $88.2M (Department of Defense)
- MK 48 MOD 9 Proof of Design Development — $87.1M (Department of Defense)
- Swift Ultraviolet&optical Telescopes X-Ray Telescope, Ground Station System — $81.2M (National Aeronautics and Space Administration)
- Technology Inserton-2 (ti-2)engineering — $80.1M (Department of Defense)
View all THE Pennsylvania State University federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)