DoD's $28.3M R&D Contract with Penn State: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $28,356,146 ($28.4M)
Contractor: THE Pennsylvania State University
Awarding Agency: Department of Defense
Start Date: 2011-03-30
End Date: 2013-09-30
Contract Duration: 915 days
Daily Burn Rate: $31.0K/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
Plain-Language Summary
Department of Defense obligated $28.4 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: RESEARCH&DEV. Key points: 1. The contract value of $28.3 million for R&D in physical, engineering, and life sciences is moderate. 2. The 'NOT COMPETED' status raises immediate questions about potential price discovery and value. 3. Risk is elevated due to the lack of competition, potentially leading to higher costs. 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 (CPFF) structure, combined with a lack of competition, makes a direct pricing assessment difficult. Without benchmarks from competitive bids, it's hard to determine if $28.3 million represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may result in less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could mean taxpayers are paying more than necessary for the research and development services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific research outcomes and their impact on public services or national security are not detailed. The long duration (915 days) for a sole-source contract warrants scrutiny regarding project management and cost control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Supports critical R&D in physical, engineering, and life sciences
- Awarded to a reputable research institution (Penn State)
Sector Analysis
This contract falls within the Research & Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security, but often involves complex, long-term projects where cost control can be challenging.
Small Business Impact
There is no indication of small business participation in this contract. For large R&D awards, ensuring opportunities for small businesses is important for fostering innovation and economic growth.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure the contractor is performing efficiently and costs are reasonable. Tracking deliverables and milestones is crucial.
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
- Cost Plus Fixed Fee contract type
- No stated small business participation
- Potential for cost overruns
- Limited transparency on research outcomes
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 $28.4 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 $28.4 million.
What is the period of performance?
Start: 2011-03-30. End: 2013-09-30.
What specific research outcomes were achieved, and do they justify the $28.3 million investment?
The provided data does not detail the specific research outcomes. A thorough review of project reports, technical achievements, and their alignment with the Department of the Navy's strategic goals would be necessary to assess the value justification. Without this, it's difficult to confirm if the investment yielded sufficient returns in terms of innovation or capability enhancement.
What are the risks associated with a sole-source, Cost Plus Fixed Fee R&D contract of this magnitude?
The primary risks include potential cost overruns, as CPFF contracts incentivize spending to cover costs, and a lack of competitive pressure to innovate or optimize processes. The absence of competition means the government relies heavily on the contractor's integrity and the agency's oversight to ensure fair pricing and effective execution. Scope creep is also a significant risk.
How effective was the Department of the Navy in managing this contract to ensure taxpayer value?
Effectiveness is difficult to gauge solely from the provided data. Key indicators would include adherence to budget, timely delivery of research milestones, and the ultimate utility of the research findings. Robust contract management, including regular performance reviews and cost audits, would be essential to ensure effectiveness and taxpayer value in a sole-source CPFF scenario.
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 › General Science and Technology 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
Financial Breakdown
Contract Ceiling: $28,356,146
Exercised Options: $28,356,146
Current Obligation: $28,356,146
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002402D6604
IDV Type: IDC
Timeline
Start Date: 2011-03-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-12-31
More Contracts from THE Pennsylvania State University
- System Design and Integration Agent Fy18-Fy21 — $115.8M (Department of Defense)
- Research&dev — $88.4M (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)
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)