GSA awards $35M R&D contract to SEACORP, LLC for advanced HMI systems, extending previous SBIR efforts

Contract Overview

Contract Amount: $35,022,181 ($35.0M)

Contractor: Seacorp, LLC

Awarding Agency: General Services Administration

Start Date: 2023-04-21

End Date: 2028-04-20

Contract Duration: 1,826 days

Daily Burn Rate: $19.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ATD HMI SBIR III. THIS SBIR PHASE III DERIVES FROM SBIR PHASE I CONTRACT N00024-15-P-4508 AND SBIR PHASE II CONTRACT N00024-16-C-4530.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

General Services Administration obligated $35.0 million to SEACORP, LLC for work described as: ATD HMI SBIR III. THIS SBIR PHASE III DERIVES FROM SBIR PHASE I CONTRACT N00024-15-P-4508 AND SBIR PHASE II CONTRACT N00024-16-C-4530. Key points: 1. Contract leverages prior Small Business Innovation Research (SBIR) phases, indicating a progression of technology development. 2. The cost-plus-fixed-fee (CPFF) structure allows for flexibility in research but requires careful cost monitoring. 3. The contract's duration of five years suggests a long-term commitment to the developed technology. 4. Focus on R&D in physical and engineering sciences points to potential advancements in complex systems. 5. The award to a single contractor may limit immediate competitive pressure on pricing for follow-on work.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and reliance on prior SBIR phases. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research, necessitates robust oversight to ensure costs remain reasonable and aligned with project milestones. Without direct comparisons to similar sole-source R&D efforts, assessing the precise value-for-money is difficult, but the multi-year duration suggests a strategic investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, being a sole-source award. As a Small Business Innovation Research (SBIR) Phase III contract, it directly derives from previous SBIR Phase I and II awards to the same contractor. This approach is common for maturing technologies developed under the SBIR program, aiming to transition them into full commercialization or further government use without re-competing the foundational research.

Taxpayer Impact: Sole-source awards can limit opportunities for other businesses to compete and potentially offer more cost-effective solutions. However, for SBIR Phase III, the intent is to capitalize on prior investment and expertise, potentially leading to a more efficient path to a desired outcome.

Public Impact

The primary beneficiaries are likely government agencies requiring advanced Human-Machine Interface (HMI) systems, potentially in defense or aerospace sectors. The contract aims to deliver advanced research and development in physical, engineering, and life sciences. The geographic impact is centered in Rhode Island, where SEACORP, LLC is located. Workforce implications may include the creation or sustainment of highly skilled R&D jobs within SEACORP and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to higher costs over the contract's lifecycle.
The CPFF structure requires diligent oversight to prevent cost overruns.
Dependence on a single contractor for this specific technology could pose a risk if performance falters.

Positive Signals

Leverages successful prior SBIR phases, indicating a proven technology development path.
Long-term contract duration suggests a commitment to realizing the technology's full potential.
Focus on R&D aligns with strategic government needs for innovation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The SBIR program is a key government initiative to foster innovation within small businesses. Phase III contracts are designed to bridge the gap between R&D and commercialization or further government procurement. Comparable spending in this niche R&D area can vary widely, but significant investments are often made in areas with dual-use potential, such as advanced HMI systems for defense or complex operational environments.

Small Business Impact

This contract is a Phase III SBIR award, which by definition is for small businesses that have successfully completed earlier phases of the SBIR program. While this specific award is sole-source, the underlying SBIR program aims to stimulate technological innovation by small businesses. The success of SEACORP, LLC in reaching Phase III demonstrates the program's effectiveness in nurturing small business capabilities. There is no explicit small business set-aside for this Phase III contract, but the prime contractor is itself a small business.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA). As a Cost Plus Fixed Fee contract, GSA will be responsible for monitoring expenditures to ensure they align with the fixed fee and project objectives. Transparency will be maintained through regular reporting requirements from SEACORP, LLC. While specific Inspector General jurisdiction isn't detailed, GSA's Office of Inspector General typically has oversight over GSA contracts.

Related Government Programs

Small Business Innovation Research (SBIR) Program
Advanced Human-Machine Interface (HMI) Development
Department of Defense R&D Contracts
General Services Administration (GSA) Acquisition Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost-plus-fixed-fee structure requires diligent cost oversight.
Contract duration extends over five years, increasing exposure to potential changes in requirements or technology.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.0 million to SEACORP, LLC. ATD HMI SBIR III. THIS SBIR PHASE III DERIVES FROM SBIR PHASE I CONTRACT N00024-15-P-4508 AND SBIR PHASE II CONTRACT N00024-16-C-4530.

Who is the contractor on this award?

The obligated recipient is SEACORP, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2023-04-21. End: 2028-04-20.

What is the specific technological advancement expected from this contract?

This contract, identified as ATD HMI SBIR III, is a Phase III Small Business Innovation Research (SBIR) award. It builds upon prior Phase I (N00024-15-P-4508) and Phase II (N00024-16-C-4530) contracts awarded to SEACORP, LLC. While the specific technological details are not fully elaborated in the provided data, the designation 'HMI' suggests a focus on Human-Machine Interface systems. These systems are critical for enabling effective interaction between operators and complex machinery, software, or other systems. Given the R&D nature and the SBIR context, the expected advancement likely involves novel designs, improved usability, enhanced data visualization, or more intuitive control mechanisms for sophisticated equipment, potentially within defense, aerospace, or other high-technology sectors.

How does the $35 million award compare to typical R&D spending in this category?

Comparing the $35 million award to typical R&D spending requires context regarding the specific sub-field of physical, engineering, and life sciences (NAICS 541715) and the nature of SBIR Phase III contracts. SBIR Phase III awards are intended to bring technologies developed in earlier phases to market or further government use, often involving significant investment for maturation and integration. While $35 million is a substantial sum for a single contract, it is not unusual for advanced R&D projects, especially those with a five-year timeline and the potential for broad application or significant technological breakthroughs. Benchmarking against other sole-source SBIR Phase III contracts or similar long-term R&D efforts within specific government agencies (like DoD, which often funds such research) would provide a more precise comparison. However, the amount reflects a significant commitment to advancing SEACORP's HMI technology.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee R&D contract?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) R&D contract like this one are twofold. Firstly, the sole-source nature eliminates competitive pressure, which can potentially lead to less favorable pricing for the government compared to a competed contract. There's a risk that without competing alternatives, the government might pay more than necessary. Secondly, the CPFF structure, while providing flexibility for R&D where costs can be uncertain, carries inherent risks of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections, the government's total expenditure could increase significantly. Effective oversight is crucial to mitigate these risks by closely monitoring costs, ensuring efficiency, and verifying that the work performed aligns with the contract's objectives and the fixed fee.

What is SEACORP, LLC's track record with SBIR contracts?

SEACORP, LLC has a demonstrated track record with the Small Business Innovation Research (SBIR) program, as evidenced by this being their third Phase III award. The data explicitly states that this Phase III contract derives from SBIR Phase I contract N00024-15-P-4508 and SBIR Phase II contract N00024-16-C-4530. This progression through the SBIR phases—from Phase I (feasibility study), to Phase II (prototype development), and now to Phase III (commercialization/follow-on production)—indicates a successful history of developing and maturing technology under the program's framework. Successfully navigating these stages suggests SEACORP possesses the technical expertise, project management capabilities, and innovative capacity required to meet the program's rigorous standards and deliver on research and development objectives.

How does this contract fit into the broader landscape of federal R&D spending?

This contract fits into the broader landscape of federal R&D spending as a component of the government's strategy to leverage small businesses for technological innovation through the SBIR program. Federal R&D spending is a significant portion of the national budget, aimed at advancing scientific knowledge, developing new technologies, and enhancing national security and economic competitiveness. SBIR Phase III contracts, like this one, represent the culmination of early-stage R&D investment, focusing on transitioning innovations into practical applications. The $35 million award, while specific to SEACORP's HMI technology, reflects the government's ongoing commitment to funding research in critical areas like advanced interfaces, which have applications across various sectors, including defense, transportation, and information technology. It highlights the role of specialized R&D firms in fulfilling specific technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA23R0007

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 62 JOHNNY CAKE HILL, MIDDLETOWN, RI, 02842

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,000,000

Exercised Options: $83,746,415

Current Obligation: $35,022,181

Actual Outlays: $19,051,650

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,215,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline