University of Hawaii receives $12.78M for R&D services from the Department of the Army

Contract Overview

Contract Amount: $12,782,459 ($12.8M)

Contractor: University of Hawaii

Awarding Agency: Department of Defense

Start Date: 2002-09-25

End Date: 2009-03-22

Contract Duration: 2,370 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96822

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to UNIVERSITY OF HAWAII for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2370 days (over 6 years) indicates a long-term need for these R&D services. 3. The 'COST NO FEE' contract type implies the government reimburses the contractor for allowable costs but does not pay a fee. 4. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical area for defense innovation. 5. The award to a university suggests a focus on academic research and development capabilities. 6. The geographic location in Hawaii may indicate specific research needs or access to unique facilities/environments.

Value Assessment

Rating: fair

The 'COST NO FEE' contract type makes direct value-for-money assessment challenging without knowing the actual costs incurred and the fee structure. Benchmarking is difficult as R&D contracts, especially those with universities, can be highly specialized. The absence of a fee might suggest a focus on research advancement rather than profit, but it also means the government bears all the cost risk. Further analysis would require understanding the specific research outcomes and their alignment with program objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the open competition is a positive signal for market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of potential contractors.

Public Impact

The University of Hawaii benefits through funding for its research programs and facilities. Advanced research and development services in physical, engineering, and life sciences are delivered. The geographic impact is primarily in Hawaii, potentially supporting local scientific communities and infrastructure. Workforce implications include support for researchers, technicians, and administrative staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of fee in a 'COST NO FEE' contract can obscure true cost-effectiveness and contractor incentive for efficiency.
Long contract duration (over 6 years) increases the risk of cost overruns or scope creep if not managed tightly.
R&D outcomes can be uncertain, making it difficult to pre-determine the value or return on investment.
Limited transparency on specific research objectives and deliverables makes independent performance assessment challenging.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified research partners.
Contracting with a university leverages specialized academic expertise and potentially lower overhead compared to some private firms.
The R&D focus aligns with the Department of Defense's need for technological advancement and innovation.
Long-term funding provides stability for critical research projects, allowing for sustained progress.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, where universities often play a key role in fundamental and applied research. The market for R&D services is diverse, encompassing academic institutions, private research firms, and government labs. Benchmarking is complex due to the specialized nature of R&D, but contracts of this magnitude often support significant scientific endeavors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The primary contractor is the University of Hawaii. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal unless the university voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The 'COST NO FEE' structure requires diligent monitoring of incurred costs to ensure allowability and reasonableness. Transparency is dependent on reporting requirements stipulated in the contract. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants and Contracts
Basic and Applied Scientific Research
Engineering and Technical Services

Risk Flags

Cost Control Risk (Cost No Fee)
Long-Term Project Management
Uncertainty of R&D Outcomes
Performance Measurement Difficulty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to UNIVERSITY OF HAWAII. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF HAWAII.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2002-09-25. End: 2009-03-22.

What specific research areas are covered under this 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' contract?

The provided data indicates the broad category 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712). However, the specific research topics, methodologies, and expected outcomes are not detailed in the summary data. These would typically be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) within the full contract documentation. Given the awarding agency is the Department of the Army, the research likely pertains to defense applications, potentially including areas like materials science, advanced manufacturing, sensor technology, environmental science relevant to military operations, or specific biological research with defense implications, excluding core biotechnology development.

How does the 'COST NO FEE' contract type compare to other R&D contract structures in terms of risk and incentive?

The 'COST NO FEE' (Cost-Reimbursement, No Fee) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred in performing the contract, but without paying any additional fee or profit. This structure places the primary financial risk on the government, as it bears the full cost of the effort, regardless of the success or profitability for the contractor. For R&D, this can be advantageous when the scope is uncertain or when the goal is to encourage exploration without the contractor being overly constrained by profit motives. However, it reduces the contractor's incentive to control costs rigorously, as their reimbursement is tied to expenses. This contrasts with fixed-price contracts, where the contractor bears more risk but has a stronger incentive for cost efficiency, or cost-plus-fee contracts, which offer some incentive for cost control through the fee structure.

What is the typical performance period for R&D contracts of this magnitude awarded by the Department of Defense?

The performance period for R&D contracts can vary significantly based on the complexity, scope, and nature of the research. For contracts of this magnitude ($12.78 million) awarded by the Department of Defense, a duration of over six years (2370 days) is not uncommon, especially for foundational or long-term research projects. Such extended periods allow for sustained investigation, iterative development, and the potential for significant scientific breakthroughs. Shorter-term contracts might focus on specific experiments or feasibility studies, while longer durations are often associated with more ambitious research programs requiring deep exploration and development cycles.

What are the implications of awarding R&D contracts to universities versus private sector research firms?

Awarding R&D contracts to universities, like the University of Hawaii in this case, often leverages access to cutting-edge academic research, specialized faculty expertise, and potentially unique research facilities. Universities may be more inclined towards fundamental research and knowledge generation, sometimes with less emphasis on immediate commercialization compared to private firms. They can also serve as a mechanism for developing future scientific talent. Private sector research firms, on the other hand, may offer more direct pathways to applied research, product development, and rapid prototyping, often with a stronger focus on marketability and profitability. The choice between them depends on the specific objectives of the R&D effort – whether it's basic discovery or applied development.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' category (NAICS 541712) align with broader defense modernization efforts?

The NAICS code 541712 encompasses a wide array of scientific and technical research crucial for defense modernization. Physical sciences research can lead to advancements in areas like quantum computing, advanced materials, and energy systems. Engineering research drives innovation in areas such as autonomous systems, hypersonics, cybersecurity, and resilient infrastructure. Life sciences research (excluding core biotech) can contribute to areas like human performance optimization, environmental resilience, medical countermeasures, and understanding biological threats. These fields are fundamental to maintaining a technological edge, developing next-generation capabilities, and addressing evolving security challenges faced by the Department of Defense.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: University of Hawaii Systems (UEI: 009438664)

Address: 2530 DOLE ST , ORS, HONOLULU, HI, 01

Business Categories: Category Business, Higher Education, Higher Education (Minority Serving), Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline