DoD Invests $19.7M in VAM Reality Research at University of Dayton for Air Force Readiness
Contract Overview
Contract Amount: $19,730,010 ($19.7M)
Contractor: University of Dayton
Awarding Agency: Department of Defense
Start Date: 2023-09-05
End Date: 2029-07-31
Contract Duration: 2,156 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: VIRTUAL, AUGMENTED, AND MIXED (VAM) REALITY READINESS
Place of Performance
Location: DAYTON, MONTGOMERY County, OHIO, 45469
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to UNIVERSITY OF DAYTON for work described as: VIRTUAL, AUGMENTED, AND MIXED (VAM) REALITY READINESS Key points: 1. Significant investment in cutting-edge VAM reality technology for defense applications. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk is moderate, given the R&D nature of the contract and long duration. 4. Sector focus is R&D, specifically in physical and engineering sciences.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall value is difficult to assess without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D, which has the potential for long-term defense benefits, but the immediate return on investment is uncertain.
Public Impact
Enhances Air Force training and operational capabilities through advanced VAM reality. Supports technological advancement in a critical defense area. Potential for spin-off technologies benefiting other sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 6 years) increases risk of scope creep and cost escalation.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- R&D nature inherently carries uncertainty in achieving desired outcomes.
Positive Signals
- Full and open competition promotes competitive pricing.
- Focus on VAM reality aligns with future military needs.
- Investment in a university research center can foster innovation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technologies like Virtual, Augmented, and Mixed Reality. Spending in this area is crucial for maintaining a technological edge but can be subject to long development cycles and evolving requirements.
Small Business Impact
The contract was awarded to the University of Dayton, a large research institution. There is no explicit indication of small business participation in this specific award, which is common for large-scale R&D contracts.
Oversight & Accountability
The Department of the Air Force is overseeing this contract. Given the R&D nature and long duration, ongoing oversight will be critical to ensure progress, manage costs, and achieve the intended objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overrun potential due to CPFF structure.
- Long contract duration increases risk.
- Uncertainty inherent in R&D projects.
- Potential for technology obsolescence over the contract period.
Tags
research-and-development-in-the-physical, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to UNIVERSITY OF DAYTON. VIRTUAL, AUGMENTED, AND MIXED (VAM) REALITY READINESS
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF DAYTON.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2023-09-05. End: 2029-07-31.
What specific VAM reality capabilities are being developed, and how do they directly address current Air Force readiness gaps?
The contract aims to develop VAM reality solutions to enhance pilot training, mission rehearsal, and operational planning. Specific capabilities likely include immersive simulations for complex scenarios, real-time data overlays during missions, and collaborative virtual environments for joint operations. The direct link to readiness gaps would be detailed in the statement of work, focusing on areas where current training or operational tools are insufficient.
What are the key performance indicators (KPIs) for this contract, and how will success be measured given the R&D focus?
Success measurement for R&D contracts often involves milestones related to technology development, prototype creation, and performance demonstrations rather than immediate operational deployment. KPIs might include the successful integration of VAM hardware and software, the achievement of specific simulation fidelity levels, user feedback on training effectiveness, and the demonstration of prototype capabilities in simulated environments. Regular technical reviews will assess progress against these defined metrics.
How will the University of Dayton ensure cost control under a Cost Plus Fixed Fee structure for a multi-year R&D project?
Cost control under a CPFF contract relies heavily on robust oversight and clear definition of work. The University of Dayton, guided by the Air Force, will likely implement strict budget tracking, regular financial reporting, and milestone-based payments. The fixed fee provides a ceiling for the contractor's profit, incentivizing efficiency. However, the 'cost' portion is reimbursed, making diligent monitoring of direct and indirect costs by the government crucial to prevent overspending.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 300 COLLEGE PARK, DAYTON, OH, 45469
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,730,010
Exercised Options: $19,730,010
Current Obligation: $19,730,010
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $558,066
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-05
Current End Date: 2029-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2025-07-31
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