DoD's $26M R&D contract with University of Dayton for air-launched off-board operations shows strong competition

Contract Overview

Contract Amount: $26,159,077 ($26.2M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2017-11-30

End Date: 2026-03-02

Contract Duration: 3,014 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF AIR LAUNCHED OFF-BOARD OPERATIONS

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to UNIVERSITY OF DAYTON for work described as: IGF::OT::IGF AIR LAUNCHED OFF-BOARD OPERATIONS Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Research and Development focus aligns with strategic defense priorities. 3. The contract duration of over 8 years suggests a long-term investment in innovation. 4. University of Dayton's selection points to specialized research capabilities. 5. Cost Plus Fixed Fee pricing structure requires careful monitoring of expenses. 6. Geographic concentration in Ohio may have local economic implications.

Value Assessment

Rating: good

The contract's value of $26.16 million over an estimated 8-year period appears reasonable for specialized R&D in defense. Benchmarking against similar contracts for advanced aerospace research is challenging due to the niche nature of 'air-launched off-board operations.' However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain within projections and provide good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders indicates a degree of competition, which is generally favorable for price discovery and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advancements in air-launched off-board operations technology. This contract supports cutting-edge research and development in aerospace and defense. The geographic impact is concentrated in Ohio, potentially benefiting the local economy through research activities and employment. The contract may foster specialized skills within the research workforce at the University of Dayton and its partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract increases the risk of scope creep or evolving requirements.
Reliance on a single academic institution for specialized R&D may limit broader industry innovation.

Positive Signals

Awarded through full and open competition, ensuring a competitive selection process.
The University of Dayton is a recognized institution for aerospace research, suggesting strong technical expertise.
The contract supports critical defense research and development, aligning with national security objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of 'air-launched off-board operations,' but it represents a segment of the broader aerospace and defense R&D market.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. As a research-focused award to a university, the direct impact on the small business ecosystem may be limited unless the university engages small businesses as subcontractors for specific components or services.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of the Air Force contracting officers and program managers. Accountability measures would include regular progress reports, financial reviews, and adherence to the contract's Statement of Work. Transparency is facilitated through contract award databases, though detailed R&D progress is often sensitive.

Related Government Programs

Advanced Aerospace Research Programs
Defense Innovation Unit Initiatives
Air Force Research Laboratory Contracts
University Research Partnerships

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases risk of evolving requirements or technological obsolescence.
Specialized R&D focus may limit the pool of potential bidders in future competitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to UNIVERSITY OF DAYTON. IGF::OT::IGF AIR LAUNCHED OFF-BOARD OPERATIONS

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 $26.2 million.

What is the period of performance?

Start: 2017-11-30. End: 2026-03-02.

What is the University of Dayton's track record with similar defense R&D contracts?

The University of Dayton has a well-established history of conducting research for the Department of Defense and other federal agencies, particularly in aerospace engineering and materials science. Their Research Institute is a significant entity that collaborates with government and industry partners on complex technical challenges. While specific details on 'air-launched off-board operations' contracts are not publicly detailed, their general expertise in areas like propulsion, aerodynamics, and autonomous systems suggests a strong foundation for this type of work. Reviewing their past performance on large-scale, multi-year R&D projects would provide further context on their ability to manage scope, budget, and timelines effectively.

How does the $26.16 million value compare to similar R&D efforts in aerospace?

Benchmarking the $26.16 million value for this specific R&D effort is challenging due to the niche nature of 'air-launched off-board operations.' However, for advanced aerospace R&D projects with multi-year durations (this contract is over 8 years), such funding levels are not uncommon, especially for foundational research or technology development. Contracts for developing new aerospace systems or components can range from tens to hundreds of millions of dollars. The value here appears to be within a reasonable range for a focused R&D initiative aimed at developing novel capabilities, assuming the scope of work is appropriately defined and achievable within the allocated budget.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor (University of Dayton) is incentivized to control costs to achieve their fixed fee, the government bears the risk of increased costs beyond the initial estimate. Effective risk mitigation requires robust oversight from the Air Force, including detailed review of incurred costs, regular progress reporting, and strict adherence to the contract's scope. Another risk is the long duration (over 8 years), which increases the possibility of requirement changes, technological obsolescence, or shifts in strategic priorities, potentially impacting the contract's relevance and value.

How effective is the 'full and open competition' approach for specialized R&D like this?

Full and open competition is generally the most effective method for ensuring fair pricing and access to the widest pool of qualified contractors, even for specialized R&D. For this contract, it allowed the Department of Defense to solicit proposals from various institutions and companies capable of performing advanced aerospace research. While specialized R&D might sometimes favor sole-source awards if only one entity possesses unique expertise, the fact that this was competed suggests multiple entities could meet the requirements. The presence of two bidders indicates a reasonable level of competition, which should have driven a more competitive proposal from the selected contractor.

What are the historical spending patterns for 'air-launched off-board operations' R&D within the Department of Defense?

Specific historical spending data for the precise category of 'air-launched off-board operations' R&D is not readily available in public databases. This suggests it may be a relatively new or niche area of focus, or perhaps categorized under broader headings such as 'unmanned systems,' 'aerospace technology,' or 'autonomous operations.' The Department of Defense consistently invests billions annually in R&D across various domains. Analyzing spending trends in related fields, such as drone technology, advanced munitions, or networked warfare systems, could provide indirect context for the investment in this specific area.

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: BASIC RESEARCH

Offers Received: 2

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: $26,488,264

Exercised Options: $26,488,264

Current Obligation: $26,159,077

Actual Outlays: $2,280,370

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $19,546,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline