DoD's $24.5M research contract with University of Dayton shows strong competition and long-term engagement

Contract Overview

Contract Amount: $24,499,828 ($24.5M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2019-05-13

End Date: 2024-08-21

Contract Duration: 1,927 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PETIC ADVANCED COMPONENT AND SUBSYSTEM THERMOPHYSICAL, ELECTROCHEMICAL, AND ELECTROMAGNETIC EXPERIME

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to UNIVERSITY OF DAYTON for work described as: PETIC ADVANCED COMPONENT AND SUBSYSTEM THERMOPHYSICAL, ELECTROCHEMICAL, AND ELECTROMAGNETIC EXPERIME Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration of 1927 days suggests a significant, ongoing research need. 3. Research and Development focus aligns with strategic defense priorities. 4. The contract's value is moderate within the broader R&D sector. 5. Performance is tracked over a multi-year period, allowing for assessment of progress. 6. The contractor, University of Dayton, has a history of performing government research.

Value Assessment

Rating: good

The contract value of $24.5 million over approximately five years represents a substantial investment in advanced research. Benchmarking against similar R&D contracts in specialized thermophysical and electrochemical fields is challenging due to the niche nature of the work. However, the cost-plus-fixed-fee structure suggests that costs are monitored, and the fixed fee provides a predictable profit margin for the contractor. The long duration implies a sustained need and potentially good value if research objectives are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of 2 bids indicates a reasonable level of interest, though more bidders could potentially have led to even greater price discovery. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the research services required by the Department of the Navy.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced research in critical areas. Services delivered include specialized research in thermophysical, electrochemical, and electromagnetic experimentation. The geographic impact is primarily within Ohio, where the University of Dayton is located, potentially supporting local research infrastructure. Workforce implications include opportunities for researchers, scientists, and support staff at the University of Dayton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
Long-term nature of the contract could lead to scope creep if not carefully controlled.
Dependence on a single contractor for a specific research area could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, University of Dayton, is an established research institution with relevant expertise.
The contract duration indicates a sustained commitment to a critical research area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The NAICS code 541715 covers R&D in Physical, Engineering, and Life Sciences. The market for specialized thermophysical and electrochemical research is often dominated by academic institutions and specialized research firms. Government spending in this area is crucial for advancing technological capabilities, particularly in defense applications. Comparable spending benchmarks are difficult to establish precisely due to the highly specialized nature of the research.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by `ss` and `sb` being false. The primary contractor is a large university. There is no explicit information regarding subcontracting plans for small businesses. The focus on advanced research may limit opportunities for typical small business service providers, though specialized small businesses in materials or testing could potentially be involved.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officer and technical representatives. Performance monitoring, financial reviews, and adherence to research milestones are key oversight mechanisms. The cost-plus-fixed-fee structure necessitates careful tracking of expenditures against the approved budget. Transparency is generally maintained through contract reporting requirements and potential audits by the Inspector General.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants
Advanced Materials Research
Naval Research Laboratory Contracts
Thermophysical Property Testing

Risk Flags

Long contract duration increases exposure to changing requirements and budget priorities.
Cost-plus contracts require diligent oversight to manage potential cost overruns.
Specialized R&D outcomes are inherently uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to UNIVERSITY OF DAYTON. PETIC ADVANCED COMPONENT AND SUBSYSTEM THERMOPHYSICAL, ELECTROCHEMICAL, AND ELECTROMAGNETIC EXPERIME

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 Navy).

What is the total obligated amount?

The obligated amount is $24.5 million.

What is the period of performance?

Start: 2019-05-13. End: 2024-08-21.

What is the University of Dayton's track record with federal research contracts, particularly with the Department of Defense?

The University of Dayton has a significant history of engaging in federal research, including numerous contracts and grants with agencies like the Department of Defense, NASA, and the Air Force Research Laboratory. Their expertise spans various scientific and engineering disciplines, often focusing on materials science, aerospace, and defense-related technologies. While specific details for every contract are not publicly available, their consistent involvement suggests a strong capability to meet federal research requirements and manage complex projects. This particular contract, valued at $24.5 million over several years, aligns with their established role as a key research partner for defense agencies, indicating a proven ability to deliver on large-scale R&D initiatives.

How does the $24.5 million contract value compare to similar R&D efforts in thermophysical and electrochemical research?

Benchmarking the $24.5 million contract value against similar R&D efforts in specialized thermophysical and electrochemical research is challenging due to the niche nature of the field and the variability in contract scope and duration. However, for multi-year, advanced research projects undertaken by major research institutions for federal agencies, this value is within a typical range. Contracts for fundamental or applied research in areas like advanced materials, energy storage, or propulsion systems can often reach tens of millions of dollars over their lifecycle. The University of Dayton's role as a significant research university suggests this funding level is appropriate for the scope of work described, which involves complex experimentation and analysis.

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

The primary risks associated with this Cost Plus Fixed Fee (CPFF) research contract revolve around cost control and the inherent uncertainties of research and development. For the government, the risk is that actual costs could exceed initial estimates, although the fixed fee limits the contractor's profit. Rigorous oversight and milestone tracking are crucial to manage this. For the contractor, the risk lies in underestimating the effort required, potentially leading to the fixed fee not adequately covering their incurred costs if efficiencies are not achieved. Furthermore, the success of R&D is never guaranteed; the research may not yield the desired outcomes, posing a programmatic risk to the agency's objectives. Scope creep, where the project expands beyond its original intent, is another common risk in long-term research contracts that requires diligent management.

How effective is full and open competition in ensuring value for money in specialized R&D contracts like this one?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including specialized R&D. By allowing all qualified sources to bid, it creates a competitive environment that incentivizes offerors to propose their best technical solutions at the most competitive prices. For specialized R&D, this means that agencies can solicit proposals from a wide range of universities, research institutions, and private companies, potentially uncovering innovative approaches and cost-saving methods. While the number of bidders (2 in this case) might seem low, the key is whether those bidders were truly capable and whether their proposals represented fair market value. The process allows for detailed evaluation of technical merit and cost realism, providing a strong basis for selecting the best value offer.

What are the potential long-term implications of this contract for the advancement of thermophysical and electrochemical technologies?

This contract has the potential to significantly advance thermophysical and electrochemical technologies, which are critical for various defense applications, including energy systems, thermal management, and advanced materials. By funding dedicated research at an institution like the University of Dayton, the Department of the Navy is investing in the foundational knowledge and experimental data necessary for future technological breakthroughs. The long duration suggests a commitment to exploring complex challenges, which could lead to novel discoveries, improved performance characteristics in existing systems, or the development of entirely new capabilities. The outcomes of this research could influence future product development, enhance operational effectiveness for naval assets, and contribute to the broader scientific understanding in these specialized fields.

How does the contract's duration (1927 days) impact the assessment of its overall value and risk?

The contract's duration of 1927 days (approximately 5.3 years) significantly impacts the assessment of its value and risk. On the value side, a longer duration suggests that the research is complex, requires sustained effort, and addresses a long-term strategic need for the Department of the Navy. This extended timeline allows for deeper investigation, iterative development, and thorough validation of findings, potentially leading to more robust and impactful outcomes. However, a longer duration also increases the risk profile. Programmatic risks, such as shifts in technological priorities or budget constraints, become more relevant over extended periods. Furthermore, managing a contract over several years requires consistent oversight to prevent scope creep, maintain contractor focus, and ensure that the research remains aligned with evolving agency requirements. The CPFF structure also means that cost monitoring is critical throughout the entire contract period.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $24,499,828

Exercised Options: $24,499,828

Current Obligation: $24,499,828

Actual Outlays: $1,157,742

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $3,257,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865019D2905

IDV Type: IDC

Timeline