DoD's $10.2M R&D contract with University of Dayton for physical science research shows fair value and strong competition

Contract Overview

Contract Amount: $10,207,683 ($10.2M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2019-09-17

End Date: 2026-06-30

Contract Duration: 2,478 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENERGY AND ENVIRONMENTAL (E2) EVALUATIONS

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to UNIVERSITY OF DAYTON for work described as: ENERGY AND ENVIRONMENTAL (E2) EVALUATIONS Key points: 1. Contract awarded to University of Dayton for specialized R&D services. 2. Strong competition indicated by full and open bidding process. 3. Performance period extends over several years, suggesting a significant project. 4. Cost-plus-fixed-fee structure allows for flexibility in research but requires careful oversight. 5. Research area aligns with critical national security and technological advancement needs. 6. Geographic concentration of contract performance in Ohio.

Value Assessment

Rating: good

The contract's value of $10.2 million for R&D in physical sciences appears reasonable given the specialized nature of the work and the duration of the contract (over 6 years). Benchmarking against similar R&D contracts in the physical sciences is challenging due to the highly specific nature of research, but the University of Dayton's established research capabilities suggest a potentially good value. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are difficult to predict, but it necessitates robust oversight to ensure cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that multiple bidders were likely considered. This competitive process is the most advantageous for the government, as it typically drives down prices and encourages innovation. The specific number of bidders is not provided, but the designation 'full and open' suggests a robust marketplace for these specialized R&D services.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible research services at a competitive price.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced research and development in physical sciences. The contract supports advancements in areas critical to national security and technological superiority. The University of Dayton benefits through research funding and the opportunity to contribute to significant scientific endeavors. The contract may indirectly benefit the scientific community through the dissemination of research findings. Workforce implications include support for researchers, technicians, and administrative staff at the University of Dayton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts requires diligent monitoring.
Ensuring the research directly translates into actionable defense capabilities is a key challenge.
Maintaining competitive pricing for follow-on research or development phases.

Positive Signals

Award to a university suggests a focus on cutting-edge, potentially foundational research.
Long contract duration indicates a sustained need and potential for significant breakthroughs.
Full and open competition suggests a healthy market for these specialized R&D services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such specialized R&D is often characterized by a mix of academic institutions, dedicated research organizations, and specialized private firms. Government spending in this area is crucial for maintaining technological superiority and addressing complex challenges. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D projects, but the $10.2 million value over six years suggests a substantial investment in a specific research area.

Small Business Impact

There is no indication that this contract included small business set-asides. As a research and development contract awarded to a university, the primary focus is likely on specialized scientific expertise rather than broad subcontracting opportunities for small businesses. However, the university may engage small businesses for specific support services or materials as needed during the research process.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the contracting officer and the technical point of contact within the Department of the Air Force. Robust oversight mechanisms would focus on monitoring research progress, adherence to the research plan, and careful review of incurred costs to ensure compliance with the contract terms and prevent unnecessary expenditures. Transparency would be enhanced through regular reporting requirements from the contractor.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
University Research Partnerships with Government Agencies
Physical Sciences Research Initiatives

Risk Flags

Cost Overrun Risk (CPFF)
Research Outcome Uncertainty
Technology Transition Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to UNIVERSITY OF DAYTON. ENERGY AND ENVIRONMENTAL (E2) EVALUATIONS

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 $10.2 million.

What is the period of performance?

Start: 2019-09-17. End: 2026-06-30.

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

The University of Dayton has a significant history of engaging in research and development activities funded by federal agencies, including the Department of Defense. Their research portfolio often spans areas relevant to aerospace, materials science, and other physical sciences. While specific contract values and performance details for all past projects are not publicly itemized in this context, their designation as a recipient for this $10.2 million contract suggests a proven capability and a positive track record in securing and executing complex federal R&D awards. Their established research centers and laboratories are equipped to handle advanced scientific investigations, making them a reliable partner for government research needs.

How does the $10.2 million contract value compare to similar R&D efforts in physical sciences by the DoD?

Directly comparing the $10.2 million value to similar R&D efforts is challenging due to the highly specialized and often unique nature of scientific research. However, this value over a period of approximately six years (from September 2019 to June 2026) suggests a moderately sized, focused research initiative. The Department of Defense invests billions annually in R&D across various scientific disciplines. Contracts of this magnitude are typical for specific research projects that require dedicated teams and resources over an extended period. The value is likely commensurate with the complexity and potential impact of the research being undertaken in physical sciences.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a CPFF contract for R&D revolve around cost control and ensuring value for money. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government is that costs could escalate beyond initial expectations, even though the fee is fixed. This necessitates stringent oversight to ensure that all costs are reasonable, allocable, and allowable. For the contractor, the risk lies in accurately estimating the costs to perform the work; if costs exceed estimates significantly, their profit margin (the fixed fee) may be lower than anticipated. Effective management and monitoring are crucial to mitigate these risks.

How effective is the 'full and open competition' process in ensuring optimal outcomes for this type of specialized R&D?

A 'full and open competition' process is generally considered the most effective method for ensuring optimal outcomes in specialized R&D, as it maximizes the pool of potential offerors and encourages a wide range of innovative approaches. By allowing any interested and qualified source to submit a proposal, the government can select the offer that best meets the technical requirements, scientific merit, and overall value. This competitive pressure incentivizes contractors to propose efficient research methodologies and realistic cost estimates. While the specific number of bidders isn't detailed, the process itself provides a strong foundation for selecting a highly capable research partner like the University of Dayton.

What are the potential long-term implications of this R&D contract for the Air Force's technological capabilities?

The long-term implications of this R&D contract for the Air Force's technological capabilities depend heavily on the specific research outcomes. If successful, the research conducted by the University of Dayton could lead to advancements in materials, processes, or fundamental scientific understanding that enhance aircraft performance, reduce maintenance costs, improve sensor technology, or enable entirely new operational capabilities. Such breakthroughs are vital for maintaining a technological edge in a rapidly evolving global landscape. The contract's focus on physical sciences suggests potential applications in areas like advanced propulsion, novel materials for structural integrity, or improved electronic systems, all of which are critical for future Air Force operations.

How does the geographic concentration in Ohio impact the broader distribution of federal R&D funding?

The geographic concentration of this specific contract in Ohio means that a significant portion of the $10.2 million in federal R&D funding will be directed to that state, benefiting the University of Dayton and potentially local businesses or suppliers. While federal R&D funding is distributed nationwide based on merit, expertise, and strategic priorities, it's common for specific contracts to be concentrated geographically around leading research institutions. This doesn't necessarily imply a lack of broader distribution; rather, it reflects the location of the most qualified entity for this particular research need. The overall goal is to leverage the best scientific talent wherever it resides.

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

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: $10,373,698

Exercised Options: $10,373,698

Current Obligation: $10,207,683

Actual Outlays: $60,417

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $3,413,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865018D5600

IDV Type: IDC

Timeline