DoD's $50M R&D contract with University of Dayton for advanced materials shows limited competition

Contract Overview

Contract Amount: $50,008,822 ($50.0M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2027-03-30

Contract Duration: 2,372 days

Daily Burn Rate: $21.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED MATERIALS AND PROCESSES

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to UNIVERSITY OF DAYTON for work described as: ADVANCED MATERIALS AND PROCESSES Key points: 1. Contract awarded for advanced materials research, aligning with DoD's focus on technological superiority. 2. The sole-source nature of this award raises questions about potential price efficiencies and broader market engagement. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for performance assessment. 4. The contract duration of nearly 4 years suggests a significant, long-term research objective. 5. Geographic concentration in Ohio for this advanced materials research may limit broader regional economic impact. 6. The use of a Cost Plus Fixed Fee contract type necessitates close monitoring of expenditures to ensure value.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and comparison to similar sole-source R&D awards. The total award amount of $50 million over nearly four years suggests a substantial investment in advanced materials research. However, the lack of competition makes it difficult to definitively assess if the pricing is optimal or if alternative, more cost-effective solutions might exist in the broader market. Further analysis of the contractor's historical performance and cost management on similar projects would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the University of Dayton was the only entity considered for this specific research and development effort. While sole-source awards can be justified for unique capabilities or specialized research, they bypass the competitive bidding process. This limits the opportunity for multiple vendors to propose solutions, potentially leading to less aggressive pricing and reduced innovation driven by market competition. The rationale for not competing this award should be clearly documented.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. Without multiple proposals, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advancements in materials science relevant to its operational needs. The University of Dayton's research teams will be engaged, potentially leading to scientific publications and further academic development. The contract supports specialized research and development activities, contributing to the knowledge base in advanced materials. Workforce implications include the employment of researchers, scientists, and support staff at the University of Dayton. The geographic impact is concentrated in Ohio, where the University of Dayton is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Cost Plus Fixed Fee contract type requires diligent oversight to manage costs effectively.
Lack of competition may stifle innovation that could arise from a broader vendor pool.
Performance metrics for R&D contracts can be inherently difficult to define and measure objectively.

Positive Signals

University of Dayton is a recognized research institution with potential for significant contributions in materials science.
The contract addresses a critical area of defense research (advanced materials) vital for future technological advantage.
Long-term nature of the contract allows for sustained focus on complex research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced materials and processes. The broader R&D market within the federal government is substantial, with significant investment in areas like materials science to maintain technological superiority. Comparable spending benchmarks for sole-source R&D contracts in specialized fields can vary widely, but the $50 million figure indicates a significant investment. This contract likely supports the Air Force's strategic goals for next-generation materials.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting opportunities for small businesses. As a sole-source award to a large research institution, the direct impact on the small business ecosystem is likely minimal unless the University of Dayton actively engages small businesses as subcontractors for specific support services or components.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of the Air Force. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are crucial to ensure that funds are used efficiently and effectively towards achieving the research objectives. Transparency regarding research progress and expenditures would be key accountability measures. The specific Inspector General jurisdiction would depend on the agency's internal structure.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Materials Research Initiatives
Air Force Science and Technology Investments
University Research Partnerships

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract requires diligent cost oversight.
R&D performance metrics can be challenging to define and measure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to UNIVERSITY OF DAYTON. ADVANCED MATERIALS AND PROCESSES

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 $50.0 million.

What is the period of performance?

Start: 2020-09-30. End: 2027-03-30.

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 history of engaging in research and development activities, often in partnership with government agencies. While specific details on their track record with DoD R&D contracts require a deeper dive into federal procurement databases, their designation as a research university suggests experience in managing complex research projects. Analyzing past performance on similar cost-reimbursement or fixed-fee contracts, including their ability to meet milestones, manage budgets, and deliver scientific outcomes, would provide a clearer picture of their capabilities and reliability for this $50 million award.

How does the $50 million award compare to typical R&D spending for advanced materials within the Air Force or DoD?

The $50 million award represents a significant investment in advanced materials R&D. While specific figures fluctuate annually and depend on strategic priorities, the Department of Defense consistently allocates billions to research and development. Contracts of this magnitude for specialized R&D are not uncommon, especially when addressing critical technological needs. To provide a precise comparison, one would need to analyze historical spending trends for advanced materials research within the Air Force and DoD over the past several fiscal years, looking at both competed and sole-source awards to understand the context of this particular investment.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for advanced materials R&D?

The primary risks associated with this contract structure include potential cost overruns and a lack of competitive pressure to achieve optimal value. For a sole-source award, the government foregoes the opportunity to solicit bids from multiple vendors, which could lead to higher prices than if competition were present. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility for R&D where costs can be unpredictable, carries the risk that the contractor may not be sufficiently incentivized to control costs, as their fee is fixed regardless of the final expenditure. Robust oversight and clear performance metrics are essential to mitigate these risks.

What specific advancements in advanced materials is this contract expected to yield for the Department of the Air Force?

The provided data indicates the contract is for 'ADVANCED MATERIALS AND PROCESSES' under the R&D category 541715. Without more specific details within the contract's statement of work, it is difficult to pinpoint the exact advancements expected. However, typical areas of focus for the Air Force in advanced materials include lighter, stronger composites for airframes, heat-resistant materials for engines and re-entry vehicles, novel coatings for stealth or protection, and materials for advanced manufacturing processes. The research likely aims to enhance aircraft performance, survivability, and operational efficiency.

What is the historical spending pattern for R&D contracts classified under NAICS code 541715 by the Department of the Air Force?

Analyzing historical spending patterns for NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of the Air Force reveals a consistent and substantial investment in scientific and technological advancement. This code encompasses a broad range of research activities. Over recent fiscal years, the Air Force has awarded billions of dollars under this category, supporting everything from fundamental research to applied engineering. Spending can fluctuate based on evolving defense priorities, technological breakthroughs, and specific program needs. The University of Dayton's $50 million award is one component within this larger R&D portfolio.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA865020R5690

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: $60,246,931

Exercised Options: $60,246,931

Current Obligation: $50,008,822

Actual Outlays: $402,913

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $15,842,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline