Air Force's $95M R&D contract for sustainment and combat readiness capabilities awarded to University of Dayton

Contract Overview

Contract Amount: $95,140,029 ($95.1M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2024-09-16

End Date: 2026-03-15

Contract Duration: 545 days

Daily Burn Rate: $174.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUSTAINMENT AND COMBAT READINESS CAPABILITIES (SABR-C)

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $95.1 million to UNIVERSITY OF DAYTON for work described as: SUSTAINMENT AND COMBAT READINESS CAPABILITIES (SABR-C) Key points: 1. Contract focuses on advanced research and development for critical defense capabilities. 2. Sole-source award to University of Dayton raises questions about competition and potential cost efficiencies. 3. Performance period of over 1.5 years suggests a significant scope of work. 4. The contract's value places it as a substantial investment in defense R&D. 5. Research area aligns with the Air Force's strategic goals for technological advancement. 6. Lack of competition may limit opportunities for innovative solutions from other entities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific R&D focus. Without competitive bids, it's difficult to assess if the $95.14 million represents optimal value for money. The 'Cost Plus Fixed Fee' (CPFF) contract type means the government pays the contractor's allowable costs plus a fixed fee, which can lead to cost overruns if not closely monitored. Comparing this to similar R&D contracts in the physical sciences would require detailed analysis of scope and deliverables, which are not fully specified here.

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. This significantly limits the potential for price discovery and innovation that typically arises from a competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, the absence of competition here warrants scrutiny regarding whether alternative sources were adequately explored or if the justification for a sole-source award is robust.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings and potentially more innovative solutions that could have emerged from a broader bidding process. This could result in a higher overall cost for the research and development.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advanced research and development services. The contract aims to enhance sustainment and combat readiness capabilities, indirectly benefiting military personnel. The geographic impact is primarily centered in Ohio, where the University of Dayton is located. This contract is likely to support specialized research roles within the University of Dayton, potentially impacting the local workforce in R&D sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Cost Plus Fixed Fee structure can incentivize cost increases if not managed tightly.
Lack of transparency in the justification for sole-source award.
Potential for limited market research to identify alternative, potentially more cost-effective solutions.

Positive Signals

University of Dayton is a known entity with potential expertise in the required R&D areas.
Focus on sustainment and combat readiness aligns with critical defense needs.
Definitive contract structure provides a framework for a defined period of work.

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 characterized by significant government investment, long development cycles, and a need for specialized expertise. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by the Department of Defense to academic institutions or research organizations for similar technological advancements. The University of Dayton's role as a research institution positions it within this specialized segment of the broader defense industry.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. The University of Dayton, as the prime contractor, is an academic institution. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus is on the prime contractor's internal capabilities, and opportunities for small businesses to participate in this specific contract may be limited unless they are identified as subcontractors by the University of Dayton.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, with specific program managers responsible for monitoring progress and expenditures. The 'Cost Plus Fixed Fee' structure necessitates robust financial oversight to ensure that costs are allowable and reasonable. Transparency regarding the justification for the sole-source award and the research progress would be key accountability measures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Sustainment and Readiness Initiatives
University Research Partnerships with Government Agencies
Advanced Technology Development Contracts

Risk Flags

Sole-source award lacks competitive justification.
Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited public information on specific research objectives and deliverables.
Potential for insufficient market research to identify alternative solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.1 million to UNIVERSITY OF DAYTON. SUSTAINMENT AND COMBAT READINESS CAPABILITIES (SABR-C)

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 $95.1 million.

What is the period of performance?

Start: 2024-09-16. End: 2026-03-15.

What specific research and development activities are encompassed by the 'Sustainment and Combat Readiness Capabilities (SABR-C)' contract?

The provided data does not detail the specific research and development activities. However, the contract title 'Sustainment and Combat Readiness Capabilities (SABR-C)' and the North American Industry Classification System (NAICS) code '541715' (Research and Development in the Physical, Engineering, and Life Sciences) suggest that the work likely involves scientific inquiry and experimentation aimed at improving the longevity, maintainability, and operational effectiveness of military systems and platforms. This could include areas such as materials science for component durability, advanced diagnostics for predictive maintenance, novel engineering solutions for system upgrades, or research into operational tactics and logistics that enhance combat readiness. Further details would typically be found in the contract's statement of work.

What is the justification for awarding this $95.14 million contract on a sole-source basis to the University of Dayton?

The provided data indicates the contract was 'NOT COMPETED' and is 'sole-source.' While the specific justification is not detailed, common reasons for sole-source awards in R&D include the unique capabilities or specialized knowledge possessed by a particular entity, the need for urgent research where only one source can meet the requirement, or if the research builds directly upon prior work conducted by that entity under specific circumstances. For a university, it might be due to proprietary research, unique facilities, or a long-standing, highly specialized research program directly relevant to the Air Force's needs. A formal justification document, often required for sole-source procurements exceeding certain thresholds, would contain the detailed rationale.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type influence risk and cost management for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type means the University of Dayton will be reimbursed for all allowable costs incurred in performing the research, plus a predetermined fixed fee representing profit. This structure shifts a significant portion of the cost risk to the government, as the final cost is not fixed upfront. While the fixed fee provides some incentive for the contractor to manage costs efficiently to protect their profit margin, it can also lead to cost overruns if the scope of work expands or unforeseen challenges arise. Effective government oversight is crucial to scrutinize allowable costs and ensure the project stays within budgetary expectations, making the contracting officer's representative (COR) role particularly important.

What is the historical spending pattern for sustainment and combat readiness R&D by the Department of the Air Force?

The provided data does not include historical spending patterns for sustainment and combat readiness R&D by the Department of the Air Force. To analyze this, one would need access to historical contract databases, budget reports, and program solicitations. Such an analysis would involve identifying trends in R&D investment in these areas over several fiscal years, understanding the allocation of funds across different research categories (e.g., materials, systems, software), and identifying key contractors or research institutions that have historically received significant funding. This context would help determine if the $95.14 million award represents a typical investment or a significant deviation.

What are the potential performance risks associated with this contract, given its R&D nature and sole-source award?

Performance risks for this R&D contract are multifaceted. Firstly, the inherent uncertainty of research means that achieving the desired outcomes within the specified timeframe and budget is not guaranteed. Technical challenges, unforeseen scientific hurdles, or the inability to replicate laboratory results in a practical setting can all pose risks. Secondly, the sole-source nature of the award, while potentially justified by unique expertise, carries a risk of complacency or a lack of external validation of the research approach. Without competitive pressure, there's a reduced incentive for the contractor to push boundaries or explore alternative, potentially more efficient, methodologies. Effective project management, clear milestones, and regular technical reviews by the Air Force are critical to mitigating these risks.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 COLLEGE PARK AVE, 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: $99,645,451

Exercised Options: $99,645,451

Current Obligation: $95,140,029

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $788,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline