DoD awards LGS Innovations $22.18M for R&D, facing full and open competition
Contract Overview
Contract Amount: $22,183,983 ($22.2M)
Contractor: LGS Innovations LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-12
End Date: 2026-09-12
Contract Duration: 2,557 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: SALIENT GHOST
Place of Performance
Location: FLORHAM PARK, MORRIS County, NEW JERSEY, 07932
Plain-Language Summary
Department of Defense obligated $22.2 million to LGS INNOVATIONS LLC for work described as: SALIENT GHOST Key points: 1. Significant R&D investment by the Air Force. 2. Full and open competition suggests a competitive market. 3. Contract type (Cost Plus Fixed Fee) may pose cost control challenges. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a robust bidding process. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for critical R&D, with the expectation of technological advancements. The competitive nature should help ensure reasonable pricing.
Public Impact
Investment in advanced research and development. Potential for new technologies benefiting national security. Air Force's commitment to innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (approx. 7 years)
Positive Signals
- Full and open competition
- Significant investment in R&D
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but can be subject to cost overruns.
Small Business Impact
No indication of small business participation in this contract award. Further analysis would be needed to determine if small businesses were involved in the supply chain or subcontracting.
Oversight & Accountability
The contract's long duration and cost-plus nature warrant close oversight to ensure funds are used efficiently and effectively towards R&D goals.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of specific R&D objectives and success metrics
- Potential for cost overruns
Tags
research-and-development-in-the-physical, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to LGS INNOVATIONS LLC. SALIENT GHOST
Who is the contractor on this award?
The obligated recipient is LGS INNOVATIONS LLC.
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 $22.2 million.
What is the period of performance?
Start: 2019-09-12. End: 2026-09-12.
What specific R&D objectives does this contract aim to achieve, and how will success be measured?
The contract aims to advance research in physical, engineering, and life sciences. Success will likely be measured by milestones, deliverables, and the successful development of prototypes or technologies aligned with the Air Force's strategic objectives. Specific metrics are not detailed in the provided data but are crucial for effective oversight.
What are the potential risks associated with a Cost Plus Fixed Fee contract for R&D?
Cost Plus Fixed Fee contracts carry risks of cost overruns if the contractor's costs exceed estimates, as the government pays the actual costs plus a fixed fee. For R&D, where outcomes are uncertain, this can lead to higher-than-expected expenditures without guaranteed successful results. Robust monitoring of contractor expenditures and progress is essential.
How does this $22.18M award compare to typical R&D spending in the physical, engineering, and life sciences sector?
This award represents a substantial investment for a single contract within the R&D sector. While specific benchmarks vary widely based on the complexity and scope of research, $22.18 million is a significant sum, indicating a project of considerable scale and potential impact. Benchmarking requires comparison with similar-scoped projects.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: FA875017S7003
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc
Address: 15 VREELAND RD, FLORHAM PARK, NJ, 07932
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,657,824
Exercised Options: $24,657,824
Current Obligation: $22,183,983
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $84,155
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-12
Current End Date: 2026-09-12
Potential End Date: 2026-09-12 00:00:00
Last Modified: 2025-12-09
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