DoD's $615M SEVER AND PROTECT R&D Contract Awarded to University of Pennsylvania

Contract Overview

Contract Amount: $6,155,935 ($6.2M)

Contractor: Trustees of the University of Pennsylvania, the

Awarding Agency: Department of Defense

Start Date: 2024-03-08

End Date: 2028-05-08

Contract Duration: 1,522 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 27

Pricing Type: COST NO FEE

Sector: R&D

Official Description: SEVER AND PROTECT: SEPARATE ENVIRONMENT FOR VULNERABILITY ELIMINATION AND REDUCTION AND POLICY RULES ORGANIZED TO ENFORCE COMPARTMENT TRANSITIONS

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE for work described as: SEVER AND PROTECT: SEPARATE ENVIRONMENT FOR VULNERABILITY ELIMINATION AND REDUCTION AND POLICY RULES ORGANIZED TO ENFORCE COMPARTMENT TRANSITIONS Key points: 1. This contract focuses on advanced research in vulnerability elimination and reduction for the Air Force. 2. The award is for Research and Development in Physical, Engineering, and Life Sciences, excluding Nanotechnology and Biotechnology. 3. Competition was full and open, suggesting a robust price discovery process. 4. The contract type is Cost No Fee, indicating a focus on research completion rather than profit. 5. The duration is over 4 years, suggesting a long-term research objective.

Value Assessment

Rating: fair

The contract is Cost No Fee, which is common for R&D efforts where final costs are uncertain. Benchmarking is difficult without specific deliverables and comparable research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically leads to competitive pricing. However, for specialized R&D, the lowest price may not always be the best value.

Taxpayer Impact: Taxpayer funds are supporting advanced research with potential long-term national security benefits, but the direct return on investment is uncertain at this stage.

Public Impact

Supports cutting-edge research in cybersecurity and system resilience. Potential for technological advancements benefiting national security. Investment in academic research infrastructure and expertise. Long-term commitment to a specific research area. Focus on fundamental scientific discovery rather than immediate application.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D contracts can have uncertain outcomes and deliverables.
Cost No Fee structure may not incentivize cost efficiency.
Long duration could lead to scope creep or evolving research needs.

Positive Signals

Full and open competition utilized.
Awarded to a reputable academic institution.
Focus on critical national security research area.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be highly variable and difficult to benchmark due to the specialized nature of the research.

Small Business Impact

The awardee is a university, indicating no direct benefit to small businesses through this prime contract. Subcontracting opportunities for small businesses are not specified but are possible.

Oversight & Accountability

The Department of the Air Force is the contracting agency. Oversight will focus on research progress, adherence to project milestones, and responsible use of funds, especially given the Cost No Fee structure.

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

Research and Development contracts inherently carry risk of not achieving desired outcomes.
Cost No Fee structure may limit contractor's incentive for cost control.
Long contract duration increases exposure to changing technological landscapes and requirements.
Specificity of 'SEVER AND PROTECT' may indicate a niche research area with limited immediate applicability outside its defined scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE. SEVER AND PROTECT: SEPARATE ENVIRONMENT FOR VULNERABILITY ELIMINATION AND REDUCTION AND POLICY RULES ORGANIZED TO ENFORCE COMPARTMENT TRANSITIONS

Who is the contractor on this award?

The obligated recipient is TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA, THE.

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 $6.2 million.

What is the period of performance?

Start: 2024-03-08. End: 2028-05-08.

What is the expected technological advancement or deliverable from this R&D effort?

The contract aims to develop capabilities for vulnerability elimination and reduction, and policy rules for compartment transitions. Specific deliverables are likely research reports, prototypes, or new methodologies, but the exact nature and impact will unfold over the contract's duration. The 'SEVER AND PROTECT' acronym suggests a focus on isolating and mitigating cyber threats within complex systems.

How will the effectiveness of the research be measured given the Cost No Fee structure?

Effectiveness will likely be measured through periodic reviews of research progress against defined milestones, technical reviews of findings, and the potential applicability of the developed concepts or technologies to Air Force requirements. The absence of a fee means the primary incentive is the successful completion of the research objectives and contribution to scientific knowledge, rather than profit maximization.

What is the potential long-term value or return on investment for this research?

The long-term value lies in enhancing the cybersecurity posture and resilience of critical Air Force systems. Successful research could lead to significant advancements in threat mitigation, reducing the risk of cyberattacks and ensuring operational continuity. The return on investment is measured in improved national security and reduced potential costs associated with cyber incidents.

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

Solicitation ID: HR001123S0028

Offers Received: 27

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 3451 WALNUT ST STE 440A, PHILADELPHIA, PA, 19104

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Educational Institution, Higher Education, Hospital, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,562,839

Exercised Options: $13,562,839

Current Obligation: $6,155,935

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,115,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline