DoD's $27.6M MHPCC Transition Contract with University of Hawaii Lacked Competition
Contract Overview
Contract Amount: $27,569,265 ($27.6M)
Contractor: University of Hawaii
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2017-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $25.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::OT::IGF MHPCC TRANSITION CONTRACT
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96822
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to UNIVERSITY OF HAWAII for work described as: IGF::OT::IGF MHPCC TRANSITION CONTRACT Key points: 1. The contract awarded to the University of Hawaii for $27.6 million focused on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded as a definitive contract, it was not competed, raising questions about price discovery and potential value. 3. The lack of competition is a significant risk factor, potentially leading to inflated costs for taxpayers. 4. The sector is R&D, a critical area for innovation but also one where competitive bidding can drive efficiency.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which typically means the government pays costs but no fee. Without a fee, the incentive for the contractor to control costs is reduced. Benchmarking is difficult without a fee structure or competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, indicating a sole-source or limited competition scenario. This significantly limits price discovery and may prevent the government from obtaining the best possible value.
Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for the research and development services provided.
Public Impact
Taxpayers funded $27.6 million for R&D services without competitive bidding. The University of Hawaii received a significant contract without facing market competition. The Department of the Air Force awarded this contract, highlighting potential oversight gaps in non-competed awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type (implied by 'COST NO FEE' without fee)
- Long duration (1095 days)
Positive Signals
- Focus on critical R&D sector
- Awarded to a university, potentially for specialized expertise
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight to ensure value for money, especially when not competed.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made directly to the University of Hawaii.
Oversight & Accountability
The non-competed nature of this award warrants further oversight to ensure the justification for sole-source procurement was robust and that costs were reasonable and allocable.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to no fee and no competition
- Limited transparency on specific R&D deliverables and outcomes
- No clear small business participation
Tags
research-and-development-in-the-physical, department-of-defense, hi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to UNIVERSITY OF HAWAII. IGF::OT::IGF MHPCC TRANSITION CONTRACT
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF HAWAII.
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 $27.6 million.
What is the period of performance?
Start: 2014-10-01. End: 2017-09-30.
What was the specific justification for not competing this $27.6 million R&D contract?
The provided data states the contract was 'NOT COMPETED'. A thorough review would be needed to determine the specific justification, such as unique capabilities, urgent need, or specific research requirements that only the University of Hawaii could fulfill. Without this justification, the lack of competition raises concerns about potential overspending and missed opportunities for better value.
How were costs validated and controlled under this 'COST NO FEE' contract without competition?
With a 'COST NO FEE' contract, the government reimburses the contractor for allowable costs but provides no profit. While this can incentivize cost control, the absence of competition means there was no market pressure to ensure the most efficient cost structure. The government would need robust auditing and cost analysis procedures to validate expenses and ensure they were reasonable and necessary for the R&D performed.
What was the ultimate impact of this contract on the Department of Defense's R&D objectives?
The contract aimed to support Research and Development in Physical, Engineering, and Life Sciences. The ultimate impact depends on the successful completion of the research objectives and the utility of the findings. However, the non-competed nature and lack of fee suggest potential inefficiencies that might have limited the overall return on investment for the $27.6 million expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: University of Hawaii Systems (UEI: 009438664)
Address: 2425 CAMPUS RD SINCLAIR LIBRARY RM 1, HONOLULU, HI, 96822
Business Categories: Category Business, Educational Institution, Government, Higher Education, Higher Education (Minority Serving), U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,594,924
Exercised Options: $31,571,312
Current Obligation: $27,569,265
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $10,097,823
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-10-10
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