DoD's $42.6M UARC contract to University of Hawaii for R&D support shows limited competition
Contract Overview
Contract Amount: $42,605,935 ($42.6M)
Contractor: University of Hawaii
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2025-12-30
Contract Duration: 2,069 days
Daily Burn Rate: $20.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE VANGUARD CENTERS UNIFIED UARC FOR MHPCC SUPPORT TO 0001 EFFORTS SHALL FOCUS ON THREE HPCMP FUNDED RESEARCH AND DEVELOPMENT OBJECTIVES CENTERS, PORTAL, AND CREATE.
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96822
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $42.6 million to UNIVERSITY OF HAWAII for work described as: THE VANGUARD CENTERS UNIFIED UARC FOR MHPCC SUPPORT TO 0001 EFFORTS SHALL FOCUS ON THREE HPCMP FUNDED RESEARCH AND DEVELOPMENT OBJECTIVES CENTERS, PORTAL, AND CREATE. Key points: 1. Contract awarded to a single entity, raising questions about competitive pricing and value. 2. Focus on high-performance computing research and development aligns with critical national defense objectives. 3. Long contract duration (over 5 years) necessitates careful monitoring of performance and cost efficiency. 4. The 'Not Competed' award type suggests potential sole-source justifications or limited market availability. 5. Research and Development in Physical, Engineering, and Life Sciences is a key area for technological advancement. 6. Geographic concentration in Hawaii may have implications for local economic impact and workforce development.
Value Assessment
Rating: fair
The contract's value of $42.6 million over approximately five years for specialized R&D support requires careful scrutiny. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their efforts without excessive profit. 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 'Not Competed' basis, indicating that a full and open competition was not conducted. This could be due to several factors, such as the unique capabilities of the University of Hawaii, the specialized nature of the research required, or the absence of other qualified bidders. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Taxpayers may not be receiving the best value for their investment due to the absence of competitive pressure, potentially leading to higher costs than if multiple bids were solicited.
Public Impact
The University of Hawaii, as the primary contractor, benefits from significant federal funding for its research initiatives. The contract supports critical research and development objectives for the Department of Defense's High Performance Computing Modernization Program (HPCMP). The geographic impact is concentrated in Hawaii, potentially fostering local scientific expertise and economic activity. Workforce implications include the employment of researchers, scientists, and support staff at the University of Hawaii.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Cost Plus Fixed Fee contracts require diligent oversight to control expenditures.
- Long-term nature of the contract increases risk if performance monitoring is inadequate.
Positive Signals
- Award to a university research center suggests a focus on specialized, potentially cutting-edge R&D.
- The contract supports critical national defense modernization efforts.
- The Unified UARC structure implies a consolidated approach to research support.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The High Performance Computing Modernization Program (HPCMP) is a significant government initiative aimed at providing state-of-the-art computing capabilities to researchers. Contracts in this space often involve specialized academic institutions or research organizations due to the unique expertise required. Benchmarking spending in this niche requires comparison to other UARC (University Affiliated Research Center) contracts or large-scale R&D grants within the defense sector.
Small Business Impact
The contract data indicates that small business participation is not a primary focus, as the award is made directly to the University of Hawaii. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the primary objective is to leverage the university's research capabilities, rather than to stimulate small business engagement through this specific award.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically be managed by the contracting agency, the Department of the Air Force, under the purview of the Department of Defense. Accountability measures would involve regular performance reviews, financial audits, and adherence to research milestones. Transparency is generally maintained through contract awards databases and reporting requirements, though the specifics of the research may be sensitive.
Related Government Programs
- High Performance Computing Modernization Program (HPCMP)
- University Affiliated Research Centers (UARCs)
- Department of Defense Research and Development Contracts
- Federal Grants for Scientific Research
Risk Flags
- Limited competition raises concerns about potential overpricing.
- CPFF contract structure requires stringent cost oversight.
- Long contract duration increases risk of cost escalation and performance drift without active management.
Tags
department-of-defense, department-of-the-air-force, research-and-development, high-performance-computing, university-affiliated-research-center, not-competed, cost-plus-fixed-fee, large-contract, hawaii, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.6 million to UNIVERSITY OF HAWAII. THE VANGUARD CENTERS UNIFIED UARC FOR MHPCC SUPPORT TO 0001 EFFORTS SHALL FOCUS ON THREE HPCMP FUNDED RESEARCH AND DEVELOPMENT OBJECTIVES CENTERS, PORTAL, AND CREATE.
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 $42.6 million.
What is the period of performance?
Start: 2020-05-01. End: 2025-12-30.
What is the historical spending pattern for the University of Hawaii with the Department of Defense for similar research and development services?
Analyzing the historical spending between the University of Hawaii and the Department of Defense for similar R&D services is crucial for understanding the long-term relationship and the consistency of federal investment. Without specific historical data, it's challenging to establish a trend. However, the existence of a large, multi-year contract like this suggests a sustained need for the university's specialized capabilities. Further investigation into past awards, contract modifications, and performance reviews would provide a clearer picture of the university's track record and the DoD's reliance on its expertise. This context is vital for assessing the value proposition of the current $42.6 million award and determining if it represents an escalation, continuation, or new venture in federal R&D support.
How does the pricing structure (Cost Plus Fixed Fee) compare to other UARC contracts for similar R&D services?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development contracts, particularly with University Affiliated Research Centers (UARCs), where the scope of work can evolve. CPFF aims to provide the contractor with reimbursement for allowable costs plus a fixed fee representing profit. To assess value-for-money, this contract's fee structure should be benchmarked against similar UARC agreements. Factors to consider include the percentage of the fixed fee relative to the total estimated cost, the contractor's historical cost control performance, and the specific deliverables. A higher-than-average fixed fee, without a corresponding increase in expected outcomes or innovation, could indicate a potential overpayment. Conversely, a well-managed CPFF contract can incentivize efficiency while ensuring the contractor is adequately compensated for complex R&D efforts.
What are the specific performance metrics and milestones associated with this contract, and how are they being monitored?
The effectiveness of this $42.6 million contract hinges on clearly defined performance metrics and rigorous monitoring. As a CPFF contract supporting R&D objectives (Centers, Portal, and CREATE), key performance indicators (KPIs) would likely relate to research progress, scientific output, timely delivery of computational resources, and adherence to project timelines. The Department of the Air Force, as the contracting agency, is responsible for establishing these metrics and overseeing their achievement. Monitoring mechanisms typically include regular progress reports, technical reviews, and potentially site visits. The absence of detailed public information on these metrics makes a definitive assessment of program effectiveness challenging, but the long-term nature of the contract implies a need for continuous evaluation to ensure the R&D objectives are being met efficiently and effectively.
Given the 'Not Competed' status, what justifications were provided for not conducting a full and open competition?
The 'Not Competed' designation for this $42.6 million contract signifies that a full and open competition was not undertaken. Federal procurement regulations allow for non-competitive awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs (sole-source) or when the agency determines that competition is not feasible or not in the public interest. For a UARC contract, justifications often revolve around the unique capabilities, specialized facilities, or established expertise that a particular university possesses, making it the only viable option for specific, long-term research requirements. The Department of Defense would have documented these justifications, likely related to the specialized nature of the HPCMP support required for the MHPCC efforts. Transparency regarding these justifications is key to understanding the rationale behind the non-competitive award.
What is the potential risk associated with the long contract duration (over 5 years) and the CPFF structure?
The combination of a long contract duration (over 5 years) and a Cost Plus Fixed Fee (CPFF) structure presents inherent risks that require diligent management. For the contractor, the CPFF provides cost certainty and a defined profit margin, potentially reducing the incentive for aggressive cost-saving measures. For the government, the risk lies in potential cost overruns if expenditures are not closely monitored and controlled, and the fixed fee might not accurately reflect the value delivered over such an extended period, especially if project requirements or market conditions change significantly. Effective oversight, including regular audits, performance reviews, and robust change management processes, is critical to mitigate these risks and ensure the $42.6 million investment yields the intended R&D outcomes.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2444 DOLE ST, HONOLULU, HI, 96822
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $50,336,220
Exercised Options: $50,336,220
Current Obligation: $42,605,935
Actual Outlays: $839,822
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945120D0004
IDV Type: IDC
Timeline
Start Date: 2020-05-01
Current End Date: 2025-12-30
Potential End Date: 2025-12-30 00:00:00
Last Modified: 2025-09-17
More Contracts from University of Hawaii
- 200112!000598!5700!GS03 !DET 8, Afrl/Pk (supports DE) !F2960101D0083 !A!N!*!N!0002 !20010928!20040930!965088057!155016041!009438664!n!university of Hawaii !2530 Dole Street !honolulu !hi!96822!17000!003!15!honolulu !honolulu !hawaii !+000000936322!n!n!000000000000!ad92!rdte/Other Defense-Applied Research !c9e!all Other Supplies and Equipme!3000!not Discernable or Classified !541513!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!S!2!002!B! !Z!N!Z! ! !N!U!N! ! ! ! ! !a!a!000!a!c!n! ! ! ! ! ! !0001! — $124.7M (Department of Defense)
- Phase-Out/Transition — $32.7M (Department of Defense)
- Basic Effort -(BAA) — $30.8M (Department of Defense)
- Mhpcc Transition Contract — $27.6M (Department of Defense)
- 200112!000599!5700!GS03 !DET 8, Afrl/Pk (supports DE) !F2960101D0083 !A!N!*!N!0003 !20010928!20040930!965088057!155016041!009438664!n!university of Hawaii !2530 Dole Street !honolulu !hi!96822!17000!003!15!honolulu !honolulu !hawaii !+000000280447!n!n!000000000000!ad92!rdte/Other Defense-Applied Research !c9e!all Other Supplies and Equipme!3000!not Discernable or Classified !541513!*!*!5!B!S! !*!*!*!B!*!*!A! !A !N!S!2!002!B! !Z!N!Z! ! !N!U!N! ! ! ! ! !a!a!000!a!c!n! ! ! ! ! ! !0001! — $23.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)