Navy Awards $30.6M for MK54 Mod Design & Systems Engineering to Penn State

Contract Overview

Contract Amount: $30,595,690 ($30.6M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2020-06-03

End Date: 2023-06-02

Contract Duration: 1,094 days

Daily Burn Rate: $28.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MK54 MOD DESIGN AND SYS ENGINGEERING (FY20-FY23)

Place of Performance

Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: MK54 MOD DESIGN AND SYS ENGINGEERING (FY20-FY23) Key points: 1. Penn State secured a significant contract for R&D services. 2. The contract was not competed, raising questions about price discovery. 3. The primary risk lies in the lack of competitive bidding. 4. The sector is Research and Development, a key area for defense innovation.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary, impacting taxpayer funds.

Public Impact

Research and Development funding is crucial for technological advancement. Sole-source contracts can limit opportunities for other research institutions. Transparency in R&D spending is vital for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Limited transparency in pricing

Positive Signals

Supports critical R&D for the Navy
Long-term engagement with a known entity

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Defense R&D spending is substantial, with a focus on maintaining technological superiority.

Small Business Impact

The awardee is a large university, and there is no indication that small businesses were involved as subcontractors. This contract does not appear to support small business goals.

Oversight & Accountability

The lack of competition warrants closer oversight to ensure the cost-plus fixed fee structure is managed effectively and taxpayer funds are used judiciously.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Potential for cost overruns (CPFF)
Lack of small business participation
Limited price competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to THE PENNSYLVANIA STATE UNIVERSITY. MK54 MOD DESIGN AND SYS ENGINGEERING (FY20-FY23)

Who is the contractor on this award?

The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2020-06-03. End: 2023-06-02.

What specific justification was provided for not competing this significant R&D contract?

The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards require a justification based on factors like unique capabilities, urgent need, or lack of other responsible sources. Further investigation into the contract file would be necessary to ascertain the specific rationale.

How will the cost-plus fixed fee structure be monitored to prevent cost overruns?

Monitoring a cost-plus fixed fee contract involves rigorous oversight of incurred costs, regular audits, and strict adherence to the defined scope of work. The contracting officer and technical team must ensure all costs are allowable, allocable, and reasonable, and that the fixed fee remains appropriate for the effort performed.

What is the expected impact of this R&D on future naval capabilities?

This contract is for design and systems engineering for the MK54 Mod, suggesting it aims to improve or develop specific capabilities for naval systems. The expected impact would be enhanced performance, reliability, or new functionalities for the MK54 system, contributing to the Navy's overall technological edge.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 OLD MAIN, UNIVERSITY PARK, PA, 16802

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

Financial Breakdown

Contract Ceiling: $30,595,690

Exercised Options: $30,595,690

Current Obligation: $30,595,690

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D6401

IDV Type: IDC

Timeline