DoD's $53M CRAW Program with Penn State: R&D for Physical, Engineering, Life Sciences

Contract Overview

Contract Amount: $53,021,842 ($53.0M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2021-06-02

End Date: 2024-09-30

Contract Duration: 1,216 days

Daily Burn Rate: $43.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COMPACT RAPID ATTACK WEAPON (CRAW) PROGRAM OF RECORD FY21-FY22

Place of Performance

Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: COMPACT RAPID ATTACK WEAPON (CRAW) PROGRAM OF RECORD FY21-FY22 Key points: 1. Significant investment in advanced R&D for the Compact Rapid Attack Weapon (CRAW) program. 2. Sole-source contract awarded to The Pennsylvania State University, raising questions about competition. 3. Long contract duration (1216 days) suggests complex research and development phases. 4. Focus on physical, engineering, and life sciences R&D aligns with critical defense needs.

Value Assessment

Rating: questionable

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more specific cost breakdowns for similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to The Pennsylvania State University. This limits price discovery and potentially increases costs compared to a competitive environment.

Taxpayer Impact: Without competition, taxpayers may be paying a premium for the research and development services provided.

Public Impact

Advancement of weapon system technology for national defense. Potential for technological breakthroughs with broad applications beyond the CRAW program. Investment in university research infrastructure and scientific talent. Long-term commitment to a specific research area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long contract duration

Positive Signals

Award to a reputable research institution
Focus on critical defense 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 maintaining technological superiority but requires careful oversight due to its inherent complexity and long lead times.

Small Business Impact

This contract was awarded directly to a university and does not appear to involve small business participation. Opportunities for small businesses in subcontracting roles are not evident from the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Navy must ensure robust monitoring of the Cost Plus Fixed 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 Navy Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to CPFF contract type
Long contract duration may indicate schedule risks
Limited transparency on specific R&D deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to THE PENNSYLVANIA STATE UNIVERSITY. COMPACT RAPID ATTACK WEAPON (CRAW) PROGRAM OF RECORD FY21-FY22

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 $53.0 million.

What is the period of performance?

Start: 2021-06-02. End: 2024-09-30.

What specific technological advancements are expected from the CRAW program, and how do they justify the sole-source award and cost-plus contract?

The CRAW program aims to develop a compact, rapid attack weapon system, likely incorporating advanced materials, propulsion, and guidance technologies. The sole-source award suggests unique capabilities or intellectual property held by Penn State. The cost-plus contract is typical for R&D where final costs are uncertain, but requires stringent oversight to manage expenses and ensure value for taxpayer money.

What steps are being taken to mitigate the risks associated with a sole-source, cost-plus contract for this significant R&D effort?

Mitigation likely involves rigorous technical reviews, milestone-based payments, and detailed cost tracking by the Department of the Navy. Establishing clear performance metrics and independent cost estimates, even for sole-source awards, can help control spending. Regular reporting and communication with the contractor are essential for accountability.

How will the effectiveness of the CRAW program's R&D be measured, and what is the long-term strategy for transitioning the technology?

Effectiveness will be measured against defined technical performance parameters and program milestones. The Navy will likely assess the successful development of prototypes and their suitability for integration into existing or future platforms. A clear transition plan, including potential further development, testing, and procurement phases, is crucial for realizing the program's value.

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: 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: $53,021,842

Exercised Options: $53,021,842

Current Obligation: $53,021,842

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D6401

IDV Type: IDC

Timeline