DoD's $6.9M ATEAS contract with CUBRC, Inc. for R&D faces potential value concerns
Contract Overview
Contract Amount: $6,909,244 ($6.9M)
Contractor: Cubrc, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-11-06
End Date: 2026-05-26
Contract Duration: 2,027 days
Daily Burn Rate: $3.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ADVANCED TASKING, ESTIMATION AND ALERTING SYSTEM (ATEAS)
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14225
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to CUBRC, INC. for work described as: ADVANCED TASKING, ESTIMATION AND ALERTING SYSTEM (ATEAS) Key points: 1. The contract's value of $6.9M for R&D services warrants scrutiny given the specific nature of the tasking. 2. CUBRC, Inc. is the sole awardee, raising questions about the extent of competition. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code is broad, requiring deeper analysis of the specific services procured. 4. The contract duration extends to 2026, implying a significant, long-term investment.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure for R&D can lead to cost overruns. Benchmarking against similar R&D contracts is difficult due to the specialized nature of 'Advanced Tasking, Estimation and Alerting System'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'FULL AND OPEN COMPETITION', the award to a single entity, CUBRC, Inc., suggests potential limitations in the bidding pool or a highly specialized requirement. Price discovery may be impacted if only a few entities could realistically compete.
Taxpayer Impact: Taxpayer funds are allocated for advanced R&D. The value and effectiveness of this specific research will determine the ultimate return on investment.
Public Impact
Advanced technology development for the Department of the Navy. Potential for dual-use applications in defense and civilian sectors. Investment in specialized research capabilities within the US.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure for R&D
- Limited visibility into specific R&D deliverables
- Sole awardee despite 'full and open' competition
Positive Signals
- Supports critical Department of Defense research needs
- Long-term contract provides stability for research efforts
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but can be highly variable and difficult to benchmark due to its innovative nature.
Small Business Impact
The contract does not indicate any specific set-asides or participation goals for small businesses. The prime contractor, CUBRC, Inc., is likely a specialized research firm, and further investigation would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Given the R&D nature and CPFF contract type, robust oversight is critical to manage costs and ensure progress aligns with stated objectives.
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
- Potential for cost overruns due to CPFF structure.
- Lack of clear competition evidence despite 'full and open' designation.
- Difficulty in benchmarking specialized R&D services.
- Long contract duration requires sustained oversight.
- Uncertainty of R&D outcomes impacting value realization.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to CUBRC, INC.. ADVANCED TASKING, ESTIMATION AND ALERTING SYSTEM (ATEAS)
Who is the contractor on this award?
The obligated recipient is CUBRC, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $6.9 million.
What is the period of performance?
Start: 2020-11-06. End: 2026-05-26.
What specific advancements or capabilities is the ATEAS expected to deliver, and how do these align with current DoD priorities?
The ATEAS likely aims to enhance intelligence, surveillance, and reconnaissance (ISR) capabilities through advanced data processing and alerting. This aligns with the DoD's focus on leveraging technology for faster decision-making in complex operational environments. Specific deliverables would detail the algorithms, system architecture, and performance metrics.
What was the rationale for awarding this contract to a single entity under a 'full and open' competition, and were alternative solutions considered?
The rationale likely stems from CUBRC, Inc.'s unique expertise or existing intellectual property relevant to the ATEAS. 'Full and open' competition may have been met through broad solicitation, but if only one offer was deemed technically acceptable or responsive, it could lead to a sole award. Investigating the pre-award phase and justification for sole award is crucial.
How will the effectiveness and value of the R&D investment be measured, particularly given the inherent uncertainties in research outcomes?
Effectiveness will be measured through milestone achievements, technical reviews, and the successful demonstration of ATEAS capabilities against defined requirements. Value is assessed by the potential impact on operational effectiveness, cost savings, or technological superiority gained. Performance metrics and independent verification will be key to evaluating the R&D's success.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017319SBA01
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4455 GENESEE ST STE 106, BUFFALO, NY, 14225
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,214,139
Exercised Options: $8,214,139
Current Obligation: $6,909,244
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-11-06
Current End Date: 2026-05-26
Potential End Date: 2026-05-26 00:00:00
Last Modified: 2026-01-12
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