DoD's $17.6M R&D contract with Envisioneering Inc. for deepstar research awarded after source exclusion

Contract Overview

Contract Amount: $17,605,403 ($17.6M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-25

End Date: 2025-09-30

Contract Duration: 1,132 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEEPSTAR

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to ENVISIONEERING INC for work described as: DEEPSTAR Key points: 1. Contract awarded to a single entity, raising questions about the extent of competition. 2. Research and Development in Physical, Engineering, and Life Sciences sector, indicating focus on innovation. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Performance period spans over three years, suggesting a long-term research objective. 5. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', a complex procurement path. 6. No small business set-aside or subcontracting reported, potentially limiting small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.6 million contract is challenging without specific deliverables or comparable projects. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation. The absence of detailed performance metrics or independent cost analysis makes it difficult to definitively assess value for money. Further scrutiny of the fixed fee component and the contractor's historical performance on similar R&D efforts would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method suggests that while the initial intent may have been broad competition, specific circumstances led to the exclusion of certain sources before the final award. The exact reasons for this exclusion are not detailed, but it implies that not all potentially capable offerors were considered in the final evaluation, potentially limiting the breadth of competition and its impact on price discovery.

Taxpayer Impact: The exclusion of sources, even within a framework that started as open competition, may have resulted in a less competitive environment than a truly open bid process. This could mean taxpayers did not benefit from the lowest possible price achievable through maximum competition.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the results of the deepstar research. The contract aims to advance research and development in physical, engineering, and life sciences. The geographic impact is primarily within the United States, where the research activities will likely be conducted. Workforce implications may include specialized scientific and engineering roles required for advanced R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces risk of cost overruns.
Procurement path 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' lacks transparency regarding excluded parties.
No indication of small business participation or subcontracting opportunities.
Limited public information on specific research objectives and expected outcomes.

Positive Signals

Contract awarded to a single entity for specialized R&D, suggesting potential for focused expertise.
Long performance period (over 3 years) indicates a commitment to a significant research endeavor.
Contract falls under a broad R&D category, potentially contributing to technological advancements.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712. This sector is characterized by innovation and the pursuit of new knowledge and applications. The total federal spending in R&D is substantial, with significant investments made by agencies like the Department of Defense to maintain technological superiority. Comparable contracts in this space often involve complex scientific challenges and require specialized expertise, making competition and cost management critical.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false) nor is there an indication of subcontracting goals (SB=false). This suggests that the primary awardee, Envisioneering Inc., is expected to perform the work directly or through large business partners. The lack of specific small business provisions means that opportunities for small businesses to participate in this significant R&D effort may be limited, potentially impacting the broader small business ecosystem that often relies on subcontracting roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific contracting officers and program managers responsible for monitoring performance and costs. The Cost Plus Fixed Fee structure necessitates close financial oversight to manage expenditures against the fixed fee. Transparency is moderate, as contract awards are public, but detailed R&D progress and specific cost breakdowns may be less accessible due to the nature of research and potential proprietary information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Navy Advanced Technology Research
Physical and Engineering Sciences Research
Deepstar Initiative (if applicable)

Risk Flags

Limited Competition Concerns
Cost Plus Fixed Fee Risk
Lack of Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to ENVISIONEERING INC. DEEPSTAR

Who is the contractor on this award?

The obligated recipient is ENVISIONEERING 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 $17.6 million.

What is the period of performance?

Start: 2022-08-25. End: 2025-09-30.

What is the specific nature of the 'deepstar' research being conducted under this contract?

The provided data indicates the contract is for 'DEEPSTAR' research and falls under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific objectives of 'deepstar' are not detailed in the summary data, this code suggests the research likely pertains to advanced scientific or engineering principles, potentially in areas like materials science, energy, or complex systems. Without further documentation or public disclosures from the Department of the Navy, the precise scope and expected outcomes of the 'deepstar' research remain unspecified. Typically, R&D contracts of this nature aim to explore novel concepts, develop new technologies, or solve complex technical challenges relevant to the agency's mission.

How does the Cost Plus Fixed Fee (CPFF) structure impact the potential cost to taxpayers for this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor, Envisioneering Inc., is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the contractor's profit margin, the total cost to the government is variable and depends on the actual costs incurred. This structure is often used for research and development where the scope of work can be uncertain, and innovation is paramount. However, it carries a risk for taxpayers: if costs escalate significantly due to unforeseen technical challenges or inefficiencies, the total expenditure can exceed initial estimates. Effective oversight by the Department of the Navy is crucial to ensure costs remain reasonable and allocable to the contract objectives.

What are the potential risks associated with awarding a contract after excluding certain sources?

Awarding a contract after excluding certain sources, even under a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' umbrella, introduces several risks. Primarily, it limits the pool of potential bidders, which can reduce the level of competition. Less competition may lead to higher prices than could be achieved in a fully open bidding process, meaning taxpayers might not receive the best value. Furthermore, the exclusion process itself can raise concerns about fairness and transparency if the rationale for exclusion is not clearly documented and justifiable. It could also inadvertently exclude highly capable contractors who might offer innovative solutions or more cost-effective approaches, potentially impacting the overall quality and success of the research endeavor.

What is Envisioneering Inc.'s track record with government R&D contracts?

Information regarding Envisioneering Inc.'s specific track record with government R&D contracts is not detailed in the provided summary data. To assess their performance, one would need to examine their contract history, including past performance evaluations, any awards or penalties received, and the types of R&D projects they have successfully completed. Their experience with similar Cost Plus Fixed Fee contracts and their ability to manage complex research initiatives would be key indicators. A thorough review of their past performance on contracts with the Department of Defense or other federal agencies would be necessary to gauge their reliability and effectiveness in delivering R&D outcomes.

How does this $17.6 million contract compare to other federal R&D spending in similar fields?

The $17.6 million value for this R&D contract is a significant but not extraordinary sum within the broader context of federal R&D spending. The Department of Defense, in particular, allocates billions annually to research and development across various scientific and engineering disciplines. Contracts of this magnitude are typical for projects requiring specialized expertise and extended research periods, such as those under NAICS code 541712. To provide a precise comparison, one would need to benchmark this contract against other R&D awards in physical, engineering, and life sciences, considering factors like contract duration, specific research focus, and the awarding agency. However, it represents a substantial investment aimed at advancing specific technological capabilities for the Navy.

What are the potential implications of this contract for future technological advancements in its field?

This contract, focused on 'deepstar' research within the physical, engineering, and life sciences, has the potential to drive significant technological advancements. R&D investments are crucial for innovation, and successful outcomes could lead to breakthroughs in areas relevant to national security or scientific understanding. The long-term nature of the contract (over three years) suggests a commitment to exploring complex challenges. The specific impact will depend on the nature of the research and the discoveries made by Envisioneering Inc. Positive results could pave the way for new technologies, improved processes, or a deeper understanding of fundamental scientific principles, ultimately benefiting the Department of the Navy and potentially broader scientific communities.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5904 RICHMOND HWY #310, ALEXANDRIA, VA, 22303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,222,727

Exercised Options: $21,222,727

Current Obligation: $17,605,403

Actual Outlays: $6,112,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017317D2016

IDV Type: IDC

Timeline