DoD's $29.3M R&D contract with Envisioneering Inc. awarded for physical, engineering, and life sciences support

Contract Overview

Contract Amount: $29,267,387 ($29.3M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-25

End Date: 2026-02-24

Contract Duration: 822 days

Daily Burn Rate: $35.6K/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: RESEARCH AND DEVELOPMENT IN SUPPORT OF MOTHR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to ENVISIONEERING INC for work described as: RESEARCH AND DEVELOPMENT IN SUPPORT OF MOTHR Key points: 1. Contract value of $29.3M over 822 days suggests a significant investment in specialized research. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific source exclusions. 3. Risk indicators include the 'COST PLUS FIXED FEE' contract type, which can lead to cost overruns if not managed carefully. 4. Performance context is defined by the R&D focus in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 5. Sector positioning is within the Defense R&D landscape, specifically supporting the Department of the Navy. 6. The contract duration of 822 days allows for substantial project development and execution.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables or comparable projects. The $29.3M value over approximately two years indicates a substantial investment. The 'COST PLUS FIXED FEE' structure requires careful oversight to ensure value for money, as it incentivizes cost incurrence up to a certain point. Without more granular data on the scope of work and expected outcomes, a definitive value assessment is difficult, but the price appears reasonable for specialized R&D in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders is not specified, but the exclusion of sources implies a deliberate selection process. This type of competition can sometimes lead to less aggressive pricing compared to truly full and open competition, depending on the rationale for exclusions.

Taxpayer Impact: Taxpayers benefit from a competitive process, even with exclusions, as it aims to secure the best value. However, the exclusion of potential bidders might mean that taxpayers are not benefiting from the widest possible range of innovative solutions or the most competitive pricing available.

Public Impact

The primary beneficiaries are the Department of Defense and potentially advancements in physical, engineering, and life sciences relevant to national security. Services delivered include research and development activities, contributing to technological innovation and capability enhancement for the Navy. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the R&D outcomes could have national implications. Workforce implications include employment for scientists, engineers, and support staff at Envisioneering Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces inherent risk of cost escalation if not rigorously managed.
Exclusion of sources in the competition, while potentially justified, could limit competitive pressure and innovation.
The broad R&D scope may present challenges in defining clear, measurable outcomes and performance metrics.
Long contract duration requires sustained oversight to ensure continued alignment with evolving defense needs.

Positive Signals

Award to a single contractor suggests specialized expertise required for the R&D tasks.
The substantial funding indicates a recognized need and commitment from the Department of Defense.
The contract duration allows for in-depth research and development, potentially leading to significant advancements.
The specific NAICS code (541715) points to a focus on advanced scientific and technical R&D.

Sector Analysis

The defense research and development sector is a critical area for national security, involving significant government investment. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' category, which is a broad but vital segment. The market is characterized by specialized firms, often with deep technical expertise and security clearances. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but defense R&D contracts can range from millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The primary focus appears to be on securing specialized R&D capabilities, likely from established firms or those with unique technological expertise.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance milestones, reporting requirements, and payment schedules tied to progress. Transparency is facilitated through contract databases like FPDS, though detailed R&D project specifics may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Navy Science and Technology Programs
Physical Sciences Research Contracts
Engineering Services Contracts
Life Sciences Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost monitoring.
Exclusion of sources may limit competitive pricing.
Broad R&D scope necessitates clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to ENVISIONEERING INC. RESEARCH AND DEVELOPMENT IN SUPPORT OF MOTHR

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 $29.3 million.

What is the period of performance?

Start: 2023-11-25. End: 2026-02-24.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' being undertaken under this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. While the exact nature of the R&D is not detailed in the provided data, it implies work in areas such as advanced materials, complex systems engineering, biological research, or other scientific endeavors relevant to defense applications. The exclusion of nanotechnology and biotechnology suggests a focus on other specialized scientific domains. Further details would likely be found in the contract's statement of work, which is not publicly available in this summary.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process typically affect pricing and innovation compared to standard full and open competition?

This procurement method allows for competition among all responsible sources, but with the explicit exclusion of certain sources. The impact on pricing and innovation depends heavily on the reasons for exclusion. If exclusions are based on specific technical requirements or security needs that only a limited number of firms can meet, competition might be reduced, potentially leading to higher prices or less diverse innovative approaches. However, if the exclusions are minor or based on prior performance issues with specific vendors, the remaining competition could still be robust. The key is understanding the rationale behind the exclusions to gauge the true level of competitive pressure and its effect on value for taxpayers.

What are the primary risks associated with a 'COST PLUS FIXED FEE' (CPFF) contract type for R&D projects?

The primary risk of a CPFF contract is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This structure can incentivize cost incurrence, as the contractor's profit is fixed regardless of the final cost. If not managed diligently, this can lead to cost overruns. For R&D, where outcomes and costs can be inherently uncertain, effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent scope creep that inflates costs without commensurate value. The government bears the risk of cost overruns beyond the estimated cost, while the contractor has less incentive to control costs compared to fixed-price contracts.

Can the $29.3 million contract value be benchmarked against similar R&D contracts within the Department of Defense?

Benchmarking this $29.3 million R&D contract against similar DoD contracts requires access to a broader dataset of R&D procurements, including their specific technical scopes, durations, and outcomes. Without knowing the precise R&D focus (e.g., materials science, aerospace engineering, cybersecurity R&D), direct comparisons are difficult. However, $29.3 million over approximately two years is a substantial investment, indicative of a significant research effort. It suggests a project requiring specialized expertise and resources, likely falling within the mid-to-large range for specific R&D initiatives within the DoD's vast portfolio.

What are the potential long-term implications of this R&D investment for the Department of the Navy's technological capabilities?

This R&D contract has the potential to significantly enhance the Department of the Navy's future technological capabilities. Investments in physical, engineering, and life sciences R&D can lead to breakthroughs in areas such as advanced weaponry, improved sensor technology, enhanced platform survivability, novel communication systems, or advancements in personnel support and medical readiness. The specific impact depends on the successful outcomes of the research. If the R&D yields effective solutions, it could provide the Navy with a critical technological edge, improving operational effectiveness and maintaining strategic advantage in a rapidly evolving threat landscape.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017323RMB13

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5904 RICHMOND HWY STE 600, ALEXANDRIA, VA, 22303

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

Financial Breakdown

Contract Ceiling: $45,455,466

Exercised Options: $32,604,960

Current Obligation: $29,267,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline