DoD's $13.7M R&D Contract Awarded to Envisioneering Inc. for Physical, Engineering, and Life Sciences Research

Contract Overview

Contract Amount: $13,756,562 ($13.8M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-05-20

Contract Duration: 414 days

Daily Burn Rate: $33.2K/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: SEE ATTACHMENT 1 - STATEMENT OF WORK

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 $13.8 million to ENVISIONEERING INC for work described as: SEE ATTACHMENT 1 - STATEMENT OF WORK Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contract duration of 414 days indicates a focused, medium-term research effort. 5. The award to Envisioneering Inc. represents a specific investment in their R&D capabilities. 6. The contract is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract requires detailed cost breakdowns and comparison to similar R&D efforts. CPFF contracts can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without specific performance metrics or deliverables outlined in the provided data, assessing the true value-for-money is challenging. However, the fixed fee component provides some predictability in contractor profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates a competitive process was utilized, but specific sources may have been excluded based on predefined criteria. This suggests that while competition was sought, it wasn't entirely unrestricted. The number of bidders is not specified, which limits a full assessment of the competitive landscape and its impact on price discovery.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

This contract supports advancements in physical, engineering, and life sciences research, potentially leading to new defense technologies. The primary beneficiary is the Department of Defense, seeking to enhance its research and development capabilities. The research is likely to be conducted in Washington D.C., based on the 'ST' and 'SN' fields. The contract may indirectly benefit the scientific and engineering workforce involved in defense-related R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain reasonable and the fixed fee is justified.
The 'exclusion of sources' in the competition type warrants further investigation to understand the rationale and potential impact on competition.
Lack of specific performance metrics in the summary data makes it difficult to assess the potential for cost overruns or underperformance.

Positive Signals

Awarding via full and open competition, even with exclusions, indicates an effort to leverage market capabilities.
The contract focuses on critical R&D areas essential for national security and technological advancement.
The fixed fee component in the CPFF structure provides a degree of cost certainty for the government regarding contractor profit.

Sector Analysis

The contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This is a broad category encompassing fundamental research and applied research. The Department of Defense is a significant investor in this sector, driving innovation in areas critical for national security. Comparable spending benchmarks would involve analyzing other DoD contracts within NAICS 541715, particularly those awarded to similar-sized firms for R&D services.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) is not a primary focus for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses may exist depending on the nature of the research and the prime contractor's strategy, but this is not explicitly detailed in the summary data.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of incurred costs, progress reports, and adherence to the Statement of Work (SOW). The Department of the Navy, as the awarding agency, will be responsible for contract administration. Transparency will depend on the agency's policies regarding the release of R&D contract details and performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for limited competition due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to ENVISIONEERING INC. SEE ATTACHMENT 1 - STATEMENT OF WORK

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 $13.8 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-05-20.

What is Envisioneering Inc.'s track record with the Department of Defense, particularly in R&D contracts?

A comprehensive review of Envisioneering Inc.'s contract history with the Department of Defense would be necessary to assess their track record. This would involve examining past performance evaluations, any contract modifications, and the successful completion of previous R&D projects. Data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Without access to this specific data, it's difficult to definitively state their performance history. However, being awarded a contract of this nature suggests they have met certain qualification criteria.

How does the $13.7 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

The $13.7 million value for this contract is moderate within the broad R&D sector. To benchmark effectively, one would need to compare it against other contracts awarded by the Department of Defense or other federal agencies for similar research areas (NAICS 541715) and contract types (CPFF). Factors like contract duration, scope of work, and the specific scientific disciplines involved heavily influence contract values. Larger, multi-year foundational research programs can easily exceed hundreds of millions, while smaller, more focused projects might be in the single-digit millions. This contract appears to be a significant, but not exceptionally large, investment in a specific R&D effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks with CPFF contracts for R&D include potential cost overruns if the scope is not well-defined or if unforeseen technical challenges arise, leading to increased costs beyond initial estimates. While the fixed fee provides profit certainty, the government bears the risk of cost escalation. There's also a risk that the contractor might not be sufficiently incentivized to control costs aggressively, as their allowable costs are reimbursed. Effective oversight, clear SOW, and robust cost monitoring are critical to mitigate these risks. For R&D, where outcomes can be uncertain, CPFF is often used but requires careful management.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact price discovery and taxpayer value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, certain potential offerors were deliberately excluded. The impact on price discovery and taxpayer value depends heavily on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or security concerns that genuinely narrowed the field to qualified sources, it could still lead to competitive pricing among the remaining bidders. However, if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices and reduced value for taxpayers compared to a truly unrestricted full and open competition.

What are the potential long-term implications of this R&D investment for the Department of Defense?

This R&D investment could have significant long-term implications for the Department of Defense, depending on the success of the research. Positive outcomes could lead to the development of advanced technologies that enhance military capabilities, improve operational effectiveness, or provide a strategic advantage. It could also foster innovation within specific scientific fields, potentially leading to spin-off technologies with dual-use applications. Conversely, if the research does not yield expected results, it represents a sunk cost with limited return. The ultimate impact hinges on the project's deliverables and their successful integration into defense systems.

What is the typical duration for R&D contracts of this magnitude in the defense sector?

The typical duration for R&D contracts of this magnitude ($13.7 million) in the defense sector can vary widely but often falls within a range of 1 to 5 years. Contracts for basic research might be longer-term, while applied research or development of specific technologies could be shorter. A duration of 414 days (approximately 1.1 years) for this contract suggests a focused effort on a specific research objective or a phase within a larger R&D program. This duration is reasonable for achieving defined milestones in applied research or early-stage development.

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: 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 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: $92,260,825

Exercised Options: $18,819,168

Current Obligation: $13,756,562

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017325D2421

IDV Type: IDC

Timeline