DoD's $134.6M contract for applied research services awarded to Nevada System of Higher Education

Contract Overview

Contract Amount: $11,846,618 ($11.8M)

Contractor: Nevada System of Higher Education

Awarding Agency: Department of Defense

Start Date: 2004-08-12

End Date: 2010-06-30

Contract Duration: 2,148 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: 200411!000397!1700!A8303 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0072 !A!N! !N! ! !20040812!20051231!134599174!134599174!041654195!N!BOARD OF REGENTS OF UNIVERSITY!2215 RAGGIO PARKWAY !RENO !NV!89512!60600!031!32!RENO !WASHOE !NEVADA !+000002657758!N!N!000009657758!AD22!RDTE/SERVICES-APPLIED RESEARCH !S1 !SERVICES !ZOP !* !611310!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!S!1!001!E! !Z!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89512

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to NEVADA SYSTEM OF HIGHER EDUCATION for work described as: 200411!000397!1700!A8303 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0072 !A!N! !N! ! !20040812!20051231!134599174!134599174!041654195!N!BOARD OF REGENTS OF UNIVERSITY!2215 RAGGIO PARKWAY !RENO !NV!89512!60600!031!32!RENO !WASH… Key points: 1. Contract awarded for applied research services, indicating a focus on scientific and technical development. 2. The contract duration of over 2100 days suggests a long-term research initiative. 3. Awarded by the Department of the Army, highlighting a specific defense-related research need. 4. The 'COST NO FEE' contract type implies the government bears the cost, with the contractor not seeking profit. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The North American Industry Classification System (NAICS) code 611310 points to educational services, specifically colleges and universities.

Value Assessment

Rating: fair

The contract value of $134.6 million over approximately 6 years represents a significant investment in research and development. Without specific benchmarks for similar applied research contracts within the DoD or for academic institutions, a precise value-for-money assessment is challenging. The 'COST NO FEE' pricing structure is unusual for a contract of this magnitude and duration, suggesting a unique arrangement where the contractor is reimbursed for costs but does not earn a profit margin. This could indicate a strong institutional relationship or a specific program requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair market prices and encourage innovation. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures that the government receives the best possible value for its investment.

Public Impact

The primary beneficiary is the Department of the Army, which will receive applied research services to support its mission. The contract supports the advancement of scientific knowledge and technological capabilities relevant to defense. The geographic impact is centered in Nevada, where the contractor, Nevada System of Higher Education, is located. This contract likely involves academic researchers and potentially students, contributing to the development of a skilled workforce in research fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' pricing structure warrants further investigation to understand the specific cost reimbursement mechanisms and ensure appropriate financial controls.
The long duration of the contract could present risks related to evolving research needs and technological obsolescence.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely resulted in favorable terms.
The contractor, Nevada System of Higher Education, is an established educational institution with a potential for strong research capabilities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on applied research services. The R&D sector is critical for technological advancement and national security. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar research services awarded to academic institutions or research organizations. The market size for applied research services is substantial, driven by government and private sector investments in innovation.

Small Business Impact

There is no indication of a small business set-aside for this contract. Given the nature of applied research and the size of the award, it is likely that larger institutions or consortia were the primary bidders. Subcontracting opportunities for small businesses may exist, but this would depend on the specific research tasks and the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures would be defined in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency would be enhanced through contract databases and public reporting, although specific research details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants
Applied Scientific Research Contracts
Defense Advanced Research Projects Agency (DARPA) Initiatives

Risk Flags

Long contract duration may lead to scope creep or obsolescence.
Unusual 'COST NO FEE' pricing requires careful cost oversight.
Potential for evolving research needs over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to NEVADA SYSTEM OF HIGHER EDUCATION. 200411!000397!1700!A8303 !NAVAL AIR WARFARE CENTER TRAININ!N6133904C0072 !A!N! !N! ! !20040812!20051231!134599174!134599174!041654195!N!BOARD OF REGENTS OF UNIVERSITY!2215 RAGGIO PARKWAY !RENO !NV!89512!60600!031!32!RENO !WASHOE !NEVADA !+000002657758!N!N!000009657758!AD22!RDTE/SERVICES-APPLIED RESEARCH !S1 !SERVICES !ZOP !* !611310!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is NEVADA SYSTEM OF HIGHER EDUCATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2004-08-12. End: 2010-06-30.

What specific research areas or projects are encompassed by this 'applied research' contract?

The provided data indicates the contract is for 'RDTE/SERVICES-APPLIED RESEARCH' and the NAICS code is '611310' (Colleges, Universities, and Professional Schools). While the specific research areas are not detailed in the summary data, applied research generally focuses on solving practical problems or developing new technologies with specific applications. Given the awardee is the Nevada System of Higher Education and the agency is the Department of the Army, the research likely pertains to defense-related technologies, materials science, engineering, or other fields that can enhance military capabilities. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in this dataset.

How does the 'COST NO FEE' pricing structure impact the contractor's incentives and the government's risk?

The 'COST NO FEE' (CNF) contract type is highly unusual, especially for a contract of this magnitude and duration. Typically, cost-reimbursement contracts allow the contractor to recover allowable costs plus a fee (profit). In a CNF structure, the contractor is reimbursed for their direct and indirect costs but does not receive any additional profit. This significantly reduces the contractor's incentive to maximize profit but may align their incentives more closely with efficient cost management and successful project completion, as their primary goal is cost recovery. For the government, this structure minimizes profit expenditure but places a greater emphasis on robust cost monitoring and auditing to ensure that only legitimate and reasonable costs are reimbursed. It might be used when the government has a strong interest in a specific research outcome and wants to ensure the contractor is fully focused on that outcome without profit motive, or when the contractor is a non-profit entity with a mission-aligned interest.

What is the historical spending pattern for applied research services by the Department of the Army, and how does this contract compare?

Historical spending patterns for applied research by the Department of the Army are substantial, reflecting a continuous need for technological advancement. While this specific contract of $134.6 million is a significant award, the Army procures numerous R&D contracts annually across various research areas and institutions. To compare, one would need to analyze aggregate spending data for the Army's R&D portfolio, looking at the average award size, the distribution of contracts among different types of performers (e.g., universities, FFRDCs, private industry), and the specific research domains. This single contract represents one component of a much larger R&D investment strategy aimed at maintaining military superiority and addressing emerging threats.

What are the potential risks associated with a long-duration contract (over 2100 days) for applied research?

Long-duration contracts for applied research carry several potential risks. Firstly, the research landscape can evolve rapidly; technologies or scientific understanding may advance significantly during the contract period, potentially rendering the original research objectives obsolete or less relevant. Secondly, maintaining consistent focus and motivation from the research team over an extended period can be challenging. Thirdly, cost estimation and management become more complex over longer timeframes, increasing the risk of budget overruns if not meticulously managed. Finally, changes in government priorities or funding availability could impact the continuation or scope of the research, even if the contract is technically still active. Robust contract management, regular reviews, and flexibility in adapting research objectives are crucial to mitigate these risks.

What is the track record of the Nevada System of Higher Education in performing large-scale government research contracts?

The Nevada System of Higher Education (NSHE) is comprised of multiple institutions, including research universities. While specific details on NSHE's track record with large-scale government research contracts are not provided in the summary data, universities within the system regularly engage in research funded by federal agencies. Their ability to secure and execute a $134.6 million contract suggests a demonstrated capacity for managing significant research projects, including administrative oversight, financial management, and the assembly of qualified research personnel. A deeper dive into NSHE's contract history, particularly with the Department of Defense or similar agencies, would be necessary to fully assess their performance metrics, past successes, and any challenges encountered on previous large awards.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: State of Nevada (UEI: 067808063)

Address: 2215 RAGGIO PARKWAY, RENO, NV, 02

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline