Navy awards $13.1M R&D contract to VSOLVIT LLC for simulation and modeling capabilities
Contract Overview
Contract Amount: $13,114,675 ($13.1M)
Contractor: Vsolvit LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-25
End Date: 2026-10-24
Contract Duration: 729 days
Daily Burn Rate: $18.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NAVY SUSTAINMENT DECISION SUPPORT SYSTEM WITH THE INCORPORATION OF THE SIMULATION AND MODELING FOR STORAGE AREA NETWORKS CAPABILITY DERIVES FROM EFFORTS PERFORMED UNDER THE STTR PHASES I AND II TOPIC NUMBER N04-T017.
Place of Performance
Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860
Plain-Language Summary
Department of Defense obligated $13.1 million to VSOLVIT LLC for work described as: NAVY SUSTAINMENT DECISION SUPPORT SYSTEM WITH THE INCORPORATION OF THE SIMULATION AND MODELING FOR STORAGE AREA NETWORKS CAPABILITY DERIVES FROM EFFORTS PERFORMED UNDER THE STTR PHASES I AND II TOPIC NUMBER N04-T017. Key points: 1. Contract focuses on advanced simulation and modeling for storage area networks, building on prior STTR efforts. 2. The award is a definitive contract with a cost-plus-fixed-fee pricing structure. 3. This contract represents a significant investment in enhancing Navy's sustainment decision support systems. 4. The duration of the contract is approximately two years, ending in October 2026. 5. The specific NAICS code indicates a focus on Research and Development in Physical, Engineering, and Life Sciences. 6. The contractor, VSOLVIT LLC, has a history with this specific technology through STTR phases.
Value Assessment
Rating: fair
The contract value of $13.1 million for a two-year R&D effort appears within a reasonable range for specialized simulation and modeling capabilities. However, without specific benchmarks for similar 'simulation and modeling for storage area networks' capabilities, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring to ensure costs do not escalate beyond initial projections. The contractor's prior work on this topic under STTR phases suggests a foundational understanding that could lead to efficient development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach is often taken when a specific contractor possesses unique knowledge, technology, or intellectual property developed through prior government-funded research, such as the STTR phases mentioned. While this can ensure continuity and leverage existing expertise, it limits the potential for price competition and may not yield the best possible price for the government.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, potentially leading to higher costs than if multiple vendors had vied for the contract.
Public Impact
The primary beneficiaries are the Department of the Navy, which will receive enhanced decision support systems. The contract will deliver advanced simulation and modeling capabilities for storage area networks. This technology is expected to improve the efficiency and effectiveness of Navy sustainment operations. The contract is expected to support specialized R&D roles within VSOLVIT LLC, likely in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Cost-plus-fixed-fee contracts require diligent oversight to manage expenditures.
- Reliance on a single source could pose a risk if the contractor faces performance issues.
Positive Signals
- Leverages prior successful R&D from STTR phases, indicating a strong foundation.
- Contractor has specific, relevant expertise in the technology area.
- Focus on enhancing critical sustainment decision support systems for the Navy.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced engineering and IT-related R&D for defense applications. The market for simulation and modeling software, particularly for complex systems like storage area networks in a defense context, is specialized. Comparable spending benchmarks are difficult to establish without more granular data on similar R&D efforts, but investments in advanced simulation are common across defense agencies to improve operational readiness and reduce lifecycle costs.
Small Business Impact
This contract was not competed and does not indicate any small business set-aside provisions. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on a specialized R&D capability likely requiring advanced technical expertise.
Oversight & Accountability
Oversight will be managed by the Department of the Navy. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing will be crucial to ensure costs are reasonable and allocable. Transparency will depend on the Navy's reporting practices for R&D contracts and any specific clauses related to data rights and deliverables. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Navy Sustainment Programs
- Defense R&D Initiatives
- Simulation and Modeling Technologies
- STTR Program Awards
Risk Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee requires diligent cost oversight.
- Reliance on prior STTR work implies a specific technology path.
Tags
research-and-development, department-of-defense, department-of-the-navy, definitive-contract, cost-plus-fixed-fee, sole-source, california, simulation-and-modeling, storage-area-networks, sustainment-decision-support, sttr-program
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to VSOLVIT LLC. NAVY SUSTAINMENT DECISION SUPPORT SYSTEM WITH THE INCORPORATION OF THE SIMULATION AND MODELING FOR STORAGE AREA NETWORKS CAPABILITY DERIVES FROM EFFORTS PERFORMED UNDER THE STTR PHASES I AND II TOPIC NUMBER N04-T017.
Who is the contractor on this award?
The obligated recipient is VSOLVIT LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $13.1 million.
What is the period of performance?
Start: 2024-10-25. End: 2026-10-24.
What is the track record of VSOLVIT LLC in delivering similar simulation and modeling solutions for defense applications?
VSOLVIT LLC's involvement in STTR Phases I and II on Topic N04-T017 directly relates to the 'simulation and modeling for storage area networks capability' mentioned in this award. This prior work suggests a proven ability to develop foundational technologies in this specific niche. While the data provided does not detail the success or outcomes of those prior STTR phases, their selection for this follow-on definitive contract implies a satisfactory performance and a recognized expertise. Further investigation into the specific deliverables and outcomes of the STTR projects would provide a more comprehensive view of their track record in this domain.
How does the $13.1 million cost compare to similar R&D contracts for simulation and modeling in the defense sector?
Benchmarking this $13.1 million contract is challenging without access to a comprehensive database of highly specialized R&D efforts in simulation and modeling for storage area networks. However, for a two-year definitive contract involving advanced engineering and scientific research, this figure is not inherently excessive, especially considering the niche nature of the technology and the contractor's prior development work. Defense R&D contracts can range widely, from a few million for early-stage research to hundreds of millions for large-scale system development. The cost-plus-fixed-fee structure also means the final expenditure could vary. A more precise comparison would require identifying contracts with similar technical scope, duration, and contractor experience.
What are the primary risks associated with a sole-source award for this type of R&D contract?
The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium compared to a competitively bid contract. This contract's 'not competed' status means taxpayers may not receive the best possible value. Another risk is over-reliance on a single contractor; if VSOLVIT LLC encounters unforeseen technical challenges, performance issues, or financial instability, the project's progress could be significantly jeopardized without readily available alternatives. Furthermore, without competitive pressure, there might be less incentive for the contractor to innovate aggressively or optimize efficiency beyond the contract requirements.
How effective is the STTR program in fostering innovation that leads to larger defense contracts like this one?
The Small Business Technology Transfer (STTR) program is specifically designed to bridge the gap between innovative research conducted by small businesses and the needs of government agencies, fostering commercialization and technology transfer. This contract, which derives from STTR Phases I and II efforts by VSOLVIT LLC, serves as a prime example of the program's success. It demonstrates the STTR program's effectiveness in nurturing early-stage technologies and identifying promising small businesses whose innovations can mature into larger, more substantial defense contracts. This pathway allows the government to leverage cutting-edge research developed with federal seed funding.
What are the potential long-term implications for Navy sustainment decision support if this R&D is successful?
Successful development of the 'simulation and modeling for storage area networks capability' could significantly enhance the Navy's sustainment decision support systems. This could translate into more accurate predictions of equipment failures, optimized inventory management for spare parts, improved maintenance scheduling, and better resource allocation for repair and overhaul operations. Ultimately, this could lead to increased operational readiness, reduced downtime for critical assets, and substantial cost savings in the long run by moving towards more predictive and proactive maintenance strategies rather than reactive ones.
What is the historical spending pattern for R&D in simulation and modeling within the Department of the Navy?
The Department of the Navy consistently invests significant resources in Research and Development, including areas related to simulation and modeling, which are critical for training, system design, testing, and operational planning. While specific historical spending figures for 'simulation and modeling for storage area networks' are not readily available, broader R&D spending in IT, engineering, and advanced analytics within the Navy runs into billions of dollars annually. Contracts like this one, building on prior STTR work, represent a focused investment within this larger R&D portfolio, aimed at addressing specific technological gaps and enhancing operational capabilities.
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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6426724R0352
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2651 N. GREEN VALLEY PKWY, #101, HENDERSON, NV, 89014
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $90,723,691
Exercised Options: $43,350,644
Current Obligation: $13,114,675
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-25
Current End Date: 2026-10-24
Potential End Date: 2028-10-24 00:00:00
Last Modified: 2026-01-15
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