DoD's $28.4M Naval Engineering Education Contract with UMich: A Look at Graduate Output
Contract Overview
Contract Amount: $28,415,616 ($28.4M)
Contractor: Regents of the University of Michigan
Awarding Agency: Department of Defense
Start Date: 2010-05-06
End Date: 2016-09-30
Contract Duration: 2,339 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: NAVAL ENGINEERING EDUCATION CENTER; INCREASE NUMBER OF GRADUATES IN THE FIELD OF NAVAL ENGINEERING
Place of Performance
Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48109
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $28.4 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: NAVAL ENGINEERING EDUCATION CENTER; INCREASE NUMBER OF GRADUATES IN THE FIELD OF NAVAL ENGINEERING Key points: 1. The contract aimed to increase graduates in naval engineering, a critical field for the Navy. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract's duration was significant, spanning over 6 years. 4. Focus on education highlights investment in future naval capabilities.
Value Assessment
Rating: fair
The contract value of $28.4M over 6 years for educational services is difficult to benchmark without specific per-graduate cost data. The 'Cost No Fee' pricing structure suggests the government bore minimal financial risk related to contractor profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds were invested in developing specialized engineering talent, which is a long-term investment in national security and technological advancement.
Public Impact
Investment in specialized STEM education to meet defense needs. Potential long-term impact on the Navy's engineering workforce and innovation. Supports higher education institutions in specialized research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific graduate output metrics in provided data.
- No clear indication of return on investment beyond graduate numbers.
Positive Signals
- Investment in critical STEM fields.
- Full and open competition utilized.
- Long-term focus on workforce development.
Sector Analysis
This contract falls within the higher education sector, specifically focusing on specialized engineering programs. Spending benchmarks for such educational contracts are highly variable, depending on the field, institution, and program scope.
Small Business Impact
The contract was awarded to the Regents of the University of Michigan, a large educational institution. There is no indication that small businesses were involved as prime contractors or significant subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers ensuring educational objectives and graduate targets were met.
Related Government Programs
- Colleges, Universities, and Professional Schools
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Ambiguity in graduate output metrics.
- Difficulty in cost-effectiveness benchmarking.
- Potential for 'degree inflation' without clear outcome measures.
- Long-term impact on naval readiness requires follow-up analysis.
Tags
colleges-universities-and-professional-s, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. NAVAL ENGINEERING EDUCATION CENTER; INCREASE NUMBER OF GRADUATES IN THE FIELD OF NAVAL ENGINEERING
Who is the contractor on this award?
The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2010-05-06. End: 2016-09-30.
What was the actual number of naval engineering graduates produced as a result of this contract?
The provided data does not specify the exact number of graduates. The contract's objective was to 'increase' the number, but the quantitative outcome in terms of graduates is not detailed. Further analysis would require access to program reports from the University of Michigan and the Department of the Navy.
How does the cost per graduate compare to similar naval engineering programs or initiatives?
A direct cost-per-graduate comparison is not feasible with the current data. The 'Cost No Fee' structure complicates direct cost analysis. Benchmarking would require data on other DoD-funded educational programs or civilian university costs for naval engineering degrees.
What is the long-term effectiveness of this investment in terms of graduates entering naval service or related critical industries?
The long-term effectiveness is not yet fully measurable from the contract data alone. While the intent was to bolster the naval engineering workforce, tracking graduate career paths and their contribution to naval service or industry requires post-graduation data collection and analysis.
Industry Classification
NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6554010R0013
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,878,380
Exercised Options: $28,799,285
Current Obligation: $28,415,616
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-05-06
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2017-08-09
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