DoD Awards $2.98M Physical Sciences Inc. Contract for R&D in Physical Sciences
Contract Overview
Contract Amount: $2,977,480 ($3.0M)
Contractor: Physical Sciences Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-29
End Date: 2025-01-31
Contract Duration: 1,708 days
Daily Burn Rate: $1.7K/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
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $3.0 million to PHYSICAL SCIENCES INC. for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Contract awarded to Physical Sciences Inc. for research and development. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract type is Cost Plus Fixed Fee. 4. The contract duration is 1708 days. 5. The agency is the Department of Defense.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific details on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'Full and Open Competition After Exclusion of Sources', suggesting some initial limitations but ultimately open competition. This method can impact price discovery by potentially excluding some capable vendors from the outset.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, with the potential for significant technological advancements or potential for cost overruns.
Public Impact
Supports advancements in physical sciences, potentially leading to new technologies. Funding allocated for research and development by the Department of Defense. Contract duration extends over several years, indicating a long-term project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited competition method may not yield the best price.
- Lack of specific performance metrics makes oversight challenging.
Positive Signals
- Supports critical R&D for national security.
- Long contract duration allows for in-depth research.
- Awarded to a company with expertise in physical sciences.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for innovation and maintaining technological superiority, but often involves higher risk and less predictable outcomes compared to procurement of established goods or services.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist or if the prime contractor has a history of engaging small businesses.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency. Oversight will focus on ensuring the contractor meets research objectives and manages costs effectively under the Cost Plus Fixed Fee structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Limited competition method.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.0 million to PHYSICAL SCIENCES INC.. RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is PHYSICAL SCIENCES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $3.0 million.
What is the period of performance?
Start: 2020-05-29. End: 2025-01-31.
What specific research outcomes are expected from this contract, and how will their value be measured?
The expected outcomes are not detailed in the provided data. Measuring the value of R&D is inherently challenging and often assessed through milestones, technological advancements, or eventual application of the research. The Department of Defense likely has internal metrics for evaluating the success of this research, focusing on its contribution to national security objectives and scientific progress.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D, and how are they mitigated?
The primary risk is that the contractor may not be sufficiently incentivized to control costs, potentially leading to expenditures exceeding initial estimates. Mitigation strategies typically involve robust oversight, clear definition of research objectives and milestones, and negotiation of a reasonable fixed fee that reflects the risk and effort involved. The agency's monitoring of progress and expenditures is crucial.
How does the 'Full and Open Competition After Exclusion of Sources' method impact the overall effectiveness and cost-efficiency of this R&D award?
This method suggests that while the competition was ultimately open, certain sources were initially excluded, possibly due to specific technical requirements or prior relationships. This could limit the pool of potential bidders, potentially impacting cost-efficiency if fewer vendors compete. However, if the excluded sources were genuinely not capable, the effectiveness might be maintained by focusing on highly qualified entities.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 20 NEW ENGLAND BUSINESS CTR DR, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,979,330
Exercised Options: $2,979,330
Current Obligation: $2,977,480
Actual Outlays: $278,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-05-29
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2026-01-12
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