NASA's $25.8M Dynetics contract for advanced lithography research shows mixed value and limited competition
Contract Overview
Contract Amount: $25,831,444 ($25.8M)
Contractor: Dynetics, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-08-10
End Date: 2022-02-11
Contract Duration: 2,377 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 34
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::OT::IGF UNDER THIS CONTRACT, THE CONTRACTOR WILL PARTICIPATE IN: CONCEPT BRIEFING KICKOFF MEETING, TECHNICAL INTERCHANGE AND STATUS MEETINGS FOR THE EXPERIMENTAL DESIGN REVIEW (DEVELOPING AN EXPERIMENTAL DESIGN METHODOLOGY/PURCHASE TOOLS AND INSTALLATION OF LITHOGRAPHY TOOLS), TECHNICAL INTERCHANGE AND CONCEPT REVIEWS FOR THE TESTBED READINESS REVIEW (FABRICATE OF INITIAL SEPARATION CASCADES/SUMMARIZATION OF DATA AND STATUS REPORTS), TECHNICAL INTERCHANGE AND STATUS MEETINGS FOR THE PRELIMINARY RESULTS REVIEW (INITIAL TESTING OF SEPARATION CASCADES/ DESIGN AND FABRICATION OF THE CASCADE DESIGNS/TESTING OF CASCADE DESIGNS), AND CONCEPT PHASE RESULTS FINAL REPORT AND BRIEFING FOR THE CONTRACT (TESTING, FINAL DESIGNS, FINAL ANALYSIS, FINAL REPORT)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $25.8 million to DYNETICS, INC. for work described as: IGF::OT::IGF UNDER THIS CONTRACT, THE CONTRACTOR WILL PARTICIPATE IN: CONCEPT BRIEFING KICKOFF MEETING, TECHNICAL INTERCHANGE AND STATUS MEETINGS FOR THE EXPERIMENTAL DESIGN REVIEW (DEVELOPING AN EXPERIMENTAL DESIGN METHODOLOGY/PURCHASE TOOLS AND INSTALLATION OF LITHOGRAPHY TOOL… Key points: 1. Contract value appears reasonable given the multi-year R&D scope, but specific performance metrics are not publicly detailed. 2. Limited competition suggests potential for higher costs than a more open bidding process might yield. 3. The contract's duration and phased approach indicate a complex, long-term research endeavor. 4. Performance context is difficult to assess without clear, quantifiable deliverables tied to specific funding tranches. 5. This contract falls within the specialized R&D sector, focusing on advanced physical sciences and engineering. 6. The absence of small business set-asides is noted, with no explicit subcontracting requirements detailed.
Value Assessment
Rating: fair
The contract's total value of $25.8 million over approximately seven years for advanced lithography research appears within a reasonable range for complex R&D projects. However, without detailed performance metrics or benchmarks against similar government-funded research initiatives, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but the ultimate value hinges on the successful development of the described methodologies and tools.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the number of bidders is not specified in the provided data, making it difficult to assess the actual level of competition. A robust competition typically involves multiple bidders vying for the contract, which can drive down prices and improve overall value. The limited information on the number of competitors prevents a thorough analysis of its impact on price discovery.
Taxpayer Impact: While awarded through full and open competition, the actual number of bids received is crucial for determining if taxpayers received the best possible price. If only a few bids were submitted, the competitive pressure might have been less intense, potentially leading to a higher cost than if more entities had competed.
Public Impact
The primary beneficiaries are likely NASA's research initiatives and the scientific community through advancements in lithography technology. The contract supports the development of experimental design methodologies, fabrication of separation cascades, and testing of advanced lithography tools. The geographic impact is primarily within Alabama, where Dynetics, Inc. is located, suggesting potential local economic benefits. Workforce implications include specialized roles for scientists, engineers, and technicians involved in advanced research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of publicly available performance metrics makes it difficult to track progress and ensure accountability.
- The long duration of the contract could introduce risks related to technological obsolescence or shifting research priorities.
- Limited insight into the specific deliverables and success criteria hinders a comprehensive risk assessment.
Positive Signals
- The contract is structured with clear phases (kickoff, design review, readiness review, results review), indicating a methodical approach to research.
- Firm-fixed-price award provides cost certainty for the government, mitigating budget overrun risks.
- The focus on advanced R&D aligns with national strategic interests in technological innovation.
Sector Analysis
This contract operates within the Research and Development (R&D) sector, specifically focusing on physical sciences and engineering, excluding biotechnology. The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' categorizes this work. The market for advanced lithography research is highly specialized, involving a limited number of firms with the requisite expertise and facilities. Comparable spending benchmarks are difficult to establish due to the unique nature of such R&D contracts, but government investment in advanced manufacturing and semiconductor technologies is a significant area of focus.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans or requirements. This suggests that the primary contractor, Dynetics, Inc., likely performed the work with its own resources or through larger, non-small business subcontractors. The absence of small business participation goals means there is no direct mechanism within this contract to foster small business growth or innovation in this specialized R&D area.
Oversight & Accountability
Oversight for this contract would typically be managed by the National Aeronautics and Space Administration (NASA). As a definitive contract with a firm-fixed-price structure, NASA contracting officers and technical monitors would be responsible for ensuring adherence to the contract terms, monitoring progress against defined milestones, and approving payments. Transparency is limited by the public availability of detailed performance reports. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Research and Development Contracts
- Advanced Manufacturing Technology Programs
- Semiconductor Research Initiatives
- Physical Sciences Research Grants
- Engineering Development Contracts
Risk Flags
- Lack of detailed performance metrics
- Limited public information on competition level
- Long contract duration introduces potential for obsolescence
- Difficulty in benchmarking R&D value
Tags
nasa, research-and-development, physical-sciences, engineering, lithography, dynetics-inc, firm-fixed-price, full-and-open-competition, alabama, definitive-contract, long-term-project
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $25.8 million to DYNETICS, INC.. IGF::OT::IGF UNDER THIS CONTRACT, THE CONTRACTOR WILL PARTICIPATE IN: CONCEPT BRIEFING KICKOFF MEETING, TECHNICAL INTERCHANGE AND STATUS MEETINGS FOR THE EXPERIMENTAL DESIGN REVIEW (DEVELOPING AN EXPERIMENTAL DESIGN METHODOLOGY/PURCHASE TOOLS AND INSTALLATION OF LITHOGRAPHY TOOLS), TECHNICAL INTERCHANGE AND CONCEPT REVIEWS FOR THE TESTBED READINESS REVIEW (FABRICATE OF INITIAL SEPARATION CASCADES/SUMMARIZATION OF DATA AND STATUS REPORTS), TECHNICAL INTERCHANGE AND STATUS MEETINGS FOR THE PREL
Who is the contractor on this award?
The obligated recipient is DYNETICS, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $25.8 million.
What is the period of performance?
Start: 2015-08-10. End: 2022-02-11.
What is Dynetics, Inc.'s track record with NASA and other federal agencies for similar R&D contracts?
Dynetics, Inc. has a history of engaging in research and development contracts with various federal agencies, including NASA. While specific details on past performance for comparable lithography R&D contracts are not provided here, their involvement in complex engineering and scientific projects suggests a capacity for undertaking such work. A deeper dive into contract databases like SAM.gov or FPDS would reveal the scope, value, and performance history of their previous awards. Analyzing past performance on similar projects would offer insights into their reliability, technical expertise, and ability to meet government requirements within budget and schedule.
How does the $25.8 million contract value compare to similar government-funded lithography research projects?
Benchmarking the $25.8 million contract value against similar government-funded lithography research projects is challenging without access to a comprehensive database of comparable contracts. Lithography research is a highly specialized field, and project scopes, objectives, and durations can vary significantly. However, given that this contract spans approximately seven years and involves multiple phases of experimental design, fabrication, and testing, the total value appears to be within a plausible range for advanced R&D. Factors such as the novelty of the research, the required technological sophistication, and the specific deliverables would influence the cost. A more precise comparison would require identifying contracts with similar technical objectives, research areas, and timelines.
What are the primary risks associated with this long-term R&D contract, and how are they being mitigated?
The primary risks associated with this long-term R&D contract include technological obsolescence, shifting research priorities within NASA, potential cost overruns (though mitigated by firm-fixed-price), and the inherent uncertainty of research outcomes. Technological obsolescence is a risk in any rapidly evolving field like lithography. Shifting priorities could lead to scope changes or reduced funding. While the firm-fixed-price structure caps the government's financial exposure, the contractor bears the risk of cost overruns. Mitigation strategies likely involve regular technical reviews, clear milestone definitions, and adaptive management by NASA's contracting officers and technical teams to address evolving research landscapes and potential challenges.
How effective has NASA been in achieving its research objectives through contracts like this one?
Assessing the effectiveness of NASA's research objectives through this specific contract is difficult without detailed performance reports and outcome data. The contract outlines a phased approach involving concept briefings, design reviews, and results reporting, suggesting a structured process. However, the ultimate success hinges on the scientific and technological advancements achieved in lithography. NASA's overall track record in R&D is strong, contributing to numerous technological breakthroughs. For this contract, effectiveness would be measured by the successful development of new methodologies, tools, and designs as outlined in the contract's statement of work, and their subsequent utility for NASA's broader mission objectives.
What are the historical spending patterns for NASA's R&D in physical sciences and engineering, and how does this contract fit?
NASA consistently allocates significant portions of its budget to Research and Development (R&D) across various scientific and engineering disciplines. Spending in physical sciences and engineering, particularly in areas like advanced materials, propulsion, and instrumentation, is a core component of its mission. This $25.8 million contract for lithography research falls within this established pattern of investment. While specific historical spending figures for lithography R&D alone are not provided, NASA's overall R&D expenditures, often in the billions annually, demonstrate a commitment to pushing technological frontiers. This contract represents a focused investment within that broader R&D strategy.
What is the significance of the NAICS code 541712 for this contract?
The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' precisely categorizes the nature of the work performed under this contract. It signifies that the contract is for scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or theories related to physical and engineering sciences. This classification helps in understanding the contract's domain, identifying relevant industry standards, and comparing it with other government contracts within the same R&D sector. It confirms the contract's focus is on fundamental and applied research rather than product development or manufacturing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: NNH15ZCQ001K
Offers Received: 34
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,831,444
Exercised Options: $25,831,444
Current Obligation: $25,831,444
Actual Outlays: $5,121,489
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $71,769
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-08-10
Current End Date: 2022-02-11
Potential End Date: 2022-02-11 00:00:00
Last Modified: 2023-04-23
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