DoD's $52.7M R&D contract with Mississippi State University spans a decade, focusing on advanced research

Contract Overview

Contract Amount: $52,678,179 ($52.7M)

Contractor: Mississippi State University

Awarding Agency: Department of Defense

Start Date: 2008-05-15

End Date: 2018-11-30

Contract Duration: 3,851 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: SIMBRS

Place of Performance

Location: MISSISSIPPI STATE, OKTIBBEHA County, MISSISSIPPI, 39762

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $52.7 million to MISSISSIPPI STATE UNIVERSITY for work described as: SIMBRS Key points: 1. Contract awarded for advanced research and development, indicating a long-term investment in innovation. 2. The extensive duration suggests a need for sustained effort and potentially complex, evolving research objectives. 3. Sole-source award raises questions about competition and potential for cost efficiencies. 4. Research area aligns with critical national security or technological advancement priorities. 5. Performance spans over a decade, offering a substantial track record for evaluation. 6. Focus on physical, engineering, and life sciences research is a significant area of federal investment.

Value Assessment

Rating: fair

The contract's value of $52.7 million over 10 years represents a substantial investment in R&D. Without specific benchmarks for comparable research projects or detailed cost breakdowns, assessing value for money is challenging. The 'COST NO FEE' contract type suggests the government reimburses allowable costs, which can sometimes lead to less stringent cost control compared to fixed-price contracts. However, the absence of a fee might indicate a focus on research advancement over profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when a specific entity possesses unique capabilities, intellectual property, or is the only responsible source. The lack of competition means potential savings from a competitive bidding process were not realized, and it limits the government's ability to leverage market forces for better pricing or innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified research institutions to secure federal funding.

Public Impact

Benefits Mississippi State University's research infrastructure and personnel, fostering scientific advancement. Delivers research outcomes in physical, engineering, and life sciences, potentially contributing to technological breakthroughs. Geographic impact is concentrated in Mississippi, supporting a key research institution in the state. Workforce implications include employment for researchers, technicians, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for cost savings.
Long contract duration (10 years) may obscure performance issues or scope creep over time.
Cost-reimbursement contract type can incentivize spending without strict cost controls.

Positive Signals

Long-term commitment suggests critical and sustained need for the research being conducted.
Award to a university indicates investment in academic research and development capabilities.
Focus on advanced R&D aligns with national strategic priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for federal investment, driving innovation and technological advancement. The market for such specialized research is often characterized by a limited number of highly qualified institutions and firms. Federal spending in this category supports national competitiveness and addresses complex scientific challenges.

Small Business Impact

As this contract was awarded directly to Mississippi State University on a sole-source basis, there is no indication of small business set-asides or subcontracting opportunities being a primary consideration in the award. Universities typically have internal processes for engaging with small businesses for specific needs, but this contract itself does not appear to be structured to directly benefit the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'COST NO FEE' structure necessitates close monitoring of expenditures to ensure costs are allowable, reasonable, and allocable to the contract. Transparency may be limited due to the sole-source nature and the proprietary aspects often associated with R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

University research grants
Department of Defense research and development programs
Advanced materials research
Engineering sciences research
Life sciences research funding

Risk Flags

Sole-source award
Long contract duration
Cost-reimbursement contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.7 million to MISSISSIPPI STATE UNIVERSITY. SIMBRS

Who is the contractor on this award?

The obligated recipient is MISSISSIPPI STATE UNIVERSITY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52.7 million.

What is the period of performance?

Start: 2008-05-15. End: 2018-11-30.

What is the specific research area and its strategic importance to the Department of Defense?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. While the precise research focus is not detailed in the provided data, R&D in these broad categories is crucial for the Department of Defense (DoD). It supports the development of next-generation military technologies, enhances warfighter capabilities, improves operational effectiveness, and maintains technological superiority over adversaries. This could encompass areas like advanced materials, propulsion systems, sensor technology, cyber capabilities, or biomedical advancements relevant to military personnel. The decade-long duration suggests a foundational or long-term strategic objective.

How does the 'COST NO FEE' contract type compare to other R&D contract structures used by the DoD?

The 'COST NO FEE' (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically used when the contractor is a non-profit organization, such as a university or a federally funded research and development center (FFRDC), and the primary objective is research or development rather than profit generation. Compared to fixed-price contracts, CNF offers less incentive for the contractor to control costs, as the government bears the financial risk. However, it provides flexibility for evolving research scopes. Other R&D contracts might be 'COST PLUS FIXED FEE' (CPFF), which includes a negotiated fee, or 'COST PLUS INCENTIVE FEE' (CPIF), which allows for fee adjustments based on performance targets. CNF is often chosen when the government wants to ensure research proceeds without profit motive influencing decisions, but it requires robust government oversight of expenditures.

What are the potential risks associated with a sole-source award for a decade-long R&D contract?

A sole-source award for a decade-long R&D contract carries several risks. Firstly, the lack of competition means the government may not be getting the best possible price or the most innovative solutions available in the market. Without competitive pressure, the contractor might have less incentive to optimize costs or accelerate development. Secondly, the long duration increases the risk of scope creep, where the project's objectives expand beyond the original intent, potentially leading to cost overruns or delays. Thirdly, if the contractor's capabilities or priorities shift over the ten years, the government might be locked into a contract with a less-than-ideal partner. Finally, there's a risk of complacency, where the absence of competitive threats reduces the urgency for the contractor to perform at peak efficiency. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the historical spending pattern for this type of R&D at Mississippi State University by the DoD?

The provided data indicates this specific contract (ID: SIMBRS) is a definitive contract awarded on May 15, 2008, and ending on November 30, 2018, with a total value of $52,678,178.73. This represents a significant, long-term investment by the Department of the Army in R&D at Mississippi State University. To understand the broader historical pattern, one would need to analyze all contracts awarded to Mississippi State University by the DoD, particularly within the 541712 NAICS code, over a longer period. This would reveal trends in funding levels, research focus areas, and the frequency of sole-source versus competed awards, providing context for the scale and nature of this particular contract within their overall relationship.

How does the $52.7 million value compare to typical federal R&D investments in university research?

A $52.7 million contract awarded over approximately 10 years to a single university for R&D is substantial, placing it among significant federal investments. Federal agencies, including the DoD, NIH, NSF, and DOE, routinely award large contracts and grants to universities for research. While many grants might be in the millions, contracts of this magnitude, especially sole-source ones, often support large-scale, multi-disciplinary, or strategically critical research initiatives. For comparison, major research universities often receive hundreds of millions annually in federal research funding across various programs. This specific contract represents a considerable portion of funding for a particular research thrust at Mississippi State University, likely indicating its alignment with high-priority DoD objectives.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV08R0166

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: BARR AVE MCARTHUR HALL RD, MISSISSIPPI STATE, MS, 39762

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,678,179

Exercised Options: $52,678,179

Current Obligation: $52,678,179

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline