DoD awards $28.3M R&D contract for trackless moving targets to Pratt & Miller Engineering

Contract Overview

Contract Amount: $28,348,171 ($28.3M)

Contractor: Pratt & Miller Engineering & Fabrication, LLC

Awarding Agency: Department of Defense

Start Date: 2020-03-31

End Date: 2025-10-31

Contract Duration: 2,040 days

Daily Burn Rate: $13.9K/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: PHASE III SMALL BUSINESS INNOVATIVE RESEARCH EFFORT FOR TRACKLESS MOVING TARGETS

Place of Performance

Location: NEW HUDSON, OAKLAND County, MICHIGAN, 48165

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to PRATT & MILLER ENGINEERING & FABRICATION, LLC for work described as: PHASE III SMALL BUSINESS INNOVATIVE RESEARCH EFFORT FOR TRACKLESS MOVING TARGETS Key points: 1. Contract focuses on advanced research and development for specialized military training. 2. The contract value represents a significant investment in enhancing target simulation capabilities. 3. Pratt & Miller Engineering, a known entity in defense contracting, is the sole awardee. 4. The contract duration extends over five years, indicating a long-term development cycle. 5. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 6. The contract type, Cost Plus Fixed Fee, suggests potential for cost overruns but allows for flexibility in research.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs than fixed-price contracts if not managed carefully. However, for complex research and development where the final scope may evolve, CPFF can be appropriate. The total award amount of $28.3 million over approximately 67 months suggests a substantial investment per month, but without detailed cost breakdowns or performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the initial solicitation may have been open, specific sources were later excluded, leading to a limited competition scenario. The exact reasons for exclusion are not detailed in the provided data. A limited competition typically results in fewer bidders than full and open competition, potentially impacting price negotiation and innovation.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers compared to a scenario with robust, broad-based competition. It also raises questions about whether the most cost-effective solutions were explored.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the advanced training systems developed under this contract. The contract aims to deliver enhanced capabilities for training against dynamic and realistic moving targets. The geographic impact is primarily within the United States, specifically where Pratt & Miller Engineering operates and where Army training facilities are located. This contract supports specialized engineering and fabrication jobs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation raises concerns about the breadth of initial competition and potential limitations on market access for other capable firms.
The Cost Plus Fixed Fee (CPFF) contract type, while suitable for R&D, carries inherent risks of cost escalation if not rigorously monitored by the agency.
The lack of specific performance metrics or detailed cost breakdowns in the summary data makes it difficult to fully assess the efficiency and effectiveness of the spending.

Positive Signals

The award to Pratt & Miller Engineering suggests leveraging existing expertise in a specialized defense technology area.
The multi-year duration indicates a commitment to developing and refining advanced capabilities, potentially leading to significant improvements in training realism.
The contract falls under the SBIR (Small Business Innovative Research) program, which aims to foster innovation and commercialization of technologies developed by small businesses, although the awardee here is not a small business, suggesting a later phase effort.

Sector Analysis

This contract operates within the Research and Development (R&D) sector, specifically focusing on defense applications. The market for advanced simulation and training systems is competitive, with significant government investment driven by the need for realistic and cost-effective training solutions. Comparable spending benchmarks are difficult to establish without knowing the specific technological advancements sought, but R&D contracts of this magnitude are common within the defense industrial base.

Small Business Impact

The provided data indicates this contract is not a small business set-aside (ss: false, sb: false). While the contract itself is not directly for small businesses, the Phase III SBIR effort implies a potential pathway for technologies developed by small businesses to be further matured and commercialized through larger prime contractors. However, the direct impact on the small business ecosystem from this specific award is likely minimal, focusing instead on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. The CPFF structure necessitates close monitoring of costs and progress to ensure funds are used effectively. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Small Business Innovation Research (SBIR) Program
Advanced Training Systems
Simulation Technology
Defense Research and Development

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Potential for Cost Overruns
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to PRATT & MILLER ENGINEERING & FABRICATION, LLC. PHASE III SMALL BUSINESS INNOVATIVE RESEARCH EFFORT FOR TRACKLESS MOVING TARGETS

Who is the contractor on this award?

The obligated recipient is PRATT & MILLER ENGINEERING & FABRICATION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2020-03-31. End: 2025-10-31.

What is the specific technological innovation sought for 'trackless moving targets' and how does it differ from existing solutions?

The term 'trackless moving targets' suggests a need for target systems that can move dynamically and unpredictably without relying on traditional physical tracks or predefined paths. This could involve autonomous ground vehicles, advanced drone systems, or other mobile platforms capable of simulating enemy combatants or threats in complex terrains. The innovation likely lies in the mobility, unpredictability, and realism of these targets, potentially incorporating advanced AI for evasive maneuvers and sensor suites for realistic engagement feedback. Existing solutions might include rail-mounted targets or simpler robotic platforms with limited movement capabilities. The specific technological advancements Pratt & Miller Engineering is pursuing would detail the propulsion, control systems, sensor integration, and AI algorithms designed to achieve this enhanced realism and unpredictability, differentiating it from less sophisticated training aids.

How does the Cost Plus Fixed Fee (CPFF) structure impact the overall cost-effectiveness of this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development projects where the scope of work is not fully defined at the outset, and costs can be uncertain. In this model, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing their profit. While this allows for flexibility and encourages innovation by reducing the contractor's risk, it also shifts much of the cost risk to the government. Cost-effectiveness hinges on robust government oversight to ensure costs are reasonable and necessary, and that the fixed fee adequately compensates the contractor for their effort without being excessive. Without detailed oversight and clear milestones, CPFF contracts can potentially lead to higher overall expenditures compared to fixed-price contracts if cost controls are not diligently applied. The government's ability to manage scope and monitor expenditures is crucial for achieving value under a CPFF arrangement.

What is Pratt & Miller Engineering's track record with similar R&D contracts, particularly within the Department of Defense?

Pratt & Miller Engineering & Fabrication, LLC has a significant history of working with the Department of Defense, particularly in areas related to vehicle engineering, advanced manufacturing, and performance simulation. They are known for their expertise in high-performance automotive engineering, which often translates to defense applications such as ground vehicle development, survivability enhancements, and advanced testing methodologies. While specific details on their past R&D contracts for 'trackless moving targets' are not provided here, their general experience suggests a strong capability in complex engineering challenges. A deeper dive into their contract history would reveal the scale and nature of previous R&D awards, their performance ratings, and any notable successes or challenges encountered, providing a clearer picture of their suitability and past performance in delivering on similar defense R&D objectives.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the initial solicitation was intended to be open to all responsible sources, but certain sources were subsequently excluded from consideration. This exclusion could stem from various reasons, such as specific technical requirements that only a limited number of firms could meet, proprietary technology limitations, or even administrative decisions. The primary risk for the government is that this exclusion might have narrowed the competitive field unnecessarily, potentially leading to less favorable pricing or a reduced pool of innovative solutions. For taxpayers, it means there's a possibility that a more cost-effective or technologically superior solution might have been overlooked if the excluded sources were capable. It also raises questions about the transparency and fairness of the procurement process, even if legally justified.

How does this contract align with broader U.S. Army modernization priorities for training and simulation?

This contract aligns with the U.S. Army's broader modernization priorities by focusing on enhancing realism and effectiveness in training simulations. As military operations become more complex and adversaries evolve, the need for sophisticated training environments that accurately replicate battlefield conditions is paramount. Advanced moving targets that offer unpredictability and dynamic engagement capabilities are crucial for developing the skills and decision-making abilities required for modern warfare. By investing in technologies that improve target simulation, the Army aims to provide soldiers with more immersive and challenging training scenarios, ultimately improving combat readiness and reducing risks associated with live training exercises. This effort supports the overarching goal of maintaining a decisive advantage through superior training and technological superiority.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK20R0021

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oshkosh Corporation

Address: 29600 WK SMITH DR, NEW HUDSON, MI, 48165

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,383,975

Exercised Options: $28,348,171

Current Obligation: $28,348,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline