DoD's $30.8M R&D contract with University of Hawaii shows long-term investment in physical sciences
Contract Overview
Contract Amount: $30,831,461 ($30.8M)
Contractor: University of Hawaii
Awarding Agency: Department of Defense
Start Date: 2007-06-14
End Date: 2016-06-30
Contract Duration: 3,304 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST NO FEE
Sector: R&D
Official Description: BASIC EFFORT -(BAA)
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96822
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to UNIVERSITY OF HAWAII for work described as: BASIC EFFORT -(BAA) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Long duration (9+ years) indicates a sustained research effort. 3. Cost-plus-no-fee contract type implies risk sharing with the contractor. 4. Research and Development focus aligns with strategic national interests. 5. Geographic concentration in Hawaii may offer unique regional research advantages. 6. The contract's value is moderate within the broader R&D landscape.
Value Assessment
Rating: fair
The contract's total value of approximately $30.8 million over nine years suggests a moderate investment in research and development. Without specific performance metrics or deliverables, a direct value-for-money assessment is challenging. Benchmarking against similar R&D contracts in physical sciences is difficult due to the specialized nature of research. However, the Cost No Fee (CNF) contract type, while common for R&D, places the financial risk primarily on the government, which warrants careful monitoring of expenditures against progress.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple potential offerors had the opportunity to bid. The presence of five bids suggests a competitive environment for this research area. A competitive process generally leads to better price discovery and potentially more innovative solutions, as contractors vie for the award. The level of competition is a positive indicator for the government securing a fair price and quality research.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of technical approaches, maximizing the return on investment for federal research funds.
Public Impact
The University of Hawaii benefits from sustained federal funding for its research activities. Advances in physical, engineering, and life sciences are expected outcomes, potentially leading to technological innovations. The geographic impact is primarily within Hawaii, supporting local research infrastructure and expertise. Workforce implications include employment for researchers, technicians, and support staff at the university.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving research priorities that may not align with initial objectives.
- Cost-plus contract types can incentivize spending without strict cost controls if not managed diligently.
- Reliance on a single academic institution for a significant R&D effort might limit exposure to diverse research methodologies.
- The specific research outcomes and their applicability to defense or civilian needs require ongoing evaluation.
- Potential for research findings to remain academic rather than translating into practical applications.
Positive Signals
- Awarded through full and open competition, ensuring a broad search for qualified research partners.
- The sustained funding over a long period allows for in-depth research and development.
- Focus on R&D aligns with the Department of Defense's need for technological advancement.
- The University of Hawaii's established research capabilities likely provide a strong foundation for the project.
- The contract supports a key academic institution, fostering scientific growth and expertise.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by innovation, long-term investment, and often collaboration between government, academia, and industry. Federal spending in R&D is crucial for maintaining technological superiority and addressing complex challenges. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D projects, but this contract represents a significant, long-term commitment to a specific research area.
Small Business Impact
This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb: false'. The primary awardee is a large academic institution. While the contract itself is not set aside for small businesses, the University of Hawaii may engage small businesses as subcontractors for specialized services or supplies, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities arise.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Given the R&D nature and the academic awardee, oversight would likely focus on progress reports, milestone achievement, and adherence to research protocols. Transparency is generally maintained through contract databases and public reporting, although specific research findings may have periods of limited disclosure. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- University Research Grants
- Basic Scientific Research Contracts
- Physical Sciences Research Initiatives
- Engineering Research and Development
Risk Flags
- Long contract duration may increase risk of cost overruns or changing research priorities.
- Cost-plus contract type places financial risk on the government.
- Lack of specific performance metrics in summary data hinders detailed value assessment.
Tags
department-of-defense, department-of-the-air-force, research-and-development, university-of-hawaii, definitive-contract, full-and-open-competition, cost-no-fee, physical-sciences, engineering-sciences, life-sciences, hawaii, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to UNIVERSITY OF HAWAII. BASIC EFFORT -(BAA)
Who is the contractor on this award?
The obligated recipient is UNIVERSITY OF HAWAII.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2007-06-14. End: 2016-06-30.
What specific research areas within physical, engineering, and life sciences were prioritized under this contract?
The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not specify the precise research areas. Typically, such broad classifications encompass a wide range of scientific inquiry. For this particular contract with the University of Hawaii, the Department of the Air Force likely had specific objectives related to advancing fundamental knowledge or developing technologies relevant to aerospace, materials science, or other defense-related fields. Further details would require examining the contract's statement of work or related documentation, which are not included in the provided summary data. The long duration suggests a focus on foundational research rather than immediate application development.
How does the $30.8 million total contract value compare to typical R&D investments by the Department of the Air Force in similar fields?
The $30.8 million total contract value over approximately nine years represents a moderate investment for the Department of the Air Force (DoD) in a specific R&D area. The DoD's annual R&D budget is in the tens of billions of dollars, funding a vast array of projects across numerous scientific disciplines and institutions. While this contract is substantial for a single award to one institution, it is a small fraction of the overall DoD R&D spending. Its significance lies in its long-term commitment to a particular research endeavor at the University of Hawaii, suggesting a strategic focus rather than a large-scale program. Benchmarking requires comparing it to other multi-year R&D grants or contracts awarded to universities for basic or applied research in physical and engineering sciences.
What are the key performance indicators (KPIs) or milestones used to assess the success of this research contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost No Fee (CNF) R&D contracts, success is typically measured by the achievement of research objectives outlined in the Statement of Work (SOW), timely progress reports, dissemination of findings (e.g., publications, presentations), and the development of prototypes or new knowledge. Given the academic nature and long duration, milestones might include interim research reports, successful completion of experimental phases, and a final comprehensive research report. The contracting officer and technical monitors would be responsible for evaluating progress against these defined benchmarks throughout the contract's lifecycle.
What is the University of Hawaii's track record in securing and managing large federal research grants, particularly from the Department of Defense?
The University of Hawaii has a history of securing and managing federal research grants, including those from agencies like the Department of Defense (DoD). As a recipient of this $30.8 million contract, it demonstrates a capacity to compete for and execute significant research projects. Universities often have dedicated research administration offices to manage compliance, finances, and reporting for such awards. While specific details on their historical performance with DoD contracts are not provided here, the award itself suggests they met the necessary qualifications and demonstrated competence in their research domain. Their ability to manage a contract of this duration and value implies established infrastructure for research support.
Are there any identified risks associated with the Cost No Fee (CNF) contract type for this long-term R&D effort?
The primary risk associated with the Cost No Fee (CNF) contract type, especially for a long-term R&D effort, is that the government bears the financial risk. While the contractor (University of Hawaii) does not earn a profit, they are reimbursed for allowable costs. This can potentially lead to less incentive for cost efficiency compared to fixed-price contracts. If not managed carefully, costs could escalate beyond initial projections without a direct profit motive for the contractor to control them. Effective oversight by the government is crucial to ensure that costs are reasonable, allocable, and necessary for the research objectives. The long duration amplifies this risk, requiring sustained vigilance in monitoring expenditures against progress.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: University of Hawaii Systems (UEI: 009438664)
Address: 2530 DOLE STREET, SAK D-200, HONOLULU, HI, 96822
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,015,285
Exercised Options: $30,840,461
Current Obligation: $30,831,461
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-14
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2016-11-14
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