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

Positive Signals

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

Risk Flags

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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