DoD's $19.8M R&D contract with University of Alaska Fairbanks for physical sciences research shows long duration

Contract Overview

Contract Amount: $19,867,081 ($19.9M)

Contractor: University of Alaska Fairbanks

Awarding Agency: Department of Defense

Start Date: 2008-06-30

End Date: 2015-03-31

Contract Duration: 2,465 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: SW-SMDC-04-08

Place of Performance

Location: FAIRBANKS, FAIRBANKS NORTH STAR County, ALASKA, 99775

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to UNIVERSITY OF ALASKA FAIRBANKS for work described as: SW-SMDC-04-08 Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant contract duration of over 2,000 days suggests a long-term research objective. 3. Sole-source award indicates potential limitations in market competition for this specific research area. 4. Contract value of nearly $20 million over its life cycle requires careful performance monitoring. 5. Research focus aligns with specialized scientific capabilities, potentially limiting broader contractor pool. 6. Geographic location in Alaska may influence logistical considerations and local economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized R&D nature and sole-source award. The total value of approximately $19.8 million over a period of roughly 6.7 years (2465 days) averages to about $2.4 million per year. Without comparable contracts for similar niche research, it's difficult to definitively assess if this represents excellent value. However, the extended duration suggests a sustained investment in a specific research area, which could be justified if significant breakthroughs are achieved.

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 typically occurs when a specific entity possesses unique capabilities, intellectual property, or is the only responsible source capable of performing the required work. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if it had been competed.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which usually drives down prices. The justification for the sole-source award would need to be robust to ensure public funds are being used efficiently.

Public Impact

The University of Alaska Fairbanks benefits from this significant research funding, enhancing its scientific capabilities and reputation. The contract supports advanced research in physical, engineering, and life sciences, potentially leading to new discoveries and technological advancements. The geographic impact is primarily within Alaska, potentially fostering local scientific talent and infrastructure. Workforce implications include the employment of researchers, scientists, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Extended contract duration of over 6 years may present risks of scope creep or evolving research needs.
Specialized R&D focus could limit the pool of potential future contractors if the work needs to be re-competed.

Positive Signals

Award to a university suggests a focus on fundamental research and knowledge creation.
Long-term funding commitment allows for in-depth scientific investigation and potential for significant breakthroughs.
The contract supports a specific geographic region (Alaska), potentially fostering local expertise and economic development.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a highly specialized area where government funding often supports fundamental scientific inquiry and innovation that may not be immediately commercially viable. The market for such specialized R&D is often characterized by a limited number of highly qualified institutions or firms. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the research, but R&D contracts can range widely in value depending on the complexity and duration.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. Given the sole-source nature and the likely specialized research requirements, it is improbable that subcontracting opportunities for small businesses would be a significant component. The focus is on a large academic institution's research capabilities rather than broad industrial participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) within the Department of Defense. Mechanisms would likely include regular progress reports from the contractor, site visits, and potentially technical reviews by government scientists. Accountability is ensured through contract terms and conditions, with the possibility of Inspector General involvement if any irregularities are suspected. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of some defense-related research.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants
Physical Sciences Research Initiatives
Engineering Research Contracts
Life Sciences Research Funding

Risk Flags

Sole Source Award
Long Contract Duration
Specialized R&D Focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to UNIVERSITY OF ALASKA FAIRBANKS. SW-SMDC-04-08

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ALASKA FAIRBANKS.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2008-06-30. End: 2015-03-31.

What specific research areas are covered under this contract, and what are the expected outcomes?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. While the exact research topics are not detailed in the provided data, the awarding agency, Defense Threat Reduction Agency (DTRA), suggests the research likely pertains to national security, threat reduction, or related scientific advancements. Expected outcomes would typically involve scientific publications, technical reports, prototypes, or new methodologies that contribute to the agency's mission. The long duration (over 6 years) implies a focus on complex, long-term research objectives rather than short-term projects.

How does the $19.8 million contract value compare to similar R&D efforts in the physical sciences?

Direct comparison of the $19.8 million contract value is difficult without knowing the specific research focus and the scope of work. However, R&D contracts, especially those awarded to universities for fundamental research, can vary significantly. For long-term, multi-year projects in specialized scientific fields, a value of this magnitude is not unusual. For instance, large federal agencies like NSF, NIH, and DoD often award grants and contracts in the millions for complex research initiatives. The key factor is whether the $19.8 million represents a fair price for the expected deliverables and the duration of the research, which is hard to ascertain without more detailed project information.

What are the risks associated with a sole-source award for this type of research?

The primary risk of a sole-source award is the lack of competitive pressure, which can potentially lead to inflated costs and reduced incentive for the contractor to perform efficiently or innovate. In this case, the University of Alaska Fairbanks was selected without competition, suggesting they possess unique capabilities. Risks include the possibility that alternative solutions or more cost-effective approaches might exist but were not explored. Additionally, if the university's performance falters, the government may have limited recourse or face significant challenges in transitioning the work to another entity due to the specialized nature of the research and the established relationship.

What is the track record of the University of Alaska Fairbanks in securing and managing large federal research contracts?

The University of Alaska Fairbanks (UAF) has a well-established history of securing and managing federal research grants and contracts, particularly in areas relevant to Alaska's environment, resources, and defense. UAF's research enterprise is substantial, with significant funding from agencies like the National Science Foundation (NSF), NASA, and various Department of Defense components. While specific details on their management of contracts of this exact size and duration would require deeper investigation, their consistent receipt of federal funding indicates a general capability to handle complex research projects and comply with federal regulations. Their expertise in fields like Arctic science, geophysics, and engineering often aligns with defense-related R&D needs.

How does the contract's duration of over 6 years impact its overall risk profile?

The contract's duration of 2,465 days (approximately 6.7 years) significantly impacts its risk profile. Long-duration contracts increase the risk of cost overruns due to potential inflation, changes in resource availability, or unforeseen technical challenges that require extended effort. There's also a higher risk of scope creep, where the project's objectives may evolve over time, leading to increased costs and potential deviations from the original intent. Furthermore, the longer the contract, the greater the chance of personnel turnover within the contractor organization or shifts in government priorities, which can disrupt research continuity. However, for complex R&D, such long durations are often necessary to achieve meaningful scientific progress.

Are there any indications of potential cost savings or efficiencies that could have been achieved through competition?

Given that this contract was awarded on a sole-source basis ('NOT COMPETED'), there is no direct data to indicate potential cost savings or efficiencies that could have been achieved through competition. Sole-source awards are typically justified when competition is not feasible or not in the government's best interest, often due to unique capabilities or intellectual property. Without a competitive bidding process, it's impossible to benchmark the awarded price against market alternatives. The government relies on negotiation and oversight to ensure fair pricing in such cases, but the inherent lack of market comparison means the potential for savings through competition is, by definition, foregone.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: University of Alaska Systems

Address: 903 KUYUKUK DR, FAIRBANKS, AK, 99775

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

Financial Breakdown

Contract Ceiling: $102,090,775

Exercised Options: $20,943,573

Current Obligation: $19,867,081

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline