DoD's $5.96M contract for MHPCC R&D at University of Hawaii raises questions on competition and value
Contract Overview
Contract Amount: $5,957,785 ($6.0M)
Contractor: University of Hawaii
Awarding Agency: Department of Defense
Start Date: 2025-08-31
End Date: 2026-09-14
Contract Duration: 379 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENGINEERING, RESEARCH, AND DEVELOPMENT CAPABILITIES OF THE MAUI HIGH PERFORMANCE COMPUTING CENTER (MHPCC) BY THE APPLIED RESEARCH LABORATORY AT THE UNIVERSITY OF HAWAII (ARL-UH).
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96822
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $6.0 million to UNIVERSITY OF HAWAII for work described as: ENGINEERING, RESEARCH, AND DEVELOPMENT CAPABILITIES OF THE MAUI HIGH PERFORMANCE COMPUTING CENTER (MHPCC) BY THE APPLIED RESEARCH LABORATORY AT THE UNIVERSITY OF HAWAII (ARL-UH). Key points: 1. The contract focuses on advanced computing capabilities, a critical area for defense research. 2. Limited competition raises concerns about potential overpayment and lack of market price discovery. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code is broad. 4. The University of Hawaii is the sole awardee, indicating a non-competitive procurement. 5. The contract duration of 379 days is relatively short for R&D.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. Without benchmarks for similar R&D services at high-performance computing centers, it's hard to determine if the $5.96M is a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This limits price discovery and may lead to higher costs for taxpayers as the government did not explore alternative providers or negotiate based on competitive bids.
Taxpayer Impact: The lack of competition for this $5.96M contract means taxpayers may not be receiving the best possible value, as alternative, potentially more cost-effective, solutions were not explored.
Public Impact
Advanced computing research supports national security and technological advancement. The University of Hawaii's role highlights the importance of academic-government partnerships. Transparency in sole-source R&D contracts is crucial for public trust. Potential for innovation in areas like AI, simulation, and data analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of clear justification for sole-source
- Cost-plus contract type can incentivize spending
- Broad NAICS code may obscure specific R&D focus
Positive Signals
- Supports critical R&D capabilities
- Partnership with a known research institution
- Contract supports advanced computing infrastructure
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is vital for technological advancement but requires careful oversight due to its often specialized nature and potential for high costs.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award. Future solicitations in this area should consider opportunities for small business participation to foster innovation and economic growth.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the funds are used effectively and that the research objectives are met. A clear justification for the lack of competition should be publicly available.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated costs due to sole-source award
- Cost-plus contract type can lead to cost overruns
- Limited transparency on specific research objectives and outcomes
- No clear indication of small business involvement
Tags
research-and-development-in-the-physical, department-of-defense, hi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.0 million to UNIVERSITY OF HAWAII. ENGINEERING, RESEARCH, AND DEVELOPMENT CAPABILITIES OF THE MAUI HIGH PERFORMANCE COMPUTING CENTER (MHPCC) BY THE APPLIED RESEARCH LABORATORY AT THE UNIVERSITY OF HAWAII (ARL-UH).
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 Army).
What is the total obligated amount?
The obligated amount is $6.0 million.
What is the period of performance?
Start: 2025-08-31. End: 2026-09-14.
What is the specific research being conducted under this contract, and how does it directly benefit the Department of the Army's mission?
The contract supports the engineering, research, and development capabilities of the Maui High Performance Computing Center (MHPCC). While the specific research is not detailed, MHPCC's capabilities are generally used for complex simulations, data analysis, and modeling, which can support various Army missions, including defense strategy, materials science, and operational planning.
Given the sole-source award, what steps were taken to ensure the fixed fee is reasonable and reflects fair market value for the services provided?
Without a competitive process, it is difficult to ascertain the steps taken to ensure the fixed fee's reasonableness. Typically, agencies would conduct market research, analyze historical data, or obtain independent cost estimates. The lack of competition here suggests these steps may have been bypassed or were insufficient.
How will the effectiveness and outcomes of the R&D conducted under this contract be measured and evaluated to ensure taxpayer value?
Effectiveness is typically measured through milestones, deliverables, and final reports outlined in the contract. For R&D, success can be subjective, but clear performance metrics and objective assessments of the research's contribution to technological advancement or mission capability are essential for evaluating taxpayer value.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912HZ24R0017
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2444 DOLE ST, HONOLULU, HI, 96822
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $91,478,759
Exercised Options: $10,211,406
Current Obligation: $5,957,785
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-08-31
Current End Date: 2026-09-14
Potential End Date: 2030-09-14 00:00:00
Last Modified: 2025-12-19
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