Physical Sciences Inc.

Physical Sciences Inc., a for-profit research and development company headquartered in Andover, Massachusetts, delivers advanced materials, optical systems, radiation detection technologies, and specialized instrumentation to federal defense and civilian agencies primarily as a prime contractor (99% of recent awards) across the full spectrum of SBIR, STTR, and direct R&D vehicles. The company competes predominantly under small-business set-asides—nearly all recent prime awards carry Total Small Business designations—and operates a substantial subsidiary structure including Q-Peak Incorporated, Research Support Instruments Inc., Maxion Technologies Inc., and Faraday Technology Inc.

Physical Sciences Inc.'s customer concentration is anchored by the Department of the Navy's Naval Sea Systems Command, which accounts for 84 awards valued at $1.04 billion in combined potential value, driven almost entirely by the Space-Based Infrared System High Major Defense Acquisition Program. That concentration dwarfs the second-tier customer split: the Air Force Research Laboratory (224 awards, $123.5 million) and the Army Research Development and Engineering Command (126 awards, $73.5 million) represent the next material customer relationships. Across the top five customers by award count, Physical Sciences Inc. captures 43% of recent awards, but by dollar value, Naval Sea Systems Command's SBIRS High participation represents 14% of the vendor's combined potential value alone—a striking skew toward a single customer and a single program. The vendor has worked with 119 distinct federal agencies, indicating broad portfolio reach, but with significant concentration risk.

Recent capability work spans ceramic matrix composites for scramjet isolators ($3.1 million Air Force Research Laboratory Phase II, July 2025), rotating detonation rocket engine development ($2.1 million Air Force direct, September 2024), next-generation high-performance controllable propellant for the Missile Defense Agency ($1.99 million Phase II SBIR, March 2026), braided ultra-high temperature ceramic matrix composites for scramjet systems ($3.1 million Air Force, July 2025), and advanced optical systems including photonic integrated circuits and fiber-coupled laser modules across multiple SBIR Phase II awards. The company also executes bioprocess instrumentation and medical device R&D—a $3.5 million in-line cytometry process analytical technology award from the National Institutes of Health (February 2026, firm fixed price) and recurring SBIR/STTR work in advanced batteries, thermal management, and sensing for aerospace and defense applications. Civilian-sector work includes energy storage, carbon capture, and materials development supported by Department of Energy Office of Science grants.

Physical Sciences Inc. sits on three Defense Advanced Research Projects Agency Other Transaction IDVs: Large-Area Photocathodes ($4.8 million ceiling, June 2025), Process Intensified Energetics ($6.0 million ceiling, October 2024), and HEIMDALL Development Phase ($504,671 ceiling, January 2025), totaling $11.3 million in OT vehicle capacity. The vendor also holds a place on the Air Force's Velocity Alliance Consortium as a base membership agreement (effective July 1, 2026), positioning it to compete for rapid-cycle prototype and advanced development work within that multi-vendor ecosystem. The top parent vehicles across the award history include multiple Navy and Air Force indefinite delivery contracts with 7–12 task orders each, though the source does not provide full ceiling values for all vehicles. The Naval Sea Systems Command's Unmanned Surface Vehicle Family of Systems contract is referenced at $982.1 million in one summary, marking it as a significant standing vehicle.

Activity trajectory has been stable with minor fluctuation: 89 awards in 2022 declining to 75 in 2023, then recovering to 99 in 2024 and 87 in 2025, with 15 awards captured in the first three weeks of 2026. Combined potential value across all 2,131 awards (prime and sub) stands at $10.06 billion, with $1.03 billion obligated to date (10% draw-down). Within the next twenty-four months, 71 awards face ultimate completion, carrying $97.1 million in combined potential value and representing a material recompete pipeline.

Service Contract Inventory reporting covers $18.6 million in invoiced SCI-reportable federal services revenue across FY2022–FY2025, with FY2024 peaking at $6.7 million across 12.3 FTEs. The SCI dataset is a strict subset of the vendor's federal services activity and excludes goods, products, and non-federal revenue; it reflects only contracts above the $150,000 reporting threshold. Government-paid hourly rates on SCI-reportable prime contracts span a median of $236.40 per hour, with senior labor pricing reaching the 90th percentile at $717.15 per hour. Across all SCI-reportable prime contracts, Physical Sciences Inc. self-performed 100% of contractor hours with zero subcontractor engagement, signaling a build-your-own-team delivery model rather than a pass-through or feeder posture.

The vendor operates as a prime on nearly all work, subcontracting to major primes (Raytheon Company, Northrop Grumman Systems Corporation, Peraton Inc., Parsons Government Services International Inc., and Wyzkyds Consulting LLC) on a limited basis. Named sub-award work includes manufacturing advances in electro-optic resources for integrated niobate devices (Raytheon, March 2026), speed with innovative flowpath technology plastics research (Northrop Grumman, September 2025 and March 2026), and advanced space research hardware and software (Peraton, December 2025). The sub-award footprint represents 1% of recent awards and appears episodic rather than structural.

Physical Sciences Inc. also acts as a prime grant recipient across the National Institute of General Medical Sciences, Office of Naval Research, National Institute of Mental Health, National Eye Institute, National Institute of Environmental Health Sciences, and Department of Energy Office of Science. Grant work includes fluorescence-based rapid phage detection for bioreactors ($311,847 NIGMS Phase II, September 2026), material development for ultra-efficient water generation using deliquescent polymers ($379,082 ONR, January 2026), high-speed multicolor confocal fluorescence imager for neural network mapping ($NIMH, January 2025), and multiple Department of Energy basic science grants in thermal storage, carbon capture, and advanced materials averaging $199,000–$249,000 per award.

EXPERIMENTAL & ANALYTICAL RESEARCH & DEVELOPMENT,CHEMICAL SCIENCES,OPTICAL SCIENCES,SPACE SCIENCES,AEROMECHANICS,ELECTROMAGNETICS,OPTICAL TECHNOLOGY,MATERIAL TECH.,LASER TECH.,ENERGY & ENVIRONMENTAL SCIENCE,FLOW DIAGNOSTICS,LASER INTERACTIONS,FIBEROPTICS,