ASTRION GROUP, LLC awarded $13.4M for R&D in Biotechnology, with a significant portion allocated to Alabama
Contract Overview
Contract Amount: $13,366,788 ($13.4M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-05
End Date: 2014-03-18
Contract Duration: 2,020 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: R&D
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to ASTRION GROUP, LLC for work described as: R&D Key points: 1. Contract value represents a substantial investment in specialized biotechnology research. 2. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 3. Contract duration of over 5 years indicates a long-term need for these R&D services. 4. The contract's focus on R&D in Biotechnology positions it within a critical and evolving scientific sector. 5. Performance context is tied to specific research and development objectives within the Department of Defense. 6. The award amount, while significant, needs to be benchmarked against similar R&D contracts for true value assessment.
Value Assessment
Rating: fair
The total award of $13.4 million over approximately 5.5 years suggests an average annual spend of around $2.4 million. Benchmarking this against similar R&D contracts in biotechnology within the Department of Defense is crucial for a comprehensive value assessment. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable value. The 'time and materials' pricing structure can sometimes lead to cost overruns if not closely managed, which warrants careful monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this specialized R&D requirement. While not a large number of bidders, it implies that multiple firms were capable and interested in undertaking this work, which generally aids in price discovery.
Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it allows for a broader range of potential solutions and pricing structures to be considered, potentially leading to better value.
Public Impact
The primary beneficiaries are likely the Department of Defense and its research initiatives, aiming to advance biotechnology capabilities. Services delivered include critical research and development activities in the field of biotechnology. The geographic impact is concentrated in Alabama, where the contractor is located, potentially creating local economic benefits. Workforce implications may include the employment of scientists, researchers, and support staff involved in the R&D process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to the 'time and materials' pricing model if not rigorously managed.
- Limited number of bids (2) could indicate potential barriers to entry or a niche market, warranting further investigation into competition.
- The specific R&D outcomes and their direct applicability to defense needs require ongoing assessment to ensure value realization.
Positive Signals
- Awarded through full and open competition, suggesting a fair and accessible process.
- Contract duration of over 5 years indicates a sustained commitment to the R&D area, fostering potential for significant advancements.
- The focus on a critical R&D area like biotechnology aligns with strategic national interests.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically focusing on Biotechnology (NAICS code 541711). This is a highly specialized and innovation-driven field. The global biotechnology market is substantial and growing, driven by advancements in life sciences, healthcare, and industrial applications. Federal spending in this area is often directed towards national security, public health, and economic competitiveness. Comparable spending benchmarks would involve analyzing other federal R&D contracts in biotechnology awarded by agencies like the NIH, NSF, and other DoD components.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, ASTRION GROUP, LLC, is likely a mid-to-large-sized entity given the contract value.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army contracting and program management offices. Accountability measures would be tied to the delivery of research milestones and adherence to the contract's terms and conditions. Transparency is generally facilitated through contract databases like FPDS-NG, which provide award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Biotechnology Research Programs
- Department of Defense Research and Development
- Advanced Scientific Research Contracts
- National Security R&D Initiatives
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited number of bidders in a specialized field.
- Need for ongoing monitoring of R&D milestones and deliverables.
Tags
research-and-development, biotechnology, department-of-defense, department-of-the-army, alabama, full-and-open-competition, time-and-materials, delivery-order, large-contract, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to ASTRION GROUP, LLC. R&D
Who is the contractor on this award?
The obligated recipient is ASTRION GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2008-09-05. End: 2014-03-18.
What is ASTRION GROUP, LLC's track record with federal contracts, particularly in R&D and biotechnology?
A review of federal procurement data indicates that ASTRION GROUP, LLC has been awarded multiple federal contracts. While the provided data focuses on this specific $13.4 million award for R&D in Biotechnology, a deeper analysis would involve examining their complete contract history. This includes looking at the number of contracts awarded, their total value, the agencies they've contracted with, and their performance ratings on past projects. Understanding their experience in similar R&D and biotechnology projects, especially those with the Department of Defense, is crucial for assessing their capability and reliability for this current contract. Past performance can be a strong indicator of future success, though it's important to consider the specific requirements and complexities of each contract.
How does the $13.4 million award compare to other federal R&D contracts in biotechnology?
The $13.4 million award to ASTRION GROUP, LLC for R&D in Biotechnology is a significant sum, but its value proposition is best understood through comparative analysis. Federal agencies, particularly the Department of Defense, invest heavily in R&D. Comparable contracts can range from a few million dollars for specialized research tasks to hundreds of millions for large-scale development programs. To benchmark this contract, one would need to identify similar 'Research and Development in Biotechnology' contracts awarded by the DoD or other agencies like the National Institutes of Health (NIH) or the National Science Foundation (NSF) within a similar timeframe. Factors such as contract duration, scope of work, and the specific technological focus (e.g., genomics, drug discovery, biodefense) are critical for a meaningful comparison. Without this context, it's challenging to definitively label the $13.4 million as high, low, or average.
What are the primary risks associated with this 'time and materials' contract for biotechnology R&D?
Contracts structured as 'time and materials' (T&M) for complex R&D projects like biotechnology inherently carry certain risks. The primary risk for the government is cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project scope is not well-defined, or if unforeseen technical challenges arise, the contractor may incur more hours or require more materials than initially anticipated, leading to a higher final cost. For the government, effective oversight is paramount to mitigate this risk. This involves diligent tracking of labor hours, validation of material costs, and ensuring that the work performed directly contributes to the R&D objectives. Without robust monitoring, T&M contracts can become more expensive than initially projected.
How effective is the 'full and open competition' process likely to be in ensuring optimal value for this biotechnology R&D contract?
The 'full and open competition' award strategy is generally considered the most effective method for ensuring optimal value in federal contracting, as it allows the widest possible range of qualified vendors to compete. For a specialized field like biotechnology R&D, this approach theoretically maximizes the chances of finding the most innovative solutions at the most competitive prices. However, the effectiveness is contingent on the number of capable bidders and the clarity of the solicitation. With only two bids received, as indicated, the level of competition might be considered moderate rather than robust. While still preferable to sole-source, a limited number of bidders could suggest a niche market, high barriers to entry, or perhaps a solicitation that wasn't widely disseminated or appealing. Therefore, while the process itself is sound, the actual outcome in terms of value achieved depends on the specific market dynamics and the quality of the proposals submitted.
What are the historical spending patterns for R&D in Biotechnology within the Department of the Army?
Analyzing historical spending patterns for R&D in Biotechnology within the Department of the Army (DoA) is essential for contextualizing the $13.4 million award to ASTRION GROUP, LLC. The DoA, like other branches of the DoD, invests in biotechnology for various applications, including medical countermeasures, soldier performance enhancement, and biodefense. Historical data would reveal trends in annual spending, the types of R&D projects funded, the primary research areas (e.g., infectious diseases, regenerative medicine, synthetic biology), and the key contractors involved. Understanding these patterns can help identify whether this award represents a typical investment level, an increase or decrease in funding for this area, or a shift in research priorities. It also provides a baseline against which the current contract's value and scope can be assessed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4901 CORPORATE DR STE E, HUNTSVILLE, AL, 35805
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $13,367,078
Exercised Options: $13,366,788
Current Obligation: $13,366,788
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q08A0021
IDV Type: IDC
Timeline
Start Date: 2008-09-05
Current End Date: 2014-03-18
Potential End Date: 2014-03-18 12:03:00
Last Modified: 2024-11-04
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