DoD's $17.4M R&D Contract with Astrion Group Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $17,446,735 ($17.4M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2010-03-30
End Date: 2018-09-30
Contract Duration: 3,106 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RTC FTD ORDER PERIOD I
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to ASTRION GROUP, LLC for work described as: RTC FTD ORDER PERIOD I Key points: 1. The contract's value of $17.4 million for R&D services is substantial, requiring careful assessment of deliverables. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process but potentially limiting initial bids. 3. Risk factors include the Cost Plus Fixed Fee (CPFF) structure, which can incentivize cost overruns. 4. The sector is Research and Development, a critical area for defense innovation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risk of cost escalation. Benchmarking against similar R&D contracts is difficult without specific deliverable details, but the fee structure warrants close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies a competitive process was initiated, but the exclusion of specific sources may have narrowed the field, potentially impacting price discovery.
Taxpayer Impact: The ultimate taxpayer impact depends on the efficiency and effectiveness of the R&D conducted and whether the final cost reflects fair market value for the services rendered.
Public Impact
Taxpayers fund critical defense research and development, aiming for technological superiority. The contract supports innovation in physical, engineering, and life sciences, excluding biotechnology. Long contract duration (3106 days) suggests a significant, ongoing project with sustained resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns.
- Long contract duration may indicate scope creep or slow progress.
- Exclusion of sources in competition limits initial bidder pool.
Positive Signals
- Full and open competition was utilized.
- Contract supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for maintaining a technological edge, but often involves high uncertainty and variable cost structures. Benchmarks are difficult without specific project scope.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight to ensure cost control, adherence to scope, and achievement of R&D objectives. Regular performance reviews and audits are crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (3106 days).
- Exclusion of sources in competition.
- Lack of specific deliverable details for value assessment.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to ASTRION GROUP, LLC. RTC FTD ORDER PERIOD I
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 $17.4 million.
What is the period of performance?
Start: 2010-03-30. End: 2018-09-30.
What specific R&D objectives were achieved, and how do they align with the $17.4 million investment?
The primary objective is to assess the tangible outcomes and advancements resulting from the R&D efforts funded by this contract. A thorough review of technical reports, prototypes, and documented innovations is necessary to determine if the $17.4 million expenditure yielded value commensurate with the investment and contributed meaningfully to the Department of Defense's strategic goals.
How did the exclusion of sources in the 'full and open competition' impact the final contract price and overall value?
The exclusion of certain sources, even within a broader competitive framework, could potentially limit the range of innovative approaches and competitive pricing. An analysis should explore whether the selected contractor offered the best value proposition compared to what might have been achieved with a wider pool of bidders, and if the final price reflects optimal market conditions.
What mechanisms were in place to control costs and ensure efficiency under the Cost Plus Fixed Fee structure?
Given the CPFF structure, effective oversight is paramount. This includes rigorous monitoring of direct costs, validation of indirect cost allocations, and clear performance metrics tied to the fixed fee. The agency must demonstrate robust financial controls and regular performance evaluations to mitigate the risk of cost overruns and ensure the contractor remains incentivized to deliver efficiently.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4901 CORPORATE DR STE E, HUNTSVILLE, AL, 35805
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,446,735
Exercised Options: $17,446,735
Current Obligation: $17,446,735
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q10D0009
IDV Type: IDC
Timeline
Start Date: 2010-03-30
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 12:09:00
Last Modified: 2024-11-04
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