Department of Defense awards $42.2M task order to Astrion Group, LLC for R&D services
Contract Overview
Contract Amount: $42,216,592 ($42.2M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2016-03-25
End Date: 2017-08-12
Contract Duration: 505 days
Daily Burn Rate: $83.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF ISSUANCE OF 9 MONTH TASK ORDER AND INCREMENTAL FUNDING
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to ASTRION GROUP, LLC for work described as: IGF::OT::IGF ISSUANCE OF 9 MONTH TASK ORDER AND INCREMENTAL FUNDING Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Task order duration of 505 days suggests a focused, short-term research objective. 3. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical but complex sector. 4. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but also carries cost overrun risks. 5. The small business status of the contractor is not indicated, impacting potential subcontracting opportunities. 6. Geographic location in Alabama may offer local economic benefits.
Value Assessment
Rating: fair
Benchmarking the value for this specific task order is challenging without comparable sole-source R&D contracts. The Cost Plus Fixed Fee structure necessitates careful oversight to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work. The absence of competition means direct price comparisons are unavailable, making it difficult to assess if the government received optimal value. Further analysis would require understanding the specific deliverables and the contractor's historical performance on similar projects.
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 approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially leading to higher costs than if multiple bids were solicited.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, it is harder to ensure the most cost-effective solution was secured.
Public Impact
The primary beneficiaries are likely the Department of Defense research personnel who will utilize the R&D services. The services delivered fall under Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology). The contract has a geographic impact in Alabama, where the contractor is located. Workforce implications may include specialized R&D personnel employed by Astrion Group, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential for cost savings.
- Cost Plus Fixed Fee contract type can lead to cost escalations if not managed closely.
- Limited public information on the specific R&D objectives and expected outcomes.
- Contract duration of 505 days may indicate a need for ongoing, potentially evolving, research requirements.
Positive Signals
- Award to a single contractor can ensure continuity of specialized expertise for critical R&D.
- Task order structure allows for focused execution of specific research objectives.
- Contracting for R&D is essential for technological advancement and national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences excluding biotechnology. This is a vital area for innovation and maintaining technological superiority. The market for specialized R&D services is often characterized by a limited number of highly skilled firms. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the research, but R&D contracts can range significantly in value depending on complexity and duration.
Small Business Impact
The data indicates the contractor, Astrion Group, LLC, was not awarded this contract under small business set-aside provisions (ss: false, sb: false). Therefore, this specific task order does not directly contribute to small business subcontracting goals. The absence of small business participation requirements on this contract means that opportunities for small businesses to engage in subcontracting related to this R&D effort are unlikely unless initiated by the prime contractor.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Army's contracting officer and administrative contracting officer. They are responsible for monitoring costs, ensuring compliance with contract terms, and verifying the satisfactory performance of work. Transparency is limited due to the sole-source nature and the proprietary aspects of R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Research Laboratory Contracts
- Advanced Technology Development Contracts
- Scientific and Technical Services Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Limited competition
Tags
department-of-defense, department-of-the-army, research-and-development, cost-plus-fixed-fee, sole-source, task-order, alabama, naics-541712, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to ASTRION GROUP, LLC. IGF::OT::IGF ISSUANCE OF 9 MONTH TASK ORDER AND INCREMENTAL FUNDING
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 $42.2 million.
What is the period of performance?
Start: 2016-03-25. End: 2017-08-12.
What specific research and development activities are encompassed by this task order?
The task order falls under the North American Industry Classification System (NAICS) code 541712, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). While the specific nature of the R&D is not detailed in the provided data, it implies work related to scientific inquiry and experimentation aimed at discovering or improving products, processes, or services. This could range from materials science, advanced manufacturing techniques, engineering solutions, to various life science applications outside of biotechnology. The Cost Plus Fixed Fee contract type suggests that the scope may involve some uncertainty or evolving requirements, common in R&D where outcomes are not always predictable at the outset. Further details would typically be found in the contract's statement of work.
How does the $42.2 million award compare to typical R&D spending by the Department of Defense in this category?
Comparing this $42.2 million task order to overall Department of Defense (DoD) R&D spending requires broader context. The DoD's annual R&D budget typically runs into the tens of billions of dollars, covering a vast array of projects across different services and agencies. A single task order of this magnitude, while substantial, represents a small fraction of the total R&D investment. However, its significance depends on the strategic importance and scope of the specific research it funds. Without knowing the specific research area and its priority level within the DoD's strategic objectives, it's difficult to definitively benchmark its spending relative to other R&D investments. It is likely a significant investment for a specific, targeted research objective.
What are the potential risks associated with a sole-source Cost Plus Fixed Fee contract for R&D?
Sole-source contracts for R&D carry inherent risks. The primary risk is the lack of competitive pressure, which can lead to higher costs than might be achieved through a competitive process. The government does not benefit from the price discovery that occurs when multiple vendors bid. Furthermore, the Cost Plus Fixed Fee (CPFF) structure, while common in R&D due to potential uncertainties, can incentivize contractors to incur more costs, as their fee is fixed regardless of the final cost. This necessitates robust oversight to ensure costs are reasonable and allocable to the contract. Risks also include potential contractor performance issues, scope creep, and the possibility that the chosen contractor may not be the most innovative or efficient provider available in the market.
What is Astrion Group, LLC's track record with the federal government, particularly in R&D contracts?
Information regarding Astrion Group, LLC's specific track record with the federal government, particularly in R&D contracts, is not detailed in the provided data. To assess their performance, one would need to examine their contract history, including past performance evaluations, any awards or penalties, and their experience with similar R&D projects. Federal procurement databases and past performance information repositories could provide insights into their reliability, technical capabilities, and ability to manage complex R&D efforts within budget and schedule. Without this external data, it is impossible to evaluate their specific track record.
What are the implications of the 505-day duration for this task order?
A duration of 505 days (approximately 16-17 months) for this task order suggests a moderately long-term research and development effort. This duration implies that the project is not a short, exploratory study but rather involves a sustained period of investigation, experimentation, or development. For R&D, such a timeframe is often necessary to achieve meaningful results, especially in complex scientific or engineering fields. It allows for iterative processes, data collection, analysis, and potential refinement of approaches. The duration also impacts the total cost, as personnel and resources are committed over an extended period. It suggests a well-defined, albeit potentially evolving, research objective that requires dedicated effort.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 308 VOYAGER WAY, SUITE 200, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,026,099
Exercised Options: $47,026,099
Current Obligation: $42,216,592
Subaward Activity
Number of Subawards: 82
Total Subaward Amount: $12,746,395
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W91CRB16D0009
IDV Type: IDC
Timeline
Start Date: 2016-03-25
Current End Date: 2017-08-12
Potential End Date: 2017-08-12 00:00:00
Last Modified: 2022-04-19
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