DoD's $57.8M Satellite Services Contract Awarded to AS AND D, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $57,789,235 ($57.8M)
Contractor: AS and D, LLC
Awarding Agency: Department of Defense
Start Date: 2014-02-28
End Date: 2020-08-26
Contract Duration: 2,371 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF, SATELLITE SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $57.8 million to AS AND D, LLC for work described as: IGF::OT::IGF, SATELLITE SERVICES Key points: 1. Contract awarded for satellite services, a critical component of modern defense operations. 2. AS AND D, LLC secured the contract, indicating competitive market dynamics. 3. The contract duration of over 6 years presents potential long-term value and risk. 4. Spending falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts for satellite services is difficult without more granular cost data.
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,' suggesting a competitive process was initiated but specific sources were later excluded. This method aims for best value but the exclusion could limit price discovery.
Taxpayer Impact: While competition was intended, the CPFF structure and potential source exclusion warrant scrutiny to ensure taxpayer funds are used efficiently for the services rendered.
Public Impact
Ensures continued access to vital satellite services for Department of Defense operations. Supports technological advancement in satellite communication and data processing. Potential for job creation within the aerospace and R&D sectors. Impacts national security through enhanced intelligence, surveillance, and reconnaissance capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
- Exclusion of sources in a full and open competition may limit competitive pressure.
- Long contract duration (over 6 years) increases risk of cost escalation and technological obsolescence.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Contract supports critical R&D in satellite services, vital for national security.
- Delivery order structure allows for phased funding and potential flexibility.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this area is crucial for technological advancement but can be prone to cost overruns due to the inherent uncertainties in R&D projects.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract's CPFF structure necessitates robust oversight from the Department of the Navy to manage costs and ensure performance objectives are met. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of limited competition due to 'exclusion of sources'.
- Technological obsolescence over the contract's long duration.
- Lack of transparency on specific satellite services procured.
- Uncertainty regarding small business subcontracting opportunities.
Tags
research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.8 million to AS AND D, LLC. IGF::OT::IGF, SATELLITE SERVICES
Who is the contractor on this award?
The obligated recipient is AS AND D, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $57.8 million.
What is the period of performance?
Start: 2014-02-28. End: 2020-08-26.
What specific satellite services were procured, and how do they align with current and future defense needs?
The contract specifies 'Satellite Services' under NAICS 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While the exact services are not detailed, they likely encompass research, development, and potentially operational support for satellite communication, data relay, or sensor technology. This aligns with the DoD's continuous need for advanced C4ISR capabilities, intelligence gathering, and secure communication networks.
How effectively did the 'exclusion of sources' clause impact the final price and the range of innovative solutions considered?
The 'exclusion of sources' clause, even within a full and open competition framework, raises questions about the breadth of the initial solicitation and the rationale for exclusion. While intended to streamline the process or focus on specific capabilities, it could inadvertently limit the pool of potential bidders and stifle the introduction of novel, potentially more cost-effective solutions from excluded entities. A thorough review of the justification for exclusion is warranted.
What mechanisms are in place to ensure the 'fixed fee' in the CPFF contract remains reasonable and doesn't incentivize unnecessary cost escalation?
In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee is negotiated upfront and represents the contractor's profit. While the 'cost' portion is reimbursed, the fixed fee itself is not directly tied to cost increases. However, robust oversight is crucial to ensure the initial cost estimates are realistic and that the contractor is not incentivized to inflate costs to justify a larger fee base, even if the fee percentage remains constant. Performance metrics and clear deliverables are key.
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 › General Science and Technology R&D Services
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
Parent Company: Arctic Slope Regional Corporation
Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,717,157
Exercised Options: $62,717,157
Current Obligation: $57,789,235
Subaward Activity
Number of Subawards: 85
Total Subaward Amount: $13,511,261
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017314D2016
IDV Type: IDC
Timeline
Start Date: 2014-02-28
Current End Date: 2020-08-26
Potential End Date: 2020-08-26 00:00:00
Last Modified: 2022-04-02
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