DoD's $21.7M R&D contract with A-P-T RESEARCH, INC. for missile defense systems shows fair value
Contract Overview
Contract Amount: $21,677,847 ($21.7M)
Contractor: A-P-T Research, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-30
End Date: 2014-09-20
Contract Duration: 1,451 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LABOR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to A-P-T RESEARCH, INC. for work described as: LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1451 days indicates a significant, long-term project. 3. Focus on Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) highlights innovation. 4. The Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control by the contractor. 5. Awarded by the Missile Defense Agency, aligning with critical national security objectives. 6. The contract's value is moderate within the context of large-scale defense R&D projects.
Value Assessment
Rating: fair
The contract's value of $21.7 million over approximately four years for specialized R&D in missile defense appears reasonable. While specific benchmarks for comparable missile defense R&D are not readily available, the CPFF structure, combined with a fixed fee, suggests a controlled profit margin for the contractor. The number of bids (3) indicates some level of interest, but not extensive competition, which could slightly temper the value proposition. However, given the specialized nature of the work, the pricing is likely within an acceptable range for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of full and open competition. Three bids were received, indicating a moderate level of competition for this specialized R&D requirement. While three bidders suggest some market interest, it is not as robust as might be seen in less specialized procurements. This level of competition likely provided the agency with a reasonable selection of qualified offerors and a basis for price negotiation, though potentially not the absolute lowest price achievable with broader competition.
Taxpayer Impact: The moderate competition suggests that taxpayers received a fair price, balancing the need for specialized expertise with cost-consciousness. The exclusion of sources clause indicates a deliberate decision to allow broader competition while potentially managing specific technical requirements.
Public Impact
The primary beneficiaries are the Department of Defense and national security, through advancements in missile defense capabilities. The services delivered involve cutting-edge research and development in physical and engineering sciences. The geographic impact is primarily within Alabama, where the contractor A-P-T RESEARCH, INC. is located. Workforce implications include employment for highly skilled scientists, engineers, and technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
- The limited number of bidders (3) might indicate a niche market or high barriers to entry, potentially limiting price competition.
- The specific nature of missile defense R&D can be subject to technological uncertainties and evolving requirements.
Positive Signals
- Awarded through full and open competition, ensuring a broad search for qualified contractors.
- The contract is for Research and Development, indicating investment in future technological capabilities.
- The contractor, A-P-T RESEARCH, INC., is based in Alabama, potentially supporting regional economic development.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research and Development (R&D) for missile defense systems. The R&D market within the defense industry is characterized by high specialization, significant government investment, and long development cycles. Comparable spending benchmarks are difficult to establish without more specific details on the technology, but R&D contracts of this magnitude are common for developing advanced defense capabilities. The market size for missile defense technology is substantial, driven by global security concerns.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless A-P-T RESEARCH, INC. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency (MDA) within the Department of Defense. Accountability measures would be embedded in the contract's performance requirements, milestones, and reporting obligations. Transparency is generally maintained through contract award databases and public reporting, though specific technical details of R&D may be sensitive. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Advanced Research and Development
- Department of Defense Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Overrun Potential (CPFF)
- Limited Competition Indicator
- Technological Uncertainty
Tags
defense, research-and-development, missile-defense, department-of-defense, missile-defense-agency, cost-plus-fixed-fee, full-and-open-competition, alabama, technology-development, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to A-P-T RESEARCH, INC.. LABOR
Who is the contractor on this award?
The obligated recipient is A-P-T RESEARCH, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2010-09-30. End: 2014-09-20.
What is the track record of A-P-T RESEARCH, INC. with the Department of Defense, particularly in missile defense R&D?
A-P-T RESEARCH, INC. has a history of performing research and development contracts, including those related to defense applications. While specific details on their track record in missile defense R&D require deeper database analysis, their engagement by the Missile Defense Agency for this $21.7 million contract suggests they possess the requisite technical expertise and capabilities. Further investigation into their past performance ratings, prior contract values, and successful delivery of similar projects would provide a more comprehensive understanding of their reliability and effectiveness in this specialized domain. Examining their portfolio of work and any documented successes or challenges in previous defense R&D efforts is crucial for a complete assessment.
How does the $21.7 million value of this contract compare to other missile defense R&D efforts by the DoD?
The $21.7 million value for this contract, spanning approximately four years, represents a moderate investment in missile defense R&D. The Department of Defense often engages in R&D programs that range from tens of millions to billions of dollars, depending on the scope, technological maturity, and strategic importance. Contracts for foundational research or specific component development might fall within this range, while larger system integration or full-scale prototype development contracts would typically be significantly higher. This particular award suggests a focus on a specific research area or a phase of development rather than a complete system acquisition. Benchmarking requires comparing it against contracts with similar objectives, technological focus, and duration within the missile defense portfolio.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for missile defense R&D?
The primary risks associated with a CPFF contract for missile defense R&D revolve around cost control and contractor incentives. While the fixed fee provides the contractor with a defined profit, the 'cost plus' element means the government reimburses allowable costs. If not rigorously managed, there's a risk of cost escalation if the contractor's actual expenses exceed initial estimates, even though their fee remains constant. The contractor may have less incentive to aggressively control costs compared to a fixed-price contract, as their profit is not directly tied to cost savings. Effective oversight, detailed cost tracking, and clear definition of allowable costs are critical to mitigate these risks and ensure value for the government.
What is the expected program effectiveness or outcome based on the contract's description?
Based on the contract's description as 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' for the Missile Defense Agency, the expected outcome is the advancement of technology and knowledge pertinent to missile defense. The program effectiveness will be measured by the successful completion of research objectives, the development of innovative solutions or prototypes, and the potential transition of these advancements into future missile defense systems. The contract's duration and value suggest a focused effort on a specific R&D challenge. Ultimately, effectiveness hinges on whether the research contributes to enhancing the nation's missile defense capabilities, improving threat detection, tracking, or interception technologies.
How has historical spending on missile defense R&D by the DoD evolved, and where does this contract fit?
Historical spending on missile defense R&D by the DoD has been substantial and often fluctuates based on perceived threats and strategic priorities. The Missile Defense Agency (MDA) consistently receives significant funding allocations for research, development, testing, and evaluation. This $21.7 million contract represents a specific, targeted investment within that broader spending landscape. It likely fits into a category of component development, technology maturation, or exploratory research rather than a major program system acquisition. Understanding the historical trends in MDA's budget and the types of R&D contracts awarded provides context for the scale and focus of this particular award, indicating a continued commitment to advancing missile defense technologies.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ014709R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4950 RESEARCH DR, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,852,376
Exercised Options: $22,852,376
Current Obligation: $21,677,847
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014710D0028
IDV Type: IDC
Timeline
Start Date: 2010-09-30
Current End Date: 2014-09-20
Potential End Date: 2014-09-20 00:00:00
Last Modified: 2020-06-04
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