DoD's $19.7M R&D Contract with Assurance Technology Corp. for Physical Sciences Research

Contract Overview

Contract Amount: $19,665,078 ($19.7M)

Contractor: Assurance Technology Corp

Awarding Agency: Department of Defense

Start Date: 2012-09-21

End Date: 2015-09-17

Contract Duration: 1,091 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 81-0137-12

Place of Performance

Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to ASSURANCE TECHNOLOGY CORP for work described as: 81-0137-12 Key points: 1. The contract value of $19.7 million is moderate for R&D in the physical sciences sector. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. The cost-plus-fixed-fee (CPFF) pricing structure carries some risk of cost overruns. 4. The R&D sector (NAICS 541712) is critical for technological advancement but can have uncertain outcomes.

Value Assessment

Rating: good

The $19.7 million contract value appears reasonable for a multi-year R&D effort in specialized physical sciences. Benchmarking against similar DoD R&D contracts would provide a more precise assessment.

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,' indicating a competitive process where specific sources were initially excluded but the award was still open. This method aims for best value while potentially streamlining the process.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received fair pricing for the research and development services.

Public Impact

Advancement in physical sciences research could lead to new technologies benefiting national security. The contract supports specialized R&D, contributing to the innovation ecosystem. Transparency in the procurement process, even with source exclusion, is vital for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can incentivize contractor spending.
  • The specific R&D outcomes are inherently uncertain.
  • Exclusion of sources, even if justified, warrants scrutiny.

Positive Signals

  • Full and open competition after exclusion of sources indicates a structured procurement.
  • The contract duration of 1091 days suggests a substantial project.
  • The contract supports critical R&D for the Department of Defense.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Spending in this sector is crucial for innovation and maintaining technological superiority, with typical contract values varying widely based on project scope and duration.

Small Business Impact

The data does not indicate whether small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) oversees this contract, ensuring compliance with terms and conditions. Regular reporting and performance reviews are standard oversight mechanisms for such R&D contracts.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost-plus-fixed-fee pricing structure.
  • Inherent uncertainty of R&D outcomes.
  • Potential for cost overruns.
  • Exclusion of sources requires justification.

Tags

research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to ASSURANCE TECHNOLOGY CORP. 81-0137-12

Who is the contractor on this award?

The obligated recipient is ASSURANCE TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2012-09-21. End: 2015-09-17.

What specific advancements in physical sciences are expected from this $19.7 million contract, and how do they align with DoD's strategic objectives?

The contract aims to advance research in physical sciences, likely focusing on areas critical to national security and technological superiority as defined by the Department of Defense. Specific advancements would be detailed in the contract's statement of work, but generally, such R&D could lead to breakthroughs in materials science, energy, or advanced manufacturing, directly supporting strategic defense goals and future capabilities.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this R&D contract, and how are they mitigated?

The primary risk of a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, performance metrics, and clear definition of allowable costs within the contract. The fixed fee incentivizes efficiency, but the government bears the cost risk.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring both innovation and cost-effectiveness for specialized R&D like this?

This competition method can be effective by allowing a broad range of potential offerors while excluding specific sources deemed unsuitable or unnecessary for the project's unique requirements. It balances the desire for innovation from a wide pool with the need for specialized expertise, potentially leading to cost-effectiveness by focusing on qualified bidders and competitive proposals, though the exclusion criteria must be well-justified.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace 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

Address: 84 S ST, CARLISLE, MA, 01741

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,693,091

Exercised Options: $19,693,091

Current Obligation: $19,665,078

Subaward Activity

Number of Subawards: 703

Total Subaward Amount: $306,653,930

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017312D2021

IDV Type: IDC

Timeline

Start Date: 2012-09-21

Current End Date: 2015-09-17

Potential End Date: 2015-09-17 00:00:00

Last Modified: 2020-05-16

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