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
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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space 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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