DoD's $46.1M Electronics & Communication R&D Contract Awarded to ARINC Inc. for Advanced Technology Development
Contract Overview
Contract Amount: $46,111,787 ($46.1M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 1998-09-16
End Date: 2005-05-31
Contract Duration: 2,449 days
Daily Burn Rate: $18.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 199812!2100!4070!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798DH502 !A!*!0004 !19980916!20000728!101458586!101458586!101458586!N!89185!ARINC INCORPORATED !2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !0001!+000000256500!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !8711!5!B!M!*!B!A!*!A !N!Y!2!002!B!* !C!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 199812!2100!4070!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798DH502 !A!*!0004 !19980916!20000728!101458586!101458586!101458586!N!89185!ARINC INCORPORATED !2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE A… Key points: 1. Contract focused on advanced technology development in electronics and communication. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 2449 days (over 6 years) indicates a long-term project. 4. Performance was managed by the Defense Contract Management Agency. 5. The contract type was Time and Materials, which can pose cost control challenges. 6. The primary place of performance was Annapolis, Maryland.
Value Assessment
Rating: fair
The contract value of $46.1 million over nearly 7 years for R&D in electronics and communication equipment appears to be within a reasonable range for advanced technology development. However, without specific benchmarks for comparable advanced technology development contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult. The Time and Materials contract type introduces inherent risk for cost overruns if not managed diligently, potentially impacting the overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While full and open competition is generally preferred for maximizing competition and achieving fair pricing, the low number of bids (two) might suggest potential limitations in the market for this specific advanced technology development or that the solicitation was highly specialized.
Taxpayer Impact: The full and open competition, despite a low bid count, aims to ensure taxpayers receive competitive pricing. However, the limited number of bidders could mean less downward pressure on price than if more companies had participated.
Public Impact
The Department of Defense benefits from advancements in electronics and communication technology. This contract supports the development of cutting-edge equipment for military applications. The primary geographic impact is in Annapolis, Maryland, where the contractor is located and likely performed the work. The contract likely supported specialized technical and engineering roles within ARINC Incorporated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- Low number of bids (2) may indicate limited competition or market challenges for this specific technology.
- The contract's long duration (over 6 years) increases the risk of scope creep or evolving technological requirements.
Positive Signals
- Awarded under full and open competition, adhering to best practices for procurement.
- Contract focused on advanced technology development, potentially yielding significant future capabilities.
- The contractor, ARINC Incorporated, has a history of providing services to the government.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technology development in electronics and communication. The defense industry heavily invests in R&D to maintain technological superiority. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the 'advanced tech development,' but R&D contracts can range from millions to billions depending on the scope and criticality.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, there is no explicit information regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is not discernible from the data.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) was responsible for contract administration, implying oversight of performance, quality, and compliance. The Time and Materials nature of the contract necessitates vigilant oversight to control costs and ensure efficient use of resources. Transparency is generally facilitated through contract databases like FPDS, but specific oversight reports or IG involvement are not detailed in this data.
Related Government Programs
- Defense Electronics Research
- Communication Systems Development
- Advanced Technology Programs
- Department of Defense R&D Spending
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Limited competition indicated by only two bids received.
- Long contract duration may increase risk of scope changes or obsolescence.
Tags
department-of-defense, research-and-development, electronics, communication-equipment, advanced-technology, time-and-materials, full-and-open-competition, annapolis-maryland, arinc-incorporated, defense-contract-management-agency, rdte, contract-award-1998
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 199812!2100!4070!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0798DH502 !A!*!0004 !19980916!20000728!101458586!101458586!101458586!N!89185!ARINC INCORPORATED !2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !0001!+000000256500!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !8711!5!B!M!*!B!A!*!A !N!Y!2!0
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.1 million.
What is the period of performance?
Start: 1998-09-16. End: 2005-05-31.
What was the specific nature of the 'advanced technology development' in electronics and communication?
The provided data categorizes the contract under 'RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV' and 'ELECTRONICS AND COMMUNICATION'. This suggests the contract was for research, development, testing, and evaluation of new or significantly improved electronic and communication equipment. The specific nature of the 'advanced technology' is not detailed, but it likely pertains to next-generation communication systems, sensor technologies, electronic warfare capabilities, or other specialized defense-related electronics. Without further documentation or a more detailed description, the exact technological focus remains unspecified.
How does the $46.1M contract value compare to similar advanced technology development contracts in the defense sector?
Comparing the $46.1 million value requires context on the specific technology and development phase. Advanced technology development contracts in the defense sector can vary significantly. For foundational research or early-stage prototyping, $46.1 million over nearly seven years might be substantial. However, for developing complex systems or integrating multiple technologies, it could be moderate. Benchmarking requires access to data on contracts with similar scope, technological maturity, and duration within the DoD's R&D portfolio, which is not fully available here. The Time and Materials structure also adds a layer of variability to the final cost.
What are the primary risks associated with a Time and Materials (T&M) contract for advanced R&D?
The primary risks with a T&M contract for advanced R&D, like this one, revolve around cost control and potential overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project scope is not tightly defined or if unforeseen technical challenges arise, the contractor may incur more labor hours or material costs than initially anticipated, leading to a higher final price for the government. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks.
What does the low number of bids (2) suggest about the market for this type of advanced technology development?
A low number of bids, such as the two received for this contract, can suggest several possibilities regarding the market for this specific type of advanced technology development. It might indicate that the required expertise is highly specialized, limiting the number of capable contractors. Alternatively, the solicitation's requirements or terms might have deterred potential bidders, or the market size for this particular technology may be relatively small. It could also reflect the early stage of the technology, where only a few companies are actively engaged in its development. This limited competition could potentially reduce price negotiation leverage for the government.
What is ARINC Incorporated's track record with government contracts, particularly in R&D?
ARINC Incorporated (now part of Rockwell Collins, which is part of RTX) has a significant history of performing government contracts, including those related to defense, aerospace, and communication systems. While the specific data provided here focuses on a single contract from the late 1990s/early 2000s, ARINC has generally been known for its work in aviation communications, navigation, and defense electronics. Their involvement in advanced technology development contracts is consistent with their historical expertise. A comprehensive assessment would require reviewing their broader contract performance history, including any past performance evaluations or disputes.
How has spending on 'Electronics & Communication Equipment - Advanced Technology Development' evolved since this contract was awarded?
Spending on 'Electronics & Communication Equipment - Advanced Technology Development' has likely increased significantly since this contract was awarded in the late 1990s. Technological advancements in areas like artificial intelligence, 5G communications, cyber warfare, and advanced sensor technology have driven substantial investment by the Department of Defense. Budgets for R&D, particularly in these critical areas, have generally grown to address evolving geopolitical threats and maintain a technological edge. This contract represents a snapshot from an earlier era, and current spending likely reflects more sophisticated and integrated technological pursuits.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 2551 RIVA RD, ANNAPOLIS, MD, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0798DH502
IDV Type: IDC
Timeline
Start Date: 1998-09-16
Current End Date: 2005-05-31
Potential End Date: 2005-05-31 00:00:00
Last Modified: 2014-10-23
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