DoD's $34.8M R&D contract with Astrion Group shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $34,801,861 ($34.8M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2014-03-30
End Date: 2015-09-30
Contract Duration: 549 days
Daily Burn Rate: $63.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF TASK ORDER 0005
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $34.8 million to ASTRION GROUP, LLC for work described as: IGF::CT::IGF TASK ORDER 0005 Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns. 4. Performance period of 1.5 years is relatively short for complex R&D. 5. This contract falls within the specialized R&D sector for physical and engineering sciences. 6. The contractor, Astrion Group, has a track record in government contracting.
Value Assessment
Rating: fair
The contract's total value of $34.8 million over 1.5 years for R&D services appears within a reasonable range for specialized scientific research. Benchmarking against similar contracts in the physical and engineering sciences (NAICS 541712) suggests that the overall cost is not excessively high. However, the CPFF contract type introduces inherent risk, as it allows for cost reimbursement plus a fixed fee, which can sometimes lead to less stringent cost control compared to fixed-price contracts. Further analysis of the specific deliverables and the fixed fee percentage would be needed for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while competition was sought, certain sources were excluded. This is not a sole-source award, but it implies a narrower field of potential bidders than a truly open competition. The specific reasons for excluding sources are not detailed here, but this approach can limit price discovery and potentially lead to less competitive pricing. The number of bidders is not specified, but the award type suggests fewer than would be expected in a fully open solicitation.
Taxpayer Impact: The limited competition may have resulted in taxpayers paying a premium compared to what might have been achieved in a fully open and unrestricted bidding process.
Public Impact
The primary beneficiaries are the Department of Defense and its research initiatives, advancing scientific and technological capabilities. Services delivered likely involve advanced research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily within the United States, supporting national defense objectives. Workforce implications include employment for highly skilled scientists, engineers, and researchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to less incentive for cost control.
- Limited competition may result in higher prices than a fully open market.
- The specific R&D focus requires careful monitoring to ensure alignment with strategic goals.
- Exclusion of sources in the competition process warrants further investigation into justification.
Positive Signals
- Contract awarded to Astrion Group, LLC, a known entity in government contracting.
- The contract is for Research and Development, a critical area for defense modernization.
- The award falls under a specific NAICS code, indicating a focused area of expertise.
- The contract duration, while not extensive, allows for focused project execution.
Sector Analysis
This contract operates within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This is a highly specialized segment of the federal contracting market, often characterized by unique technical requirements and a smaller pool of qualified contractors. Federal spending in R&D is crucial for innovation and maintaining technological superiority. Comparable spending benchmarks in this niche are difficult to establish without more specific technical details, but contracts in this area typically require significant expertise and can be substantial in value.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the focus was on acquiring specialized R&D capabilities, and the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, but given the nature of the award and the contractor's likely size, it's possible that subcontracting opportunities for small businesses might be limited unless explicitly required or pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Inspector General (IG) of the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though the specifics of R&D projects can sometimes be sensitive. Accountability measures would be tied to the delivery of research outcomes and adherence to the contract terms, including cost controls under the CPFF structure.
Related Government Programs
- Department of Defense Research and Development Contracts
- Research and Development in Physical Sciences
- Engineering Research Services
- Life Sciences Research Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Limited competition may lead to higher costs.
- CPFF contract type carries inherent cost overrun risk.
- Justification for exclusion of sources needs review.
- Short performance period may limit scope of R&D.
Tags
department-of-defense, research-and-development, physical-engineering-life-sciences, cost-plus-fixed-fee, limited-competition, delivery-order, maryland, medium-contract-value, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to ASTRION GROUP, LLC. IGF::CT::IGF TASK ORDER 0005
Who is the contractor on this award?
The obligated recipient is ASTRION GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $34.8 million.
What is the period of performance?
Start: 2014-03-30. End: 2015-09-30.
What is Astrion Group, LLC's track record with the Department of Defense and similar R&D contracts?
Astrion Group, LLC has a history of performing various services for the Department of Defense and other federal agencies. While specific details on their R&D contract performance require deeper database searches, their presence as a contractor suggests they possess the necessary clearances and capabilities. Analyzing past performance evaluations, contract modifications, and any past performance issues or commendations would provide a clearer picture of their reliability and expertise in executing complex R&D projects. Their experience with Cost Plus Fixed Fee (CPFF) contracts is also a key factor in assessing their suitability for this type of award.
How does the $34.8 million value compare to similar R&D contracts for physical and engineering sciences?
Benchmarking the $34.8 million contract value requires comparing it against contracts with similar scope, duration, and technical complexity within NAICS code 541712. Without specific details on the research objectives, the comparison is broad. However, R&D contracts in specialized scientific fields can range widely, from a few million to hundreds of millions of dollars. The 1.5-year duration suggests a focused project. If this contract involves cutting-edge research or development of novel technologies, the price point might be considered fair. Conversely, if it's for more established research areas, it could be on the higher side, especially considering the CPFF structure.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risk with a CPFF contract for R&D is the potential for cost overruns. While the contractor receives a fixed fee, their costs are reimbursed. This structure can reduce the incentive for the contractor to aggressively control expenses, as they are guaranteed their costs will be covered plus a profit margin. For R&D, where outcomes can be uncertain and costs difficult to predict, this risk is amplified. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. The government bears the risk of cost increases above the estimated amount.
What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for price discovery and taxpayer value?
This award type signifies that the agency intended to compete the contract broadly but subsequently excluded certain potential sources. This exclusion, if not based on objective technical qualifications or specific regulatory requirements, can limit the number of bidders. Fewer bidders generally lead to less robust price competition. Consequently, the government might not achieve the lowest possible price, and taxpayers could potentially pay more than they would in a truly open competition where all qualified sources could participate without exclusion. The justification for excluding sources is critical to understanding the impact on value.
What are the potential long-term implications of this R&D investment for the Department of Defense?
This R&D investment could have significant long-term implications for the Department of Defense, depending on the nature of the research. Successful outcomes could lead to advancements in military technology, improved operational capabilities, enhanced national security, and a stronger technological edge over adversaries. Conversely, if the research does not yield the desired results or if the technology proves impractical or too costly to implement, the investment may not provide a substantial return. The strategic alignment of this R&D with DoD's future needs is paramount to realizing its long-term value.
How does the contract's performance period (549 days) align with typical R&D project timelines in this sector?
A performance period of 549 days (approximately 1.5 years) is relatively short for many complex R&D projects, particularly those involving fundamental research or the development of entirely new technologies. While suitable for specific, well-defined research tasks or incremental development, it might be insufficient for projects requiring extensive experimentation, iterative design, or long lead times for materials and testing. The feasibility of achieving the contract's objectives within this timeframe depends heavily on the project's scope and the maturity of the underlying research. Shorter durations can sometimes indicate a focus on specific milestones or phases within a larger R&D effort.
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 › DEFENSE (OTHER) R&D
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: 4901 CORPORATE DR STE E, HUNTSVILLE, AL, 35805
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,801,861
Exercised Options: $34,801,861
Current Obligation: $34,801,861
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q10D0009
IDV Type: IDC
Timeline
Start Date: 2014-03-30
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 12:09:00
Last Modified: 2024-11-04
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