DoD's STRIVE: NFEP contract awarded to ATA AEROSPACE LLC for $28.1M, focusing on R&D

Contract Overview

Contract Amount: $28,109,231 ($28.1M)

Contractor: ATA Aerospace LLC

Awarding Agency: Department of Defense

Start Date: 2012-08-01

End Date: 2019-07-31

Contract Duration: 2,555 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRIVE: NEXT FLIGHT EXPERIMENT PROGRAM (NFEP)

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87123

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to ATA AEROSPACE LLC for work described as: STRIVE: NEXT FLIGHT EXPERIMENT PROGRAM (NFEP) Key points: 1. Contract value of $28.1 million for research and development services. 2. Awarded to ATA AEROSPACE LLC, a single contractor. 3. Contract duration spans 2555 days, indicating a long-term research effort. 4. The contract type is Cost Plus Fixed Fee, common in R&D where final costs are uncertain. 5. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical, engineering, and life sciences. 6. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a specific justification for limited competition. 7. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully, as the contractor is reimbursed for allowable costs plus a fixed fee. Without specific performance metrics or benchmarks for the R&D outcomes, it's difficult to definitively assess value for money. The total award amount of $28.1 million over approximately seven years suggests a significant investment in research.

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.' This designation is unusual and suggests that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed in the provided data. The presence of '2' bidders indicates some level of competition, but the exclusion clause warrants further investigation into the procurement process.

Taxpayer Impact: The exclusion of sources, even if justified, may limit the potential for competitive pricing and innovation, potentially costing taxpayers more than a truly open competition.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, gaining insights and advancements in physical, engineering, and life sciences research. The services delivered are research and development, contributing to technological advancements within the defense sector. The geographic impact is primarily New Mexico, where the contractor is located. Workforce implications include employment for researchers, engineers, and support staff at ATA AEROSPACE LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type raises concerns about the breadth of competition and potential for higher costs.
Cost Plus Fixed Fee contracts can incentivize cost increases if not rigorously overseen.
The long duration of the contract (2555 days) necessitates ongoing monitoring to ensure continued relevance and value.

Positive Signals

The contract was awarded under a competitive process, indicating multiple entities vied for the work.
The focus on R&D suggests investment in future capabilities and technological superiority for the Air Force.
The specific NAICS code indicates specialized research expertise is being procured.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is critical for defense innovation, enabling the development of advanced technologies. Comparable spending in this area can vary widely depending on the specific research focus, but significant government investment is typical for defense-related R&D to maintain a technological edge.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, ATA AEROSPACE LLC, is responsible for its own workforce and resource management.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract databases like FPDS, though specific research details may be sensitive.

Related Government Programs

Advanced Research Projects Agency (ARPA) programs
Defense Advanced Research Projects Agency (DARPA) initiatives
Air Force Research Laboratory (AFRL) projects
Other R&D contracts within the Department of Defense

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to 'Exclusion of Sources'.
Reliance on a single contractor for a long-duration R&D project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to ATA AEROSPACE LLC. STRIVE: NEXT FLIGHT EXPERIMENT PROGRAM (NFEP)

Who is the contractor on this award?

The obligated recipient is ATA AEROSPACE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2012-08-01. End: 2019-07-31.

What specific research objectives were pursued under the STRIVE: NEXT FLIGHT EXPERIMENT PROGRAM (NFEP)?

The STRIVE: NEXT FLIGHT EXPERIMENT PROGRAM (NFEP) likely aimed to advance experimental flight technologies and capabilities for the Department of the Air Force. While the specific objectives are not detailed in the provided data, contracts under NAICS code 541712, especially within defense R&D, often focus on areas such as aerodynamics, propulsion systems, materials science for aerospace applications, advanced sensor integration, or novel flight control systems. The 'NEXT FLIGHT' in the program name suggests a forward-looking approach to developing next-generation aviation or unmanned aerial systems. The Cost Plus Fixed Fee (CPFF) contract type indicates that the precise scope and cost of the research may have been difficult to define upfront, necessitating flexibility in the research process.

How does the $28.1 million award compare to typical R&D spending for similar defense projects?

The $28.1 million award for the STRIVE: NFEP over approximately seven years (2555 days) represents a moderate investment for a defense-focused R&D project. Large-scale defense R&D programs can range from tens of millions to billions of dollars, depending on their scope, technological ambition, and phase (e.g., basic research vs. advanced development). For a specific experimental program focused on flight technologies, this amount suggests a significant, but not exceptionally large, undertaking. It's comparable to many advanced technology development contracts awarded by agencies like DARPA or AFRL. Without knowing the specific technological advancements targeted, a precise benchmark is difficult, but it falls within a common range for specialized R&D efforts.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while useful for R&D where costs are uncertain, carry inherent risks. The primary risk for the government is that the contractor may have less incentive to control costs, as all allowable costs are reimbursed. The 'fixed fee' component provides some incentive for efficiency, but if the scope of work expands or unforeseen challenges arise, costs can escalate. For the contractor, the risk lies in accurately estimating the fixed fee to cover their overhead and profit while remaining competitive. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. Scope creep is a significant concern that can inflate costs beyond initial projections.

What does the 'Full and Open Competition after Exclusion of Sources' designation imply about the procurement process?

The designation 'Full and Open Competition after Exclusion of Sources' is somewhat contradictory and suggests a specific justification was required to limit the pool of potential bidders. 'Full and Open Competition' typically means all responsible sources are permitted to submit offers. However, the 'after Exclusion of Sources' part indicates that certain sources were intentionally not considered. This could be due to reasons such as national security, proprietary technology, or the need for highly specialized expertise that only a limited number of entities possess. The fact that there were still two bidders suggests that even with exclusions, some competition was achieved. However, it raises questions about whether a broader competition could have yielded better results or pricing.

What is the significance of ATA AEROSPACE LLC being the sole awardee for this contract?

ATA AEROSPACE LLC being the sole awardee for this specific delivery order under the STRIVE: NFEP implies that they were selected as the most qualified bidder among the two that participated in the competition. As a single awardee, they will be responsible for executing the entirety of the research and development outlined in this order. This concentration of work with one contractor can streamline project management and communication. However, it also means that the government's success is heavily reliant on the performance and capabilities of ATA AEROSPACE LLC. The long duration of the contract further emphasizes this reliance, necessitating robust performance monitoring and relationship management.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1300 BRITT ST SE, ALBUQUERQUE, NM, 87123

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,937,157

Exercised Options: $29,937,157

Current Obligation: $28,109,231

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $69,972

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945312D0285

IDV Type: IDC

Timeline