ASTRION GROUP, LLC awarded $152.5M for engineering services, with a significant portion for missile and space systems

Contract Overview

Contract Amount: $152,526,427 ($152.5M)

Contractor: Astrion Group, LLC

Awarding Agency: Department of Defense

Start Date: 2002-10-23

End Date: 2010-07-31

Contract Duration: 2,838 days

Daily Burn Rate: $53.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200306!000208!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR073 !A!N! !N! !20021023!20071022!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000258868!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !20071022!B! ! !A! !A!N!U!2!003!K! !C!N!Z! ! !N!A!Y!N!B! ! ! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $152.5 million to ASTRION GROUP, LLC for work described as: 200306!000208!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR073 !A!N! !N! !20021023!20071022!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract value of $152.5M indicates a substantial investment in specialized engineering expertise. 2. The contract's focus on missile and space systems positions it within a critical defense sector. 3. A long duration of 2838 days suggests a need for sustained engineering support. 4. The 'full and open competition after exclusion of sources' indicates a complex procurement process. 5. The contract type 'Cost Plus Fixed Fee' can present risks of cost overruns if not managed carefully. 6. The primary service area is engineering, research, development, and testing/evaluation.

Value Assessment

Rating: fair

The contract value of $152.5 million over approximately 7.8 years results in an average annual value of roughly $19.5 million. This figure needs to be benchmarked against similar large-scale engineering support contracts for missile and space systems. The 'Cost Plus Fixed Fee' (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation if the fixed fee is not adequately justified or if the base costs are not tightly controlled. Without specific per-unit cost data or detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging, but the scale suggests a significant investment requiring diligent oversight.

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 suggests that while the competition was intended to be broad, there might have been specific reasons or criteria that led to the exclusion of certain potential bidders initially, or a phased approach to competition. The presence of 3 bids indicates a moderate level of competition for this specialized service. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: While 3 bidders suggest some competition, a more robust competition with a larger pool of qualified offerors could have potentially driven down costs further for taxpayers. The exclusion of sources, even if justified, warrants scrutiny to ensure it did not unduly limit competition.

Public Impact

The primary beneficiaries are likely the U.S. Army's aviation and missile command, receiving critical engineering and research services. Services delivered include engineering research and consulting, specifically supporting missile and space systems. The geographic impact is centered around Huntsville, Alabama, a known hub for aerospace and defense activities. Workforce implications include the potential for highly skilled engineering jobs in the Huntsville area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns if not managed diligently.
The 'exclusion of sources' in the procurement process warrants review to ensure maximum competition was achieved.
Limited public information on specific deliverables makes it difficult to fully assess performance against objectives.
The long contract duration could lead to scope creep or outdated technology if not actively managed.

Positive Signals

Awarded to a single contractor, ASTRION GROUP, LLC, suggesting specialized capabilities.
The contract is for engineering services, a critical component of defense research and development.
The contract is in Alabama, a state with a significant defense and aerospace industrial base.
The contract value of over $150 million indicates a significant level of trust and capability recognized by the awarding agency.

Sector Analysis

This contract falls within the Defense Applied Research and Development sector, specifically focusing on Missile and Space Systems. The North American Industry Classification System (NAICS) code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) and 541330 (Engineering Services) are relevant. The market for such specialized engineering services is highly concentrated, with a few key players possessing the necessary expertise and security clearances. Spending in this area is driven by national security priorities and technological advancements in defense capabilities. Comparable spending benchmarks would involve analyzing other large R&D contracts for similar defense systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract for specialized engineering services, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting requirements and performance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract's 'Cost Plus Fixed Fee' nature necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency is generally limited for defense contracts of this nature due to security and proprietary concerns, but Inspector General (IG) reports and agency audits would provide accountability measures.

Related Government Programs

Missile Defense Systems
Space Systems Development
Aviation Engineering Services
Defense Research and Development
Engineering Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Procurement method 'full and open competition after exclusion of sources' may limit competitive pressure.
Long contract duration requires diligent management to prevent scope creep and obsolescence.
Limited public data on specific performance metrics makes value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $152.5 million to ASTRION GROUP, LLC. 200306!000208!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR073 !A!N! !N! !20021023!20071022!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000258868!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !20071022!B

Who is the contractor on this award?

The obligated recipient is ASTRION GROUP, 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 $152.5 million.

What is the period of performance?

Start: 2002-10-23. End: 2010-07-31.

What is the specific breakdown of services provided under this contract and how do they align with the stated objectives of the USA Aviation and Missile Command?

The contract data indicates the primary service is 'ENGINEERING RESEARCH & CONSULT' with a Product Service Code (PSC) of 541710 (Research and Development in the Physical, Engineering, and Life Sciences) and 541330 (Engineering Services). The contract specifically mentions 'MISSILE AND SPACE SYSTEMS' as a sub-category. While the exact deliverables are not detailed in the provided data, these services typically encompass activities such as system design, analysis, testing, integration, and technical support for advanced missile and space platforms. The USA Aviation and Missile Command (AMCOM) is responsible for the life cycle management of aviation and missile systems, so this contract directly supports their mission by providing the necessary engineering expertise to develop, maintain, and improve these critical assets. The 'RDTE/OTHER DEFENSE-APPLIED RESEARCH' category further emphasizes the focus on research and development activities.

How does the awarded amount of $152.5 million compare to similar engineering services contracts for missile and space systems within the Department of Defense?

The awarded amount of $152.5 million over a period of approximately 7.8 years (from 2002 to 2010) represents a significant investment. To benchmark this, one would need to analyze other large-scale engineering support contracts awarded by agencies like AMCOM, Missile Defense Agency (MDA), or Space Force for comparable missile and space system development and sustainment programs. Contracts for advanced R&D and engineering services in this niche sector can range from tens to hundreds of millions of dollars, depending on the complexity, duration, and criticality of the systems involved. Given the specialized nature and the long-term support implied by the contract duration, $152.5 million appears to be within the expected range for a major program, but a detailed comparison with specific, contemporaneous contracts would be necessary for a precise assessment of value.

What are the potential risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this specific engineering service, and what oversight mechanisms are in place?

The 'Cost Plus Fixed Fee' (CPFF) contract type carries inherent risks, primarily the potential for cost overruns. While the government agrees to pay the contractor's allowable costs plus a fixed fee, there's less incentive for the contractor to control costs compared to fixed-price contracts. If the initial cost estimates are inaccurate or if unforeseen technical challenges arise, the total cost to the government can exceed projections. The fixed fee, however, provides the contractor with a guaranteed profit margin. Oversight for CPFF contracts is crucial and typically involves stringent monitoring of incurred costs, regular audits, and detailed reviews of contractor performance and resource utilization. The Defense Contract Management Agency (DCMA) plays a key role in overseeing these aspects, ensuring that costs are allowable, allocable, and reasonable, and that the contractor is meeting performance requirements.

What does the 'full and open competition after exclusion of sources' procurement method imply about the competition and potential cost savings for taxpayers?

The phrase 'full and open competition after exclusion of sources' suggests a procurement process that initially aimed for broad competition but subsequently excluded certain potential offerors. This exclusion could be based on various factors, such as specific technical requirements, past performance, security clearances, or a phased approach where only certain pre-qualified entities were invited to bid in a later stage. While it implies a level of competition beyond a sole-source award, the exclusion of sources might limit the number of bidders, potentially reducing the competitive pressure on pricing. If the exclusion was not strictly necessary or well-justified, it could mean fewer innovative solutions or less aggressive pricing than might have been achieved with a truly unrestricted full and open competition. The fact that 3 bids were received indicates some level of market interest, but the optimal number for robust price discovery is often considered to be higher.

Can the contractor, ASTRION GROUP, LLC, demonstrate a strong track record in delivering complex engineering services for missile and space systems?

Assessing ASTRION GROUP, LLC's track record requires examining their past performance on similar contracts, particularly within the defense sector and specifically for missile and space systems. While the provided data confirms they were awarded this significant contract, it doesn't detail their performance history. A comprehensive review would involve looking at past performance evaluations, any contract disputes or terminations, and the successful completion of prior projects of similar scope and complexity. Given the critical nature of missile and space systems, the Department of Defense typically conducts thorough pre-award evaluations of contractor past performance. A positive track record would include consistent delivery on time, within budget (or as per contract terms), and to the required technical specifications.

What are the historical spending patterns for engineering services related to missile and space systems within the Department of Defense, and how does this contract fit in?

Historical spending patterns for missile and space systems engineering within the DoD are generally characterized by significant, sustained investment driven by national security imperatives and technological advancements. This sector often sees large, multi-year contracts awarded to specialized firms capable of handling complex R&D, design, integration, and sustainment. Spending fluctuates based on geopolitical events, modernization priorities, and the development cycles of new weapon systems. This $152.5 million contract, awarded in the early 2000s and spanning nearly eight years, fits within the pattern of substantial, long-term commitments for critical defense capabilities. It represents a portion of the broader DoD budget allocated to maintaining and advancing its strategic missile and space assets, reflecting ongoing efforts in research, development, testing, and evaluation (RDT&E).

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Solicitation ID: DAAH0101RR005

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1100 REDSTONE GTWY SW STE 300, HUNTSVILLE, AL, 35808

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline