DoD Awards $174M Engineering Research Contract to Astrion Group, LLC for Missile Systems

Contract Overview

Contract Amount: $174,086,185 ($174.1M)

Contractor: Astrion Group, LLC

Awarding Agency: Department of Defense

Start Date: 2003-03-18

End Date: 2011-05-31

Contract Duration: 2,996 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200306!002457!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR180 !A!N! !N! !20030318!20080331!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000320036!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!005!K! !C!Y!Z! ! !N!B!Y!N! ! !Z! !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 $174.1 million to ASTRION GROUP, LLC for work described as: 200306!002457!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR180 !A!N! !N! !20030318!20080331!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded to Astrion Group, LLC for engineering research and consulting. 2. The contract has a base value of $174,086,185.12 and a potential value of $58,106,000. 3. Competition was full and open after exclusion of sources, suggesting a specific reason for the exclusion. 4. The sector is Defense, specifically Missile and Space Systems, with a PSC code of 541710. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can carry higher risk for the government.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs, but the overall risk remains higher than fixed-price contracts.

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 indicates that while competition was sought, certain sources were excluded, potentially limiting the breadth of competitive offers and impacting price discovery.

Taxpayer Impact: The significant value of this contract means that any inefficiencies or cost overruns directly impact taxpayer funds allocated to defense research and development.

Public Impact

This contract supports critical missile and space systems research for the Department of Defense. The duration of the contract (nearly 8 years) suggests a long-term need for these specialized engineering services. The award to Astrion Group, LLC signifies a significant investment in advanced defense technologies.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

CPFF contract type increases cost risk.
Exclusion of sources in competition may limit price discovery.
Long contract duration could lead to scope creep or evolving requirements.

Positive Signals

Award to a single entity suggests specialized capabilities.
Full and open competition (even with exclusions) aims for best value.
Contract supports critical defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on applied research for missile and space systems. Spending in this area is crucial for national security, and benchmarks are often tied to R&D investment levels and the complexity of the technologies involved.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). This suggests that the specialized nature of the engineering research and consulting required for missile and space systems may favor larger, more established contractors.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the CPFF structure necessitates vigilant monitoring to ensure cost control and adherence to contract scope.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Competition method involved exclusion of sources.
Long contract duration (nearly 8 years).
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $174.1 million to ASTRION GROUP, LLC. 200306!002457!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103CR180 !A!N! !N! !20030318!20080331!095673521!095673521!095673521!N!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DRIVE,SUITE 1!HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000320036!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!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 $174.1 million.

What is the period of performance?

Start: 2003-03-18. End: 2011-05-31.

What was the specific justification for excluding certain sources in the 'full and open competition after exclusion of sources' process?

The justification for excluding specific sources in a 'full and open competition after exclusion of sources' scenario typically relates to unique capabilities, proprietary technology, or prior performance that makes certain contractors uniquely qualified. Without further details, it's difficult to ascertain the exact reason, but it implies that only a subset of potential offerors met the stringent requirements for this specialized missile and space systems research.

How effectively will the Cost Plus Fixed Fee structure manage potential cost overruns given the long duration and specialized nature of the work?

The Cost Plus Fixed Fee (CPFF) structure inherently carries a higher risk of cost overruns for the government compared to fixed-price contracts, especially for long-duration, complex R&D projects. While the fixed fee provides some incentive for efficiency, the contractor is reimbursed for actual costs incurred. Effective management relies heavily on robust government oversight, detailed cost tracking, and clear definition of work requirements to mitigate potential overspending.

What is the expected impact of this contract on the advancement of U.S. missile and space systems technology?

This contract is expected to significantly advance U.S. missile and space systems technology by funding critical engineering research and consulting. The substantial investment and long-term nature of the award suggest a focus on developing or enhancing cutting-edge capabilities essential for national defense and space exploration. The specific outcomes will depend on the contractor's execution and the evolving technological landscape.

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: 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: YES

Timeline