DoD's $31.3M contract for missile systems R&D awarded to Astrion Group, LLC

Contract Overview

Contract Amount: $59,753,323 ($59.8M)

Contractor: Astrion Group, LLC

Awarding Agency: Department of Defense

Start Date: 1998-01-05

End Date: 2003-03-30

Contract Duration: 1,910 days

Daily Burn Rate: $31.3K/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: 199812!2100!0722!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0198CR080 !A!*!* !19980105!19980506!095673521!095673521!095673521!N!0VYZ2!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000158596!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!002!K!* !C!Y!Z!* !* !N!A!*!*!*!B!A!A!*!* !B!Y!A!B!N!*!*!*!*!*!

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35808

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $59.8 million to ASTRION GROUP, LLC for work described as: 199812!2100!0722!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0198CR080 !A!*!* !19980105!19980506!095673521!095673521!095673521!N!0VYZ2!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISO… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over 5 years, indicating a long-term need for these services. 4. The contractor, Astrion Group, LLC, has a track record with this specific contract. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. The contract was awarded by the Department of Defense, specifically USA Aviation and Missile Command.

Value Assessment

Rating: fair

The total award amount for this contract was $31,284,000. Without more comparable contracts or detailed cost breakdowns, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses Astrion Group for allowable costs plus a fixed fee, which can sometimes incentivize higher spending if not closely monitored. Benchmarking against similar R&D contracts for missile and space systems would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While 'full and open' implies broad competition, the 'after exclusion of sources' clause suggests specific criteria or circumstances led to limiting the pool of potential bidders. The number of bidders is not explicitly stated, but the 'full and open' nature generally aims for robust price discovery through multiple offers.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best possible pricing and technical solutions.

Public Impact

The primary beneficiaries are the Department of Defense and its missile and space systems programs. Services delivered include engineering research and consulting related to missile and space systems. The geographic impact is primarily within the United States, with specific operations likely centered around Huntsville, Alabama. Workforce implications include employment for engineers, researchers, and support staff at Astrion Group and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The 'after exclusion of sources' in the competition type warrants further investigation into the specific reasons for exclusion.
Long contract duration (over 5 years) increases exposure to potential performance issues or changing technological landscapes.

Positive Signals

Awarded through a 'full and open' competition, indicating an effort to maximize available options.
The contract is for critical R&D in missile and space systems, supporting national defense objectives.
The contractor has a defined track record with this specific contract, suggesting some level of established performance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. The market for defense R&D is characterized by significant government investment, long development cycles, and specialized technical expertise. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services, particularly those related to advanced missile technologies and space systems integration.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Astrion Group, LLC actively seeks small business subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and inspection agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would include performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency is generally maintained through contract databases like FPDS, though specific technical details of the R&D may be classified or proprietary.

Related Government Programs

Missile Defense Systems R&D
Space Systems Engineering Support
Advanced Technology Development Contracts
Department of Defense Research and Development Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Competition 'after exclusion of sources' warrants understanding the rationale for exclusions.
Long contract duration increases exposure to performance and technological obsolescence risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.8 million to ASTRION GROUP, LLC. 199812!2100!0722!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0198CR080 !A!*!* !19980105!19980506!095673521!095673521!095673521!N!0VYZ2!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000158596!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!0

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 $59.8 million.

What is the period of performance?

Start: 1998-01-05. End: 2003-03-30.

What is Astrion Group, LLC's overall performance history with the Department of Defense, particularly on similar R&D contracts?

Assessing Astrion Group, LLC's overall performance history requires a comprehensive review of their contract portfolio with the Department of Defense. While this specific contract (DAAH0198CR080) provides a data point, it's crucial to examine other awards for factors like on-time delivery, adherence to budget, quality of work, and any past performance issues or commendations. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) would offer deeper insights into their track record on similar Research and Development in Physical, Engineering, and Life Sciences contracts, especially those related to missile and space systems. A history of successful project completion and positive performance reviews would indicate reliability, while a pattern of issues might suggest higher risk.

How does the $31.3 million award amount compare to the typical cost of similar missile systems R&D contracts?

Benchmarking the $31.3 million award against similar missile systems R&D contracts is essential for evaluating value for money. This comparison should consider the contract's duration (over 5 years), scope of work (engineering research and consulting), and the specific technological domain (missile and space systems). Analyzing data from other DoD contracts awarded within the last decade for comparable R&D services, particularly those with Cost Plus Fixed Fee (CPFF) structures, would provide a relevant market context. Factors such as the number of bidders, the contractor's experience, and the complexity of the research can influence pricing. If this contract's total value falls within the expected range for similar efforts, it suggests fair pricing; significantly higher or lower amounts may warrant further investigation into the underlying cost drivers or competitive dynamics.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D in the missile and space systems sector revolve around cost control and contractor incentives. While the fixed fee provides the contractor with a predictable profit margin, the 'cost plus' element means the government bears the risk of cost overruns. If Astrion Group, LLC's actual costs exceed initial estimates, the government will still reimburse these allowable costs, potentially leading to a higher total expenditure than initially anticipated. Effective oversight is critical to ensure that costs are reasonable, allocable, and allowable. Furthermore, the CPFF structure might offer less incentive for the contractor to aggressively control costs compared to fixed-price contracts, necessitating robust monitoring of expenditures and progress to mitigate financial risks for the government.

What does the 'after exclusion of sources' clause in the competition type imply for the bidding process and potential cost savings?

The 'after exclusion of sources' clause within a 'full and open' competition indicates that while the competition was broadly advertised, certain potential sources were intentionally excluded based on specific criteria. This exclusion could be due to requirements for specialized technology, unique capabilities, security clearances, or prior performance history. While 'full and open' competition generally promotes price discovery, the exclusion of specific sources might limit the number of truly competitive bids received. The implication for cost savings is nuanced: if the excluded sources were less capable or more expensive, their exclusion might not negatively impact price. However, if capable competitors were excluded, it could potentially reduce competitive pressure and lead to less favorable pricing for the government compared to a scenario with maximum bidder participation.

How has historical spending on missile and space systems R&D by the Department of Defense evolved over time?

Historical spending on missile and space systems R&D by the Department of Defense has generally shown a consistent, significant investment driven by national security priorities and technological advancements. While specific figures fluctuate annually based on geopolitical factors, budget allocations, and strategic shifts, the overall trend indicates a sustained commitment to maintaining a technological edge in these critical areas. Factors influencing spending include the development of new weapon systems, upgrades to existing platforms, countermeasure research, and advancements in areas like hypersonics, artificial intelligence, and space-based defense. Analyzing multi-year spending patterns reveals periods of increased investment during heightened threat environments or major program starts, and potential adjustments during budget constraints or shifts in defense strategy. This contract represents a portion of that ongoing investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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