DoD's $96.5M Missile Defense Tech Contract Awarded to Maximum Technology Corp
Contract Overview
Contract Amount: $10,927,169 ($10.9M)
Contractor: Maximum Technology Corp
Awarding Agency: Department of Defense
Start Date: 2002-06-24
End Date: 2006-03-31
Contract Duration: 1,376 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200209!002149!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0044 !A!N! !N! !20020624!20030623!964899439!964899439!964899439!N!MAXIMUM TECHNOLOGY CORPORATION!4825 UNIVERSITY SQUARE, SU!HUNTSVILLE !AL!35814!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001500000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!001!B! !Z!Y!Z! ! !N!A!N!N!C! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35816
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to MAXIMUM TECHNOLOGY CORP for work described as: 200209!002149!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0044 !A!N! !N! !20020624!20030623!964899439!964899439!964899439!N!MAXIMUM TECHNOLOGY CORPORATION!4825 UNIVERSITY SQUARE, SU!HUNTSVILLE !AL!35814!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. The contract, valued at $96.5 million, focuses on advanced technology development for ballistic missile defense systems. 2. Maximum Technology Corporation, based in Huntsville, AL, secured this award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The primary sector is Research and Development (R&D) within the Defense industry, specifically missile and space systems.
Value Assessment
Rating: fair
The contract value of $96.5 million over approximately 4 years (2002-2006) for advanced R&D in missile defense appears within a reasonable range for specialized defense technology development. Benchmarking is difficult without specific comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically allows for the widest possible range of bidders, fostering price discovery and potentially leading to more competitive pricing. The specific pricing structure (Cost Plus Fixed Fee) warrants scrutiny to ensure cost control.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing, but the Cost Plus Fixed Fee structure requires careful oversight to prevent cost overruns and ensure taxpayer value.
Public Impact
Enhances national security through advancements in ballistic missile defense capabilities. Supports technological innovation and development within the defense sector. Contributes to the economic activity in Huntsville, Alabama, a hub for aerospace and defense industries. Potential for job creation and specialized skill development related to advanced defense technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed tightly.
- Long contract duration (approx. 4 years) requires sustained oversight.
- Lack of specific performance metrics in the provided data.
- Potential for scope creep in R&D contracts.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Focus on critical national security technology (missile defense).
- Contract awarded to a single entity, suggesting specialized capabilities.
- Located in a region with established defense industry infrastructure.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technologies for missile and space systems. Defense R&D spending is a significant portion of the federal budget, with contracts for advanced systems often involving substantial investment due to complexity and innovation requirements.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false). Therefore, there is no direct benefit to small businesses from this specific prime contract award, though subcontractors could potentially be involved.
Oversight & Accountability
The contract's duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Department of Defense to ensure adherence to scope, cost control, and timely delivery of technological advancements. Accountability will hinge on performance reviews and milestone achievement.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- R&D contracts inherently carry uncertainty in outcomes.
- Potential for scope creep.
- Lack of specific performance metrics provided.
Tags
research-and-development-in-the-physical, department-of-defense, al, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to MAXIMUM TECHNOLOGY CORP. 200209!002149!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6002C0044 !A!N! !N! !20020624!20030623!964899439!964899439!964899439!N!MAXIMUM TECHNOLOGY CORPORATION!4825 UNIVERSITY SQUARE, SU!HUNTSVILLE !AL!35814!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001500000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is MAXIMUM TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2002-06-24. End: 2006-03-31.
What specific technological advancements are expected from this $96.5M contract, and how will they demonstrably improve ballistic missile defense capabilities?
The contract aims to advance technologies within missile and space systems for ballistic missile defense. Specific advancements are not detailed in the provided data but would typically involve areas like sensor technology, interceptor guidance, or system integration. Demonstrable improvements would be measured against defined performance metrics and operational testing, showing enhanced detection, tracking, or interception capabilities against evolving threats.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts require stringent oversight. Mitigation mechanisms typically include detailed cost tracking, regular audits, defined fee structures tied to performance, and clear limitations on allowable costs. The contracting agency must actively monitor expenditures against the estimated cost and ensure the fixed fee is justified by the contractor's performance and adherence to the contract's objectives.
How does the technological development funded by this contract align with the broader strategic goals of the US Space and Strategic Defense Command?
This contract directly supports the strategic goal of enhancing national security through advanced missile defense. By funding R&D in ballistic missile defense systems, it contributes to maintaining a technological edge against potential adversaries and ensuring the effectiveness of deterrence strategies. The focus on 'advanced tech dev' suggests alignment with future threat assessments and the need for next-generation defensive capabilities.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4900 UNIVERSITY SQ STE 34, HUNTSVILLE, AL, 05
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2002-06-24
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2014-07-11
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