DoD's $41.5M R&D Contract with AMTEC Corporation: A Decade of Research and Development
Contract Overview
Contract Amount: $41,511,547 ($41.5M)
Contractor: Amtec Corporation
Awarding Agency: Department of Defense
Start Date: 2003-04-24
End Date: 2013-09-26
Contract Duration: 3,808 days
Daily Burn Rate: $10.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35816
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $41.5 million to AMTEC CORPORATION for work described as: Key points: 1. The contract, valued at $41.5 million, was awarded to AMTEC CORPORATION for Research and Development services. 2. This was a sole-source award, indicating limited competition. 3. The contract spanned a decade, from 2003 to 2013, suggesting a long-term R&D effort. 4. The sector is Research and Development, specifically within Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without comparable contracts, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. The rationale for a sole-source award is not provided.
Taxpayer Impact: The lack of competition may have resulted in higher expenditures than a competitively awarded contract.
Public Impact
Long-term R&D funding for a single contractor can stifle innovation from other entities. The extended duration of the contract raises questions about the agility and adaptability of the research. Lack of transparency in sole-source awards can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Positive Signals
- Long-term investment in R&D
- Potential for specialized expertise development
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Government R&D spending benchmarks vary widely by scientific field and agency.
Small Business Impact
The contract was awarded to AMTEC CORPORATION, and there is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant scrutiny regarding oversight. Without details on performance reviews and milestones, accountability is difficult to assess.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost-plus contract type carries risk of cost overruns.
- Long contract duration (10 years) may indicate lack of flexibility or evolving needs.
- Lack of transparency regarding specific R&D outcomes and justification for sole-source award.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.5 million to AMTEC CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AMTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.5 million.
What is the period of performance?
Start: 2003-04-24. End: 2013-09-26.
What specific R&D objectives were achieved over the decade-long contract, and did they align with evolving defense needs?
The provided data does not detail the specific research objectives or outcomes. A decade-long contract suggests a significant, potentially evolving, research program. Assessing alignment with evolving defense needs would require access to project reports, milestone achievements, and strategic reviews conducted by the Department of Defense throughout the contract's lifecycle.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Without further documentation, it's impossible to know the specific justification for AMTEC CORPORATION. This could be due to unique capabilities, proprietary technology, or urgent needs. A thorough review would examine the documented rationale and any market research conducted.
How did the Cost Plus Fixed Fee structure impact the final cost, and was it an effective mechanism for this type of R&D?
Cost Plus Fixed Fee contracts aim to control costs by adding a fixed fee to the actual allowable costs. However, they can incentivize contractors to incur costs to increase the fee base. For R&D, this structure might be used when cost estimation is difficult. Evaluating effectiveness requires comparing the final cost against initial estimates and assessing whether the fixed fee adequately compensated the contractor for the risks undertaken.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 500 WYNN DRIVE, SUITE 314, HUNTSVILLE, AL, 35816
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $5,000
Exercised Options: $25,000
Current Obligation: $41,511,547
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-04-24
Current End Date: 2013-09-26
Potential End Date: 2013-09-26 00:00:00
Last Modified: 2019-09-18
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