DoD's $75M R&D contract for missile systems research awarded to Astrion Group, LLC
Contract Overview
Contract Amount: $75,192,407 ($75.2M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 1998-10-22
End Date: 2006-09-30
Contract Duration: 2,900 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199901!5700!0004!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461199C0025 !A!*!* !19981022!20030930!095673521!095673521!095673521!N!0E243!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!75320!051!47!TULLAHOMA !FRANKLIN !TENNESSEE !0001!+000000100000!N!N!000000000000!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!009!K!* !Z!N!Z!* !* !N!A!*!*!*!B!A!A!*!* !B!Y!A!B!N!*!*!*!*!*!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $75.2 million to ASTRION GROUP, LLC for work described as: 199901!5700!0004!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461199C0025 !A!*!* !19981022!20030930!095673521!095673521!095673521!N!0E243!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!75320!051!47!TULLAHOMA !FRANKL… Key points: 1. Contract awarded for missile and space systems basic research, indicating a focus on foundational scientific advancement. 2. The contract's duration of approximately 8 years suggests a long-term investment in research and development. 3. The cost-plus-fixed-fee pricing structure may incentivize contractor efficiency while managing risk for the government. 4. The significant number of bids (9) suggests a competitive market for these specialized R&D services. 5. The contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code, highlighting its scientific nature. 6. Awarded by the Department of the Air Force, this contract supports critical defense technology development.
Value Assessment
Rating: good
The total award amount of $75.2 million over nearly 8 years averages to approximately $9.4 million per year. This figure appears reasonable for a large-scale R&D contract focused on advanced missile and space systems. Benchmarking against similar large-scale, long-duration defense R&D contracts would provide further context, but the scale suggests a significant investment in specialized expertise.
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,' indicating a robust competitive process. With 9 bidders participating, the government likely received a range of proposals and pricing, fostering price discovery. This level of competition suggests that multiple capable firms vied for the work, potentially leading to a more favorable outcome for the government.
Taxpayer Impact: A competitive award process with multiple bidders generally benefits taxpayers by driving down costs and ensuring the government secures the best value for its investment in critical research.
Public Impact
The primary beneficiaries are the Department of Defense and the nation's security, through advancements in missile and space systems technology. The contract supports research and development in advanced physical and engineering sciences, contributing to the nation's technological edge. The geographic impact is primarily within the United States, with potential for technology transfer and innovation across the defense industrial base. The contract likely supports a highly skilled workforce of scientists, engineers, and researchers within the contractor's organization and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to cost overruns if not closely managed, as the contractor is reimbursed for all allowable costs plus a fixed fee.
- Long-duration R&D contracts carry inherent risks related to technological obsolescence or shifts in strategic priorities.
- The specific nature of 'missile and space systems' research may involve classified or sensitive information, potentially limiting transparency.
- The exclusion of sources in the 'full and open' competition description warrants further investigation to understand the rationale and ensure fairness.
Positive Signals
- The award to a single contractor for a large sum indicates confidence in their capabilities to deliver complex R&D.
- The high number of bidders (9) suggests a healthy and competitive market for this type of specialized research.
- The contract's focus on basic research implies a commitment to long-term technological advancement rather than immediate product development.
- The Department of the Air Force's engagement suggests strategic alignment with national defense priorities.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on research and development for missile and space systems. This is a highly specialized area characterized by significant government investment, long development cycles, and a need for cutting-edge scientific and engineering expertise. The market includes a mix of large prime contractors and specialized R&D firms. Comparable spending benchmarks would likely be in the tens to hundreds of millions of dollars for similar foundational research efforts over multi-year periods.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Given the substantial value and specialized nature of missile and space systems R&D, it is common for such contracts to be awarded to large, established firms. However, the prime contractor may engage small businesses as subcontractors to fulfill specific needs, contributing to the broader small business ecosystem within the defense supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Air Force) through contract officers and technical representatives. Performance reviews, milestone tracking, and financial audits are standard oversight mechanisms. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency may be limited due to the nature of defense R&D, but contract awards and basic details are generally publicly available.
Related Government Programs
- Missile Defense Systems
- Space Launch Systems
- Advanced Propulsion Research
- Aerospace Engineering Services
- Strategic Weapons Development
- National Security Space Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of technological obsolescence in long-term R&D
- Limited transparency inherent in defense R&D
- Justification for 'exclusion of sources' requires review
Tags
defense, department-of-defense, department-of-the-air-force, research-and-development, missile-systems, space-systems, basic-research, cost-plus-fixed-fee, full-and-open-competition, alabama, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.2 million to ASTRION GROUP, LLC. 199901!5700!0004!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461199C0025 !A!*!* !19981022!20030930!095673521!095673521!095673521!N!0E243!ENGINEERING RESEARCH & CONSULT!555 SPARKMAN DR NW !HUNTSVILLE !AL!35816!75320!051!47!TULLAHOMA !FRANKLIN !TENNESSEE !0001!+000000100000!N!N!000000000000!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $75.2 million.
What is the period of performance?
Start: 1998-10-22. End: 2006-09-30.
What is the specific nature of the 'missile and space systems' basic research being conducted under this contract?
The provided data categorizes the contract under 'RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH' and 'MISSILE AND SPACE SYSTEMS'. While the exact research topics are not detailed, 'basic research' implies foundational scientific inquiry aimed at advancing knowledge and understanding in areas relevant to missile technology (e.g., aerodynamics, materials science, guidance systems, propulsion) and space systems (e.g., orbital mechanics, satellite technology, space situational awareness). This research is intended to lay the groundwork for future technological developments and applications within the Department of Defense's strategic objectives.
How does the $75.2 million award compare to typical spending on similar R&D contracts within the Department of Defense?
The $75.2 million award over approximately 8 years represents a significant, but not extraordinary, investment for a large-scale basic research contract in a critical defense area like missile and space systems. Annualized spending is around $9.4 million. Large R&D contracts within the DoD can range from tens of millions to billions of dollars, depending on the scope, duration, and technological complexity. This contract's value suggests a substantial, long-term commitment to advancing foundational knowledge in a key strategic domain, aligning with typical DoD investments in high-priority research areas.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for basic research?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. For basic research, a key risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to higher overall expenditures if not managed diligently. Additionally, defining the scope and deliverables for 'basic research' can be challenging, potentially leading to disputes over allowable costs or the definition of 'completion.' Effective government oversight is crucial to mitigate these risks.
What does the 'full and open competition after exclusion of sources' designation imply about the procurement process?
This designation suggests that the initial procurement strategy aimed for broad competition ('full and open'). However, 'exclusion of sources' implies that certain potential sources were intentionally excluded from the competition, possibly due to specific requirements, security clearances, or unique capabilities. While the competition was open to all eligible entities meeting the criteria, the exclusion of specific sources warrants scrutiny to ensure it was justified and did not unduly restrict competition. The fact that 9 bidders participated indicates that despite any exclusions, a robust competitive field still emerged.
What is Astrion Group, LLC's track record in performing large-scale defense R&D contracts?
The provided data identifies Astrion Group, LLC as the contractor but does not offer details on their specific performance history or track record with large-scale defense R&D contracts. To assess their capabilities, further research would be needed into their past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and technical achievements. Their ability to secure a contract of this magnitude and duration suggests they possess the necessary qualifications and experience, but a comprehensive review of their past performance is essential for a complete risk assessment.
How has federal spending on missile and space systems R&D evolved over time, and where does this contract fit?
Federal spending on missile and space systems R&D has historically been a significant component of the defense budget, fluctuating based on geopolitical conditions and technological priorities. This contract, awarded in 1998 and ending in 2006, falls within a period of evolving defense strategies. The $75.2 million commitment reflects a sustained investment in foundational research during that era. Analyzing historical spending trends would reveal patterns of investment in specific sub-areas (e.g., hypersonic technology, missile defense, space-based ISR) and help contextualize this contract's contribution to the overall R&D portfolio.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 555 SPARKMAN DR NW, HUNTSVILLE, AL, 05
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $100,000
Exercised Options: $100,000
Current Obligation: $75,192,407
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1998-10-22
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2012-07-24
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