Air Force Awards $14.6M R&D Contract to Alcoa Inc. for Missile and Space Systems

Contract Overview

Contract Amount: $14,615,226 ($14.6M)

Contractor: Alcoa Inc

Awarding Agency: Department of Defense

Start Date: 2003-06-20

End Date: 2011-06-30

Contract Duration: 2,932 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: 200310!000243!5700!GR05 !AFRL/VAK AIR VEHICLES CONTRACTNG!F3361503C3347 !A!N! !N! !20030620!20041220!004393138!004393138!001339472!N!ALCOA INC !100 TECHNICAL DRIVE !ALCOA CENTER !PA!15069!00668!129!42!ALCOA CENTER !WESTMORELAND !PENN !+000003566701!N!N!000003566701!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!S!1!001!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: NEW KENSINGTON, WESTMORELAND County, PENNSYLVANIA, 15069

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to ALCOA INC for work described as: 200310!000243!5700!GR05 !AFRL/VAK AIR VEHICLES CONTRACTNG!F3361503C3347 !A!N! !N! !20030620!20041220!004393138!004393138!001339472!N!ALCOA INC !100 TECHNICAL DRIVE !ALCOA CENTER !PA!15069!00668!129!42!ALCOA CENTER !WESTM… Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. Alcoa Inc. secured this contract through full and open competition. 3. The contract duration is approximately 8 years, indicating a long-term project. 4. The sector is primarily R&D within the Defense industry.

Value Assessment

Rating: questionable

The contract type is 'COST NO FEE', which is unusual and may indicate a unique relationship or specific circumstances. Without more information on the fee structure and performance metrics, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'COST NO FEE' structure might limit the incentive for the contractor to optimize costs.

Taxpayer Impact: The 'COST NO FEE' structure means taxpayers are not paying for profit, which is a positive. However, the overall cost-effectiveness depends on the efficiency of the R&D performed.

Public Impact

This contract supports advancements in missile and space systems, potentially impacting national security and technological development. The long duration suggests a significant investment in research and development for the Department of Defense. Alcoa Inc., a materials science company, is involved, indicating a focus on advanced materials for aerospace applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual 'COST NO FEE' contract type requires further scrutiny for cost efficiency.
Long contract duration could lead to cost overruns if not managed effectively.
Lack of specific performance metrics makes it hard to gauge R&D success.

Positive Signals

Awarded through full and open competition.
No fee structure potentially saves taxpayer money on profit.
Involves a reputable company in materials science.

Sector Analysis

This contract falls under the Research and Development sector, specifically applied research for defense. The amount is moderate for R&D contracts, but the long duration is notable. Benchmarks for similar R&D contracts in missile and space systems would provide further context.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm any small business participation.

Oversight & Accountability

The 'COST NO FEE' structure warrants oversight to ensure that costs are reasonable and that the contractor is performing diligently despite the absence of a profit motive. Performance reviews and audits would be crucial.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost control in a 'COST NO FEE' contract.
Long-term project risks and adaptability.
Clarity on R&D deliverables and success metrics.
Potential for scope creep over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to ALCOA INC. 200310!000243!5700!GR05 !AFRL/VAK AIR VEHICLES CONTRACTNG!F3361503C3347 !A!N! !N! !20030620!20041220!004393138!004393138!001339472!N!ALCOA INC !100 TECHNICAL DRIVE !ALCOA CENTER !PA!15069!00668!129!42!ALCOA CENTER !WESTMORELAND !PENN !+000003566701!N!N!000003566701!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ALCOA INC.

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 $14.6 million.

What is the period of performance?

Start: 2003-06-20. End: 2011-06-30.

What is the justification for the 'COST NO FEE' contract type, and how is cost efficiency ensured without a profit incentive?

The 'COST NO FEE' contract type is often used when the contractor's primary motivation is not profit, such as in specific research collaborations or when the government provides significant resources. Ensuring cost efficiency typically relies on robust government oversight, detailed cost accounting standards, and potentially performance-based milestones. Without further details on the specific agreement, it's difficult to ascertain the exact mechanisms in place.

What are the specific R&D objectives and expected outcomes for this missile and space systems contract?

The provided data does not detail the specific research and development objectives or expected outcomes for this contract. Typically, such contracts would outline technical goals, deliverables, and performance metrics. Understanding these specifics is crucial for evaluating the contract's potential impact and the effectiveness of the awarded funds in advancing missile and space system technologies.

How does the long duration of this contract impact the flexibility of the Department of Defense to adapt to evolving technological needs?

A long contract duration, such as this 8-year award, can provide stability for long-term research but may also reduce flexibility. If technological needs or priorities shift significantly during the contract period, the DoD might face challenges in redirecting funds or adopting newer technologies without incurring penalties or significant renegotiation costs. This necessitates careful planning and inclusion of adaptable clauses within the contract.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 100 TECHNICAL DRIVE, ALCOA CENTER, PA

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline