DoD's $12.1M L-CRAFT Center contract awarded to Maher & Associates LLC for R&D

Contract Overview

Contract Amount: $12,068,936 ($12.1M)

Contractor: Maher & Associates LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2028-06-26

Contract Duration: 1,369 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LOW COST, RAPID, AEROSPACE FABRICATION TECHNOLOGY (L-CRAFT) CENTER SEE SECTION J, ATTACHMENT 1, STATEMENT OF WORK (SOW).

Place of Performance

Location: FOREST HILL, HARFORD County, MARYLAND, 21050

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to MAHER & ASSOCIATES LLC for work described as: LOW COST, RAPID, AEROSPACE FABRICATION TECHNOLOGY (L-CRAFT) CENTER SEE SECTION J, ATTACHMENT 1, STATEMENT OF WORK (SOW). Key points: 1. Contract focuses on advanced aerospace fabrication technologies, aligning with DoD's modernization goals. 2. The definitive contract structure suggests a need for ongoing research and development over a defined period. 3. Awarded under full and open competition, indicating a broad search for qualified contractors. 4. The cost-plus-fixed-fee pricing structure allows for flexibility in research scope while managing contractor profit. 5. The contract duration of nearly four years suggests a significant, long-term research effort. 6. The specific NAICS code (541715) points to a specialized area within physical sciences research.

Value Assessment

Rating: good

The contract value of $12.1 million over approximately 3.7 years appears reasonable for a specialized R&D center. Benchmarking against similar large-scale, multi-year research contracts within the Department of Defense for advanced materials or fabrication technologies would provide further context. The cost-plus-fixed-fee structure is common for R&D where exact costs are uncertain, but the fixed fee component should be scrutinized to ensure it reflects a fair profit margin for the work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Air Force actively sought proposals from a wide range of qualified entities. The fact that it was competed broadly implies that multiple bidders likely vied for this opportunity, which is generally conducive to competitive pricing and innovation. The specific number of bidders is not provided, but the competition type indicates a robust process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value through a competitive bidding process, potentially leading to lower overall costs and higher quality research outcomes.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will gain access to advanced aerospace fabrication technologies. The contract will deliver research and development services aimed at improving aerospace manufacturing capabilities. The geographic impact is likely concentrated around the contractor's facilities and potentially DoD research installations. The contract may foster innovation and skill development within the aerospace R&D workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
The specialized nature of R&D may limit immediate, tangible outputs visible to the public.
Dependence on a single contractor for this specific R&D focus could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
The definitive contract type provides a structured framework for a multi-year research effort.
Focus on advanced fabrication technologies aligns with strategic defense modernization priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace fabrication technology area is a critical component of the defense industrial base, supporting advancements in aircraft, spacecraft, and related systems. Spending in this sector is often characterized by long-term investments, specialized expertise, and significant government funding due to the high costs and risks associated with cutting-edge innovation. Comparable spending benchmarks would involve looking at other large-scale R&D contracts for advanced materials, manufacturing processes, or defense-specific technological development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Maher & Associates LLC, may choose to subcontract portions of the work to small businesses as part of their overall project management strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the performance metrics outlined in the Statement of Work (SOW) and the terms of the Cost Plus Fixed Fee structure. Transparency will depend on the agency's reporting practices regarding R&D progress and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Manufacturing Technology Consortia (AMTC)
Defense Advanced Research Projects Agency (DARPA) research programs
Air Force Research Laboratory (AFRL) initiatives
National Center for Advanced Manufacturing

Risk Flags

Cost Overrun Risk (CPFF)
Technical Feasibility Risk
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to MAHER & ASSOCIATES LLC. LOW COST, RAPID, AEROSPACE FABRICATION TECHNOLOGY (L-CRAFT) CENTER SEE SECTION J, ATTACHMENT 1, STATEMENT OF WORK (SOW).

Who is the contractor on this award?

The obligated recipient is MAHER & ASSOCIATES 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 $12.1 million.

What is the period of performance?

Start: 2024-09-26. End: 2028-06-26.

What is the track record of Maher & Associates LLC in performing similar large-scale R&D contracts for the Department of Defense?

Assessing the track record of Maher & Associates LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A strong track record in delivering complex R&D projects on time and within budget, particularly in aerospace fabrication, would indicate a lower risk for this current contract. Conversely, a history of underperformance or issues could raise concerns about the contractor's capability to meet the objectives of the L-CRAFT Center.

How does the estimated annual spending for this contract compare to other R&D investments in aerospace fabrication technology by the DoD?

The total contract value is approximately $12.1 million over roughly 3.7 years, averaging around $3.27 million per year. To benchmark this, one would need to analyze historical spending data for similar R&D initiatives within the Department of Defense related to advanced manufacturing, materials science, and aerospace technologies. Comparing this annual spend to the average investment in other DoD R&D centers or specific research projects in comparable fields can indicate whether this contract represents a significant or moderate level of investment. Factors like the scope of work, duration, and the specific technological focus will influence comparability.

What are the primary risk indicators associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risk indicator for a CPFF contract in advanced R&D is the potential for cost growth beyond initial estimates, even with a fixed fee. While the fee is fixed, the 'cost' portion is subject to actual expenditures. If the contractor incurs higher-than-expected costs due to unforeseen technical challenges, scope creep, or inefficient management, the government bears that cost. Effective oversight, detailed cost tracking, and robust Earned Value Management (EVM) are crucial to mitigate this risk. Another risk is the contractor potentially cutting corners on quality or scope to stay within budget if the fixed fee is perceived as insufficient, though this is less common in R&D where innovation is key.

How will the success of the L-CRAFT Center be measured, and what are the key performance indicators (KPIs)?

The success of the L-CRAFT Center will be measured against the specific objectives and deliverables outlined in the Statement of Work (SOW) and any associated performance work statements. Key Performance Indicators (KPIs) would likely include milestones related to the development and demonstration of new fabrication techniques, the successful transfer of technology, the number of patents or publications generated, and potentially the cost savings or performance improvements achieved in subsequent aerospace applications. The contract's structure, including the fixed fee, may also incentivize meeting specific technical or programmatic targets. Regular progress reviews and technical evaluations will be essential for monitoring these KPIs.

What is the historical spending trend for NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) within the Department of the Air Force?

Analyzing the historical spending trend for NAICS code 541715 within the Department of the Air Force would involve examining federal procurement data over several fiscal years. This would reveal the overall investment level in this broad R&D category. One would look for patterns of increase or decrease in spending, identify major contract vehicles or programs within this code, and note the distribution of funds across different types of research (e.g., basic research, applied research, development). Such analysis can provide context for the current $12.1 million award, indicating whether it represents a typical investment or a significant shift in priorities for the Air Force's R&D portfolio in physical and engineering sciences.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Solicitation ID: FA239123S2403

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1716 GRAFTON RIDGE CT, FOREST HILL, MD, 21050

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,877,637

Exercised Options: $12,068,936

Current Obligation: $12,068,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline