DoD's $4.8M R&D Contract Awarded to Azimuth Corporation for Technical Operations IV
Contract Overview
Contract Amount: $4,822,264 ($4.8M)
Contractor: Azimuth Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-30
End Date: 2028-10-30
Contract Duration: 1,827 days
Daily Burn Rate: $2.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL OPERATIONS IV
Place of Performance
Location: BEAVERCREEK, GREENE County, OHIO, 45432
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $4.8 million to AZIMUTH CORPORATION for work described as: TECHNICAL OPERATIONS IV Key points: 1. Contract value of $4.82M awarded to Azimuth Corporation. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Risk appears moderate given the R&D nature and cost-plus fixed fee structure. 4. Sector is Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to variability, but the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' method indicates that all responsible sources were permitted to submit a bid. This approach generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Research and Development funding supports innovation within the Department of Defense. The contract duration of 1827 days (approx. 5 years) indicates a long-term project. Award to Azimuth Corporation contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractor to increase costs to reach fee.
- R&D projects inherently carry a risk of not achieving desired outcomes.
- Long contract duration may increase exposure to changing technological landscapes.
Positive Signals
- Full and open competition promotes fair pricing.
- Contract supports critical research and development for the Air Force.
- Clear end date provides a defined project scope.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for technological advancement but can be subject to cost overruns and shifting priorities.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight will be critical for the Department of the Air Force to monitor costs and ensure the successful completion of R&D objectives under this CPFF contract.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- R&D projects carry a risk of technical failure or unmet objectives.
- Long contract duration may lead to scope creep or outdated technology.
- Lack of specific small business participation data.
Tags
research-and-development-in-the-physical, department-of-defense, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.8 million to AZIMUTH CORPORATION. TECHNICAL OPERATIONS IV
Who is the contractor on this award?
The obligated recipient is AZIMUTH CORPORATION.
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 $4.8 million.
What is the period of performance?
Start: 2023-10-30. End: 2028-10-30.
What is the typical cost overrun rate for Cost Plus Fixed Fee R&D contracts in the defense sector?
Cost overrun rates for CPFF R&D contracts in the defense sector can vary significantly based on project complexity, technological uncertainty, and effective program management. While specific aggregate data is difficult to pinpoint, historical trends suggest that R&D projects, by their nature, face a higher risk of cost increases compared to fixed-price contracts. Robust oversight and clear milestone definitions are crucial to mitigating these risks.
How does the 'Full and Open Competition' method impact the final price compared to other methods for R&D contracts?
Full and open competition generally leads to more competitive pricing as it allows a wider pool of potential contractors to bid, driving down costs through market forces. For R&D contracts, this method increases the likelihood of finding innovative solutions at a reasonable price. However, the inherent uncertainties in R&D can still lead to price adjustments, even with competitive initial bids.
What are the key performance indicators (KPIs) the Air Force should track for this contract's effectiveness?
Key performance indicators should focus on technical milestones, research progress against defined objectives, adherence to the research plan, and timely delivery of research outcomes. The Air Force should also monitor the contractor's ability to manage costs effectively within the fixed fee structure and adapt to any unforeseen technical challenges encountered during the research and development process.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2970 PRESIDENTIAL DR STE 200, BEAVERCREEK, OH, 45324
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $5,999,992
Exercised Options: $5,999,992
Current Obligation: $4,822,264
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $956,516
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865022D5803
IDV Type: IDC
Timeline
Start Date: 2023-10-30
Current End Date: 2028-10-30
Potential End Date: 2028-10-30 00:00:00
Last Modified: 2026-01-09
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