DoD's $12.6M R&D contract awarded to Azimuth Corporation for MARSS II TO 3

Contract Overview

Contract Amount: $12,642,960 ($12.6M)

Contractor: Azimuth Corporation

Awarding Agency: Department of Defense

Start Date: 2024-04-02

End Date: 2027-04-02

Contract Duration: 1,095 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MARSS II TO 3

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to AZIMUTH CORPORATION for work described as: MARSS II TO 3 Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Azimuth Corporation, based in Ohio, secured this cost-plus-fixed-fee contract. 3. The contract has a duration of 1095 days, ending in April 2027. 4. This award falls under the broad category of Research and Development. 5. The contract was awarded through full and open competition. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract's value of $12.6 million for a 3-year R&D effort requires careful benchmarking against similar projects. Without specific deliverables or performance metrics, assessing value for money is challenging. The cost-plus-fixed-fee structure means costs are reimbursed plus a fixed fee, which can incentivize cost overruns if not managed tightly. Further analysis of the fixed fee percentage and comparison to industry standards for similar R&D services is needed to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the open competition suggests a potentially robust selection process. The agency's approach to competition appears standard for this type of research and development requirement.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process, rather than being limited to a single provider.

Public Impact

This contract supports research and development activities within the Department of Defense, potentially leading to advancements in physical, engineering, or life sciences. The primary beneficiary is the Department of the Air Force, which will receive the outcomes of the research. The geographic impact is primarily within Ohio, where Azimuth Corporation is located, though the ultimate application of the research may be broader. The contract is expected to support specialized scientific and engineering roles within Azimuth Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes value assessment difficult.
The broad R&D category may obscure the specific technological advancements sought.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration of three years allows for sustained research effort.
Contractor is based in Ohio, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This is a critical area for defense modernization and technological advancement. The federal government is a significant investor in R&D, with substantial annual outlays across various agencies. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the DoD or other agencies for similar scientific disciplines and project scopes.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited to subcontracting roles, if any are offered by the prime contractor, Azimuth Corporation. The impact on the broader small business ecosystem for R&D services would depend on Azimuth's own subcontracting practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the terms of the cost-plus-fixed-fee agreement, including progress reports and final deliverables. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General of the Department of Defense may have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Federal Research Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost-plus-fixed-fee contract type may increase risk of cost overruns.
Lack of specific performance metrics hinders value assessment.
Research and Development contracts inherently carry uncertainty of outcome.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to AZIMUTH CORPORATION. MARSS II TO 3

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 $12.6 million.

What is the period of performance?

Start: 2024-04-02. End: 2027-04-02.

What is Azimuth Corporation's track record with federal R&D contracts, particularly with the Department of Defense?

A review of Azimuth Corporation's federal contracting history would be necessary to assess their track record. This would involve examining past awards, performance evaluations (if available), and any history of contract disputes or terminations. For R&D contracts, understanding their success in delivering innovative solutions, meeting technical milestones, and managing budgets on previous projects is crucial. Specific experience with the types of research outlined in the MARSS II TO 3 contract would be a key indicator of their capability and reliability. Without access to detailed performance data or a comprehensive contract history, it is difficult to definitively assess their track record beyond this single award.

How does the $12.6 million value compare to similar R&D contracts for physical, engineering, and life sciences?

Benchmarking the $12.6 million value requires comparing it against contracts with similar scopes of work, research objectives, and durations within the physical, engineering, and life sciences R&D domain. Factors such as the specific scientific disciplines involved, the novelty of the research, the required expertise, and the project's complexity significantly influence cost. A comprehensive analysis would involve querying federal procurement databases for comparable awards, looking at the number of bidders, contract types (e.g., cost-plus, fixed-price), and the final awarded values. If this contract represents a typical investment for the anticipated R&D outcomes, it may be considered fair. However, if similar, more extensive R&D efforts have been procured for less, or less complex projects cost significantly more, it could indicate potential overpricing or under-scoping.

What are the primary risks associated with this cost-plus-fixed-fee R&D contract?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) R&D contract include potential cost overruns and contractor performance issues. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure, potentially leading to budget challenges if not rigorously managed. For R&D, the inherent uncertainty of research outcomes also poses a risk; the project may not yield the desired results or may encounter unforeseen technical hurdles. Ensuring robust oversight, clear milestones, and effective performance metrics are critical to mitigating these risks and ensuring the government receives value for its investment.

What are the expected outcomes or deliverables from the MARSS II TO 3 research and development effort?

The provided data identifies the contract as 'MARSS II TO 3' and categorizes it under 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. However, the specific outcomes or deliverables are not detailed. Typically, R&D contracts of this nature might aim to produce prototypes, develop new technologies, conduct feasibility studies, generate scientific reports, or advance theoretical understanding in a particular field. The 'MARSS II' designation suggests it might be part of a larger program or system development effort. Without further documentation, such as the Statement of Work (SOW) or contract line item numbers (CLINs), the precise nature of the expected deliverables remains undefined, making it difficult to assess the contract's specific contribution or impact.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over the past five years?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) has generally seen consistent investment, often driven by national security, health, and technological innovation priorities. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), Department of Health and Human Services (HHS), and Department of Energy (DOE) are major contributors. While specific figures fluctuate annually based on budget appropriations and strategic shifts, this sector typically represents a significant portion of the federal R&D budget. Trends may include increased focus on areas like artificial intelligence, advanced materials, biotechnology, and clean energy research. Analyzing historical spending patterns within this NAICS code would reveal overall growth or contraction trends, agency-specific investment strategies, and the relative importance placed on different scientific domains over time.

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: TWO STEP

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: $19,706,075

Exercised Options: $19,706,075

Current Obligation: $12,642,960

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $7,539,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865022D5406

IDV Type: IDC

Timeline