DoD's $45.6M R&D contract for UAS tech shows strong competition and fair value

Contract Overview

Contract Amount: $45,613,239 ($45.6M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2018-06-25

End Date: 2022-11-21

Contract Duration: 1,610 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH DEVELOPMENT TEST AND EVALUATION OF UNMANNED AIRCRAFT SYSTEMS FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, TARGETING AND PRECISION STRIKE CAPABILITIES FOR NAVAL AIR SYSTEMS COMMAND PERSISTENT MARITIME UAS PROGRAM OFFICE 262

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to MANTECH TSG-2 JOINT VENTURE for work described as: RESEARCH DEVELOPMENT TEST AND EVALUATION OF UNMANNED AIRCRAFT SYSTEMS FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, TARGETING AND PRECISION STRIKE CAPABILITIES FOR NAVAL AIR SYSTEMS COMMAND PERSISTENT MARITIME UAS PROGRAM OFFICE 262 Key points: 1. Contract awarded to MANTECH TSG-2 JOINT VENTURE for Unmanned Aircraft Systems (UAS) R&D. 2. Focus on intelligence, surveillance, reconnaissance, targeting, and precision strike capabilities for naval air systems. 3. Contract duration of 1610 days, spanning from June 2018 to November 2022. 4. Awarded under full and open competition, indicating a robust bidding process. 5. The contract type is Cost Plus Fixed Fee (CPFF), common for R&D projects. 6. This contract aligns with broader DoD investments in advanced unmanned systems.

Value Assessment

Rating: good

The contract's total value of $45.6 million for R&D in advanced UAS technology appears reasonable when benchmarked against similar complex defense research initiatives. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility inherent in research and development while providing a defined profit margin for the contractor. Without specific cost breakdowns or comparable contract data for identical systems, a precise value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 2 bids indicates a degree of competition, though a higher number of bidders would typically suggest even stronger price discovery and potentially lower costs for the government. The competitive process, however, ensures that the award was made to the most advantageous offer based on the evaluation criteria.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple contractors.

Public Impact

Enhances U.S. Navy's intelligence, surveillance, and reconnaissance capabilities through advanced UAS technology. Supports the development of precision strike capabilities, improving operational effectiveness. Benefits the defense industrial base by funding research and development in a critical technology area. Potential for workforce implications in specialized R&D roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can sometimes lead to cost overruns if not closely monitored.
The limited number of bidders (2) might suggest potential barriers to entry or a niche market.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential offerors.
Focus on critical defense capabilities aligns with national security priorities.
The contract supports the development of advanced, cutting-edge technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced unmanned aircraft systems (UAS). The market for defense-related R&D, particularly in areas like AI, autonomy, and advanced sensors for UAS, is highly competitive and rapidly evolving. Spending in this area is driven by the need for technological superiority and adapting to new threats. Comparable spending benchmarks would involve other DoD contracts for similar R&D efforts in aerospace and unmanned systems.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the nature of advanced R&D in defense, prime contracts are often awarded to large, specialized firms or joint ventures. However, the prime contractor may engage small businesses as subcontractors for specialized components or services, contributing to the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by the Naval Air Systems Command (NAVAIR) through contract officers and technical representatives. They would monitor costs, performance, and adherence to the contract's Statement of Work. Transparency is facilitated through contract award databases, and any significant issues would likely fall under the purview of the Department of Defense's Inspector General.

Related Government Programs

Naval Air Systems Command Programs
Unmanned Aircraft Systems Development
Intelligence, Surveillance, and Reconnaissance (ISR) Technology
Precision Strike Capabilities
Department of Defense Research and Development

Risk Flags

Cost Overrun Potential (CPFF)
Limited Bidder Pool (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to MANTECH TSG-2 JOINT VENTURE. RESEARCH DEVELOPMENT TEST AND EVALUATION OF UNMANNED AIRCRAFT SYSTEMS FOR INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE, TARGETING AND PRECISION STRIKE CAPABILITIES FOR NAVAL AIR SYSTEMS COMMAND PERSISTENT MARITIME UAS PROGRAM OFFICE 262

Who is the contractor on this award?

The obligated recipient is MANTECH TSG-2 JOINT VENTURE.

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 $45.6 million.

What is the period of performance?

Start: 2018-06-25. End: 2022-11-21.

What is the track record of MANTECH TSG-2 JOINT VENTURE with similar R&D contracts?

MANTECH TSG-2 JOINT VENTURE's track record with similar R&D contracts would need to be assessed through a review of their past performance on government contracts, particularly those involving advanced technology development for the Department of Defense. Information on previous awards, contract values, and performance reviews (if publicly available) would indicate their experience and success in delivering complex R&D projects. A history of successful project completion, adherence to budget and schedule, and positive performance evaluations would suggest a lower risk associated with this contract. Conversely, a history of cost overruns, missed deadlines, or negative performance feedback would raise concerns about their capability to execute this specific R&D effort effectively.

How does the $45.6 million value compare to other DoD UAS R&D contracts?

Benchmarking the $45.6 million value requires comparing it to similar Research, Development, Test, and Evaluation (RDT&E) contracts awarded by the Department of Defense (DoD) for Unmanned Aircraft Systems (UAS) with comparable objectives. Factors such as the scope of work (e.g., sensor development, airframe integration, AI capabilities), contract type (e.g., CPFF, FFP), and the specific branch of service (e.g., Navy, Air Force, Army) influence cost. While specific comparable data is proprietary, $45.6 million for a multi-year R&D effort in a cutting-edge field like advanced UAS for ISR and strike capabilities is within the expected range for significant technological advancement projects. Contracts for basic research might be lower, while those involving extensive prototyping and testing of mature systems could be higher.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one for UAS R&D, revolve around cost control and contractor incentives. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government ultimately pays the allowable costs incurred. This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, increasing the cost base. The 'fixed fee' component provides the contractor with a guaranteed profit, but the overall cost to the government can still escalate. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

How effective is the 'full and open competition' strategy for R&D contracts of this nature?

The 'full and open competition' strategy is generally considered highly effective for R&D contracts, especially in rapidly evolving technological fields like UAS. It maximizes the pool of potential offerors, increasing the likelihood of discovering innovative solutions and competitive pricing. By allowing all responsible sources to compete, the government can leverage a wider range of expertise and potentially identify smaller, agile companies with novel approaches that might be overlooked in more restricted solicitations. While this contract had two bidders, the principle of full and open competition ensures that the award is based on the best overall value, considering technical merit, past performance, and price, rather than being limited to a pre-selected group.

What are the potential long-term implications for naval aviation capabilities?

The long-term implications of this R&D contract for naval aviation capabilities are significant. Successful development of advanced UAS for intelligence, surveillance, reconnaissance, targeting, and precision strike will enhance the Navy's situational awareness, reduce risk to manned aircraft in contested environments, and provide persistent overwatch capabilities. These advancements can lead to more effective mission planning, improved target identification, and the ability to conduct operations in areas previously deemed too dangerous for manned platforms. Ultimately, this investment contributes to maintaining a technological edge for naval forces and adapting to future warfare demands.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807513R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $45,861,036

Exercised Options: $45,861,036

Current Obligation: $45,613,239

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $44,283,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807514D0020

IDV Type: IDC

Timeline