DoD's $21.9M contract for engineering services awarded to Advanced Testing Technologies Inc. shows fair value
Contract Overview
Contract Amount: $21,933,930 ($21.9M)
Contractor: Advanced Testing Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2010-08-04
End Date: 2015-08-31
Contract Duration: 1,853 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENGINEERING SERVICES
Place of Performance
Location: HAUPPAUGE, SUFFOLK County, NEW YORK, 11788
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $21.9 million to ADVANCED TESTING TECHNOLOGIES INC for work described as: ENGINEERING SERVICES Key points: 1. The contract value of $21.9M over 5 years suggests a moderate annual spend. 2. Competition was robust, indicating potential for competitive pricing. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. The contract aligns with the Air Force's needs for specialized testing equipment. 5. The North American Industry Classification System (NAICS) code 334515 points to a specialized manufacturing sector. 6. The contractor's single award suggests a focused relationship for this specific need.
Value Assessment
Rating: fair
The contract's total value of $21.9M over approximately five years averages to about $4.4M annually. Without specific benchmarks for similar engineering services contracts within the Department of Defense or for instrument manufacturing, a precise value-for-money assessment is challenging. However, the firm fixed-price structure generally encourages cost control by the contractor. The relatively low number of bids (one awardee) could imply either a highly specialized niche or potentially less aggressive pricing than a more competitive scenario might yield. Further analysis would require benchmarking against comparable contracts for similar services and equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The data indicates one award, which could mean that while competition was open, only one offeror met all the requirements or was the most advantageous. A single award under full and open competition warrants further investigation into whether the solicitation was structured in a way that naturally limited the number of viable bidders or if the market for these specific engineering services is inherently concentrated.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. However, a single award under this type of competition might suggest that the government did not achieve the full benefit of price reduction that might come from multiple competing bids.
Public Impact
The Department of the Air Force benefits from specialized engineering services for instrument manufacturing. This contract supports the development and maintenance of critical testing and measurement equipment. The geographic impact is centered in New York, where the contractor is located. The contract likely supports a specialized workforce in engineering and manufacturing within the New York area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite full and open award could lead to suboptimal pricing.
- Lack of detailed performance metrics makes it difficult to assess effectiveness.
- The contract duration and value may not be indicative of long-term strategic needs.
- Geographic concentration of the awardee could limit future sourcing options.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor.
- Full and open competition was utilized, adhering to procurement regulations.
- The contract addresses a specific need within the Department of Defense's instrumentation requirements.
- The awardee is based in New York, potentially supporting regional economic activity.
Sector Analysis
The contract falls under the Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals sector, classified under NAICS code 334515. This is a specialized segment of the manufacturing industry focused on producing sophisticated electronic testing equipment. The market size for such specialized instruments can vary, but it is often driven by defense, aerospace, and research and development needs. Benchmarking spending in this area requires comparing it to other contracts for similar specialized test equipment procurement by government agencies, particularly within the Department of Defense.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false) and the contractor is not a small business (sb: false). Therefore, this contract does not appear to have direct subcontracting implications for small businesses through a set-aside program. Further investigation would be needed to determine if the prime contractor voluntarily engages small businesses as subcontractors for specialized components or services related to this engineering contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order under a larger contract vehicle, oversight would focus on the timely and quality delivery of the specified engineering services and instruments. Transparency is generally maintained through contract award databases, but specific performance monitoring details are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Instrumentation Procurement
- Engineering Services Contracts
- Air Force Research and Development
- Specialized Manufacturing Contracts
Risk Flags
- Limited competition despite full and open award.
- Lack of detailed performance metrics.
- Potential for price escalation if market conditions change significantly.
Tags
defense, department-of-defense, department-of-the-air-force, engineering-services, instrument-manufacturing, measuring-and-testing-electricity-and-electrical-signals, firm-fixed-price, full-and-open-competition, delivery-order, new-york, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to ADVANCED TESTING TECHNOLOGIES INC. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is ADVANCED TESTING TECHNOLOGIES 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 $21.9 million.
What is the period of performance?
Start: 2010-08-04. End: 2015-08-31.
What is the track record of Advanced Testing Technologies Inc. with federal contracts, particularly with the Department of Defense?
Advanced Testing Technologies Inc. (ATT) has been awarded at least one federal contract, this specific delivery order valued at $21.9M from the Department of the Air Force. Information regarding ATT's broader federal contracting history, including other agencies served, contract types, and past performance ratings, is not detailed in the provided data. A comprehensive assessment of their track record would require accessing federal procurement databases like FPDS-NG or SAM.gov to review all awarded contracts, their values, durations, and any associated performance feedback or disputes. Understanding their history with the DoD specifically would reveal their experience in meeting defense-specific requirements and compliance standards.
How does the per-unit cost or annual spending compare to similar engineering services contracts for instrument manufacturing?
The provided data does not include per-unit cost information or specific details about the services rendered that would allow for a direct per-unit cost comparison. The total contract value is $21.9M over approximately 5 years (1853 days), averaging around $4.4M annually. To benchmark this against similar contracts, one would need to identify other Department of Defense or Air Force contracts for 'Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals' (NAICS 334515) awarded within a similar timeframe. Key comparison points would include the scope of work, complexity of the instruments, contract type (firm fixed-price is noted here), and the number of bidders. Without these comparable contracts, assessing whether $4.4M annually represents a competitive or excessive spend is difficult.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential performance issues if Advanced Testing Technologies Inc. fails to deliver the engineering services or instruments to the required specifications and timeline. Given it's a firm fixed-price contract, cost overruns are primarily the contractor's risk, but delays or quality failures can still impact the government's program objectives. Another risk is the limited competition indicated by a single award, which could potentially lead to less favorable pricing or reduced innovation over time. Mitigation strategies would involve robust contract oversight by the Air Force, clear performance metrics, regular progress reviews, and potentially exercising options judiciously. The fixed-price nature itself is a risk mitigation tool for the government regarding cost escalation.
How effective has this contract been in delivering the intended engineering services and instruments?
The provided data summary does not contain information on the effectiveness or performance outcomes of this contract. It details the award information, contractor, agency, value, and dates, but lacks metrics on deliverables, quality assessments, or user satisfaction. To determine effectiveness, one would need access to performance reports, acceptance criteria, and potentially feedback from the end-users within the Department of the Air Force who utilized the engineering services and instruments provided under this contract. Without such performance data, an assessment of effectiveness cannot be made.
What are the historical spending patterns for engineering services related to instrument manufacturing within the Department of the Air Force?
Historical spending patterns for engineering services related to instrument manufacturing within the Department of the Air Force are not detailed in the provided data snippet. This specific contract represents $21.9M over approximately five years. To understand broader patterns, one would need to analyze aggregated spending data for NAICS code 334515 and related service codes over multiple fiscal years. This analysis would reveal trends in contract values, types of services procured, dominant contractors, and fluctuations in spending that might correlate with technological advancements, budget allocations, or strategic priorities within the Air Force.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 110 RICEFIELD LN, HAUPPAUGE, NY, 11788
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $21,933,930
Exercised Options: $21,933,930
Current Obligation: $21,933,930
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS24F3010G
IDV Type: FSS
Timeline
Start Date: 2010-08-04
Current End Date: 2015-08-31
Potential End Date: 2015-08-31 00:00:00
Last Modified: 2021-12-07
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