Air Force contract for R&D support awarded to AEGIS AEROSPACE INC for over $33.7 million

Contract Overview

Contract Amount: $33,763,661 ($33.8M)

Contractor: Aegis Aerospace Inc

Awarding Agency: Department of Defense

Start Date: 2015-08-31

End Date: 2020-08-31

Contract Duration: 1,827 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT&INTEGRATION DIRECTORATE (AFLCMC/XZ) (RFP #18)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to AEGIS AEROSPACE INC for work described as: IGF::OT::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT&INTEGRATION DIRECTORATE (AFLCMC/XZ) (RFP #18) Key points: 1. The contract value of over $33.7 million for R&D support services represents a significant investment in program development and integration. 2. AEGIS AEROSPACE INC secured this contract, indicating a competitive selection process for specialized engineering and administrative support. 3. The contract duration of approximately 5 years suggests a long-term need for these advisory and assistance services. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to a focus on advanced scientific and technical endeavors. 5. The contract type, Cost Plus Fixed Fee, suggests that while costs are reimbursed, a fixed fee is applied, balancing risk between the government and contractor. 6. The award was made under 'Full and Open Competition after Exclusion of Sources,' implying a broad initial solicitation followed by specific source exclusions. 7. The contract was a Delivery Order, indicating it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

Benchmarking the value of this $33.7 million contract requires comparison to similar advisory and assistance services contracts within the Department of Defense, specifically for Air Force Life Cycle Management Center (AFLCMC) support. Without specific comparable contract data, it's challenging to definitively assess if the pricing is optimal. However, the Cost Plus Fixed Fee (CPFF) contract type generally aims to provide a reasonable balance between contractor incentive and government cost control. The fixed fee component, while not detailed here, is a key element in assessing value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that the initial solicitation was broadly advertised to all interested parties. However, the 'exclusion of sources' suggests that certain potential bidders were subsequently removed from consideration, possibly due to specific requirements or pre-qualification criteria. The number of bidders (8) is a positive sign of competition, suggesting that multiple firms vied for this opportunity, which typically drives better pricing and service offerings.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by fostering a more robust market and encouraging competitive pricing. The participation of 8 bidders suggests that the government received multiple proposals, increasing the likelihood of selecting the best value offer at a reasonable cost.

Public Impact

The primary beneficiaries are the Air Force Life Cycle Management Center (AFLCMC) program development and integration directorates, receiving crucial advisory and assistance services. The services delivered likely support the development, integration, and sustainment of complex Air Force weapon systems and programs. The geographic impact is centered around the AFLCMC's operational areas, primarily in Ohio, where the contractor is based. The contract supports a workforce of engineers, scientists, and administrative professionals contributing to national defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' aspect of the competition warrants further scrutiny to ensure it did not unduly limit competition or exclude potentially capable small businesses.
The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed diligently, requiring strong government oversight.
The specific nature of 'advisory and assistance services' can sometimes be less tangible, making performance measurement and value assessment more complex.

Positive Signals

The award to AEGIS AEROSPACE INC under a full and open competition framework suggests the contractor met stringent qualification requirements.
The participation of 8 bidders indicates a healthy level of interest and competition for this type of specialized support service.
The contract's duration of nearly 5 years points to a stable, long-term need for the services, implying consistent performance expectations.
The focus on R&D in physical, engineering, and life sciences aligns with critical national security and technological advancement goals.

Sector Analysis

This contract falls within the broader 'Research and Development' sector, specifically focusing on physical, engineering, and life sciences. The market for advisory and assistance services supporting defense programs is substantial, with significant government spending allocated annually. Comparable spending benchmarks would involve analyzing other contracts for similar support services awarded by the Department of Defense or other federal agencies to entities like AEGIS AEROSPACE INC or its competitors. The $33.7 million value positions this as a mid-to-large-sized contract within its niche.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. This suggests that the competition was open to all eligible businesses, including large corporations. While there's no direct small business set-aside, the prime contractor, AEGIS AEROSPACE INC, may engage small businesses as subcontractors. The extent of small business subcontracting would depend on the specific terms of the contract and the company's subcontracting plan, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Air Force Life Cycle Management Center (AFLCMC). Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to specific deliverables, timelines, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Air Force Life Cycle Management Center (AFLCMC) Support Services
Defense Research and Development Contracts
Advisory and Assistance Services (A&AS)
Engineering and Technical Support Contracts
Program Development and Integration Services

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Need for stringent oversight to ensure value for money.
Complexity in measuring performance for advisory services.
Ensuring 'Exclusion of Sources' did not unduly restrict competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to AEGIS AEROSPACE INC. IGF::OT::IGF SCAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF AIR FORCE LIFE CYCLE MANAGEMENT CENTER (AFLCMC) PROGRAM DEVELOPMENT&INTEGRATION DIRECTORATE (AFLCMC/XZ) (RFP #18)

Who is the contractor on this award?

The obligated recipient is AEGIS AEROSPACE 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 $33.8 million.

What is the period of performance?

Start: 2015-08-31. End: 2020-08-31.

What is the track record of AEGIS AEROSPACE INC in performing similar R&D advisory and assistance contracts for the Department of Defense?

Assessing AEGIS AEROSPACE INC's track record requires a detailed 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 documented issues or successes. For this specific contract, the duration of nearly 5 years suggests a sustained relationship, implying a level of satisfactory performance. However, a comprehensive analysis would look at the scope, complexity, and value of prior contracts, as well as client feedback, to gauge their capability in delivering R&D advisory and assistance services effectively and efficiently.

How does the $33.7 million contract value compare to other similar R&D support contracts awarded by the Air Force or DoD?

The $33.7 million contract value for R&D advisory and assistance services is a significant sum, placing it in the mid-to-large tier for such specialized support. To benchmark effectively, one would compare this to contracts with similar NAICS codes (e.g., 541712) and service descriptions awarded by the Department of Defense or Air Force over the past 3-5 years. Factors like contract duration, scope of work (e.g., specific R&D areas, program phases supported), and the number of bidders influence pricing. Without direct comparative data, it's difficult to definitively state if this represents excellent or fair value, but the competitive award process suggests an effort to achieve market-based pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services, and how are they mitigated?

The primary risk with a CPFF contract is that the contractor may incur costs exceeding initial estimates, potentially leading to scope creep or inefficiencies if not managed closely. The government bears the risk of cost overruns beyond the estimated cost, while the contractor is guaranteed a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, clear definition of work requirements in the Performance Work Statement (PWS), and regular performance reviews. The fixed fee itself incentivizes the contractor to manage costs efficiently to maximize their profit margin within that fee. For R&D, where outcomes can be uncertain, CPFF aims to balance the need for exploration with cost control.

What is the expected impact of this contract on the Air Force's program development and integration capabilities?

This contract is expected to significantly enhance the Air Force Life Cycle Management Center's (AFLCMC) program development and integration capabilities by providing specialized advisory and assistance services. These services likely involve technical expertise, strategic planning, and administrative support crucial for managing complex weapon systems and technology programs. By leveraging AEGIS AEROSPACE INC's support, the AFLCMC can potentially accelerate program timelines, improve decision-making, and ensure the effective integration of new technologies. This ultimately contributes to maintaining the Air Force's technological superiority and operational readiness.

How has federal spending in R&D advisory and assistance services evolved over the past five years, and where does this contract fit?

Federal spending on R&D advisory and assistance services has generally seen consistent or increasing trends, driven by the need for specialized expertise in areas like advanced technology, defense systems, and scientific research. Agencies like the Department of Defense frequently contract out for these services to supplement internal capabilities. This $33.7 million contract for AFLCMC support fits within this trend, representing a substantial, multi-year investment in a critical R&D function. Its value suggests it's a significant component of the AFLCMC's strategy for program development and integration, aligning with broader federal investments in maintaining technological leadership.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 18050 SATURN LANE STE 300, HOUSTON, TX, 77058

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $123,927,388

Exercised Options: $47,268,680

Current Obligation: $33,763,661

Actual Outlays: $894,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS719

IDV Type: IDC

Timeline