DoD's $24.5M contract for aerodynamic validation capabilities support awarded to Analytical Services & Materials, Inc

Contract Overview

Contract Amount: $24,476,157 ($24.5M)

Contractor: Analytical Services & Materials, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-11-01

End Date: 2021-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF NEW TASK ORDER AERODYNAMIC VALIDATION CAPABILITES SUPPORT (AVAL)

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to ANALYTICAL SERVICES & MATERIALS, INC. for work described as: IGF::OT::IGF NEW TASK ORDER AERODYNAMIC VALIDATION CAPABILITES SUPPORT (AVAL) Key points: 1. Contract value represents a significant investment in advanced engineering services. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. Contract duration of 5 years indicates a long-term need for these specialized capabilities. 4. The contract type (Cost No Fee) implies a focus on achieving specific outcomes rather than fixed deliverables. 5. Performance is located in Ohio, potentially impacting regional economic development and workforce. 6. The award falls under Engineering Services, a critical sector for defense innovation.

Value Assessment

Rating: good

The contract value of $24.5 million over five years for aerodynamic validation capabilities support appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for advanced engineering and simulation services in the defense sector suggests that the pricing structure is competitive. The Cost No Fee (CNF) contract type, while less common for fixed-price deliverables, is often used for research and development or services where precise cost estimation is difficult, focusing instead on achieving defined objectives. This approach can offer value by ensuring the contractor is incentivized to meet performance goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on pre-defined criteria or prior performance. The presence of multiple bidders (3 noted) suggests a degree of competition, which is generally positive for price discovery. However, the 'exclusion of sources' clause warrants further investigation to understand the rationale and its potential impact on the breadth of competition.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. A well-managed competition, even if not entirely unrestricted, should lead to fair pricing and access to necessary specialized expertise.

Public Impact

The Department of the Air Force benefits from enhanced aerodynamic validation capabilities, crucial for aircraft design and performance. This contract supports the development and testing of advanced aerospace technologies. The geographic impact is primarily in Ohio, where the contractor is located, potentially creating or sustaining high-skilled jobs. The services delivered are critical for maintaining technological superiority in air and space domains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • The 'exclusion of sources' clause in the competition type could limit the pool of potential bidders, potentially impacting overall cost savings.
  • The Cost No Fee (CNF) contract type can sometimes lead to cost overruns if not managed meticulously, as the government bears the cost of performance.
  • Lack of specific performance metrics or outcome data makes it difficult to fully assess the value for money achieved.
  • The raw dollar amount, while significant, does not provide context on the scope or complexity of the 'aerodynamic validation capabilities support' provided.

Positive Signals

  • Awarding to a single contractor for specialized services suggests they possess unique or highly sought-after expertise.
  • The duration of the contract (5 years) indicates a stable, long-term requirement, allowing for sustained focus and development.
  • The contract falls under Engineering Services, a vital area for defense innovation and technological advancement.
  • The competition, even with exclusions, involved multiple bidders, suggesting a structured procurement process.

Sector Analysis

The aerospace and defense sector is characterized by high R&D investment and specialized engineering services. Contracts like this are essential for maintaining a technological edge. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a broad range of activities, including those related to aerospace design, testing, and validation. Spending in this category within the federal government, particularly the Department of Defense, is substantial, reflecting the ongoing need for cutting-edge engineering solutions.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The nature of specialized engineering services often requires large, established firms with significant infrastructure and expertise. While this specific contract may not directly benefit small businesses through set-asides, the prime contractor may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, which provide basic award details. However, detailed performance reports and cost breakdowns may not be publicly available, limiting full transparency.

Related Government Programs

  • Aerospace Engineering Services
  • Defense Research and Development
  • Aircraft Systems Development
  • Advanced Materials Testing
  • Engineering and Technical Services

Risk Flags

  • Potential for limited competition due to source exclusion.
  • Cost control risks inherent in Cost No Fee contracts.
  • Risk of technological obsolescence over the 5-year period.
  • Dependence on contractor's ability to retain specialized personnel.

Tags

defense, department-of-defense, department-of-the-air-force, engineering-services, aerodynamic-validation, cost-no-fee, full-and-open-competition-after-exclusion-of-sources, delivery-order, ohio, analytical-services-and-materials-inc, long-term-contract, research-and-development

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to ANALYTICAL SERVICES & MATERIALS, INC.. IGF::OT::IGF NEW TASK ORDER AERODYNAMIC VALIDATION CAPABILITES SUPPORT (AVAL)

Who is the contractor on this award?

The obligated recipient is ANALYTICAL SERVICES & MATERIALS, 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 $24.5 million.

What is the period of performance?

Start: 2016-11-01. End: 2021-10-31.

What specific aerodynamic validation capabilities are being supported under this contract?

The contract, "AERODYNAMIC VALIDATION CAPABILITIES SUPPORT (AVAL)," suggests support for services and materials related to validating aerodynamic performance. This could encompass a range of activities such as wind tunnel testing, computational fluid dynamics (CFD) analysis, flight testing support, data acquisition, and performance modeling for aircraft, missiles, or other aerospace vehicles. The specific nature of these capabilities would likely be detailed in the Statement of Work (SOW) which is not publicly available. The objective is to ensure that the aerodynamic design and performance of defense systems meet stringent requirements and operational needs.

How does the 'Cost No Fee' (CNF) contract type compare to other contract types for similar services?

The Cost No Fee (CNF) contract type is a variation of cost-reimbursement contracts where the contractor is reimbursed for allowable costs but receives no fee or profit. This type is typically used for research and development efforts where the outcome is highly uncertain, or when the government has a strong interest in the contractor dedicating its best efforts without the incentive of profit influencing decisions. Compared to Fixed-Price contracts, CNF offers flexibility but less cost certainty for the government. It differs from Cost Plus Fixed Fee (CPFF) or Cost Plus Incentive Fee (CPIF) contracts by eliminating the fee, which can be advantageous when the primary goal is achieving a specific technical objective rather than managing costs within a profit margin.

What is the significance of 'Full and Open Competition After Exclusion of Sources'?

This procurement method signifies that the solicitation was made available to all responsible sources (full and open competition), but certain sources were excluded from consideration. The exclusion typically occurs when specific criteria are met, such as a previous contractor's failure to perform, proprietary data rights, or unique capabilities possessed by only a few entities. While it aims to ensure fair opportunity, the exclusion narrows the competitive pool compared to unrestricted full and open competition. The rationale for exclusion is usually documented and justified to ensure fairness and prevent undue restriction of competition.

What is the historical spending trend for similar engineering services within the Department of the Air Force?

Historical spending on engineering services by the Department of the Air Force (DAF) is substantial and generally trends upwards, reflecting continuous investment in modernization, research, and development. The DAF procures a wide array of engineering services, including those for aircraft design, systems integration, testing, and sustainment. While specific figures for 'aerodynamic validation' are not readily isolated, the overall category of engineering services (NAICS 541330) consistently represents billions of dollars annually across the Department of Defense. Factors influencing spending include geopolitical conditions, technological advancements, and specific program requirements.

What are the potential risks associated with a 5-year contract for specialized engineering services?

A significant risk with a 5-year contract for specialized engineering services is the potential for technological obsolescence if the underlying technologies or requirements change rapidly. Another risk is contractor performance degradation over time or the contractor's inability to retain key personnel. For the government, there's a risk of locking into a specific approach or technology that may become suboptimal. Furthermore, the Cost No Fee structure, while beneficial for objective achievement, carries the risk of cost escalation if not managed with rigorous oversight, as the government bears the ultimate cost.

How does the contractor, Analytical Services & Materials, Inc., perform on other federal contracts?

Analytical Services & Materials, Inc. (ASaM) has a track record of performing federal contracts, primarily within the Department of Defense. Information from public databases indicates ASaM has received awards for various engineering, research, and technical support services. Performance reviews and past performance data, if available, would provide a more granular assessment. Generally, for a contract of this duration and value, the government would have conducted a thorough past performance evaluation as part of the source selection process to ensure the contractor has the capability and reliability to meet the requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 107 RESEARCH DR, HAMPTON, VA, 23666

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $47,869,999

Exercised Options: $32,336,838

Current Obligation: $24,476,157

Actual Outlays: $919,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS304

IDV Type: IDC

Timeline

Start Date: 2016-11-01

Current End Date: 2021-10-31

Potential End Date: 2021-10-31 00:00:00

Last Modified: 2024-09-30

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