DoD's $885M R&D Contract with SURMET Corp for Alon Production Process Improvement
Contract Overview
Contract Amount: $8,851,478 ($8.9M)
Contractor: Surmet Corp
Awarding Agency: Department of Defense
Start Date: 2018-01-19
End Date: 2026-05-22
Contract Duration: 3,045 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MANUFACTURING PROCESS IMPROVEMENT FOR ALON PRODUCTION
Place of Performance
Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803
Plain-Language Summary
Department of Defense obligated $8.9 million to SURMET CORP for work described as: MANUFACTURING PROCESS IMPROVEMENT FOR ALON PRODUCTION Key points: 1. Contract awarded to SURMET Corp for manufacturing process improvement. 2. Focus on R&D in Physical, Engineering, and Life Sciences. 3. Competition method: Full and Open after exclusion of sources. 4. Contract type: Cost Plus Fixed Fee. 5. Significant duration of 3045 days.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed closely. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' suggesting a limited initial competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are allocated for advanced manufacturing R&D. The effectiveness of the process improvement will determine the ultimate value for money.
Public Impact
Supports advancement in manufacturing technology for defense applications. Potential for improved efficiency and cost savings in future production. Long contract duration allows for in-depth research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Limited competition may reduce cost-saving pressures.
- Long contract duration increases exposure to potential scope creep or changing requirements.
Positive Signals
- Focus on process improvement can lead to long-term efficiencies.
- Investment in R&D aligns with technological advancement goals.
- Contract awarded to a single entity for specialized work.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value.
Small Business Impact
The contract does not indicate any specific set-asides or participation goals for small businesses. The nature of the specialized R&D may limit direct subcontracting opportunities for smaller firms.
Oversight & Accountability
The 'Exclusion of Sources' clause warrants scrutiny to ensure the exclusion was justified and that fair opportunity was provided within the limited scope. Regular performance reviews will be critical for this long-duration contract.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited competition due to exclusion of sources.
- Long contract duration (over 8 years).
- Lack of small business participation noted.
- Potential for cost overruns without strict oversight.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to SURMET CORP. MANUFACTURING PROCESS IMPROVEMENT FOR ALON PRODUCTION
Who is the contractor on this award?
The obligated recipient is SURMET CORP.
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 $8.9 million.
What is the period of performance?
Start: 2018-01-19. End: 2026-05-22.
What specific criteria led to the exclusion of other sources, and was this exclusion justified to ensure fair competition?
The justification for excluding sources is not detailed in the provided data. Typically, such exclusions are based on unique capabilities, proprietary information, or specific national security requirements. A thorough review would be needed to confirm the validity of the exclusion and its impact on achieving the best possible price and innovation for the government.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure efficient use of taxpayer funds?
Effective management of a Cost Plus Fixed Fee contract requires robust oversight, detailed cost tracking, and clear performance metrics. The Air Force must implement stringent financial controls, regular audits, and performance reviews to monitor expenditures and ensure SURMET Corp remains within budget while achieving the contract's objectives.
What are the measurable outcomes expected from this manufacturing process improvement, and how will their achievement be assessed?
Measurable outcomes should include quantifiable improvements in production efficiency, reduction in waste, enhanced product quality, or decreased manufacturing time. The contract should define specific Key Performance Indicators (KPIs) and milestones against which SURMET Corp's progress will be regularly assessed by the Department of the Air Force.
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 31 B ST, BURLINGTON, MA, 01803
Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,851,478
Exercised Options: $8,851,478
Current Obligation: $8,851,478
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-01-19
Current End Date: 2026-05-22
Potential End Date: 2026-05-22 00:00:00
Last Modified: 2025-12-18
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