DoD Awards $73.9M R&D Contract to Aegis Aerospace for Human-Rated Payload Support
Contract Overview
Contract Amount: $73,944,070 ($73.9M)
Contractor: Aegis Aerospace Inc
Awarding Agency: Department of Defense
Start Date: 2018-08-31
End Date: 2026-09-30
Contract Duration: 2,952 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF DEPARTMENT OF DEFENSE HUMAN-RATED PAYLOAD SUPPORT TASK ORDER (DHSTO)
Place of Performance
Location: WEBSTER, HARRIS County, TEXAS, 77598
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $73.9 million to AEGIS AEROSPACE INC for work described as: IGF::CT::IGF DEPARTMENT OF DEFENSE HUMAN-RATED PAYLOAD SUPPORT TASK ORDER (DHSTO) Key points: 1. Contract awarded to Aegis Aerospace Inc. for R&D in physical, engineering, and life sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning from August 2018 to September 2026. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract value of $73.9M over nearly 8 years suggests a significant investment. Benchmarking against similar R&D contracts in physical sciences is difficult without more specific details on the payload support scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds are being used for research and development, aiming to advance human-rated payload capabilities for the Department of Defense.
Public Impact
Enhances Department of Defense capabilities in human-rated payload technology. Supports research and development in critical scientific and engineering fields. Long-term contract may indicate ongoing need and strategic importance of the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractor to increase costs.
- Long contract duration increases risk of scope creep and cost escalation.
- Specific R&D scope is not detailed, making value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense research and development.
- Contractor has a long-term engagement, suggesting reliability.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Spending in this sector is crucial for technological advancement and national security, with benchmarks varying widely based on the specific research area and project scale.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded under full and open competition, suggesting larger, established firms were likely the primary bidders.
Oversight & Accountability
The contract is managed by the Department of the Air Force within the Department of Defense. Oversight would typically involve program managers monitoring cost, schedule, and performance to ensure objectives are met and taxpayer funds are used efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (2018-2026).
- R&D projects inherently carry uncertainty.
- Lack of specific R&D scope details.
- Potential for cost overruns.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.9 million to AEGIS AEROSPACE INC. IGF::CT::IGF DEPARTMENT OF DEFENSE HUMAN-RATED PAYLOAD SUPPORT TASK ORDER (DHSTO)
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 $73.9 million.
What is the period of performance?
Start: 2018-08-31. End: 2026-09-30.
What specific technological advancements are expected from this $73.9M R&D investment?
The contract focuses on 'Human-Rated Payload Support,' implying advancements in systems that safely integrate humans with payloads, likely for space or advanced aviation applications. This could include life support, environmental controls, human-machine interfaces, and safety protocols for complex operational environments. Specific deliverables would be detailed in the task order's SOW.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The primary risk with CPFF contracts, especially in R&D, is that the contractor has less incentive to control costs as the government bears the majority of the expense. If the fixed fee is substantial or the R&D is highly uncertain, costs can escalate beyond initial projections. Effective government oversight is crucial to mitigate this.
How does this contract contribute to the Department of Defense's overall effectiveness?
This contract supports the development of advanced human-rated payload capabilities, which are essential for future military operations, potentially in space or advanced aerial platforms. By investing in R&D, the DoD aims to maintain a technological edge, enhance mission success rates, and ensure the safety of personnel operating complex systems.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 18050 SATURN LN, HOUSTON, TX, 77058
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $80,027,342
Exercised Options: $80,027,163
Current Obligation: $73,944,070
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80JSC017D0008
IDV Type: IDC
Timeline
Start Date: 2018-08-31
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-23
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