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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace 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

More Contracts from Aegis Aerospace Inc

View all Aegis Aerospace Inc federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending