DoD awards $44.4M for Space Situational Awareness, with Assurance Technology Corp. securing the contract
Contract Overview
Contract Amount: $44,378,170 ($44.4M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2008-10-22
End Date: 2013-12-31
Contract Duration: 1,896 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SELF AWARENESS SPACE SITUATION AWARENESS (SASSA)
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $44.4 million to ASSURANCE TECHNOLOGY CORP for work described as: SELF AWARENESS SPACE SITUATION AWARENESS (SASSA) Key points: 1. The contract value of $44.4M is moderate for a defense IT system. 2. Assurance Technology Corp. is the sole awardee, raising questions about competition. 3. The contract type (Cost No Fee) may offer less incentive for cost control. 4. The sector is Defense, specifically focusing on IT for space awareness.
Value Assessment
Rating: fair
The Cost No Fee contract type provides less incentive for the contractor to control costs compared to fixed-price contracts. Benchmarking against similar SASSA systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, only one offer was received and accepted. This suggests potential issues with market research, solicitation clarity, or contractor capability, impacting price discovery.
Taxpayer Impact: The lack of robust competition may have resulted in a higher price than could have been achieved through a more competitive process.
Public Impact
Enhances national security by improving space domain awareness. Supports critical military operations reliant on space-based assets. Potential for technological advancements in space surveillance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition despite full and open solicitation.
- Cost No Fee contract type.
- Long contract duration (1896 days).
Positive Signals
- Addresses a critical defense need for space situational awareness.
- Contract awarded to a single, potentially specialized vendor.
Sector Analysis
This contract falls within the Defense sector, specifically IT services for intelligence and surveillance. Spending benchmarks for similar Space Situational Awareness (SSA) systems vary widely based on scope and technology.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Defense Contract Management Agency, suggesting oversight is in place. However, the limited competition warrants closer scrutiny of the award process and performance monitoring.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of demonstrated competition.
- Potential for cost overruns due to CNF structure.
- Contract duration may exceed actual need.
- Limited transparency on sole-source-like outcome.
- Dependence on a single contractor for critical capability.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.4 million to ASSURANCE TECHNOLOGY CORP. SELF AWARENESS SPACE SITUATION AWARENESS (SASSA)
Who is the contractor on this award?
The obligated recipient is ASSURANCE TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $44.4 million.
What is the period of performance?
Start: 2008-10-22. End: 2013-12-31.
What was the rationale for only one offer being received under a full and open solicitation?
The rationale for a single offer under a full and open solicitation is not provided in the data. Potential reasons include highly specialized requirements, limited market availability of qualified contractors, or issues with the solicitation process itself. Further investigation into the pre-award phase and market research is necessary to understand this outcome.
How does the Cost No Fee contract structure impact contractor performance and cost control for this SASSA system?
The Cost No Fee (CNF) contract structure means the contractor is reimbursed for allowable costs but receives no fee. This can reduce contractor incentive for cost efficiency, as there's no direct profit motive tied to cost savings. While it might be used for R&D or when cost is highly uncertain, it necessitates strong government oversight to manage expenditures effectively.
What is the long-term strategic value of this SASSA system, and how does it align with evolving space threats?
The long-term strategic value lies in maintaining a comprehensive understanding of the space environment, crucial for protecting U.S. assets and ensuring freedom of operation. As space becomes more contested, robust SASSA capabilities are vital for threat detection, tracking, and potential de-escalation. Alignment with evolving threats depends on the system's adaptability and integration with broader intelligence frameworks.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 84 S ST, CARLISLE, MA, 01741
Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,120,778
Exercised Options: $45,098,278
Current Obligation: $44,378,170
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-10-22
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2018-09-14
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