DoD's $129M Propulsion Science Research Contract with Astrion Group Raises Questions on Value and Competition
Contract Overview
Contract Amount: $129,329,056 ($129.3M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-27
End Date: 2011-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $70.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH IN PROPULSION SCIENCE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35816
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $129.3 million to ASTRION GROUP, LLC for work described as: RESEARCH IN PROPULSION SCIENCE Key points: 1. Significant investment in R&D for propulsion science. 2. Sole-source award after exclusion of sources limits competition. 3. Long contract duration (5 years) warrants scrutiny for ongoing value. 4. Potential for cost overruns with Cost Plus Fixed Fee contract type.
Value Assessment
Rating: questionable
The $129.3M contract for propulsion science research is substantial. Without clear benchmarks or comparison data for similar R&D efforts, assessing its value for money is difficult. The Cost Plus Fixed Fee structure can incentivize cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing or the best technical solutions available in the market.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for this significant investment.
Public Impact
Taxpayers may not have received the most competitive pricing due to limited competition. The long-term nature of the contract could lead to unforeseen costs. Investment in advanced propulsion technology could yield future defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of clear value for money assessment
Positive Signals
- Investment in critical R&D area
- Potential for technological advancement
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for innovation but can be prone to cost overruns and long development cycles.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract award.
Oversight & Accountability
The contract's long duration and limited competition suggest a need for robust oversight to ensure cost control and adherence to research objectives. Independent reviews of progress and spending would be beneficial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may have resulted in higher costs.
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Long contract duration increases risk of scope creep or obsolescence.
- Lack of transparency in the 'exclusion of sources' justification.
- Potential for insufficient oversight on R&D spending.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.3 million to ASTRION GROUP, LLC. RESEARCH IN PROPULSION SCIENCE
Who is the contractor on this award?
The obligated recipient is ASTRION GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $129.3 million.
What is the period of performance?
Start: 2006-09-27. End: 2011-09-30.
How was the initial price determined to be fair and reasonable given the limited competition and the nature of R&D?
Determining fairness and reasonableness in R&D contracts with limited competition is challenging. Agencies typically rely on historical pricing data for similar research, independent cost estimates, and the contractor's proposed cost breakdown. However, the inherent uncertainties in R&D make precise cost estimation difficult, and the exclusion of sources limits the ability to validate pricing against market alternatives.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this propulsion research?
The primary risk of a CPFF contract is that it incentivizes the contractor to incur costs, as their fee is a fixed percentage of those costs. This can lead to cost overruns if not managed tightly. For R&D, where scope and technical challenges can evolve, the contractor might be less motivated to find cost-saving efficiencies, potentially increasing the overall expenditure for the government.
How will the effectiveness of the propulsion research be measured and validated over the contract's duration?
Effectiveness is typically measured through the achievement of specific research milestones, technical performance metrics, and deliverables outlined in the contract. Regular progress reviews, technical evaluations by government experts, and independent testing of prototypes or findings are crucial. The long duration necessitates phased evaluations to ensure the research remains aligned with evolving defense needs and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1100 REDSTONE GTWY SW STE 300, HUNTSVILLE, AL, 35808
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $136,488,240
Exercised Options: $136,488,240
Current Obligation: $129,329,056
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-27
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2025-03-07
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