Air Force's $17.2M PNT R&D contract with Axient LLC shows strong competition and long-term performance

Contract Overview

Contract Amount: $17,231,860 ($17.2M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-01

End Date: 2027-03-30

Contract Duration: 2,859 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RISE - POSITION, NAVIGATION, AND TIMING (PNT)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to AXIENT LLC for work described as: RISE - POSITION, NAVIGATION, AND TIMING (PNT) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Performance period extends over 8 years, suggesting a need for sustained research and development. 3. The contract type (Cost No Fee) implies a focus on achieving specific research outcomes rather than fixed deliverables. 4. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D in physical and engineering sciences. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The geographic location of performance is Alabama, potentially indicating a concentration of defense R&D activities in the region.

Value Assessment

Rating: good

The contract's total award amount of $17.2 million over nearly 8 years suggests a moderate investment in specialized R&D. Without specific benchmarks for PNT R&D, a direct value-for-money assessment is challenging. However, the competitive award process implies that pricing was scrutinized. The Cost No Fee (CNF) contract type is common in R&D where outcomes are uncertain, focusing on effort rather than fixed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that after an initial broad solicitation, certain sources were excluded, but the remaining competition was open. This suggests a competitive process, though the exclusion of sources warrants further investigation into the rationale. The number of bidders is not specified, but the designation implies more than one offer was considered.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by encouraging multiple firms to offer their best terms. The 'after exclusion of sources' clause could potentially limit the full benefit of open competition if the exclusions were not well-justified.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, receiving advanced research in Positioning, Navigation, and Timing (PNT) systems. This contract supports the development of critical technologies that enhance military operational capabilities and national security. The geographic impact is concentrated in Alabama, where the contractor, Axient LLC, is located and likely performs the work. The contract may have implications for the specialized R&D workforce in the aerospace and defense sector, particularly in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type could indicate potential limitations on the breadth of competition, requiring scrutiny of the exclusion rationale.
The Cost No Fee contract type, while suitable for R&D, can present challenges in cost control if not managed diligently.
The long performance period (nearly 8 years) necessitates ongoing oversight to ensure continued relevance and effective execution of research objectives.

Positive Signals

Awarded through a full and open competition process, suggesting a competitive marketplace for these R&D services.
The contract supports critical national security functions related to PNT, indicating alignment with strategic defense priorities.
The contractor, Axient LLC, is likely a specialized firm with expertise in the required R&D domain.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on PNT technologies. This is a critical area for defense, impacting everything from missile guidance to troop movements. The market for defense R&D is highly specialized, with a limited number of firms possessing the necessary expertise and security clearances. Spending in this area is driven by the need for technological superiority and adaptation to evolving threats. Comparable spending benchmarks would typically be found within broader defense R&D budgets or specific PNT program portfolios.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Axient LLC, depending on the company's subcontracting plan and the nature of the R&D work. The overall impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the Cost No Fee contract structure, which focuses on effort and progress towards research goals. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Research, Development, Test, and Evaluation (RDT&E)
Air Force Science and Technology Programs
Positioning, Navigation, and Timing (PNT) Modernization Programs
Advanced Navigation Systems Research
Aerospace Engineering Services

Risk Flags

Competition Limitation: 'Exclusion of Sources' clause requires review.
Cost Control: CNF contract type necessitates diligent oversight.
Long Performance Period: Requires sustained monitoring for relevance and effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to AXIENT LLC. RISE - POSITION, NAVIGATION, AND TIMING (PNT)

Who is the contractor on this award?

The obligated recipient is AXIENT LLC.

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 $17.2 million.

What is the period of performance?

Start: 2019-06-01. End: 2027-03-30.

What is Axient LLC's track record with government R&D contracts, particularly in PNT?

Axient LLC has a history of performing various research and development services for the U.S. government. While specific details on their PNT-focused R&D contract history require deeper database analysis, their presence in this sector suggests established capabilities. Companies like Axient often secure contracts through competitive bidding processes, demonstrating their ability to meet technical requirements and manage project execution. Their performance on previous contracts, including adherence to schedules, budget management (where applicable), and technical delivery, would be key indicators of their reliability. A review of past performance evaluations and any contract awards or terminations would provide a more comprehensive understanding of their track record in R&D and specifically within the PNT domain.

How does the $17.2 million award compare to similar PNT R&D contracts awarded by the Air Force or DoD?

Assessing the $17.2 million award requires context regarding the scope and duration of similar PNT R&D efforts. Contracts for advanced R&D can vary significantly in value based on the complexity of the technology, the maturity of the research, and the length of the performance period. For instance, foundational research might be awarded at lower values, while development of highly sophisticated, integrated PNT systems could command tens or even hundreds of millions of dollars over longer periods. The nearly 8-year duration of this contract (2859 days) suggests a substantial, long-term research effort. To benchmark effectively, one would need to compare this award against other PNT R&D contracts with similar durations and objectives, considering factors like the number of bidders and the specific technological challenges addressed.

What are the primary risks associated with this Cost No Fee (CNF) R&D contract?

The primary risks associated with a Cost No Fee (CNF) R&D contract revolve around cost control and performance monitoring. In a CNF structure, the contractor is reimbursed for allowable costs but does not receive a fee. This can incentivize contractors to manage costs diligently to maximize their profit margin (which is zero in this case, meaning they aim to incur costs within the awarded ceiling). However, it can also lead to potential issues if the contractor's cost accounting is not robust or if there are unforeseen technical challenges that significantly escalate costs beyond initial estimates. For the government, the risk lies in ensuring that the contractor's efforts are efficient, effective, and directed towards achieving the research objectives. Robust oversight and clear performance metrics are crucial to mitigate these risks and ensure value is obtained.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact price discovery and potential contractor pool?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the initial solicitation was broad, certain potential offerors were subsequently excluded from the competition. This can impact price discovery by potentially reducing the number of competing bids compared to a purely 'full and open' competition. If the exclusions were based on specific technical qualifications or capabilities deemed essential for this particular R&D effort, it might be a justifiable approach to ensure the most qualified contractors participate. However, if the exclusions were arbitrary or overly restrictive, it could limit the competitive pressure on pricing and potentially exclude innovative solutions from a wider range of firms. The specific rationale for exclusion is critical to understanding the true level of competition achieved.

What are the potential long-term implications of this PNT R&D contract for national security and technological advancement?

This contract holds significant potential implications for national security and technological advancement in the realm of Positioning, Navigation, and Timing (PNT). PNT systems are fundamental to a vast array of military operations, including precision-guided munitions, troop navigation, communication synchronization, and intelligence gathering. Advancements in PNT technology can enhance the accuracy, resilience, and security of these critical functions, reducing reliance on vulnerable systems like GPS and improving operational effectiveness in contested environments. Furthermore, breakthroughs in PNT research can have dual-use applications, benefiting civilian sectors such as transportation, logistics, and critical infrastructure, thereby fostering broader technological innovation and economic growth.

What is the significance of the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541715 signifies that this contract is specifically for research and development activities within the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. For this PNT contract, it means the work performed by Axient LLC is focused on scientific inquiry and experimentation to discover or clarify the capabilities and principles of PNT technologies. This code distinguishes the contract from those focused on manufacturing, services, or other types of R&D. It implies a need for highly skilled scientific and engineering personnel, specialized laboratory facilities, and a methodology geared towards innovation and knowledge creation, rather than the production of a finished product or routine service delivery.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 360A QUALITY CIRCLE, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,148,918

Exercised Options: $41,148,918

Current Obligation: $17,231,860

Actual Outlays: $541,468

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $5,054,748

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA945319D0002

IDV Type: IDC

Timeline