DoD's $39.9M R&D contract for IGF Safety Support awarded to A-P-T RESEARCH, INC

Contract Overview

Contract Amount: $39,885,732 ($39.9M)

Contractor: A-P-T Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-01-13

End Date: 2021-07-12

Contract Duration: 2,007 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SAFETY SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to A-P-T RESEARCH, INC. for work described as: IGF::OT::IGF SAFETY SUPPORT Key points: 1. Contract value of $39.9 million over approximately 5 years. 2. Awarded under full and open competition. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The contractor, A-P-T RESEARCH, INC., has a track record with the Department of Defense. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. The contract was awarded to a single vendor, A-P-T RESEARCH, INC. 7. The contract duration is over 2000 days, suggesting a long-term project.

Value Assessment

Rating: fair

The contract's value of $39.9 million for R&D services over five years appears within a reasonable range for specialized scientific support. However, without specific benchmarks for 'IGF Safety Support,' a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces risk, as it allows for cost reimbursement plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if not managed tightly. Benchmarking against similar R&D contracts for safety support within the DoD or other agencies would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the competition was initially open, specific sources were later excluded. This could imply a complex procurement process or a need for highly specialized capabilities. The fact that it was competed, even with exclusions, is a positive sign for price discovery. However, the exclusion of sources might limit the breadth of competitive offers received, potentially impacting the final price and innovation.

Taxpayer Impact: The full and open competition, despite source exclusions, aims to ensure fair pricing for taxpayers by allowing multiple vendors to bid. However, the exclusions could mean fewer competitive bids than a truly open process, potentially leading to a less optimal price.

Public Impact

The primary beneficiaries are the Department of Defense and its Missile Defense Agency, receiving critical safety support for their operations. The services delivered are research and development focused on physical, engineering, and life sciences, specifically related to IGF safety. The geographic impact is primarily within Alabama (ST: AL), where the contractor is located. Workforce implications include employment for researchers, engineers, and technical staff at A-P-T RESEARCH, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
The 'exclusion of sources' in the competition process might have limited the number of competitive bids.
The specific nature of 'IGF Safety Support' makes direct cost benchmarking difficult.
The contract duration of over 2000 days requires sustained oversight to ensure continued value.

Positive Signals

Awarded through a full and open competition process, indicating an effort to achieve competitive pricing.
The contractor, A-P-T RESEARCH, INC., is an established entity likely possessing relevant expertise.
The contract supports critical R&D functions for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is characterized by innovation and specialized expertise. The market for defense-related R&D is substantial, with agencies like the Missile Defense Agency consistently investing in advanced technologies. Comparable spending benchmarks would involve looking at other R&D contracts for safety, engineering, and scientific support within the DoD and similar government agencies, though the specific 'IGF Safety Support' may be niche.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary focus for this specific contract, as it was not set aside for small businesses. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor, A-P-T RESEARCH, INC., likely possesses the specialized capabilities required, potentially limiting opportunities for small businesses to participate in this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency, a component of the Department of Defense. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Missile Defense Systems R&D
DoD Research and Development Contracts
Safety Engineering Services
Cost Plus Fixed Fee Contracts
Federal Scientific Research

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition due to source exclusions.
Lack of specific performance metrics in provided data.
Niche service area ('IGF Safety Support') makes direct benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to A-P-T RESEARCH, INC.. IGF::OT::IGF SAFETY SUPPORT

Who is the contractor on this award?

The obligated recipient is A-P-T RESEARCH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2016-01-13. End: 2021-07-12.

What is the specific nature of 'IGF Safety Support' and why is it critical for the Missile Defense Agency?

IGF Safety Support likely refers to ensuring the safety and reliability of Integrated Guidance Facilities or similar complex systems within the Missile Defense Agency's purview. These facilities are crucial for the development, testing, and deployment of missile defense systems. Critical safety support ensures that these advanced technologies operate without posing risks to personnel, equipment, or the environment during research, development, and operational phases. This involves rigorous testing, risk assessment, and the implementation of safety protocols tailored to the unique challenges of missile defense technology. The criticality stems from the high-stakes nature of national security and the potential catastrophic consequences of system failures.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of cost efficiency for the government?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, common in R&D. While it allows flexibility and encourages innovation by reducing contractor risk, it can be less cost-efficient for the government compared to fixed-price contracts (like FFP or FP-EPA) if costs escalate significantly. Fixed-price contracts offer greater cost certainty for the government but can deter innovation or lead contractors to cut corners if the scope is poorly defined. For R&D, CPFF can be appropriate, but it necessitates robust government oversight to control costs and ensure the fixed fee remains reasonable relative to the effort.

What is the track record of A-P-T RESEARCH, INC. with the Department of Defense, particularly in R&D and safety support contracts?

A-P-T RESEARCH, INC. has a history of contracting with the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve examining contract histories for successful completion, adherence to schedules and budgets, quality of deliverables, and any past performance issues or disputes. Their experience in R&D, particularly within the physical, engineering, and life sciences, and specifically in safety-related domains, would be key indicators of their capability to successfully execute this current contract. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would provide more granular detail.

What are the potential risks associated with the 'exclusion of sources' in the procurement process for this contract?

The 'exclusion of sources' in a 'full and open competition after exclusion of sources' procurement means that while the competition was intended to be broad, certain potential bidders were disqualified or not invited to participate. This can introduce several risks. Firstly, it may limit the pool of qualified bidders, potentially reducing the level of competition and leading to higher prices or less innovative solutions than might have been achieved with a wider field. Secondly, the rationale for exclusion needs to be clearly justified and documented to ensure fairness and prevent potential protests or accusations of impropriation. If the exclusions were based on overly narrow or subjective criteria, it could inadvertently favor incumbent contractors or specific technologies, hindering broader market engagement and potentially impacting long-term cost-effectiveness for the government.

How does the geographic location of the award (Alabama) influence the contract's execution and oversight?

The contract's award to a company located in Alabama (ST: AL) suggests that the primary performance location or the contractor's base of operations is within that state. This can influence the contract's execution by potentially leveraging local technical expertise and workforce within Alabama's aerospace and defense industry. For oversight, it means that government contracting officers and technical representatives may need to conduct site visits or engage with the contractor remotely from a distance, depending on the agency's field presence. Proximity can sometimes facilitate communication and oversight, but modern communication tools often mitigate geographic challenges. The specific impact also depends on whether the Missile Defense Agency has a significant presence or oversight team located in Alabama.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014715R0008

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4950 RESEARCH DR, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,070,139

Exercised Options: $45,312,777

Current Obligation: $39,885,732

Actual Outlays: $1,980,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline