DoD's Missile Defense Agency awards $156.6M for R&D mission support to Corvid Technologies, LLC

Contract Overview

Contract Amount: $15,664,835 ($15.7M)

Contractor: Corvid Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-08

End Date: 2026-02-11

Contract Duration: 734 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: XTR-1 MISSION SUPPORT LABOR

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to CORVID TECHNOLOGIES, LLC for work described as: XTR-1 MISSION SUPPORT LABOR Key points: 1. Contract value represents a significant investment in specialized research and development support. 2. The contract type (Cost Plus Award Fee) incentivizes performance while managing costs. 3. Competition was conducted after excluding sources, suggesting specific capabilities were sought. 4. The duration of 734 days indicates a long-term need for these services. 5. Geographic focus on Alabama highlights regional concentration of defense R&D activities. 6. This award falls within the broad R&D sector, specifically supporting physical and engineering sciences.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee structure allows for performance-based incentives, which can drive value if managed effectively. Benchmarking against similar R&D support contracts is challenging without more granular data on the specific services provided. However, the total award amount of $156.6 million over approximately two years suggests a substantial but potentially reasonable investment for specialized mission support within the defense sector. The absence of a specific base contract value and the presence of delivery orders make direct price comparisons difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements or prior performance. The exact number of bidders is not specified, but the exclusion of sources suggests a more targeted procurement than a completely unrestricted full and open competition. This approach can sometimes lead to higher prices if the pool of qualified bidders is significantly reduced.

Taxpayer Impact: Taxpayers may see a potentially higher cost due to the limited competition, but this could be offset if the specialized nature of the selected contractor leads to superior performance and mission success.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving critical support for their research and development initiatives. Services delivered likely include technical expertise, analysis, program management, and other support functions essential for advancing missile defense technologies. The geographic impact is concentrated in Alabama, where Corvid Technologies, LLC is located and where the work is presumably performed. Workforce implications include the potential for skilled R&D professionals and support staff to be employed or retained by Corvid Technologies in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after exclusion of sources could restrict price discovery and potentially lead to higher costs.
The Cost Plus Award Fee structure requires robust oversight to ensure award fees are justified and not excessive.
Lack of detailed service breakdown makes it difficult to assess the true value for money.
The specific reasons for excluding other sources are not detailed, raising questions about the fairness of the competition.

Positive Signals

The contract type incentivizes high performance through award fees, potentially leading to better mission outcomes.
Focus on R&D mission support indicates a strategic investment in critical defense capabilities.
Corvid Technologies, LLC's selection suggests they possess specialized expertise required by the Missile Defense Agency.
The award duration implies a stable, long-term need for these services, providing continuity.

Sector Analysis

The Research and Development sector, particularly within defense, is characterized by high specialization and significant government investment. This contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This is a critical area for national security, involving innovation in complex systems like missile defense. Spending in this sector is often project-specific and driven by evolving technological threats and advancements. Comparable spending benchmarks are difficult without knowing the precise scope of 'mission support,' but large R&D contracts are common within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside (SS is false, SB is false). There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Corvid Technologies voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily fall under the Missile Defense Agency and the Department of Defense contracting and program management offices. Accountability measures are tied to the performance metrics that trigger award fees. Transparency is facilitated through contract award databases, though detailed performance reports and justifications for award fees are typically internal. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems Development
Advanced Technology Research Contracts
Department of Defense Research and Development
Aerospace and Defense R&D Services
Cost Plus Award Fee Contracts

Risk Flags

Limited competition may impact price.
CPAF requires strong oversight to ensure value.
Scope of 'mission support' is broad and requires clarification for full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to CORVID TECHNOLOGIES, LLC. XTR-1 MISSION SUPPORT LABOR

Who is the contractor on this award?

The obligated recipient is CORVID TECHNOLOGIES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2024-02-08. End: 2026-02-11.

What is Corvid Technologies, LLC's track record with the Department of Defense, particularly in R&D mission support?

Corvid Technologies, LLC has a history of securing contracts with the Department of Defense, often in areas related to advanced technologies and research. While specific details on their performance for this particular 'XTR-1 MISSION SUPPORT LABOR' contract are not yet available due to its recent award date (February 2024), their past awards suggest a capability in supporting complex R&D efforts. Analyzing their prior contract history, including any performance reviews or past performance evaluations available in federal databases, would provide a clearer picture of their reliability and expertise in fulfilling similar mission support roles. It's important to note that 'mission support' can encompass a wide range of services, from technical analysis to program management, and Corvid's specific contributions would need to be assessed within that context.

How does the $156.6 million award compare to similar R&D mission support contracts awarded by the Missile Defense Agency or DoD?

The $156.6 million award for 'XTR-1 MISSION SUPPORT LABOR' to Corvid Technologies, LLC is a substantial sum, reflecting the specialized and critical nature of missile defense research and development. To benchmark this value, one would typically compare it against other contracts for similar R&D mission support services awarded by the Missile Defense Agency (MDA) or other Department of Defense entities. Factors such as contract duration (734 days), contract type (Cost Plus Award Fee), and the specific scope of work are crucial for a meaningful comparison. Without access to detailed breakdowns of the services provided and comparable contract data, it's difficult to definitively state if this represents excellent or fair value. However, given the complexity and high stakes of missile defense, significant investment in expert support is often necessary.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

Cost Plus Award Fee (CPAF) contracts, like the $156.6 million award to Corvid Technologies, LLC, carry inherent risks primarily related to cost control and performance justification. The main risk is that the 'cost-plus' nature means the contractor is reimbursed for allowable costs, plus a fee that includes a base amount and an award amount contingent on meeting performance objectives. If oversight is insufficient, costs could escalate beyond what might be achieved under a fixed-price contract. Furthermore, the 'award fee' component requires robust evaluation criteria and objective assessment to ensure that the awarded fees are truly earned and justified by exceptional performance. Without stringent monitoring and clear performance metrics, there's a risk of paying inflated fees for mediocre results. Contractor performance issues or unforeseen technical challenges could also increase costs and delay mission objectives.

What does 'Full and Open Competition After Exclusion of Sources' imply for the effectiveness of the competition and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' designation for this $156.6 million contract suggests a nuanced approach to procurement. While intended to be open, the exclusion of specific sources implies that only a subset of potential offerors met certain pre-defined criteria, possibly related to specialized technology, security clearances, or prior experience critical for missile defense R&D support. This targeted approach can ensure that highly qualified contractors are considered, potentially leading to better technical outcomes. However, it inherently limits the competitive pool compared to unrestricted full and open competition. This reduction in bidders could potentially lessen price pressure, leading to higher costs for taxpayers than if a broader range of companies had competed. The effectiveness hinges on whether the excluded sources were genuinely incapable or if their exclusion was overly restrictive.

How does this contract align with the Missile Defense Agency's broader strategic goals and historical spending patterns in R&D?

This $156.6 million contract for R&D mission support aligns directly with the Missile Defense Agency's (MDA) core mission: developing and deploying effective missile defense capabilities. The MDA consistently invests heavily in research and development to counter evolving threats. Historical spending patterns show a significant allocation towards advanced technology development, system integration, testing, and the essential support services required to manage these complex programs. Contracts like this one, focusing on specialized R&D support, are crucial for maintaining the technological edge and operational readiness of U.S. missile defense systems. The specific amount and duration suggest a sustained effort in a particular area of R&D, fitting within the MDA's ongoing strategic imperative to innovate and enhance defensive capabilities.

What are the potential implications of this contract being awarded in Alabama, a state with a significant defense industry presence?

The award of this $156.6 million contract to Corvid Technologies, LLC, located in Alabama, has several implications, particularly given the state's robust defense sector. Firstly, it signifies continued investment in Alabama's technological and R&D capabilities, potentially bolstering the local economy through job creation and supporting a skilled workforce in engineering and scientific fields. Secondly, it reinforces Alabama's position as a hub for defense contracting and innovation, particularly within aerospace and related R&D. This concentration of defense activity can foster a synergistic environment, encouraging collaboration and specialization among local businesses and research institutions. The presence of such a significant contract may also attract further investment and talent to the region, strengthening the defense industrial base within 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 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

Solicitation ID: HQ085521R0004

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation

Address: 153 LANGTREE CAMPUS DRIVE, MOORESVILLE, NC, 28117

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

Financial Breakdown

Contract Ceiling: $25,645,537

Exercised Options: $25,645,537

Current Obligation: $15,664,835

Actual Outlays: $2,046,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085522D0002

IDV Type: IDC

Timeline