DoD's $34.8M Kill Vehicle HWIL R&D Contract Awarded to Gray Analytics, Inc
Contract Overview
Contract Amount: $34,874,920 ($34.9M)
Contractor: Gray Analytics, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-20
End Date: 2026-05-31
Contract Duration: 1,349 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH & DEVELOPMENT FOR KILL VEHICLE HARDWARE-IN-THE-LOOP (KV HWIL)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $34.9 million to GRAY ANALYTICS, INC. for work described as: RESEARCH & DEVELOPMENT FOR KILL VEHICLE HARDWARE-IN-THE-LOOP (KV HWIL) Key points: 1. This contract focuses on advanced research and development in physical sciences, specifically for missile defense. 2. Gray Analytics, Inc. secured this award under full and open competition. 3. The contract duration is over three years, indicating a significant, long-term project. 4. The Missile Defense Agency is the primary customer, highlighting a critical national security need.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of kill vehicle hardware-in-the-loop systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the specialized nature of the R&D may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being invested in advanced defense technology, aiming for enhanced national security. The cost-plus structure warrants close monitoring to ensure value for money.
Public Impact
Enhances national defense capabilities through advanced missile intercept technology. Supports technological innovation in the defense sector, potentially leading to future advancements. Invests in specialized R&D, creating high-skill jobs in the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost escalation.
- Specialized R&D may limit competitive landscape.
- Long contract duration requires sustained oversight.
Positive Signals
- Awarded under full and open competition.
- Addresses critical national security requirements.
- Supports advanced technological development.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority in defense, with benchmarks varying widely based on project complexity and scope.
Small Business Impact
The contract was awarded to Gray Analytics, Inc., a company that may or may not be a small business. Further investigation is needed to determine the impact on small business participation and subcontracting opportunities.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing this contract. Given the Cost Plus Fixed Fee structure and the advanced R&D nature, robust oversight and performance monitoring are essential to ensure accountability and prevent cost overruns.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost overrun potential due to CPFF structure.
- Limited competition due to specialized R&D.
- Long-term project requires sustained oversight.
- Dependency on contractor's technical expertise.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.9 million to GRAY ANALYTICS, INC.. RESEARCH & DEVELOPMENT FOR KILL VEHICLE HARDWARE-IN-THE-LOOP (KV HWIL)
Who is the contractor on this award?
The obligated recipient is GRAY ANALYTICS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2022-09-20. End: 2026-05-31.
What is the specific technological advancement expected from this Kill Vehicle Hardware-in-the-Loop R&D?
The primary goal is to advance the development and testing capabilities for kill vehicle hardware-in-the-loop (HWIL) systems. This involves creating sophisticated simulation environments that accurately replicate real-world conditions, allowing for rigorous testing and validation of kill vehicle components and software without the need for physical flight tests. The expected outcome is improved reliability and effectiveness of missile defense interceptors.
What are the key risks associated with the Cost Plus Fixed Fee contract type for this R&D project?
The main risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden. For R&D, where costs can be unpredictable, this structure necessitates stringent cost controls and detailed oversight to prevent budget overruns and ensure the fixed fee remains appropriate for the effort.
How will the effectiveness of the R&D investment be measured and ensured?
Effectiveness will be measured through the successful completion of contract milestones, the delivery of functional HWIL simulation capabilities, and the validation of kill vehicle components within these simulations. Performance metrics will likely include the accuracy of the simulations, the reduction in the need for expensive live-fire tests, and the demonstrable improvement in kill vehicle design and performance as evidenced by test data and technical reviews.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4240 BALMORAL DR SW STE 500, HUNTSVILLE, AL, 35801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,874,920
Exercised Options: $34,874,920
Current Obligation: $34,874,920
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ086021D0001
IDV Type: IDC
Timeline
Start Date: 2022-09-20
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-11-21
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