DoD's $12.8M R&D Contract with AeroVironment: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $12,812,335 ($12.8M)
Contractor: Aerovironment, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-07-23
End Date: 2012-01-31
Contract Duration: 1,653 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PHASE I- SP2S
Place of Performance
Location: MONROVIA, LOS ANGELES County, CALIFORNIA, 91016
Plain-Language Summary
Department of Defense obligated $12.8 million to AEROVIRONMENT, INC. for work described as: PHASE I- SP2S Key points: 1. Contract awarded to AeroVironment, Inc. for R&D services. 2. Full and open competition was utilized. 3. Contract duration was 1653 days. 4. Primary sector is Research and Development. 5. Located in California.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure suggests potential for cost overruns. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the specific impact on final pricing is not detailed.
Taxpayer Impact: Taxpayer funds were used for advanced R&D, with the ultimate benefit depending on the project's success and applicability.
Public Impact
Supports advanced research and development initiatives within the Department of Defense. AeroVironment, Inc. is a known entity in aerospace and defense technology. The contract's long duration suggests a complex and potentially significant research project. Funding allocated for Phase I indicates foundational research or feasibility studies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to higher costs.
- Long contract duration may indicate scope creep or delays.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a specialized R&D firm.
- Supports critical defense research.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending benchmarks in this area are highly variable due to the innovative nature of the work.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight would typically be managed by the Defense Advanced Research Projects Agency (DARPA). The contract's long duration necessitates robust oversight to ensure progress and manage costs effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Overruns
- Scope Creep
- Lack of Measurable Outcomes
- Long Contract Duration
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to AEROVIRONMENT, INC.. PHASE I- SP2S
Who is the contractor on this award?
The obligated recipient is AEROVIRONMENT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2007-07-23. End: 2012-01-31.
What was the specific research objective of this Phase I contract, and how does its outcome align with DARPA's strategic goals?
The provided data does not specify the exact research objective for this Phase I contract. DARPA's strategic goals are broad, encompassing disruptive technologies. Understanding the project's specific aims and deliverables is crucial to assess its alignment and ultimate value to national security.
Given the cost-plus-fixed-fee structure, what mechanisms were in place to control costs and ensure efficient use of taxpayer funds?
Cost-plus-fixed-fee contracts inherently carry a risk of cost escalation. Effective oversight, clear milestones, and regular performance reviews by DARPA would be essential to mitigate this risk. Without detailed reporting, it's difficult to ascertain the specific controls implemented for this contract.
How did the full and open competition process ensure the best possible technical solution and price for this R&D effort?
Full and open competition theoretically allows multiple vendors to propose solutions, fostering innovation and competitive pricing. For R&D, the 'best' solution can be subjective. The effectiveness of the competition hinges on the clarity of the solicitation and the evaluation criteria used by DARPA to select AeroVironment.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 825 SOUTH MYRTLE, MONROVIA, CA, 91016
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,850,839
Exercised Options: $12,850,839
Current Obligation: $12,812,335
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-07-23
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2017-09-29
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