DoD awards AESIR TECHNOLOGIES INC $3.39M contract for battery manufacturing engineering services

Contract Overview

Contract Amount: $3,386,042 ($3.4M)

Contractor: Aesir Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-12-22

End Date: 2027-01-05

Contract Duration: 1,110 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES

Place of Performance

Location: JOPLIN, JASPER County, MISSOURI, 64804

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $3.4 million to AESIR TECHNOLOGIES INC for work described as: ENGINEERING SERVICES Key points: 1. Contract value of $3.39M for engineering services indicates a moderate investment in specialized technical support. 2. The contract type, Cost Plus Fixed Fee, suggests potential for cost overruns if not closely managed. 3. Exclusion of sources after full and open competition warrants scrutiny into the justification for limiting bidders. 4. The duration of over 3 years suggests a long-term need for these engineering services. 5. Focus on battery manufacturing aligns with critical defense needs for energy storage solutions. 6. The contract's geographic focus in Missouri may have localized economic impacts.

Value Assessment

Rating: fair

The contract value of $3.39M for engineering services is moderate. Without specific benchmarks for battery manufacturing engineering, a direct value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D or uncertain scope projects, carries inherent risks of cost escalation. Comparing this to similar contracts for specialized engineering in the defense sector would be necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the initial solicitation was broad, specific sources were later excluded, leading to a limited competition. The exact number of bidders after exclusions is not specified, but the 'limited' nature suggests fewer than would be expected in a truly full and open competition. This could potentially impact price discovery and lead to less competitive pricing.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. The justification for excluding sources needs to be robust to ensure fair use of taxpayer funds.

Public Impact

The Department of the Navy benefits from specialized engineering expertise for battery manufacturing. This contract supports the development and refinement of critical battery technologies for defense applications. The primary geographic impact is in Missouri, where the contractor AESIR TECHNOLOGIES INC is located. The contract may indirectly support a specialized engineering workforce within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces risk of cost overruns.
The 'Full and Open Competition After Exclusion of Sources' raises questions about the breadth of competition and potential for higher costs.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess project success.
The contract's duration of over three years requires ongoing monitoring to ensure continued value.

Positive Signals

Contract awarded to AESIR TECHNOLOGIES INC, a company potentially specializing in battery manufacturing engineering.
The focus on battery manufacturing addresses a critical need within the Department of Defense.
The contract is a definitive contract, suggesting a clear intent and scope for the services.
The contract is for engineering services, indicating a focus on technical expertise and problem-solving.

Sector Analysis

The defense sector's reliance on advanced battery technology for various platforms (vehicles, communication, energy storage) makes this contract significant. The market for defense-related battery manufacturing and engineering services is highly specialized, often involving stringent performance requirements and security protocols. Spending in this area is driven by the need for reliable, high-performance energy solutions that can withstand harsh operational environments. Comparable spending benchmarks would likely be found within R&D or specialized manufacturing support contracts for the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests that the primary focus was on securing specialized engineering expertise, potentially from larger or more established firms. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for the small business ecosystem in this specific contract's execution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight and Inspector General (IG) jurisdiction would depend on the specific nature of the engineering services and any potential for fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Advanced Materials Manufacturing
Naval Systems Engineering
Energy Storage Solutions
Cost Plus Fixed Fee Contracts

Risk Flags

Limited competition may impact price.
CPFF contract type carries cost overrun risk.
Justification for source exclusion needs review.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.4 million to AESIR TECHNOLOGIES INC. ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is AESIR TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2023-12-22. End: 2027-01-05.

What is the specific technical expertise AESIR TECHNOLOGIES INC brings to battery manufacturing engineering?

The provided data does not detail the specific technical expertise of AESIR TECHNOLOGIES INC. However, the contract's focus on 'Battery Manufacturing' and 'Engineering Services' suggests the company likely possesses capabilities in areas such as battery chemistry, materials science, manufacturing process optimization, quality control, and potentially design for manufacturability related to battery systems. Further investigation into AESIR TECHNOLOGIES INC's past performance, certifications, and project history would be required to fully understand their specialized knowledge and experience in this domain. The '335910' NAICS code, 'Battery Manufacturing,' indicates the industry sector they operate within.

How does the 'Cost Plus Fixed Fee' (CPFF) structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not precisely defined or involves research and development, making it difficult to establish a firm fixed price upfront. For engineering services, especially in novel or complex areas like advanced battery manufacturing, CPFF allows the government to leverage contractor expertise while managing risk. However, it shifts some cost risk to the government, as the contractor is reimbursed for actual costs plus a fixed fee. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty for the government but require a well-defined scope. Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF) could offer better incentives for cost control and performance than CPFF.

What are the potential risks associated with 'Full and Open Competition After Exclusion of Sources'?

The 'Full and Open Competition After Exclusion of Sources' designation indicates that while the contract was initially intended for broad competition, certain potential bidders were subsequently excluded. This can introduce risks such as reduced overall competition, potentially leading to higher prices than if all qualified sources had been allowed to bid. It also raises questions about the justification for exclusion; if the exclusions were not based on objective criteria or were perceived as arbitrary, it could lead to protests or perceptions of unfairness. The government must have a documented and justifiable reason for excluding sources to mitigate these risks and ensure the integrity of the procurement process.

What is the historical spending pattern for battery manufacturing engineering services within the Department of Defense?

Historical spending on battery manufacturing engineering services within the Department of Defense can vary significantly based on technological advancements, strategic priorities, and specific platform requirements. While the provided data shows a $3.39M contract for AESIR TECHNOLOGIES INC in 2023-2027, broader trends indicate consistent investment in energy storage solutions due to their critical role in military operations. This includes funding for research into next-generation battery chemistries, improving energy density, enhancing safety, and ensuring reliable manufacturing processes. Analyzing historical FPDS data for similar NAICS codes and contract types related to battery R&D and manufacturing support would reveal patterns of investment, key contractors, and average contract values over time.

How does the contract's duration (1110 days) impact the assessment of its value and risk?

A contract duration of 1110 days (approximately 3 years and 2 months) for engineering services suggests a sustained need for the contractor's expertise. This longer duration can be beneficial for complex projects requiring iterative development or long-term support, allowing for deeper integration and knowledge transfer. However, it also increases the risk exposure for the government. Over an extended period, costs can escalate, especially with a CPFF structure. Furthermore, technological advancements might outpace the project's progress, potentially rendering the developed solutions less optimal by the contract's end. Robust oversight and performance management are crucial to mitigate these risks and ensure the contract remains valuable throughout its term.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Battery Manufacturing

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: N0002424NRC01

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8125 E 26TH ST, JOPLIN, MO, 64804

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

Financial Breakdown

Contract Ceiling: $3,386,042

Exercised Options: $3,386,042

Current Obligation: $3,386,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline