DoD awards $20.4M to Aero Thermo Technology for SLBM/ICBM guidance R&D services
Contract Overview
Contract Amount: $20,417,167 ($20.4M)
Contractor: Aero Thermo Technology, Inc
Awarding Agency: Department of Defense
Start Date: 2008-08-11
End Date: 2012-12-31
Contract Duration: 1,603 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL, ANALYTICAL & PROGRAM R&D SERVICES TO SUPPORT CURRENT & FUTURE SLBM AND ICBM GUIDANCE SYSTEM REQUIREMENTS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to AERO THERMO TECHNOLOGY, INC for work described as: TECHNICAL, ANALYTICAL & PROGRAM R&D SERVICES TO SUPPORT CURRENT & FUTURE SLBM AND ICBM GUIDANCE SYSTEM REQUIREMENTS Key points: 1. Contract awarded to a single, established provider for specialized R&D. 2. Focus on critical missile guidance systems suggests high technical barriers. 3. Long-term contract duration (4+ years) indicates ongoing program support. 4. Lack of competition raises questions about optimal pricing and innovation.
Value Assessment
Rating: fair
The contract value of $20.4M over four years for specialized R&D services appears reasonable given the niche technical requirements. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach may be justified by unique capabilities or proprietary technology, but it limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Supports national security through advanced missile guidance system development. Potential for technological advancements in strategic defense capabilities. Investment in specialized engineering services for critical defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
Positive Signals
- Supports critical national security mission
- Long-term program support
- Specialized technical expertise
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense R&D. Spending in this area is often characterized by high technical complexity, long development cycles, and significant government oversight due to national security implications.
Small Business Impact
The contract was awarded to Aero Thermo Technology, Inc., and there is no indication that small businesses were involved as subcontractors. The specialized nature of the work may present barriers for small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Given the sole-source nature and cost-plus structure, robust oversight is crucial to ensure cost control and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type shifts cost risk to the government.
- Potential for contractor lock-in due to specialized knowledge.
- Lack of small business participation noted.
Tags
engineering-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to AERO THERMO TECHNOLOGY, INC. TECHNICAL, ANALYTICAL & PROGRAM R&D SERVICES TO SUPPORT CURRENT & FUTURE SLBM AND ICBM GUIDANCE SYSTEM REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is AERO THERMO TECHNOLOGY, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2008-08-11. End: 2012-12-31.
What specific technical capabilities does Aero Thermo Technology possess that justify a sole-source award for SLBM/ICBM guidance systems?
The justification for a sole-source award typically rests on unique technical expertise, proprietary technology, or the absence of other capable sources. For SLBM/ICBM guidance systems, this could involve highly specialized knowledge in areas like inertial navigation, control systems, or advanced materials, developed over years of specific research and development.
How does the cost-plus fixed fee (CPFF) contract type impact the government's ability to control costs for this R&D effort?
A Cost-Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to complete the work, it shifts much of the cost risk to the government. Effective oversight is essential to scrutinize costs and ensure the fixed fee remains appropriate for the scope.
What are the long-term implications of relying on a single contractor for critical missile guidance system R&D?
Long-term reliance on a single contractor can lead to a loss of institutional knowledge within the government, reduced leverage in future negotiations, and potential stagnation of innovation if the contractor faces no competitive pressure. It also creates a single point of failure for critical technological development.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 620 DISCOVERY DR NW STE 100, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $33,100,335
Exercised Options: $33,100,335
Current Obligation: $20,417,167
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-11
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2018-11-05
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