Naval Research Lab Awards $140M Contract for Assurance Technology to ASSURANCE TECHNOLOGY CORP
Contract Overview
Contract Amount: $139,867,596 ($139.9M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2001-05-22
End Date: 2009-06-30
Contract Duration: 2,961 days
Daily Burn Rate: $47.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200112!004551!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017301C2006 !A!N!*!N!P00003 !20010904!20020521!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH STREET !CARLISLE !MA!01741!11490!017!25!CARLISLE !MIDDLESEX !MASS !+000000194378!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3!A!S!C!*!*!*!B!*!*!A! !A !N!U!2!001!B! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $139.9 million to ASSURANCE TECHNOLOGY CORP for work described as: 200112!004551!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017301C2006 !A!N!*!N!P00003 !20010904!20020521!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH STREET !CARLISLE !MA!01741!11490!017!25!CARLISLE !MIDDL… Key points: 1. The contract, valued at $139,867,596.33, was awarded to ASSURANCE TECHNOLOGY CORP. 2. The primary sector is Research and Development (R&D) in Physical, Engineering, and Life Sciences. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. The award was made by the Department of the Navy, part of the Department of Defense.
Value Assessment
Rating: fair
The contract value of approximately $140 million over its duration is substantial. Without specific benchmarks for similar assurance technology R&D contracts, a precise pricing assessment is difficult, but it appears to be a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with the aim of securing the best possible technology and services for the price.
Public Impact
This contract supports advanced research and development in critical defense technologies. The duration of the contract (over 8 years) indicates a long-term need for these assurance technologies. The award to a specific company, ASSURANCE TECHNOLOGY CORP, highlights their role in the defense technology supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit.
- Long contract durations can lead to scope creep or evolving requirements that may not be fully accounted for in the initial pricing.
- The specific nature of 'assurance technology' is broad and could encompass a wide range of applications, making it hard to assess value without more detail.
Positive Signals
- Awarded under full and open competition, suggesting a robust market and competitive pricing.
- The contract supports critical R&D for the Department of Defense.
- The long duration may indicate a stable and predictable need for the services.
Sector Analysis
This contract falls under the Research and Development sector, specifically within scientific research services. The spending benchmark for this NAICS code (541710) can vary widely based on the specific research area and agency, but significant investments are common for defense-related R&D.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Therefore, there is no direct benefit to small businesses from this specific award, though they may be subcontractors.
Oversight & Accountability
The Department of Defense and Department of the Navy are responsible for oversight of this contract. The Cost Plus Fixed Fee structure requires diligent monitoring to ensure costs are reasonable and allocable to the contract's objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 8 years).
- Lack of specific detail on 'assurance technology'.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, dc, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.9 million to ASSURANCE TECHNOLOGY CORP. 200112!004551!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017301C2006 !A!N!*!N!P00003 !20010904!20020521!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH STREET !CARLISLE !MA!01741!11490!017!25!CARLISLE !MIDDLESEX !MASS !+000000194378!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3!A!S!C!*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is ASSURANCE TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $139.9 million.
What is the period of performance?
Start: 2001-05-22. End: 2009-06-30.
What specific 'assurance technologies' are being developed or procured under this contract, and how do they align with current and future defense needs?
The contract details do not specify the exact nature of the 'assurance technologies.' This could range from cybersecurity assurance to system reliability or data integrity solutions. Understanding the specific applications is crucial for assessing the true value and effectiveness of this significant investment in R&D for the Naval Research Laboratory.
Given the Cost Plus Fixed Fee structure and the long contract duration, what mechanisms are in place to control costs and prevent potential overruns?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective oversight by the Department of the Navy is critical, including regular audits, performance reviews, and strict adherence to the defined scope of work. Clear milestones and deliverables tied to payments can help manage costs and ensure accountability throughout the contract's lifecycle.
How will the success and impact of the developed assurance technologies be measured to ensure they meet the intended defense objectives?
Measuring the success of R&D contracts, especially in specialized areas like assurance technology, often involves predefined performance metrics, testing protocols, and independent evaluations. The Naval Research Laboratory would likely have specific criteria to assess the effectiveness of the technologies against operational requirements and their contribution to national security.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 84 SOUTH STREET, CARLISLE, MA, 03
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,965,104
Exercised Options: $139,965,104
Current Obligation: $139,867,596
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-05-22
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2014-06-19
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