DoD Awards $18.6M for Missile and Space Systems R&D to ARTEP, Inc

Contract Overview

Contract Amount: $10,742,794 ($10.7M)

Contractor: Artep, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-03-26

End Date: 2011-06-26

Contract Duration: 3,014 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200306!003264!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017303C2011 !A!N! !N! !20030326!20040325!186413639!186413639!186413639!N!ARTEP, INC !2922 EXCELSIOR SPRINGS COU!ELLICOTT CITY !MD!21042!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000083000!N!N!000015311205!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to ARTEP, INC. for work described as: 200306!003264!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017303C2011 !A!N! !N! !20030326!20040325!186413639!186413639!186413639!N!ARTEP, INC !2922 EXCELSIOR SPRINGS COU!ELLICOTT CITY !MD!21042!50000!001!11!WASHINGTON !DISTR… Key points: 1. Contract awarded for applied research in missile and space systems. 2. ARTEP, Inc. secured the $18.6 million contract. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. The sector is Research and Development, specifically within Defense.

Value Assessment

Rating: fair

The contract value of $18.6 million for a duration of 3014 days (approximately 8.2 years) suggests an average annual spend of around $2.27 million. This appears reasonable for specialized R&D services, but a direct comparison to similar contracts is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. This method generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best possible price for the research and development services.

Public Impact

Advancement in missile and space systems technology. Potential for job creation within the defense R&D sector. Impact on national security through technological innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is exceptionally long (over 8 years).
Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Positive Signals

Awarded under Full and Open Competition.
Focus on critical R&D for defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically applied research for missile and space systems. Spending in this area is crucial for maintaining technological superiority in defense. Benchmarks for similar applied research contracts would provide further context.

Small Business Impact

The data indicates that the awardee is ARTEP, INC. Further analysis is required to determine if this is a small business and if subcontracting opportunities were mandated or utilized.

Oversight & Accountability

Oversight would typically be managed by the Department of the Navy, ensuring that the research objectives are met and that costs are controlled throughout the contract's long duration.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration (over 8 years).
Cost Plus Fixed Fee contract type.
Potential for scope creep over the extended period.
Need for continuous government oversight to ensure progress and cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to ARTEP, INC.. 200306!003264!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017303C2011 !A!N! !N! !20030326!20040325!186413639!186413639!186413639!N!ARTEP, INC !2922 EXCELSIOR SPRINGS COU!ELLICOTT CITY !MD!21042!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000083000!N!N!000015311205!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ARTEP, 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 $10.7 million.

What is the period of performance?

Start: 2003-03-26. End: 2011-06-26.

What specific research milestones are expected under this contract, and how will their achievement be measured to ensure value for money?

The contract details do not specify the exact research milestones. However, for a Cost Plus Fixed Fee contract of this nature, milestones are usually tied to the delivery of research reports, prototypes, or specific technological advancements. The Department of the Navy's contracting officers and technical representatives would be responsible for monitoring progress against a defined statement of work and ensuring that the contractor meets agreed-upon deliverables. Regular reviews and performance assessments are critical to verifying value and managing the fixed fee.

Given the Cost Plus Fixed Fee structure and the long duration, what are the primary risks of cost overruns, and what mitigation strategies are in place?

The primary risk of cost overruns in a Cost Plus Fixed Fee (CPFF) contract, especially over an extended period, stems from potential increases in labor rates, material costs, or unforeseen research challenges that require additional resources. Mitigation strategies typically include robust government oversight, detailed cost tracking, regular audits, and clearly defined ceilings or limitations on allowable costs. The government must actively manage the scope of work and ensure that the contractor's expenditures are reasonable and allocable to the contract objectives.

How does the $18.6 million award for missile and space systems R&D compare to industry benchmarks for similar applied research projects?

Without specific details on the scope and complexity of the research, comparing the $18.6 million award directly to industry benchmarks is challenging. However, the duration of over 8 years suggests a long-term, potentially foundational research effort. The average annual spend of approximately $2.27 million falls within a plausible range for specialized R&D services. A more precise comparison would require access to databases of similar government and commercial R&D contracts, considering factors like technological maturity, team size, and specific system development.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 2922 EXCELSIOR SPRINGS COU, ELLICOTT CITY, MD, 03

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,311,205

Exercised Options: $12,043,061

Current Obligation: $10,742,794

Contract Characteristics

Cost or Pricing Data: YES

Timeline