DoD Awards $273M Contract for Missile and Space Systems R&D to Assurance Technology Corp
Contract Overview
Contract Amount: $273,281,540 ($273.3M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2005-06-28
End Date: 2014-10-31
Contract Duration: 3,412 days
Daily Burn Rate: $80.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200509!003713!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2049 !A!N! !N! ! !20050628!20060619!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH ST !CARLISLE !MA!01741!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000030000!N!N!000117348188!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!2!004!B! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! !1700!N00173!0001! !
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $273.3 million to ASSURANCE TECHNOLOGY CORP for work described as: 200509!003713!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2049 !A!N! !N! ! !20050628!20060619!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH ST !CARLISLE !MA!01741!50000!001!11!WASHINGTON !DIST… Key points: 1. Significant investment in advanced missile and space systems R&D. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can pose cost control risks. 4. Sector focus on R&D aligns with national defense priorities.
Value Assessment
Rating: fair
The contract value of $273M is substantial. Benchmarking against similar R&D contracts in missile and space systems is necessary to assess pricing fairness, especially given the Cost Plus Fixed Fee structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced defense research, aiming for technological superiority. The effectiveness of the R&D will determine the ultimate value for taxpayers.
Public Impact
Enhances national security through advanced missile and space technology development. Supports innovation in critical defense research areas. Potential for technological advancements with broad defense applications.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (over 9 years) increases risk exposure.
- Specific details on performance metrics and deliverables are not provided.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for national defense.
- Contractor has experience in relevant technology areas.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technology development for missile and space systems. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure warrant close oversight to ensure cost control and effective execution of research objectives. Regular performance reviews are essential.
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 9 years).
- Lack of specific performance metrics in summary data.
- Potential for scope creep in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $273.3 million to ASSURANCE TECHNOLOGY CORP. 200509!003713!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2049 !A!N! !N! ! !20050628!20060619!069338820!069338820!069338820!N!ASSURANCE TECHNOLOGY CORP !84 SOUTH ST !CARLISLE !MA!01741!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000030000!N!N!000117348188!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !202
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 $273.3 million.
What is the period of performance?
Start: 2005-06-28. End: 2014-10-31.
What are the specific performance metrics and deliverables tied to this $273M R&D contract, and how will their achievement be measured to ensure value for money?
The provided data does not detail specific performance metrics or deliverables. A thorough review of the contract's statement of work and performance work statement is required to assess how the achievement of R&D objectives will be measured. This is crucial for ensuring that the significant taxpayer investment translates into tangible technological advancements and national security benefits.
Given the Cost Plus Fixed Fee structure and the long duration, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of funds?
The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility in R&D, inherently carries a risk of cost escalation. Mitigation strategies typically involve stringent oversight, regular audits, detailed cost reporting requirements, and clearly defined fee structures tied to milestones. The long duration necessitates continuous monitoring and potential contract modifications to adapt to evolving research needs and cost realities.
How does the R&D conducted under this contract align with current and future Department of Defense strategic priorities for missile and space systems, and what is the expected return on investment?
The contract's focus on 'MISSILE AND SPACE SYSTEMS' and 'ADVANCED TECH DEV' suggests alignment with strategic priorities for maintaining technological superiority. The return on investment is expected to be in the form of advanced capabilities that enhance national security. However, quantifying this ROI is challenging in R&D and depends on the successful development and deployment of resulting technologies.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 84 SOUTH ST, CARLISLE, MA, 01741
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $273,339,699
Exercised Options: $273,339,699
Current Obligation: $273,281,540
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-28
Current End Date: 2014-10-31
Potential End Date: 2014-10-31 00:00:00
Last Modified: 2017-08-29
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