DoD's $33.6M EO/IR Systems R&D Contract Awarded to Alaire Technologies Inc

Contract Overview

Contract Amount: $33,615,236 ($33.6M)

Contractor: Alaire Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2011-03-15

End Date: 2017-03-14

Contract Duration: 2,191 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PR-56-9669-10 RESEARCH AND DEVELOPMENT SERVICES FOR THE DESIGN, ANALYSIS AND TESTING OF ELECTRO-OPTICS/INFRARED (EO/IR) SYSTEMS.

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 $33.6 million to ALAIRE TECHNOLOGIES INC for work described as: PR-56-9669-10 RESEARCH AND DEVELOPMENT SERVICES FOR THE DESIGN, ANALYSIS AND TESTING OF ELECTRO-OPTICS/INFRARED (EO/IR) SYSTEMS. Key points: 1. Contract focused on critical electro-optics/infrared systems research and development. 2. Awarded to Alaire Technologies Inc. under a competitive process. 3. Duration of the contract was approximately 6 years. 4. The contract type was Cost Plus Fixed Fee, indicating shared risk. 5. Performance was in the District of Columbia. 6. The North American Industry Classification System (NAICS) code is 541712, R&D in Physical Sciences. 7. This contract falls under the broader category of Defense spending.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, but the fixed fee provides some predictability for the contractor's profit. Comparing the total award amount to similar R&D efforts in electro-optics/infrared systems would require access to a broader dataset of comparable contracts. However, the duration and scope suggest a significant investment in specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was initially open, certain sources were excluded, potentially due to specific technical requirements or prior relationships. The presence of two bids suggests a degree of competition, but the exclusion of sources might limit the full breadth of market participation and potentially impact price discovery.

Taxpayer Impact: The competitive process, even with exclusions, aimed to secure the best value for taxpayers. However, the exclusion of certain sources could mean that taxpayers did not benefit from the lowest possible price that might have been achieved in a completely unrestricted competition.

Public Impact

The Department of the Navy benefits from advancements in EO/IR systems, crucial for defense applications. This contract supports research and development in advanced sensor technologies. The geographic impact is primarily in the District of Columbia, where the contractor is located. The contract likely supported specialized scientific and engineering workforce within Alaire Technologies Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition raises questions about the extent of true market competition.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The specific technical advancements and their practical application are not detailed, making performance assessment difficult.

Positive Signals

Awarded through a competitive process, indicating an effort to find qualified vendors.
The contract duration suggests a long-term commitment to developing critical technologies.
Focus on R&D in a specialized defense area highlights investment in technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The electro-optics/infrared (EO/IR) systems are a critical component of modern defense technology, encompassing areas like surveillance, targeting, and missile guidance. The market for such specialized R&D is often dominated by a few key players with deep technical expertise and security clearances. Comparable spending benchmarks would typically be found within defense R&D budgets allocated to advanced sensor and targeting systems.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the award was made to Alaire Technologies Inc. and there is no indication of small business set-asides or significant subcontracting plans for small businesses. This suggests that the specialized nature of the R&D required large business capabilities or specific expertise not readily available from smaller firms in this instance.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally limited for defense R&D contracts due to national security considerations, but audits and reviews would be conducted by relevant DoD oversight bodies and potentially the Inspector General.

Related Government Programs

Department of Defense Research and Development
Electro-Optics/Infrared Systems Procurement
Advanced Sensor Technology Development
Naval Warfare Systems Research

Risk Flags

Competition exclusion raises questions about optimal value.
CPFF contract type requires diligent cost oversight.
Specific R&D outcomes and performance metrics are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to ALAIRE TECHNOLOGIES INC. PR-56-9669-10 RESEARCH AND DEVELOPMENT SERVICES FOR THE DESIGN, ANALYSIS AND TESTING OF ELECTRO-OPTICS/INFRARED (EO/IR) SYSTEMS.

Who is the contractor on this award?

The obligated recipient is ALAIRE 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 $33.6 million.

What is the period of performance?

Start: 2011-03-15. End: 2017-03-14.

What is Alaire Technologies Inc.'s track record with similar government R&D contracts, particularly in EO/IR systems?

Alaire Technologies Inc. has a history of performing government contracts, including those related to research and development. While specific details on their EO/IR system R&D performance for this particular contract are not publicly detailed in the provided data, their ability to secure this award suggests they possess the necessary technical capabilities and clearances. A deeper dive into their contract history, past performance reviews, and any reported issues or successes on similar projects would provide a more comprehensive understanding of their track record. Examining their financial stability and any prior government audits or investigations would also be pertinent.

How does the $33.6 million award compare to the typical cost of similar R&D projects for EO/IR systems?

Directly comparing the $33.6 million award to 'typical' costs for similar EO/IR R&D projects is challenging without a standardized benchmark for such specialized research. The complexity, novelty, and specific objectives of EO/IR systems can vary significantly, impacting costs. Factors such as the required technological maturity, the scope of testing, and the duration of development all play a role. Generally, advanced defense R&D projects involving cutting-edge technologies like sophisticated EO/IR systems can range from tens of millions to hundreds of millions of dollars. The 'Cost Plus Fixed Fee' structure also means the final cost could deviate from the initial estimate, making a precise comparison difficult without detailed project breakdowns.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for the government?

The primary risk for the government with a CPFF contract is the potential for cost overruns. While the contractor's fee is fixed, the total cost of performance is reimbursable. If the contractor incurs higher-than-expected costs due to inefficiencies, unforeseen technical challenges, or scope creep, the government bears that additional expense. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate this risk. Another risk is that the contractor might not be sufficiently incentivized to control costs beyond what is necessary to achieve the fixed fee, although the overall goal of R&D is successful completion.

What specific advancements or capabilities were expected from this R&D contract for EO/IR systems?

The provided data does not specify the exact advancements or capabilities expected from this R&D contract. However, 'Research and Development Services for the Design, Analysis and Testing of Electro-Optics/Infrared (EO/IR) Systems' implies a focus on improving or developing new technologies related to sensing and imaging in the visible, infrared, and potentially ultraviolet spectrums. This could include enhancements in sensor resolution, detection range, target identification, countermeasures, or the development of entirely new EO/IR system architectures for platforms like aircraft, ground vehicles, or naval vessels. The specific goals would be detailed in the contract's Statement of Work (SOW).

How has federal spending on R&D for EO/IR systems evolved over the period of this contract (2011-2017)?

Federal spending on R&D for EO/IR systems, particularly within the Department of Defense, has generally remained robust, reflecting the critical role these technologies play in national security. During the 2011-2017 period, defense budgets saw fluctuations, but investment in advanced sensor and intelligence, surveillance, and reconnaissance (ISR) capabilities, including EO/IR, was consistently prioritized. This contract's award value of approximately $33.6 million over six years represents a significant, but not exceptionally large, portion of the overall federal R&D expenditure in this domain. Broader trends likely included a push towards more integrated systems, improved data processing, and enhanced performance in challenging environmental conditions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017310RSE11

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10815 HARLEY RD, LORTON, VA, 22079

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

Financial Breakdown

Contract Ceiling: $33,673,331

Exercised Options: $33,673,331

Current Obligation: $33,615,236

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline