DoD Spends $25.9M on Radio Frequency Ground Terminal Systems Development with Assurance Technology Corp
Contract Overview
Contract Amount: $25,885,158 ($25.9M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2014-09-30
End Date: 2018-09-29
Contract Duration: 1,460 days
Daily Burn Rate: $17.7K/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: IGF::OT::IGF 81-4013-13 RADIO FREQUENCY GROUND TERMINAL SYSTEMS DEVELOPMENT AND DESIGN EFFORTS
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $25.9 million to ASSURANCE TECHNOLOGY CORP for work described as: IGF::OT::IGF 81-4013-13 RADIO FREQUENCY GROUND TERMINAL SYSTEMS DEVELOPMENT AND DESIGN EFFORTS Key points: 1. Contract awarded to Assurance Technology Corp for R&D in physical and engineering sciences. 2. Full and open competition after exclusion of sources indicates a specific, limited procurement approach. 3. The contract value of $25.9M over approximately 4 years suggests a significant investment in specialized technology. 4. The R&D focus (NAICS 541712) places this spending within a high-innovation sector.
Value Assessment
Rating: fair
The contract value of $25.9M for a 4-year R&D effort appears reasonable given the specialized nature of RF ground terminal systems. Benchmarking against similar complex R&D contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, it was limited to a specific set of pre-qualified or previously involved entities. This approach can impact price discovery by narrowing the potential bidder pool.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D. The limited competition may result in a higher price than a fully open competition, but could also ensure specialized expertise is utilized effectively.
Public Impact
Investment in advanced radio frequency technology supports national defense capabilities. R&D spending contributes to technological advancement within the defense sector. The contract duration of 4 years indicates a long-term development project. Potential for follow-on production contracts if development is successful.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of detailed technical scope makes independent cost validation challenging.
Positive Signals
- Focus on critical R&D for defense.
- Contract awarded to a single entity suggests specialized capabilities.
- Clear end date for the development effort.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to advanced radio frequency systems. Spending in this area is crucial for maintaining technological superiority in defense but can be costly due to the specialized expertise and equipment required.
Small Business Impact
The contract was awarded to Assurance Technology Corp. Information regarding small business participation or subcontracting is not provided in the data, suggesting this may not have been a primary focus or was handled separately.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating oversight. However, the specific oversight mechanisms and accountability measures for this R&D effort are not detailed in the provided data.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited competition (exclusion of sources).
- NAICS code indicates high R&D costs.
- Contract duration of 4 years.
- No explicit mention of small business subcontracting goals.
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.9 million to ASSURANCE TECHNOLOGY CORP. IGF::OT::IGF 81-4013-13 RADIO FREQUENCY GROUND TERMINAL SYSTEMS DEVELOPMENT AND DESIGN EFFORTS
Who is the contractor on this award?
The obligated recipient is ASSURANCE TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2014-09-30. End: 2018-09-29.
What is the specific technological advancement expected from this $25.9M R&D effort, and how does it align with current and future defense needs?
The specific technological advancement is focused on Radio Frequency Ground Terminal Systems Development and Design. This likely aims to improve communication, surveillance, or electronic warfare capabilities. Its alignment with defense needs would depend on the evolving threat landscape and the strategic importance of robust RF systems for command and control, intelligence gathering, or operational effectiveness in contested environments.
Given the 'limited' competition, what steps were taken to ensure the fixed fee was competitive and represented fair value for the R&D services provided?
The contracting agency likely conducted market research to identify potential sources and establish a cost estimate baseline. The 'exclusion of sources' implies a justification was made for limiting the pool. However, without details on the negotiation process or the number of bidders considered, it's difficult to definitively assess the competitiveness of the fixed fee. A thorough review of the cost proposal and independent government cost estimate would be necessary.
What are the key performance indicators (KPIs) for this contract, and how will the success or failure of the R&D effort be measured and reported?
Key performance indicators would typically include technical milestones, prototype development, system performance metrics (e.g., range, bandwidth, reliability), and adherence to design specifications. Success would be measured against the achievement of these defined objectives within the contract timeline and budget. Reporting would likely involve regular progress reviews, technical data packages, and final system demonstrations to the Department of Defense.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0017314RRS01
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 84 S ST, CARLISLE, MA, 01741
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,885,158
Exercised Options: $25,885,158
Current Obligation: $25,885,158
Subaward Activity
Number of Subawards: 1343
Total Subaward Amount: $297,368,243
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADS402
IDV Type: IDC
Timeline
Start Date: 2014-09-30
Current End Date: 2018-09-29
Potential End Date: 2018-09-29 00:00:00
Last Modified: 2021-07-15
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