DoD Spends $45.8M on Software Reconfigurable Systems R&D with Assurance Technology Corp

Contract Overview

Contract Amount: $45,804,498 ($45.8M)

Contractor: Assurance Technology Corp

Awarding Agency: Department of Defense

Start Date: 2015-07-16

End Date: 2020-09-30

Contract Duration: 1,903 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF PR 81-2005-15 SOFTWARE DEFINABLE/RECONFIGURABLE SYSTEMS: DESIGN, DEVELOPMENT, SUPPORT, AND INTEGRATION

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 $45.8 million to ASSURANCE TECHNOLOGY CORP for work described as: IGF::OT::IGF PR 81-2005-15 SOFTWARE DEFINABLE/RECONFIGURABLE SYSTEMS: DESIGN, DEVELOPMENT, SUPPORT, AND INTEGRATION Key points: 1. Significant investment in advanced R&D for critical defense systems. 2. Competition was limited after exclusion of sources, raising potential price concerns. 3. Contract duration of 1903 days suggests a long-term, complex project. 4. Focus on R&D in physical, engineering, and life sciences (NAICS 541712).

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The total award amount of $45.8M for a 5-year period needs careful scrutiny against similar R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a restricted competition. This method may limit price discovery and potentially lead to higher costs than a fully open process.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for this significant R&D investment.

Public Impact

Enhances national security through advanced technology development. Supports innovation in software-defined and reconfigurable systems for military applications. Potential for technological advancements with broad applications beyond defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises value concerns.
  • Cost Plus Fixed Fee contract type requires close monitoring.
  • Lack of small business participation.

Positive Signals

  • Addresses critical R&D needs for the DoD.
  • Long-term project indicates strategic importance.
  • Focus on advanced, potentially groundbreaking technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but requires rigorous oversight to ensure efficiency and effectiveness.

Small Business Impact

The data indicates that this contract did not involve small businesses (ss=false, sb=false). This suggests a focus on large, specialized contractors for complex R&D projects, potentially missing opportunities for small business innovation.

Oversight & Accountability

The contract was awarded by the Department of Defense (DoD) through the Defense Contract Management Agency (DCMA). Oversight would typically involve monitoring performance, costs, and adherence to contract terms to ensure accountability.

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

  • Limited competition may have inflated costs.
  • Cost Plus Fixed Fee contracts carry inherent cost overrun risks.
  • Lack of small business participation limits innovation sources.
  • Long contract duration requires sustained oversight.
  • Specific deliverables and technological outcomes are not detailed.

Tags

research-and-development-in-the-physical, department-of-defense, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to ASSURANCE TECHNOLOGY CORP. IGF::OT::IGF PR 81-2005-15 SOFTWARE DEFINABLE/RECONFIGURABLE SYSTEMS: DESIGN, DEVELOPMENT, SUPPORT, AND INTEGRATION

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 $45.8 million.

What is the period of performance?

Start: 2015-07-16. End: 2020-09-30.

What specific technological advancements were achieved through this $45.8M investment in software-definable systems?

The contract aimed to advance the design, development, support, and integration of software-definable and reconfigurable systems. Specific advancements would likely include enhanced flexibility, adaptability, and potentially reduced lifecycle costs for military hardware and software platforms, enabling quicker responses to evolving threats and operational requirements.

How did the 'exclusion of sources' impact the final negotiated price compared to a fully open competition?

Excluding sources inherently limits the competitive pool, potentially reducing the number of bidders and the intensity of price competition. While the contract was still subject to full and open competition principles after this initial exclusion, the reduced number of potential offerors might have resulted in a higher price than what could have been achieved with a broader range of competitors vying for the contract.

What mechanisms were in place to ensure the Cost Plus Fixed Fee structure did not lead to excessive contractor profit or inefficient cost management?

Cost Plus Fixed Fee contracts require robust oversight to manage costs effectively. Mechanisms typically include detailed audits of contractor expenses, performance metrics tied to fee realization, regular progress reviews, and clear definitions of allowable costs. The Defense Contract Management Agency (DCMA) would be responsible for monitoring these aspects to ensure the government receives value and the contractor operates efficiently.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral 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: N0017315RSE02

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 84 SOUTH 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: $46,717,042

Exercised Options: $46,717,042

Current Obligation: $45,804,498

Actual Outlays: $333,021

Subaward Activity

Number of Subawards: 665

Total Subaward Amount: $265,414,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS402

IDV Type: IDC

Timeline

Start Date: 2015-07-16

Current End Date: 2020-09-30

Potential End Date: 2020-09-30 00:00:00

Last Modified: 2023-08-23

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