Department of the Navy's $28M ROSSE contract awarded to Assurance Technology Corp for R&D services
Contract Overview
Contract Amount: $28,067,984 ($28.1M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2017-04-07
End Date: 2022-09-30
Contract Duration: 2,002 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF PR 81-4031-16 REMOTELY OPERATED SPECIAL SIGNALS EMITTER (ROSSE)
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $28.1 million to ASSURANCE TECHNOLOGY CORP for work described as: IGF::OT::IGF PR 81-4031-16 REMOTELY OPERATED SPECIAL SIGNALS EMITTER (ROSSE) Key points: 1. Contract awarded for specialized signal emitter research and development. 2. Focus on advanced technology for defense applications. 3. Contract duration spans over five years, indicating a long-term project. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. Research and Development sector, specifically physical and engineering sciences. 6. Contract type is Cost Plus Fixed Fee, common for R&D projects with evolving scopes.
Value Assessment
Rating: fair
The contract's value of $28 million over five years for R&D services is within a typical range for specialized defense technology development. Benchmarking against similar contracts for advanced signal emitter systems is challenging due to the niche nature of the technology. The Cost Plus Fixed Fee structure allows for flexibility but can sometimes lead to cost overruns if not managed tightly. Further analysis of the fixed fee component and the contractor's historical performance on similar contracts would be needed for a more definitive value assessment.
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,' which implies that while the competition was broad, specific sources may have been excluded based on certain criteria. The number of bidders is not specified, but the 'full and open' designation suggests a competitive process aimed at achieving the best value. This approach generally leads to better price discovery and innovation compared to sole-source or limited competition.
Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions from multiple offerors.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other branches of the U.S. military requiring advanced signal emitter technology. The contract delivers research and development services for a specialized defense system. Geographic impact is likely concentrated around the contractor's facilities and Navy research centers. Workforce implications include employment for scientists, engineers, and technical staff involved in R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without direct correlation to performance, potentially leading to higher overall expenditures.
- The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
- Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the project's progress and success.
- The long contract duration (over 5 years) increases the risk of scope creep or technological obsolescence if not actively managed.
Positive Signals
- Awarded under full and open competition, indicating a structured and potentially fair bidding process.
- The contract supports critical defense research and development, aligning with national security objectives.
- Assurance Technology Corp's involvement suggests a level of expertise in the specialized field of signal emitters.
- The fixed fee component provides a degree of cost certainty for the government, once the fee is established.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a highly specialized area within the broader defense technology market. The market for advanced signal emitters is driven by evolving military requirements for electronic warfare, communications, and intelligence gathering. Comparable spending benchmarks are difficult to establish without more specific details on the technology's application and maturity.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. Given the specialized nature of the R&D and the prime contractor's likely focus, it is possible that subcontracting opportunities for small businesses may exist, but this is not explicitly stated. Further investigation into the contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed project progress and spending reports are often considered sensitive for defense contracts.
Related Government Programs
- Defense Research and Development Programs
- Electronic Warfare Systems
- Advanced Signal Processing
- Naval Technology Development
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of technological obsolescence over long contract duration
- Limited transparency on specific project deliverables and progress
- Unclear rationale for 'Exclusion of Sources' in competition
Tags
research-and-development, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, specialized-technology, signal-emitter, massachusetts, advanced-technology, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.1 million to ASSURANCE TECHNOLOGY CORP. IGF::OT::IGF PR 81-4031-16 REMOTELY OPERATED SPECIAL SIGNALS EMITTER (ROSSE)
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 $28.1 million.
What is the period of performance?
Start: 2017-04-07. End: 2022-09-30.
What is the specific nature of the 'Remotely Operated Special Signals Emitter (ROSSE)' system being developed?
The provided data does not detail the specific functionalities or intended applications of the Remotely Operated Special Signals Emitter (ROSSE). However, based on the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' and the contractor's name, it is highly probable that the ROSSE system relates to advanced electronic warfare, signals intelligence, or specialized communication technologies. These systems are critical for modern military operations, enabling capabilities such as jamming enemy communications, detecting and identifying threats, or establishing secure communication links. The 'remotely operated' aspect suggests a system that can be controlled from a distance, enhancing operational safety and flexibility.
How does the Cost Plus Fixed Fee (CPFF) structure impact the overall cost and risk for this R&D contract?
The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development projects where the scope of work can be uncertain or evolve. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts some of the cost risk to the government, as the final cost is not fixed upfront. However, the fixed fee provides the contractor with an incentive to control costs, as their profit is capped. For this $28 million contract, the CPFF structure allows flexibility for unforeseen technical challenges inherent in R&D. The government's risk is managed through robust oversight, clear definition of allowable costs, and negotiation of a reasonable fixed fee based on the project's complexity and contractor's expertise.
What is Assurance Technology Corp's track record with similar government R&D contracts?
Assurance Technology Corp has a history of performing research and development services for the U.S. government, particularly within the defense sector. While specific details on their past performance for 'Remotely Operated Special Signals Emitters' are not provided in this data snippet, their engagement in R&D suggests experience with complex technological development. A comprehensive assessment would require reviewing their contract history, past performance evaluations (e.g., CPARS reports), and any awards or recognitions related to their R&D contributions. Their ability to secure this contract under full and open competition implies they met the government's technical and business requirements based on past performance and capabilities.
What are the potential long-term implications of this contract for the Navy's technological capabilities?
This contract has the potential to significantly enhance the Navy's technological capabilities by advancing the development of specialized signal emitter systems. Such advancements are crucial for maintaining a technological edge in areas like electronic warfare, intelligence gathering, and secure communications. The successful development of the ROSSE system could lead to improved operational effectiveness, enhanced situational awareness, and greater mission success rates for naval forces. Furthermore, the R&D conducted under this contract may foster innovation that can be applied to other defense systems, contributing to the overall modernization and readiness of the U.S. Navy.
How does the 'Full and Open Competition After Exclusion of Sources' differ from standard full and open competition?
Standard 'Full and Open Competition' requires that all responsible sources be permitted to submit a bid or proposal. 'Full and Open Competition After Exclusion of Sources,' as indicated in this contract, is a variation where the agency has determined that it is not practicable to award a contract except to a particular source or sources. This typically occurs after an initial broad solicitation where it's found that only a limited number of sources can meet the specialized requirements, or if specific statutory exclusions apply. While it aims for broad competition initially, the subsequent exclusion implies a narrowing of the field based on specific, justifiable criteria, potentially impacting the number of final bidders and the breadth of market price discovery compared to unrestricted full and open competition.
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 › Space 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: N0017317RWR03
Offers Received: 2
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: $33,422,435
Exercised Options: $33,422,435
Current Obligation: $28,067,984
Subaward Activity
Number of Subawards: 1262
Total Subaward Amount: $670,720,719
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: 2017-04-07
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2023-02-02
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