DoD's $27.2M Optical/RF Payload System Development Contract Awarded to Assurance Technology Corp
Contract Overview
Contract Amount: $27,257,939 ($27.3M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2016-12-31
End Date: 2023-12-16
Contract Duration: 2,541 days
Daily Burn Rate: $10.7K/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 81-2009-17 SYSTEM DEVELOPMENT, SUPPORT AND INTEGRATION (OPTICAL AND RF PAYLOADS)
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $27.3 million to ASSURANCE TECHNOLOGY CORP for work described as: IGF::OT::IGF 81-2009-17 SYSTEM DEVELOPMENT, SUPPORT AND INTEGRATION (OPTICAL AND RF PAYLOADS) Key points: 1. Contract awarded to Assurance Technology Corp for system development and integration of optical and RF payloads. 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. Full and open competition was conducted after exclusion of sources, suggesting a competitive process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing for flexibility in R&D, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts is difficult due to the specialized nature of optical and RF payloads.
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,' indicating a competitive process was initiated but specific sources were excluded. This method can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: The use of a Cost Plus Fixed Fee contract type necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively, especially given the R&D nature of the work.
Public Impact
Advanced optical and RF payload systems are critical for national defense capabilities. Investment in R&D for these technologies can lead to significant technological advancements. The contract duration of over 2500 days suggests a long-term commitment to this technology development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration increases risk of scope creep and cost overruns.
- Exclusion of sources in competition may limit price discovery.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Contract supports critical defense technology development.
- Contractor has experience in relevant technological areas.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority but requires careful management due to inherent uncertainties and potential for cost growth.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires diligent oversight to manage costs and ensure the contractor is meeting performance objectives. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for cost overruns.
- Exclusion of sources in competition.
- Specialized R&D requiring close oversight.
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 $27.3 million to ASSURANCE TECHNOLOGY CORP. IGF::OT::IGF 81-2009-17 SYSTEM DEVELOPMENT, SUPPORT AND INTEGRATION (OPTICAL AND RF PAYLOADS)
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 $27.3 million.
What is the period of performance?
Start: 2016-12-31. End: 2023-12-16.
What specific technological advancements are expected from this system development contract, and how do they align with current defense modernization priorities?
The contract aims to develop and integrate advanced optical and RF payloads. These are likely intended to enhance surveillance, targeting, and communication capabilities, aligning with defense modernization efforts focused on next-generation sensing and electronic warfare. Specific advancements would depend on the detailed technical requirements not provided in this summary.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure in this R&D context, and what mitigation strategies are in place?
The primary risk is cost overrun, as the contractor is incentivized to incur costs to achieve the fixed fee. Mitigation strategies typically include stringent cost monitoring, detailed performance metrics, independent cost estimates, and clear definition of work scope to prevent scope creep. The government must actively manage the contract to ensure value.
How effectively does the 'full and open competition after exclusion of sources' method balance the need for specialized expertise with ensuring competitive pricing for taxpayers?
This method attempts to balance specialized needs by allowing competition among qualified sources while excluding those deemed unsuitable or unable to meet specific requirements. While it can ensure technically capable contractors are considered, the exclusion of sources may limit the breadth of competition and potentially impact 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: N0017317RAT02
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: $28,008,676
Exercised Options: $28,008,676
Current Obligation: $27,257,939
Actual Outlays: $497,977
Subaward Activity
Number of Subawards: 1525
Total Subaward Amount: $609,175,058
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: 2016-12-31
Current End Date: 2023-12-16
Potential End Date: 2023-12-16 00:00:00
Last Modified: 2025-03-18
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