DoD's $245M R&D contract for radio frequency systems awarded to Assurance Technology Corp
Contract Overview
Contract Amount: $245,371,290 ($245.4M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2020-01-01
End Date: 2025-12-30
Contract Duration: 2,190 days
Daily Burn Rate: $112.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH&DEVELOPMENT FOR TRANSMITTING ENERGY RADIO FREQUENCY SYSTEMS (TERFS) PR # 81-4072-18
Place of Performance
Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741
Plain-Language Summary
Department of Defense obligated $245.4 million to ASSURANCE TECHNOLOGY CORP for work described as: RESEARCH&DEVELOPMENT FOR TRANSMITTING ENERGY RADIO FREQUENCY SYSTEMS (TERFS) PR # 81-4072-18 Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Long duration of 2190 days indicates a significant, multi-year research effort. 5. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 6. The contract is managed by the Defense Contract Management Agency. 7. The base contract value is substantial, reflecting the complexity and scope of the research.
Value Assessment
Rating: good
The contract's value of approximately $245 million over five years for R&D in advanced radio frequency systems appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale R&D contracts within the Department of Defense (DoD) is challenging without more specific project details. However, the Cost Plus Fixed Fee (CPFF) contract type, while carrying some risk of cost overruns, is common for R&D where final costs are uncertain. The fixed fee component provides a baseline profit for the contractor, incentivizing efficient completion.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a healthy market for these specialized R&D services. While the number of bidders is not specified, open competition generally leads to better price discovery and a wider selection of qualified contractors, potentially driving down costs compared to sole-source or limited competition awards.
Taxpayer Impact: Taxpayers benefit from full and open competition as it typically fosters a more competitive pricing environment, ensuring that the government receives the best value for its investment in critical research and development.
Public Impact
The primary beneficiaries are the Department of Defense, which will receive advanced research and development for transmitting energy radio frequency systems. This contract supports the development of cutting-edge technologies crucial for national security and defense capabilities. The research is likely to have implications for future military communications, radar, and electronic warfare systems. The contract may foster innovation within the defense technology sector, potentially leading to broader technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher final costs if not managed diligently.
- The long duration of the contract increases the risk of scope creep or evolving technological requirements.
- Dependence on a single contractor for such a critical R&D area could pose a long-term risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that should yield good value.
- The fixed fee component in the CPFF contract provides a degree of cost certainty for the government.
- The contractor, Assurance Technology Corp, is likely selected based on demonstrated expertise in this specialized R&D field.
- The contract's focus on R&D suggests a commitment to advancing critical defense technologies.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized defense R&D is highly competitive, with a mix of large defense contractors and niche technology firms. Spending in this area is driven by the need for technological superiority in national defense. Comparable spending benchmarks would typically be found within other DoD R&D programs focused on advanced electronics, communications, and signal processing.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a large business. While there is no explicit mention of subcontracting requirements for small businesses, large defense contracts often include such provisions to ensure small business participation. The absence of a small business set-aside suggests that the competition was geared towards firms with the extensive capabilities required for this advanced R&D, and the impact on the small business ecosystem would depend on any subcontracting opportunities that may arise.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms, including performance metrics and reporting requirements. Transparency is generally maintained through contract databases and public reporting, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Communications Technology Initiatives
- Radio Frequency Engineering Services
- Defense Electronics Research
- Signal Processing R&D
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Risk of technological obsolescence during the long contract duration.
- Dependency on contractor's specialized expertise.
- Uncertainty in achieving specific R&D breakthroughs.
Tags
research-and-development, department-of-defense, radio-frequency, assurance-technology-corp, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, massachusetts, defense-contract-management-agency, physical-engineering-life-sciences, advanced-technology, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $245.4 million to ASSURANCE TECHNOLOGY CORP. RESEARCH&DEVELOPMENT FOR TRANSMITTING ENERGY RADIO FREQUENCY SYSTEMS (TERFS) PR # 81-4072-18
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 $245.4 million.
What is the period of performance?
Start: 2020-01-01. End: 2025-12-30.
What is the track record of Assurance Technology Corp. in performing similar large-scale R&D contracts for the Department of Defense?
Assurance Technology Corp. has a history of working with the Department of Defense on various technology development and research projects. While specific details on past large-scale R&D contracts of this magnitude are not immediately available in the provided data, their engagement in this sector suggests prior experience. A deeper dive into their contract history, performance reviews, and past project outcomes would be necessary to fully assess their track record for this specific type of complex, multi-year R&D effort. Factors to consider include their success in meeting technical milestones, managing budgets, and delivering innovative solutions in previous DoD engagements.
How does the estimated cost of this contract compare to similar R&D efforts in transmitting energy radio frequency systems?
Benchmarking the $245 million cost for this R&D contract against similar efforts is challenging without access to detailed cost breakdowns and specific project scopes of comparable contracts. The value appears substantial, reflecting the advanced and specialized nature of transmitting energy radio frequency systems (TERFS). Factors influencing cost include the novelty of the research, the complexity of the systems being developed, the required expertise, and the duration of the project. A comprehensive comparison would require analyzing the technical objectives, deliverables, and market rates for similar R&D services within the defense sector over the past several years.
What are the primary technical risks associated with the research and development of TERFS, and how are they being mitigated?
The primary technical risks associated with the research and development of Transmitting Energy Radio Frequency Systems (TERFS) likely include achieving desired energy transmission efficiency, ensuring system reliability and stability under various operational conditions, managing electromagnetic interference, and integrating new technologies with existing defense infrastructure. Mitigation strategies are typically embedded within the contract's R&D plan, including phased development with clear milestones, rigorous testing and validation protocols, contingency planning for unforeseen technical challenges, and close collaboration between the contractor and government technical representatives. The Cost Plus Fixed Fee structure also allows for adjustments as technical challenges arise, though careful oversight is crucial.
What is the expected impact of this contract on the advancement of radio frequency technology within the defense sector?
This contract is expected to significantly advance radio frequency (RF) technology within the defense sector by funding cutting-edge research and development. The focus on 'transmitting energy' suggests potential breakthroughs in areas like directed energy applications, advanced wireless power transfer, or novel communication systems capable of handling higher power levels or greater distances. Successful R&D could lead to enhanced capabilities in areas such as electronic warfare, secure communications, radar systems, and potentially even new weapon systems. The long-term impact hinges on the successful translation of research findings into deployable technologies that provide a strategic advantage to the DoD.
How has federal spending on R&D for radio frequency systems evolved over the past five years, and does this contract represent a significant shift?
Federal spending on R&D for radio frequency (RF) systems has generally been robust, driven by continuous needs in defense, communications, and intelligence. While specific aggregate data for 'transmitting energy radio frequency systems' is not readily available, overall DoD spending on electronic warfare, communications, and advanced sensor R&D has remained a priority. This $245 million contract represents a substantial single investment in a specialized area of RF R&D. Whether it signifies a 'shift' depends on broader trends; however, it underscores the DoD's ongoing commitment to maintaining technological superiority in RF spectrum utilization and capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017319RLN11
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, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $249,351,134
Exercised Options: $249,351,134
Current Obligation: $245,371,290
Actual Outlays: $123,315
Subaward Activity
Number of Subawards: 4214
Total Subaward Amount: $3,003,189,777
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-01-01
Current End Date: 2025-12-30
Potential End Date: 2025-12-30 00:00:00
Last Modified: 2025-12-08
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