DoD's $169M R&D contract for Assurance Technology Corp shows strong competition and long-term engagement

Contract Overview

Contract Amount: $169,341,396 ($169.3M)

Contractor: Assurance Technology Corp

Awarding Agency: Department of Defense

Start Date: 2021-09-17

End Date: 2027-06-16

Contract Duration: 2,098 days

Daily Burn Rate: $80.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D LABOR

Place of Performance

Location: CARLISLE, MIDDLESEX County, MASSACHUSETTS, 01741

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $169.3 million to ASSURANCE TECHNOLOGY CORP for work described as: R&D LABOR Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration suggests a need for sustained research and development efforts. 3. Cost Plus Fixed Fee pricing structure requires careful monitoring of cost overruns. 4. The contract falls under R&D in Physical, Engineering, and Life Sciences, a critical sector. 5. Focus on Assurance Technology implies a strategic investment in advanced capabilities. 6. The award value is substantial, reflecting the complexity and scope of the R&D.

Value Assessment

Rating: good

The contract's value of approximately $169 million over its duration is significant for R&D services. Benchmarking against similar large-scale R&D contracts within the Department of Defense is necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for the agreed-upon scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a healthy level of market interest.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which typically drives down costs and encourages innovation among bidders to offer the best value.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advanced assurance technologies. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is primarily within Massachusetts, where the contractor is located. Workforce implications include the creation or sustainment of highly skilled R&D jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed meticulously.
Long contract durations (nearly 6 years) increase the risk of scope creep or evolving requirements.
The specific nature of 'Assurance Technology' is broad and may encompass sensitive or evolving areas.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contract supports critical R&D efforts for national security.
A fixed fee component in the CPFF structure provides some cost predictability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing a wide range of scientific and technological advancements. The market for such R&D services is highly specialized, often involving a limited number of firms with the requisite expertise and security clearances. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD and other federal agencies in similar scientific domains.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Assurance Technology Corp, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity for small business participation in this significant R&D effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs against the fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Naval Research Laboratory Contracts
Advanced Technology Development Contracts
Cost Plus Fixed Fee Contracts
Physical Sciences R&D
Engineering Sciences R&D

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Contract Management
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $169.3 million to ASSURANCE TECHNOLOGY CORP. R&D LABOR

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 $169.3 million.

What is the period of performance?

Start: 2021-09-17. End: 2027-06-16.

What is the historical spending pattern for Assurance Technology Corp with the Department of Defense?

Analyzing the historical spending patterns for Assurance Technology Corp with the Department of Defense is crucial for understanding the contractor's track record and the government's reliance on their services. Without specific historical data provided in this context, a full analysis is not possible. However, the current award of $169 million suggests a significant and potentially long-standing relationship. Further investigation would involve querying federal procurement databases (like FPDS or USASpending) for all prior contracts awarded to Assurance Technology Corp by the DoD, noting the value, duration, type, and performance history of those contracts. This would reveal trends in contract awards, identify any patterns of sole-source awards versus competitive ones, and highlight the agency's satisfaction with their past performance.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of risk and value?

The Cost Plus Fixed Fee (CPFF) contract type is commonly used for research and development (R&D) and complex services where the scope is not precisely defined at the outset, or where innovation is a primary goal. In CPFF contracts, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government to adapt to evolving R&D needs but carries a higher risk of cost overruns, as the government bears the brunt of cost increases. Conversely, compared to cost-plus-incentive-fee (CPIF) contracts, CPFF provides less incentive for the contractor to control costs beyond the initial estimate, as the fee is fixed regardless of final costs. For taxpayers, CPFF requires robust oversight to ensure costs are reasonable and the fixed fee represents fair compensation for the effort and risk undertaken by the contractor.

What are the specific 'Assurance Technologies' this contract aims to develop or enhance?

The term 'Assurance Technology' is broad and can encompass a wide range of applications critical to national security and technological integrity. Within the context of R&D for the Department of Defense, this could refer to technologies related to cybersecurity, system reliability, data integrity, supply chain security, verification and validation of complex systems, or ensuring the trustworthiness of hardware and software components. Given the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences,' the focus is likely on foundational scientific and engineering principles that underpin these assurance capabilities. Without more specific details from the contract statement of work, it's difficult to pinpoint the exact technologies, but the investment suggests a strategic priority in safeguarding critical defense systems and infrastructure against emerging threats and ensuring their operational effectiveness.

What is the typical performance duration for R&D contracts of this magnitude within the Department of the Navy?

The typical performance duration for R&D contracts of this magnitude within the Department of the Navy can vary significantly based on the specific research area, technological maturity, and program objectives. However, a contract valued at approximately $169 million with a duration extending from September 2021 to June 2027 (nearly six years) is indicative of a substantial, long-term research initiative. Such extended periods are common for foundational R&D projects that require iterative development, testing, and refinement, especially in complex fields like physical, engineering, and life sciences. Shorter-term contracts might focus on specific technology demonstrations or feasibility studies, while longer durations like this one suggest a commitment to advancing a technology or capability over a significant period, often involving multiple phases or milestones.

Are there any known performance issues or concerns associated with Assurance Technology Corp on previous DoD contracts?

Assessing the performance history of Assurance Technology Corp on previous Department of Defense contracts is essential for evaluating the risk associated with this new $169 million award. Publicly available data often includes contractor performance evaluation reports (CPARS), which can highlight past performance, management, cost control, and schedule adherence. Without direct access to CPARS or specific contract close-out documentation for Assurance Technology Corp's prior DoD engagements, it is impossible to definitively state whether there are known performance issues. However, the award of a large, multi-year CPFF contract through full and open competition suggests that the contracting agency likely reviewed past performance and found it satisfactory or acceptable, warranting this significant investment.

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: N0017321RWR04

Offers Received: 1

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: $224,425,972

Exercised Options: $184,745,573

Current Obligation: $169,341,396

Subaward Activity

Number of Subawards: 1015

Total Subaward Amount: $372,304,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline