DoD's $13.8M R&D contract to Assurance Technology Corp for physical sciences research shows fair competition
Contract Overview
Contract Amount: $13,792,542 ($13.8M)
Contractor: Assurance Technology Corp
Awarding Agency: Department of Defense
Start Date: 2023-12-17
End Date: 2025-12-16
Contract Duration: 730 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER 1
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375
Plain-Language Summary
Department of Defense obligated $13.8 million to ASSURANCE TECHNOLOGY CORP for work described as: TASK ORDER 1 Key points: 1. Contract awarded to Assurance Technology Corp for $13.8M over two years. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, given the R&D nature and cost-plus-fixed-fee structure. 4. Performance context is R&D in physical, engineering, and life sciences, a broad category. 5. Sector positioning is within the Defense R&D landscape, focusing on specialized scientific services.
Value Assessment
Rating: good
The contract's value of $13.8M for a two-year R&D effort appears reasonable within the context of specialized scientific research. Benchmarking against similar contracts in the physical sciences R&D sector would provide a more precise assessment, but the fixed-fee component suggests a degree of cost control. The pricing structure, Cost Plus Fixed Fee (CPFF), is common for R&D where scope can evolve, but requires careful oversight to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment. This approach generally leads to better price discovery and a wider pool of qualified contractors, potentially resulting in more innovative solutions and cost efficiencies.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in research and development, potentially reducing overall program costs and improving the quality of research outcomes.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the advancement of physical, engineering, and life sciences. Services delivered include research and development activities within the specified scientific domains. Geographic impact is centered in the District of Columbia, where the contractor is located. Workforce implications include employment for scientists, engineers, and support staff at Assurance Technology Corp.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently.
- The broad nature of R&D in physical, engineering, and life sciences may present scope creep risks.
- Limited information on specific performance metrics makes it difficult to assess effectiveness proactively.
Positive Signals
- Awarded under full and open competition, suggesting a competitive selection process.
- The contractor, Assurance Technology Corp, is likely experienced in R&D services.
- The contract duration of two years allows for focused research efforts.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541715, which covers R&D in the physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and scientific understanding. Spending in this sector is highly competitive and driven by government priorities, with significant investment allocated to advancing national security capabilities through scientific discovery.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve regular reviews of incurred costs, progress reports, and adherence to the fixed fee. The Department of the Navy, as the awarding agency, is responsible for ensuring accountability. Transparency is facilitated through contract award databases, though detailed R&D progress reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development
- Physical Sciences Research Contracts
- Engineering R&D Services
- Life Sciences Research Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- R&D contracts inherently carry risks related to scope and technical uncertainty.
- Limited information on specific performance metrics for this task order.
Tags
sector-research-and-development, agency-department-of-defense, sub-agency-department-of-the-navy, contract-type-cost-plus-fixed-fee, competition-level-full-and-open, contract-value-medium, contract-duration-short, naics-541715, geography-district-of-columbia, award-type-delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to ASSURANCE TECHNOLOGY CORP. TASK ORDER 1
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 $13.8 million.
What is the period of performance?
Start: 2023-12-17. End: 2025-12-16.
What is the track record of Assurance Technology Corp with government contracts, particularly within R&D?
Assurance Technology Corp has a history of receiving government contracts, primarily within the R&D and professional services sectors. While specific details on their R&D performance for this particular contract are not yet available due to its recent award, their continued selection for such work suggests a level of competence and reliability. Analyzing past contract performance, including on-time delivery, adherence to budget, and technical success rates for similar R&D projects, would provide a more comprehensive understanding of their capabilities and potential risks associated with this new task order.
How does the $13.8M value compare to similar R&D contracts in the physical sciences?
The $13.8M value for a two-year R&D effort in physical, engineering, and life sciences is within a typical range for specialized research projects. Contracts in this domain can vary significantly based on the complexity, scope, and duration. Larger, multi-year programs can easily reach tens or hundreds of millions of dollars. However, for a specific task order focused on particular research objectives, $13.8M represents a substantial but not extraordinary investment. Benchmarking against contracts with similar NAICS codes (541715) and contract types (CPFF) awarded by agencies like the DoD or other federal research bodies would offer a more precise comparison of value for money.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) R&D contract?
The primary risks with a CPFF R&D contract revolve around cost control and scope management. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the risk of cost overruns if the research proves more expensive than initially estimated. For R&D, where the path to success is often uncertain and discoveries can lead to unforeseen technical challenges or require additional experimentation, managing scope creep and ensuring efficient resource utilization is critical. Robust oversight, clear performance metrics, and regular progress reviews are essential to mitigate these risks and ensure the government receives good value.
How effective is 'full and open competition' in driving down costs for specialized R&D services?
Full and open competition is generally considered highly effective in driving down costs for specialized R&D services by fostering a competitive environment. When multiple qualified contractors vie for a contract, they are incentivized to offer competitive pricing and innovative solutions to win the award. This process allows the government to benefit from a wider range of technical approaches and potentially lower bid prices compared to sole-source or limited competition scenarios. However, the effectiveness can be influenced by the number of truly capable bidders and the complexity of the R&D requirements, which might limit the pool of interested parties.
What is the historical spending trend for NAICS code 541715 within the Department of Defense?
Historical spending within NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) by the Department of Defense (DoD) has consistently been substantial, reflecting the agency's reliance on scientific advancement for national security. Annual outlays typically range in the billions of dollars, driven by a need to maintain technological superiority across various domains. Spending fluctuates based on strategic priorities, emerging threats, and budget allocations. The DoD is a major driver of federal R&D spending in this category, funding a wide array of basic, applied, and developmental research efforts.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017323RGD01
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: $22,053,060
Exercised Options: $22,053,060
Current Obligation: $13,792,542
Actual Outlays: $55,100
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $10,769,155
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017324D2002
IDV Type: IDC
Timeline
Start Date: 2023-12-17
Current End Date: 2025-12-16
Potential End Date: 2025-12-16 00:00:00
Last Modified: 2025-09-12
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