DoD's $3.4M R&D Contract Awarded to American Electronic Warfare Associates for Physical Sciences Research

Contract Overview

Contract Amount: $3,422,285 ($3.4M)

Contractor: American Electronic Warfare Associates, Incorporated

Awarding Agency: Department of Defense

Start Date: 2025-08-26

End Date: 2026-08-31

Contract Duration: 370 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LABOR - DAITA GROUP AND LVCE

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.4 million to AMERICAN ELECTRONIC WARFARE ASSOCIATES, INCORPORATED for work described as: LABOR - DAITA GROUP AND LVCE Key points: 1. Contract focuses on advanced research and development in physical sciences, aligning with DoD's strategic priorities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 4. The duration of 370 days indicates a focused, project-specific research effort. 5. The contract is for a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. 6. The primary NAICS code (541715) points to a specialized R&D sector.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can sometimes lead to higher costs if not managed rigorously, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this $3.4 million award to similar R&D contracts in the physical sciences requires access to proprietary cost data and specific project scopes. However, the fixed fee component offers some predictability in contractor profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, which warrants further investigation. The number of bidders is not provided, but the 'full and open' designation generally implies multiple potential offerors were considered, which should theoretically lead to better price discovery.

Taxpayer Impact: The 'full and open' competition, even with exclusions, suggests a reasonable effort to leverage market forces, which is generally beneficial for taxpayers by promoting competitive pricing and innovation.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader national security apparatus, through advancements in physical sciences. The services delivered are research and development, likely focused on specific technological or scientific challenges. The geographic impact is primarily tied to the contractor's location (Maryland) and the DoD's operational needs. Workforce implications include employment for specialized researchers and scientists within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
The 'exclusion of sources' clause in the competition type requires scrutiny to ensure fairness and maximize competitive potential.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D investment.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
The contract supports critical research and development for the Department of Defense.
The fixed fee component provides a degree of cost certainty for the government regarding contractor profit.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in the physical, engineering, and life sciences. This sector is characterized by innovation, specialized expertise, and often long development cycles. Federal spending in this area is crucial for maintaining technological superiority and addressing national security challenges. Comparable spending benchmarks would involve analyzing other DoD R&D contracts awarded to firms with similar specializations and contract types.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were likely the primary participants in the competition. There is no explicit information on subcontracting plans, but for contracts of this nature, there is often an expectation or requirement for prime contractors to engage small businesses for specialized support services, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure allowable costs are reasonable and allocable, and that the fixed fee is earned. Transparency is often limited for specific R&D projects due to national security or proprietary concerns, but contract award data is generally publicly available. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Advanced Physical Sciences Research Contracts
Cost Plus Fixed Fee R&D Awards

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Competition clause includes 'exclusion of sources,' warranting review for potential impact on market competitiveness.
Lack of specific performance metrics in summary data hinders objective assessment of value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.4 million to AMERICAN ELECTRONIC WARFARE ASSOCIATES, INCORPORATED. LABOR - DAITA GROUP AND LVCE

Who is the contractor on this award?

The obligated recipient is AMERICAN ELECTRONIC WARFARE ASSOCIATES, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2025-08-26. End: 2026-08-31.

What is the specific nature of the 'physical, engineering, and life sciences' research being conducted under this contract?

The provided data does not specify the exact nature of the research beyond the broad NAICS code 541715. This code covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' To understand the specific focus, one would need to consult the contract's statement of work (SOW) or related documentation. This could range from materials science, advanced physics, complex systems engineering, or other scientific disciplines critical to defense applications. Without the SOW, the precise application and expected outcomes remain undefined.

How does the $3.4 million value compare to similar R&D contracts awarded by the Department of the Navy in the past year?

Comparing this $3.4 million contract value requires access to a comprehensive database of recent DoD contract awards, filtered by agency (Department of the Navy), NAICS code (541715), and contract type (Cost Plus Fixed Fee). Generally, R&D contracts can vary significantly in value, from small, targeted research grants to multi-billion dollar programs. A $3.4 million award for a single delivery order suggests a moderately sized, focused research project. Without specific comparative data, it's difficult to definitively state if this represents a high, low, or average investment for the scope of work intended.

What are the key performance indicators (KPIs) or milestones associated with this contract to measure success?

The provided data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) contracts, success is often measured by the contractor's ability to complete the defined research objectives within the estimated cost parameters and by the agreed-upon deadline, while adhering to the fixed fee. Detailed milestones would typically be outlined in the contract's Statement of Work (SOW) and could include deliverables such as research reports, prototypes, feasibility studies, or technical demonstrations. The absence of explicit KPIs in the summary data makes objective performance assessment challenging.

What is the track record of American Electronic Warfare Associates, Inc. in performing similar R&D contracts for the federal government?

Assessing the track record of American Electronic Warfare Associates, Inc. requires searching federal contract databases (like SAM.gov or FPDS) for past awards and performance evaluations. Information on past performance, including timeliness, quality of deliverables, and adherence to budget, is crucial. Without this specific historical data, it's impossible to evaluate their reliability or expertise in executing similar R&D contracts. A review of their contract history would reveal their experience level and success rate in government contracting, particularly within the R&D domain.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D work?

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. While the contractor's profit (the 'fee') is fixed, they are reimbursed for all allowable costs. If the project scope expands or unforeseen technical challenges arise, the total cost to the government can increase significantly beyond initial estimates. This necessitates robust government oversight to scrutinize costs and ensure they are reasonable and allocable to the contract. Another risk is that the fixed fee might not adequately incentivize efficiency if the contractor anticipates cost increases.

How does the 'exclusion of sources' in the competition clause impact potential cost savings for taxpayers?

The 'exclusion of sources' clause, even within a 'full and open' competition framework, introduces a potential limitation on the breadth of competition. If legitimate and capable sources were excluded without clear justification, it could reduce the number of bidders, potentially leading to less aggressive pricing. Taxpayers benefit most from competition when the widest possible pool of qualified vendors can participate. The specific reasons for excluding sources are critical; if based on necessary security clearances, specialized capabilities, or prior performance issues, the exclusion might be justified. However, if arbitrary, it could diminish competitive pressure and negatively impact cost efficiency.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042125R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 44427 AIRPORT RD STE 200, CALIFORNIA, MD, 20619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,775,855

Exercised Options: $11,214,335

Current Obligation: $3,422,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042125D0303

IDV Type: IDC

Timeline