DoD awards $15.3M for AV-8 support, raising questions on R&D value and competition
Contract Overview
Contract Amount: $15,316,788 ($15.3M)
Contractor: Universal Technical Resource Services Inc
Awarding Agency: Department of Defense
Start Date: 2021-07-26
End Date: 2026-07-25
Contract Duration: 1,825 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RS3-20-0039 AWARD FOR PMA-257, F402 & MARK IV ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF AV-8 WEAPON SYSTEMS PROGRAM OFFICE PMA 257, NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWC AD) LAKEHURST, NAVAL AIR SYSTEMS COMMAND (NAVAIR)
Place of Performance
Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08034
Plain-Language Summary
Department of Defense obligated $15.3 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC for work described as: RS3-20-0039 AWARD FOR PMA-257, F402 & MARK IV ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF AV-8 WEAPON SYSTEMS PROGRAM OFFICE PMA 257, NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWC AD) LAKEHURST, NAVAL AIR SYSTEMS COMMAND (NAVAIR) Key points: 1. The award focuses on engineering and technical support for the AV-8 weapon system. 2. Competition was full and open, but the contract type (Cost Plus Fixed Fee) warrants scrutiny. 3. The R&D sector is broad; specific value and innovation impact are unclear. 4. Small business participation is noted as not applicable, potentially missing opportunities.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can incentivize cost overruns. Benchmarking against similar R&D support contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not be the most effective for price discovery and cost control in R&D.
Taxpayer Impact: Taxpayer funds are being used for specialized engineering support. The effectiveness of this spending in advancing the AV-8 program and ensuring value for money is a key concern.
Public Impact
Supports the continued operation and modernization of the AV-8 Harrier aircraft. Invests in specialized engineering and technical expertise within the defense sector. Potential for technology transfer or development that could benefit future defense systems. Ensures readiness and sustainment of a critical military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics
- Limited visibility into R&D innovation outcomes
Positive Signals
- Full and open competition
- Long-term support for critical weapon system
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Defense R&D spending is substantial, and this award represents a small portion focused on a specific legacy weapon system's sustainment and potential upgrades.
Small Business Impact
The data indicates no small business participation in this specific award. While the prime contractor is not a small business, opportunities for subcontracting to small businesses for specialized support services were not identified or pursued.
Oversight & Accountability
Oversight will be crucial to monitor cost performance under the Cost Plus Fixed Fee structure and ensure that the R&D efforts align with program objectives and deliver tangible value. The Naval Air Systems Command is responsible for this oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Lack of clear performance metrics for R&D value.
- Potential for contractor to prioritize cost recovery over innovation.
- Limited visibility into specific technological advancements.
- No identified small business subcontracting opportunities.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to UNIVERSAL TECHNICAL RESOURCE SERVICES INC. RS3-20-0039 AWARD FOR PMA-257, F402 & MARK IV ENGINEERING AND TECHNICAL SUPPORT SERVICES IN SUPPORT OF AV-8 WEAPON SYSTEMS PROGRAM OFFICE PMA 257, NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWC AD) LAKEHURST, NAVAL AIR SYSTEMS COMMAND (NAVAIR)
Who is the contractor on this award?
The obligated recipient is UNIVERSAL TECHNICAL RESOURCE SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $15.3 million.
What is the period of performance?
Start: 2021-07-26. End: 2026-07-25.
What is the specific R&D innovation expected from this contract, and how will its success be measured?
The contract focuses on engineering and technical support for the AV-8 weapon system. While innovation may occur, the primary goal appears to be sustainment and incremental improvements. Measuring success will likely involve meeting technical performance requirements and delivery schedules rather than groundbreaking R&D breakthroughs. Specific metrics should be clearly defined in the contract's statement of work to ensure accountability.
How does the Cost Plus Fixed Fee structure balance contractor incentives with taxpayer risk in this R&D context?
The Cost Plus Fixed Fee (CPFF) structure aims to cover allowable costs plus a predetermined fixed fee. For the contractor, the fixed fee provides profit regardless of cost fluctuations. For the government, this structure can be risky as it may incentivize higher costs to justify the fixed fee, especially in R&D where costs can be unpredictable. Effective oversight is critical to manage this risk.
Given the full and open competition, what prevents a more cost-effective contract type for R&D support?
While full and open competition was utilized, the choice of CPFF suggests that the government perceived significant uncertainty in the scope of work or anticipated costs, making fixed-price contracts less suitable. However, alternative incentive fee structures or performance-based contracts could potentially offer better value and risk sharing than a pure CPFF, even with R&D uncertainties. Further justification for CPFF is warranted.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 950 KINGS HWY N STE 208, CHERRY HILL, NJ, 08034
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,565,772
Exercised Options: $16,565,772
Current Obligation: $15,316,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0139
IDV Type: IDC
Timeline
Start Date: 2021-07-26
Current End Date: 2026-07-25
Potential End Date: 2027-01-25 12:01:00
Last Modified: 2025-09-17
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