DoD awards $13M engineering services contract to Astrion Group, LLC for 2253 days
Contract Overview
Contract Amount: $12,993,895 ($13.0M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2019-06-27
End Date: 2025-08-27
Contract Duration: 2,253 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: BASE AWARD
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to ASTRION GROUP, LLC for work described as: BASE AWARD Key points: 1. Value for money appears fair given the Time and Materials contract type, which allows for flexibility but requires diligent oversight. 2. Competition dynamics indicate a full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators include the Time and Materials pricing structure, which can lead to cost overruns if not managed closely. 4. Performance context is a long-duration contract, requiring sustained delivery and management. 5. Sector positioning is within engineering services, a critical support function for defense operations.
Value Assessment
Rating: fair
The $13 million base award for engineering services over approximately six years suggests a moderate annual spend. Without specific deliverables or labor rates, a direct comparison to similar contracts is challenging. However, Time and Materials contracts generally carry a higher risk of cost escalation compared to fixed-price awards. Diligent oversight of labor hours and material costs will be crucial to ensure value for money.
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 had the opportunity to submit proposals. The presence of two bids suggests a degree of competition, though a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and can drive down costs through market forces.
Public Impact
The Department of Defense benefits from specialized engineering services to support its operations. Services delivered likely include design, analysis, and technical support for various defense projects. The geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include the creation or maintenance of skilled engineering jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Long contract duration may present challenges in adapting to evolving technological needs.
- Limited visibility into specific labor rates and material markups without detailed reporting.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contractor has secured a significant award, suggesting a level of trust and capability.
- Long-term nature of the contract provides stability for service delivery.
Sector Analysis
Engineering services are a vital component of the defense industrial base, encompassing a wide range of activities from research and development to operational support. The market for these services is competitive, with numerous firms offering specialized expertise. This contract fits within the broader category of professional services supporting government agencies, particularly in complex technical domains.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and the contractor, Astrion Group, LLC, is not listed as a small business. There is no explicit information on subcontracting plans for small businesses within this award notice. Further investigation into subcontracting goals would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract award databases, but detailed performance reports are often internal.
Related Government Programs
- Defense Engineering Services
- Professional Services Contracts
- Department of the Army Contracts
- Time and Materials Contracts
Risk Flags
- Time and Materials Pricing
- Long Contract Duration
- Limited Competition (2 Bids)
Tags
defense, department-of-defense, department-of-the-army, engineering-services, full-and-open-competition, time-and-materials, delivery-order, alabama, professional-services, contract-over-10m
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to ASTRION GROUP, LLC. BASE AWARD
Who is the contractor on this award?
The obligated recipient is ASTRION GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2019-06-27. End: 2025-08-27.
What is the typical profit margin for Time and Materials contracts in defense engineering services?
Profit margins on Time and Materials (T&M) contracts can vary significantly based on the specific services, the contractor's overhead structure, and the competitive landscape. Generally, T&M contracts allow contractors to bill for direct labor hours at specified hourly rates and for the actual cost of materials used, plus a markup. The profit is often embedded within the labor rates and material markups. While not a fixed profit percentage, industry benchmarks suggest that total costs, including profit, for T&M contracts can sometimes be higher than for fixed-price contracts if not managed diligently. For defense engineering services, profit margins might range from 10-20% on direct labor and materials, but this is highly variable and dependent on the specific agreement and the contractor's cost structure. Effective oversight by the government is crucial to ensure these rates are reasonable and that the contractor is not overcharging.
How does the duration of this contract (2253 days) compare to similar engineering services contracts awarded by the Department of the Army?
A contract duration of 2253 days, approximately six years, is relatively long for a single delivery order, especially for engineering services. While the Army does award multi-year contracts for significant programs, individual delivery orders under indefinite-delivery/indefinite-quantity (IDIQ) vehicles or other contract types often have shorter durations, typically one to three years, with options for extension. Longer durations like this one suggest a need for sustained, ongoing support for a particular project or program. Benchmarking against similar 'Engineering Services' (NAICS 541330) contracts awarded by the Department of the Army would reveal if this duration is typical for the scope of work, or if it represents a longer-term commitment than average. Contracts exceeding five years often require specific justifications and may be subject to different funding and oversight regulations.
What are the potential risks associated with a Time and Materials contract for engineering services, and how can they be mitigated?
Time and Materials (T&M) contracts, like the one awarded to Astrion Group, LLC, present several potential risks. The primary risk is cost overrun, as the government pays for actual labor hours and material costs incurred by the contractor, plus a markup. This can lead to higher-than-anticipated costs if labor hours are not efficiently used or if material costs escalate. Another risk is scope creep, where the project expands beyond its original intent without a corresponding increase in the contract's ceiling price, potentially leading to budget issues. Mitigation strategies are critical. The government must implement robust oversight, including detailed tracking of labor hours, verification of material costs, and regular performance reviews. Establishing a contract ceiling price and requiring the contractor to notify the government when a certain percentage of the ceiling is reached are essential. Clear definition of tasks and deliverables, along with strong project management from the government side, can also help control scope and ensure efficient resource utilization.
What does the number of bids (2) in this full and open competition suggest about the market for defense engineering services?
Receiving only two bids in a full and open competition for a significant contract like this one could suggest several possibilities regarding the market for defense engineering services. It might indicate that the specific requirements of the solicitation were highly specialized, limiting the number of qualified bidders. Alternatively, it could point to a less competitive segment within the broader engineering services market, or perhaps that other potential bidders chose not to compete due to perceived risks, workload, or strategic decisions. While two bids still represent competition, a larger number of offers generally leads to more robust price discovery and potentially better value for the government. A low number of bids can sometimes signal potential market concentration or barriers to entry for new competitors.
How does the base award amount of $12,993,894.84 compare to the total contract value over its potential duration?
The base award amount of approximately $13 million represents the initial funding allocated for the contract. Given the contract's duration of 2253 days (roughly six years), this base award likely covers the initial period of performance or a significant portion of the anticipated work. However, the total contract value could be higher if there are options for additional work, task orders, or if the contract has a defined ceiling that allows for increased spending up to that limit. Without information on contract options or a stated ceiling value, it's difficult to determine the ultimate total value. For Time and Materials contracts, the base award often serves as an initial funding commitment, with subsequent funding and potential increases tied to performance and evolving needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 308 VOYAGER WAY, SUITE 200, HUNTSVILLE, AL, 35806
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,468,607
Exercised Options: $12,993,895
Current Obligation: $12,993,895
Actual Outlays: $30,213
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F0116L
IDV Type: FSS
Timeline
Start Date: 2019-06-27
Current End Date: 2025-08-27
Potential End Date: 2025-08-27 00:00:00
Last Modified: 2025-09-23
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