DoD awards $190M for tank automotive R&D, with a 5-year performance period

Contract Overview

Contract Amount: $11,714,350 ($11.7M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2006-09-18

End Date: 2012-05-27

Contract Duration: 2,078 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200612!008631!2100!W56HZV!TACOM - WARREN !W56HZV06C0459 !A!N! !Y! ! !20060918!20110831!189737810!189737810!189737810!N!CONCURRENT TECHNOLOGIES CORPOR!100 CTC DR !JOHNSTOWN !PA!15904!38288!021!42!JOHNSTOWN !CAMBRIA !PENN !+000001331000!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !99990909!B! ! !B! !D!N!U!1!001!N!1A!A!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to CONCURRENT TECHNOLOGIES CORP for work described as: 200612!008631!2100!W56HZV!TACOM - WARREN !W56HZV06C0459 !A!N! !Y! ! !20060918!20110831!189737810!189737810!189737810!N!CONCURRENT TECHNOLOGIES CORPOR!100 CTC DR !JOHNSTOWN !PA!15904!38288!021!42!JOHNSTOWN !CAMB… Key points: 1. Contract awarded for basic research and development in tank automotive systems. 2. Performance period spans over 5 years, indicating a long-term need. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The awardee has a significant track record with the Department of Defense. 5. This contract falls under engineering services, a critical sector for defense. 6. The contract was competed, suggesting an effort to achieve fair pricing.

Value Assessment

Rating: good

The contract value of $189.7 million over approximately 5 years suggests a substantial investment in tank automotive research and development. While specific benchmarks for this niche R&D are difficult to ascertain without more granular data, the duration and scope indicate a significant project. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where costs are uncertain, carries inherent risks of cost escalation compared to fixed-price contracts. However, the fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process where all responsible sources were initially considered, but specific sources were later excluded. This suggests a potentially complex procurement history. The presence of competition is generally positive for price discovery, though the specifics of the exclusion could impact the breadth of competition.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it aims to solicit the best value and pricing from the market.

Public Impact

The Department of Defense benefits from advancements in tank automotive technology. Services delivered include basic research and development, crucial for future military capabilities. The geographic impact is primarily within Pennsylvania, where the contractor is located. Workforce implications include employment for engineers and researchers at Concurrent Technologies Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
The 'Exclusion of Sources' in the competition type warrants further investigation into the reasons and potential impact on competition.
Long performance period requires sustained oversight to ensure continued value.

Positive Signals

Awarded through a competitive process, suggesting an effort to obtain fair market value.
Contractor has a history of performing work for the Department of Defense.
Focus on R&D indicates investment in future technological superiority.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on research and development for defense applications. The defense R&D market is characterized by long-term investments, specialized expertise, and significant government funding. Comparable spending benchmarks are difficult to establish without more specific details on the technological advancements sought, but the nearly $190 million award over five years signifies a substantial commitment to this area of military technology.

Small Business Impact

There is no indication that this contract was a small business set-aside. Given the nature of advanced R&D in defense, large, specialized contractors are often involved. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The primary focus appears to be on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress towards research objectives. Transparency is facilitated through contract awards databases, but specific project details and oversight reports may be limited.

Related Government Programs

Department of Defense Research and Development Contracts
Tank and Automotive Systems Procurement
Engineering Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Complexity of 'Exclusion of Sources' competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to CONCURRENT TECHNOLOGIES CORP. 200612!008631!2100!W56HZV!TACOM - WARREN !W56HZV06C0459 !A!N! !Y! ! !20060918!20110831!189737810!189737810!189737810!N!CONCURRENT TECHNOLOGIES CORPOR!100 CTC DR !JOHNSTOWN !PA!15904!38288!021!42!JOHNSTOWN !CAMBRIA !PENN !+000001331000!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2006-09-18. End: 2012-05-27.

What is the specific nature of the 'basic research' being conducted under this contract?

The provided data indicates the contract is for 'RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH'. This suggests the research focuses on fundamental scientific and engineering principles related to tanks and other military ground vehicles, rather than the development of specific, ready-to-deploy systems. This could include areas like advanced materials, propulsion efficiency, survivability enhancements, or novel mobility concepts. The 'basic' nature implies a longer-term research horizon, aiming to build foundational knowledge that could inform future vehicle designs and upgrades.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this R&D contract?

The CPFF structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, where costs can be highly unpredictable, this structure allows flexibility. However, it places a significant burden on the government to meticulously audit and approve all costs. The 'fixed fee' provides some incentive for the contractor to manage costs efficiently to protect their profit margin, but the primary cost control mechanism relies on robust government oversight, clear definition of allowable costs, and effective negotiation of the fee itself.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this award?

This procurement method suggests that while the contract was initially intended for full and open competition, certain sources were subsequently excluded. This exclusion could be due to various reasons, such as national security concerns, specific technical requirements that only a limited number of entities could meet, or prior performance issues. While it implies a competitive process was initiated, the exclusion might have narrowed the field of potential bidders, potentially impacting the final price and the range of innovative solutions considered. Further details on the justification for exclusion would be needed for a complete assessment.

What is Concurrent Technologies Corporation's track record with the Department of Defense?

Concurrent Technologies Corporation (CTC) has a demonstrated history of working with the Department of Defense. The data shows this contract (W56HZV-06-C-0459) was awarded to them, indicating prior engagement. CTC specializes in research, development, and engineering services, often supporting defense modernization and technological advancement. Their involvement in numerous defense projects suggests they possess the necessary expertise and security clearances to handle sensitive government contracts.

How does this $190 million R&D award compare to historical spending on tank automotive research?

Without access to historical spending data specifically for tank automotive basic research, a direct comparison is challenging. However, a $190 million award over approximately five years represents a significant investment. Defense R&D budgets are substantial, and funding for critical areas like ground vehicle technology is a priority. This contract's value suggests a sustained commitment to advancing the capabilities of the U.S. Army's armored fleet through technological innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline