DoD awards $6.15M R&D contract to Aspen Consulting Group for physical sciences research

Contract Overview

Contract Amount: $6,151,942 ($6.2M)

Contractor: Aspen Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-19

End Date: 2026-09-30

Contract Duration: 741 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD A CONTRACT UNDER BAA W56KGU-23-R-RTID, TOPIC GBA-02 TO ASPEN CONSULTING GROUP.

Place of Performance

Location: POINT PLEASANT BORO, OCEAN County, NEW JERSEY, 08742

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to ASPEN CONSULTING GROUP INC for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD A CONTRACT UNDER BAA W56KGU-23-R-RTID, TOPIC GBA-02 TO ASPEN CONSULTING GROUP. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under a Broad Agency Announcement (BAA), indicating a research-oriented procurement. 3. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 4. Performance period spans over two years, from September 2024 to September 2026. 5. The contract was awarded following full and open competition after exclusion of sources. 6. The North American Industry Classification System (NAICS) code 541715 suggests a focus on advanced scientific research.

Value Assessment

Rating: fair

The contract value of $6.15 million for a two-year R&D effort appears within a reasonable range for specialized scientific research. However, without specific benchmarks for the particular research topic (GBA-02 under BAA W56KGU-23-R-RTID), a precise value-for-money assessment is challenging. The CPFF contract type means costs will be reimbursed, with oversight crucial to ensure efficiency. Benchmarking against similar R&D contracts in physical sciences would provide a clearer picture of pricing competitiveness.

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,' which suggests that while the competition was open, specific sources may have been excluded based on pre-defined criteria or prior research phases. The number of bidders is not specified, but the 'full and open' designation implies a competitive process was intended. This approach aims to ensure fair access to government contracts while potentially focusing on specific research capabilities.

Taxpayer Impact: This competitive approach is intended to foster innovation and ensure that taxpayer funds are used to secure the best possible research outcomes at a fair price.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the broader scientific community through the advancement of knowledge in physical sciences. The contract will deliver research and development services related to physical, engineering, and life sciences. The geographic impact is primarily associated with the contractor's location in New Jersey. Workforce implications may include employment for scientists, engineers, and research support staff at Aspen Consulting Group.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize higher spending if not closely monitored.
The specific research topic's complexity might lead to unforeseen cost overruns.
Limited transparency on the number of bidders could obscure the true level of competition.

Positive Signals

Awarded under a Broad Agency Announcement, suggesting alignment with strategic research priorities.
Full and open competition aims to ensure a competitive environment for pricing and innovation.
The contractor, Aspen Consulting Group, is being awarded a contract, implying a level of trust in their capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services supporting the Department of Defense is substantial, with significant government investment annually. Contracts like this are crucial for maintaining technological superiority and advancing scientific understanding relevant to national security. Comparable spending benchmarks would typically be found within DoD's R&D budget allocations for similar scientific disciplines.

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 requirement. The primary focus is on the prime contractor's capabilities. Any subcontracting would be at the discretion of Aspen Consulting Group.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Army contracting and technical teams. Accountability measures will focus on tracking costs against the awarded fee and ensuring milestones are met. Transparency is generally facilitated through contract reporting requirements, though specific public-facing details may be limited for R&D contracts. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Physical Sciences Research
Engineering Research
Life Sciences Research
Broad Agency Announcements (BAA)

Risk Flags

Cost Overrun Risk (CPFF Contract)
Limited Competition Pool (Exclusion of Sources)
Performance Monitoring Complexity (R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to ASPEN CONSULTING GROUP INC. THE PURPOSE OF THIS ACTION IS TO AWARD A CONTRACT UNDER BAA W56KGU-23-R-RTID, TOPIC GBA-02 TO ASPEN CONSULTING GROUP.

Who is the contractor on this award?

The obligated recipient is ASPEN CONSULTING GROUP 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 $6.2 million.

What is the period of performance?

Start: 2024-09-19. End: 2026-09-30.

What is the track record of Aspen Consulting Group with the Department of Defense?

Information regarding Aspen Consulting Group's specific track record with the Department of Defense is not detailed in the provided data. However, the award of this contract suggests they possess the necessary qualifications and capabilities to perform the specified research and development tasks. Further investigation into their past performance on similar government contracts, including their success rates, delivery timeliness, and quality of work, would be necessary for a comprehensive assessment. Reviewing contract databases and performance reports could provide insights into their history with DoD and other federal agencies.

How does the $6.15 million contract value compare to similar R&D contracts in physical sciences?

The $6.15 million value for a two-year R&D contract in physical sciences is a moderate amount. Without knowing the specific research topic (GBA-02), it's difficult to provide a precise benchmark. However, R&D contracts in specialized scientific fields can range from hundreds of thousands to tens of millions of dollars, depending on the complexity, duration, and required resources. Contracts awarded under Broad Agency Announcements (BAAs) often fund exploratory or foundational research, which can have variable costs. A more accurate comparison would require analyzing contracts with similar NAICS codes (541715) and research objectives within the Department of Defense or other federal agencies.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns, as the government reimburses the contractor for allowable costs plus a fixed fee. If the contractor's costs exceed initial estimates, the government bears that burden. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. Another risk is that the fixed fee, while predetermined, might not adequately incentivize efficiency if not balanced with strong performance metrics and monitoring. The contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is guaranteed regardless of cost efficiency beyond a certain point.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of R&D?

The 'Full and Open Competition After Exclusion of Sources' method is often used in R&D when a prior phase of research or a specific technology development has already occurred, and the agency wants to compete the next stage among those who participated or demonstrated capability. It aims to balance competition with the need for specialized expertise. While it's more competitive than a sole-source award, excluding certain sources might limit the pool of potential bidders compared to unrestricted full and open competition. Its effectiveness depends on whether the exclusion criteria were justified and if a sufficient number of qualified bidders remained to ensure price discovery and innovation.

What are the historical spending patterns for R&D in physical sciences by the Department of the Army?

Historical spending patterns for R&D in physical sciences by the Department of the Army are substantial, reflecting a continuous need for technological advancement. The Army invests billions annually across various R&D categories, including physical sciences, engineering, and basic research. Specific figures for NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) would fluctuate year to year based on strategic priorities, emerging threats, and budget allocations. Analyzing past budgets and contract awards within this sector would reveal trends in funding levels and areas of focus, such as materials science, energy research, or advanced manufacturing.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715 signifies that the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This code provides a standardized way to classify the business activity. For this contract, it indicates that Aspen Consulting Group will be engaged in scientific research and experimental development in fields like physics, chemistry, materials science, mechanical engineering, electrical engineering, and various life sciences, excluding highly specialized areas like nano and biotech. This classification helps in benchmarking spending, identifying relevant contractors, and understanding the nature of the research being funded.

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: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2405 SHORE HAVEN CT, POINT PLEASANT BORO, NJ, 08742

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

Financial Breakdown

Contract Ceiling: $23,338,823

Exercised Options: $6,151,942

Current Obligation: $6,151,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline