DoD's $16.3M Agile Sources Advancement Program contract awarded to Verus Research, LLC for missile and space vehicle parts

Contract Overview

Contract Amount: $16,359,278 ($16.4M)

Contractor: Verus Research, LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-22

End Date: 2027-08-31

Contract Duration: 1,835 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AGILE SOURCES ADVANCEMENT PROGRAM LABOR AND MATERIALS

Place of Performance

Location: WHITE SANDS MISSILE RANGE, DONA ANA County, NEW MEXICO, 88002

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to VERUS RESEARCH, LLC for work described as: AGILE SOURCES ADVANCEMENT PROGRAM LABOR AND MATERIALS Key points: 1. Contract value of $16.3M over 5 years suggests a significant investment in advanced manufacturing capabilities. 2. Awarded under full and open competition, indicating a broad market search for qualified vendors. 3. The contract's Cost Plus Fixed Fee (CPFF) structure may incentivize cost control while ensuring contractor profit. 4. Performance is in New Mexico, a state with a notable defense industry presence. 5. The North American Industry Classification System (NAICS) code 336419 points to specialized manufacturing for guided missile and space vehicles. 6. The contract's duration of 1835 days (approx. 5 years) allows for long-term project development and execution.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for similar advanced manufacturing services. The CPFF pricing structure requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial projections. The fixed fee component provides some predictability for contractor profit, but the overall cost-effectiveness will depend on the successful delivery of the specified goods or services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Army sought a wide range of potential offerors. The specific number of bidders is not provided, but this method generally promotes a competitive environment. A robust competition typically leads to better pricing and innovation as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider pool of innovative solutions, ensuring the government receives the best value.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Army, receiving advanced manufacturing capabilities for missile and space vehicles. Services delivered likely include research, development, prototyping, and production of specialized components. The geographic impact is centered in New Mexico, potentially creating or sustaining high-skilled jobs in the region. This contract supports the defense industrial base, ensuring the availability of critical technologies and manufacturing expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely managed.
Lack of specific performance metrics makes it difficult to assess value for money upfront.
The specialized nature of the work may limit the pool of truly competitive bidders despite full and open competition.

Positive Signals

Awarded through full and open competition, indicating a broad market search and potential for competitive pricing.
The contract's long duration allows for sustained development and integration of advanced technologies.
Focus on advanced missile and space vehicle parts suggests alignment with critical national security priorities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on guided missile and space vehicle components. This is a highly specialized and technologically intensive area. The market is characterized by high barriers to entry due to R&D costs, stringent quality requirements, and long product development cycles. Comparable spending benchmarks would typically involve other large-scale defense manufacturing contracts for similar complex systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely requiring significant resources and specialized expertise, it may involve subcontracting opportunities for small businesses. However, without specific subcontracting plans or goals outlined, the direct impact on the small business ecosystem is uncertain. The primary focus appears to be on large, established defense contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the Cost Plus Fixed Fee structure, which requires detailed cost reporting and justification. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Manufacturing
Space Vehicle Manufacturing
Defense Research and Development
Advanced Materials Manufacturing
Aerospace Components

Risk Flags

Cost Overrun Risk (CPFF Structure)
Performance Uncertainty (Specialized Technology)
Supply Chain Dependency (Specific Components)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to VERUS RESEARCH, LLC. AGILE SOURCES ADVANCEMENT PROGRAM LABOR AND MATERIALS

Who is the contractor on this award?

The obligated recipient is VERUS RESEARCH, 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 $16.4 million.

What is the period of performance?

Start: 2022-08-22. End: 2027-08-31.

What is the track record of Verus Research, LLC with Department of Defense contracts, particularly those involving advanced manufacturing?

Verus Research, LLC has a history of securing contracts with the Department of Defense, often in specialized technical areas. While specific details on their performance for contracts similar to the Agile Sources Advancement Program are not provided in this data snippet, their awards suggest a capability in areas relevant to defense needs. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary to fully assess their track record. Their success in obtaining this $16.3M contract indicates they met the DoD's requirements for this specific procurement, but ongoing monitoring of performance under this award is crucial.

How does the $16.3M contract value compare to similar procurements for guided missile and space vehicle parts?

The $16.3M contract value for the Agile Sources Advancement Program is a significant sum, indicative of a substantial project. However, comparing it directly to 'similar' procurements is complex due to the specialized nature of guided missile and space vehicle parts. The market for these components can vary widely in scope, technological complexity, and duration. To establish a benchmark, one would need to analyze contracts with similar NAICS codes (like 336419), contract types (CPFF), and agencies (DoD). Without access to a broader database of comparable contracts, it's difficult to definitively state whether $16.3M represents a high, low, or average value. Factors like the specific components, research intensity, and production volume would heavily influence pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this scale ($16.3M over ~5 years) revolve around cost control and potential for cost growth. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' portion means the government bears the risk of actual costs incurred. If the contractor's costs exceed estimates, the government pays more. This necessitates robust oversight, detailed cost tracking, and clear definition of allowable costs to prevent overruns. Another risk is scope creep, where project requirements expand without corresponding adjustments to the fee or timeline, potentially leading to inefficiencies. Contractor performance and the ability to deliver the required advanced components on time and to specification also represent inherent risks.

What does the 'Agile Sources Advancement Program' designation imply about the contract's objectives and execution?

The 'Agile Sources Advancement Program' designation suggests a focus on rapid acquisition and adaptability in sourcing critical technologies, likely within the defense sector. 'Agile' implies a methodology that emphasizes flexibility, iterative development, and responsiveness to changing requirements or technological advancements. 'Sources Advancement' points towards developing or enhancing the capabilities of specific suppliers or the overall supply chain for crucial components. This contract likely aims to foster innovation, ensure a resilient supply of advanced parts for guided missiles and space vehicles, and potentially onboard new technologies or manufacturing processes quickly to meet evolving defense needs.

What is the significance of the NAICS code 336419 (Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing)?

NAICS code 336419 signifies that this contract is focused on the manufacturing of parts and auxiliary equipment specifically for guided missiles and space vehicles, excluding complete engines, airframes, or space vehicles themselves. This points to a highly specialized segment of the aerospace and defense industry. Companies operating under this code typically possess advanced manufacturing capabilities, adhere to stringent quality control standards (e.g., AS9100), and often engage in complex engineering and production processes. The award to Verus Research under this code indicates the DoD's need for specialized components critical to the functioning of missile and space systems.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6100 UPTOWN BLVD NE STE 260, ALBUQUERQUE, NM, 87110

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

Financial Breakdown

Contract Ceiling: $16,467,482

Exercised Options: $16,467,482

Current Obligation: $16,359,278

Actual Outlays: $2,838,495

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $909,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W900KK19D0007

IDV Type: IDC

Timeline