DoD awards $173.5M for missile and space systems R&D to Brown International Corp

Contract Overview

Contract Amount: $17,350,498 ($17.4M)

Contractor: Brown International Corporation

Awarding Agency: Department of Defense

Start Date: 2004-03-23

End Date: 2008-05-02

Contract Duration: 1,501 days

Daily Burn Rate: $11.6K/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: 200407!001169!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0045 !A!N! !Y! ! !20040323!20050323!178129946!178129946!178129946!N!BROWN INTERNATONAL CORP !2103-A WEST FERRY WAY !HUNTSVILLE !AL!35801!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001174989!N!N!000002349979!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !1! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!2A!Z!N!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to BROWN INTERNATIONAL CORPORATION for work described as: 200407!001169!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0045 !A!N! !Y! ! !20040323!20050323!178129946!178129946!178129946!N!BROWN INTERNATONAL CORP !2103-A WEST FERRY WAY !HUNTSVILLE !AL!35801!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract focuses on advanced technology development for missile and space systems. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 1501 days, suggesting a long-term project. 4. The contractor, Brown International Corporation, is based in Huntsville, Alabama. 5. The contract type is Cost Plus Fixed Fee, which can shift some risk to the government. 6. The primary NAICS code is 541710, related to R&D in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract value of $173.5 million over approximately four years for advanced R&D in missile and space systems appears within a reasonable range for such specialized work. However, without specific benchmarks for comparable missile and space system development contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar R&D efforts in the defense sector would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The fact that it was full and open competition suggests multiple bidders were likely considered, which generally promotes competitive pricing. The number of bidders and the specific rationale for any source exclusions would provide further insight into the robustness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the 'after exclusion of sources' clause warrants further investigation to ensure no potential cost savings were foregone.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches requiring advanced missile and space system capabilities. The contract supports the development of cutting-edge technologies crucial for national security in space and strategic defense. The geographic impact is centered around the contractor's location in Huntsville, Alabama, a known hub for aerospace and defense industries. Workforce implications include potential job creation and demand for specialized engineers and scientists in the Huntsville area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending without direct cost control.
The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure maximum competition was achieved.
Long contract duration (1501 days) increases the risk of scope creep or evolving technological requirements not being fully captured in the initial award.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contractor is located in Huntsville, AL, a region with significant defense and aerospace expertise.
Focus on advanced technology development aligns with strategic defense priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on missile and space systems. The North American Industry Classification System (NAICS) code 541710 covers R&D in the physical, engineering, and life sciences. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense for similar advanced technology development projects.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by the 'sb' field being false. There is no explicit mention of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army and the relevant contracting command within the Department of Defense. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Agency (MDA) Support
Advanced Technology Development
Space Systems Research
Strategic Defense Initiatives
Aerospace Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Competition type 'after exclusion of sources' warrants review for potential limitations on competition.
Long contract duration increases risk of scope changes and cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to BROWN INTERNATIONAL CORPORATION. 200407!001169!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M04C0045 !A!N! !Y! ! !20040323!20050323!178129946!178129946!178129946!N!BROWN INTERNATONAL CORP !2103-A WEST FERRY WAY !HUNTSVILLE !AL!35801!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001174989!N!N!000002349979!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !1! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is BROWN INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2004-03-23. End: 2008-05-02.

What is the track record of Brown International Corporation with Department of Defense contracts, particularly in R&D for missile and space systems?

Brown International Corporation, based in Huntsville, Alabama, has a history of engaging with Department of Defense contracts. While the provided data highlights a significant $173.5 million award for missile and space systems R&D, a comprehensive review of their track record would involve examining past performance on similar contracts. This includes assessing their success in meeting technical requirements, adhering to schedules, and managing costs on previous R&D projects. Information on past performance, including any awards, penalties, or contract terminations, would offer deeper insight into their capabilities and reliability in this specialized field. Further research into contract databases and performance reviews would be necessary to fully understand their historical performance.

How does the $173.5 million contract value compare to similar R&D contracts for missile and space systems awarded by the DoD in the mid-2000s?

The $173.5 million contract value awarded to Brown International Corporation in 2004 for missile and space systems R&D was substantial for its time. To benchmark this value, one would need to compare it against other large-scale research and development contracts awarded by the Department of Defense during the same period (mid-2000s) for comparable technological advancements in areas like missile defense, space launch systems, or advanced propulsion. Factors such as the specific technological maturity, project scope, and duration would influence comparability. Without access to a detailed comparative analysis of similar contracts from that era, it's difficult to definitively state whether this award represented a particularly high or low investment relative to the market.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D in the defense sector?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Brown International Corporation, carry inherent risks, particularly in advanced R&D. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their profit (the fixed fee) remains constant regardless of the total cost. For advanced R&D, where technical uncertainties are high and costs can be difficult to predict, this can lead to cost overruns. Effective oversight, stringent cost accounting standards, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment.

What is the significance of the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) in the context of this defense contract?

The NAICS code 541710 signifies that the core activity of this contract is research and development focused on scientific and technological advancements within the physical, engineering, and life sciences. For a defense contract, this typically translates to developing new technologies, improving existing systems, or conducting feasibility studies related to areas like materials science, physics, aerospace engineering, and computer science, all applied to defense applications. This code helps categorize the contract within the broader economic landscape, allowing for comparisons with other R&D spending across different sectors and agencies. It underscores the contract's objective: innovation and the creation of future defense capabilities.

How does the 'Full and Open Competition After Exclusion of Sources' classification impact the perceived fairness and efficiency of the bidding process?

The classification 'Full and Open Competition After Exclusion of Sources' indicates that while the solicitation was broadly advertised, certain potential sources were excluded from bidding. This exclusion must be justified by specific criteria outlined in federal acquisition regulations, such as national security concerns, unique capabilities, or prior work. While it aims to ensure competition among eligible entities, the exclusion of sources can potentially limit the pool of bidders and, consequently, the range of proposed solutions and price points. The efficiency and fairness of the process depend heavily on the validity and transparency of the reasons for exclusion. If the exclusions were well-founded and competitive bids were still received from the remaining pool, the process can be considered fair and efficient; otherwise, it might raise concerns about missed opportunities for better value.

What are the potential long-term implications of this contract for the missile and space systems sector within the defense industry?

This $173.5 million contract for advanced technology development in missile and space systems could have significant long-term implications. Firstly, it signals continued investment by the DoD in these critical areas, potentially spurring further innovation and technological breakthroughs. Secondly, it could solidify Brown International Corporation's position as a key player in this niche, potentially leading to follow-on contracts or increased market share. Thirdly, the technologies developed under this contract may shape future defense capabilities, influencing strategic planning and procurement decisions for years to come. The success of this project could also attract further R&D investment into the Huntsville, Alabama region, reinforcing its status as a hub for aerospace and defense technology.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Parent Company: Aarcorp (UEI: 005425814)

Address: 2103-A WEST FERRY WAY, HUNTSVILLE, AL, 35801

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $100,000

Exercised Options: $2,390,177

Current Obligation: $17,350,498

Contract Characteristics

Cost or Pricing Data: NO

Timeline