DoD's $44.8M R&D Contract with MILTEC Corporation: A 7-Year Effort
Contract Overview
Contract Amount: $44,807,680 ($44.8M)
Contractor: Miltec Corporation
Awarding Agency: Department of Defense
Start Date: 2006-06-15
End Date: 2013-07-18
Contract Duration: 2,590 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BROAD AGENCY ANNOUNCEMENT - BASIC EFFORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $44.8 million to MILTEC CORPORATION for work described as: BROAD AGENCY ANNOUNCEMENT - BASIC EFFORT Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. MILTEC Corporation secured a long-term, multi-year contract. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract's duration of 7 years and Cost Plus Fixed Fee structure warrant close monitoring for cost efficiency. Benchmarking against similar R&D contracts of this scale is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating a broad solicitation for proposals. This method generally promotes price discovery and competitive pricing, though the Cost Plus Fixed Fee structure requires diligent oversight to ensure cost containment.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for the best value in R&D. Oversight is key to ensure funds were spent effectively and efficiently.
Public Impact
Advancement in physical, engineering, and life sciences research. Potential for technological innovation and its downstream applications. Long-term commitment of resources to a single contractor. Impact on the competitive landscape within the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may reduce flexibility and increase risk of obsolescence.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Positive Signals
- Full and open competition utilized.
- Significant investment in critical R&D areas.
- Contract awarded to a single entity for focused effort.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending benchmarks for similar large-scale, long-term R&D contracts would typically vary widely based on the specific research area and technological advancements sought.
Small Business Impact
The data indicates that small businesses were not a direct focus of this contract, as the 'sb' field is false. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Defense Contract Management Agency to ensure cost control, adherence to scope, and achievement of research objectives. Regular performance reviews and audits are critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (7 years).
- Lack of specific performance metrics in provided data.
- No explicit mention of small business subcontracting goals.
- Potential for R&D to become obsolete over the contract term.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to MILTEC CORPORATION. BROAD AGENCY ANNOUNCEMENT - BASIC EFFORT
Who is the contractor on this award?
The obligated recipient is MILTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $44.8 million.
What is the period of performance?
Start: 2006-06-15. End: 2013-07-18.
What specific research objectives were prioritized within this $44.8M R&D contract, and how does their achievement align with DoD's strategic goals?
The provided data lacks specific research objectives. However, given the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code, the contract likely aimed to advance foundational or applied research in areas critical to national security. Alignment with strategic goals would depend on the specific technological advancements sought, such as improved materials, advanced sensing capabilities, or novel biological countermeasures. Further documentation would be needed to confirm specific objectives and their strategic relevance.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this long-term R&D effort, and what mitigation strategies were employed?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of actual expenses. For a long-term R&D effort, this risk is amplified. Mitigation strategies typically include stringent oversight, detailed cost reporting requirements, performance metrics tied to fee adjustments (if applicable), and clear definition of allowable costs. The duration also increases the risk of scope creep or research becoming obsolete, requiring adaptive management.
How effectively did the 'full and open competition' process ensure competitive pricing and identify the most capable contractor for this complex R&D requirement?
Full and open competition is designed to maximize the pool of potential offerors, thereby fostering a competitive environment that should lead to better pricing and selection of the most capable contractor. For complex R&D, the evaluation criteria would likely weigh technical approach and past performance heavily alongside cost. The success of this process in ensuring competitive pricing and capability hinges on the clarity of the solicitation, the rigor of the evaluation, and the absence of any undue barriers to entry for qualified firms.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Atomics
Address: 678 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $47,165,471
Exercised Options: $45,888,430
Current Obligation: $44,807,680
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-15
Current End Date: 2013-07-18
Potential End Date: 2013-07-18 00:00:00
Last Modified: 2025-12-31
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