DoD's $10.9M R&D Contract with AMTEC Corporation: A Decade-Long Engagement
Contract Overview
Contract Amount: $10,936,255 ($10.9M)
Contractor: Amtec Corporation
Awarding Agency: Department of Defense
Start Date: 2006-10-06
End Date: 2016-10-06
Contract Duration: 3,653 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BASIC EFFORT LABOR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $10.9 million to AMTEC CORPORATION for work described as: BASIC EFFORT LABOR Key points: 1. Significant long-term investment in R&D services. 2. Sole-source award raises questions about competition and pricing. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: questionable
The contract's duration (10 years) and Cost Plus Fixed Fee structure suggest potential for cost creep. Without comparable contracts, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as 'NOT COMPETED', this sole-source contract limits price discovery and competition. The lack of competitive bidding may lead to higher costs for taxpayers.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure.
Public Impact
Long-term commitment to a single contractor for R&D services. Lack of transparency in the procurement process due to sole-sourcing. Potential for taxpayer funds to be used inefficiently over a decade.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Cost-plus contract type
- Lack of competition
Positive Signals
- Consistent R&D support for DoD
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is critical for innovation but requires careful oversight to ensure efficiency.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or had no opportunity to compete.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight to ensure performance and cost control. Accountability for R&D outcomes should be clearly defined.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration without clear performance metrics
- Limited transparency
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 $10.9 million to AMTEC CORPORATION. BASIC EFFORT LABOR
Who is the contractor on this award?
The obligated recipient is AMTEC 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 $10.9 million.
What is the period of performance?
Start: 2006-10-06. End: 2016-10-06.
What specific R&D advancements were achieved under this decade-long contract, and how do they align with DoD's strategic goals?
The provided data does not detail the specific R&D advancements. A thorough review of contract performance reports and deliverables would be necessary to assess the alignment with DoD's strategic goals and the overall value derived from the $10.9 million investment.
Given the sole-source nature, what mechanisms were in place to ensure cost reasonableness and prevent contractor overcharging over the 10-year period?
The Cost Plus Fixed Fee structure, while providing flexibility, necessitates robust oversight. Mechanisms like regular audits, performance reviews, and adherence to established cost accounting standards are crucial. Without specific details on these oversight activities, assessing cost reasonableness remains challenging.
How does the per-unit cost of the 'BASIC EFFORT LABOR' compare to industry benchmarks for similar R&D services, considering the contract's duration and scope?
Benchmarking is difficult without more granular data on the labor categories, skill levels, and specific tasks performed. The 'BASIC EFFORT LABOR' designation is broad. A detailed analysis comparing specific labor rates and overhead allocations against industry standards for comparable R&D contracts is required.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 500 WYNN DR NW STE 314, HUNTSVILLE, AL, 35816
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $74,709,055
Exercised Options: $11,442,438
Current Obligation: $10,936,255
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-10-06
Current End Date: 2016-10-06
Potential End Date: 2016-10-06 00:00:00
Last Modified: 2016-09-24
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