DoD's $76M Research Contract with MILTEC Corporation Lacks Competition, Raises Oversight Concerns
Contract Overview
Contract Amount: $76,387,229 ($76.4M)
Contractor: Miltec Corporation
Awarding Agency: Department of Defense
Start Date: 2014-06-15
End Date: 2020-04-30
Contract Duration: 2,146 days
Daily Burn Rate: $35.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF LABOR - FUNDING FOR UNDEFINITIZED PERIOD
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $76.4 million to MILTEC CORPORATION for work described as: IGF::CT::IGF LABOR - FUNDING FOR UNDEFINITIZED PERIOD Key points: 1. Significant spending on R&D services, primarily for the Department of the Army. 2. Contract awarded to MILTEC CORPORATION, with no indication of small business participation. 3. The contract's duration and cost structure warrant scrutiny for potential inefficiencies. 4. Lack of competition raises questions about price discovery and taxpayer value.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, spanning over 2000 days, suggests potential for cost overruns. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The extended duration of the contract raises questions about project management and efficiency. Lack of transparency in the sole-source award process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation
Positive Signals
- Awarded to a single entity, potentially indicating specialized expertise.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector can be high, but competitive bidding is crucial to ensure value for money.
Small Business Impact
The data indicates no small business participation in this contract. Efforts should be made to ensure small businesses have opportunities in future R&D procurements.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight to ensure costs are reasonable and performance meets expectations. The long duration further emphasizes the need for diligent monitoring.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business inclusion
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 $76.4 million to MILTEC CORPORATION. IGF::CT::IGF LABOR - FUNDING FOR UNDEFINITIZED PERIOD
Who is the contractor on this award?
The obligated recipient is MILTEC 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 $76.4 million.
What is the period of performance?
Start: 2014-06-15. End: 2020-04-30.
What specific research and development activities were performed under this contract, and how did they align with the Department of the Army's strategic goals?
The contract focused on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. Without further details on specific project milestones and deliverables, it's challenging to assess the direct alignment with strategic goals. However, R&D contracts typically aim to advance technological capabilities or solve complex scientific problems relevant to the agency's mission.
Given the sole-source award and cost-plus structure, what mechanisms were in place to control costs and ensure fair pricing for the taxpayer?
While the contract is cost-plus fixed fee, the 'fixed fee' component provides some incentive for the contractor to manage costs efficiently to maximize profit. However, the lack of competition is a primary concern. Robust oversight, including detailed cost audits and performance reviews, would be essential to ensure fair pricing and prevent potential overruns.
How was the determination made that a sole-source award was necessary, and what alternatives were considered to foster competition?
The determination for a sole-source award typically requires justification based on factors like unique capabilities, urgent needs, or lack of available sources. Without this justification, it's difficult to assess the necessity. Agencies should explore options like market research and phased procurements to encourage competition even in specialized R&D areas.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9113M13R0018
Offers Received: 1
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $114,581,977
Exercised Options: $80,847,514
Current Obligation: $76,387,229
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $8,860,126
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-15
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2025-12-31
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