Army awards $264M Reagan Test Site engineering contract to Range Generation Next LLC under full and open competition

Contract Overview

Contract Amount: $264,259,089 ($264.3M)

Contractor: Range Generation Next LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-02

End Date: 2024-09-30

Contract Duration: 2,190 days

Daily Burn Rate: $120.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: THE REAGAN TEST SITE (RTS) ENGINEERING AND TECHNICAL SERVICES (RETS) SINGLE AWARD CONTRACT IS FOR THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY STRATEGIC COMMAND REQUIREMENT FOR ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RTS RANGE OPERATIONS AT U.S. ARMY GARRISON - KWAJALEIN ATOLL AND RTS OPERATIONS CENTER HUNTSVILLE, ALABAMA LOCATIONS.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $264.3 million to RANGE GENERATION NEXT LLC for work described as: THE REAGAN TEST SITE (RTS) ENGINEERING AND TECHNICAL SERVICES (RETS) SINGLE AWARD CONTRACT IS FOR THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY STRATEGIC COMMAND REQUIREMENT FOR ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RTS RANGE OPERATIONS AT U.S. ARMY GARRISON - KWAJ… Key points: 1. Contract provides critical engineering and technical services for Army missile defense testing. 2. Services support key U.S. Army installations in Alabama and the Marshall Islands. 3. The contract type, Cost Plus Incentive Fee, allows for performance-based adjustments. 4. A single award indicates Range Generation Next LLC was selected as the best value. 5. The duration of the contract suggests a long-term need for these specialized services. 6. The NAICS code points to significant research and development activities. 7. The contract's value places it as a substantial investment in national security infrastructure.

Value Assessment

Rating: good

The contract value of $264.3 million over approximately six years represents a significant investment in specialized engineering and technical services. While direct comparisons are difficult without more granular data on similar specialized range operations, the Cost Plus Incentive Fee (CPIF) structure suggests an attempt to incentivize performance and cost control. The pricing will be influenced by the complexity of supporting missile defense testing at remote locations like Kwajalein Atoll. Benchmarking against other large-scale R&D support contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bidders suggests a competitive landscape for these specialized services. The competitive process is expected to have driven a more favorable price and performance outcome for the government compared to a sole-source award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through market forces, promoting efficiency and innovation among contractors.

Public Impact

The U.S. Army Space and Missile Defense Command benefits from essential engineering and technical support for its Reagan Test Site operations. Range operations at U.S. Army Garrison - Kwajalein Atoll and the RTS Operations Center in Huntsville, Alabama, are directly supported. The contract underpins critical national security functions related to missile defense testing and evaluation. Specialized technical expertise is maintained and utilized, supporting a highly skilled workforce in R&D and range operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not met efficiently.
Reliance on a single contractor for critical, long-term support could pose a risk if contractor performance degrades.
Geographic remoteness of Kwajalein Atoll presents logistical challenges that could impact service delivery and costs.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for strong performance.
The Cost Plus Incentive Fee structure incentivizes contractor performance and cost efficiency.
Long contract duration indicates a stable, ongoing requirement and a commitment to sustained support for vital national security missions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Reagan Test Site is a crucial national asset for testing missile defense systems, requiring highly specialized engineering and technical expertise. The market for such services is niche, involving contractors with proven capabilities in supporting complex, large-scale testing environments, often with significant government R&D investment. Comparable spending benchmarks would likely be found in other large-scale defense testing and evaluation programs.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While the prime contractor is Range Generation Next LLC, the extent of small business subcontracting is not detailed here. Larger prime contractors often engage small businesses for specialized support, but without specific subcontracting plans or reporting, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses are being leveraged effectively.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the U.S. Army Space and Missile Defense Command/Army Strategic Command. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The Cost Plus Incentive Fee structure implies performance monitoring to ensure incentive targets are met. Transparency is generally maintained through contract awards databases, but detailed operational oversight and accountability measures would be managed internally by the contracting agency and potentially through Inspector General reviews if performance issues arise.

Related Government Programs

Missile Defense Agency Test Support Contracts
Army Range Operations and Maintenance
DoD Research, Development, Test, and Evaluation (RDT&E) Services
Kwajalein Atoll Support Services
Engineering and Technical Services for Defense Systems

Risk Flags

Potential for cost creep in CPIF contracts
Logistical challenges of remote international operations
Dependence on single contractor for critical support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $264.3 million to RANGE GENERATION NEXT LLC. THE REAGAN TEST SITE (RTS) ENGINEERING AND TECHNICAL SERVICES (RETS) SINGLE AWARD CONTRACT IS FOR THE U.S. ARMY SPACE AND MISSILE DEFENSE COMMAND/ARMY STRATEGIC COMMAND REQUIREMENT FOR ENGINEERING AND TECHNICAL SERVICES TO SUPPORT RTS RANGE OPERATIONS AT U.S. ARMY GARRISON - KWAJALEIN ATOLL AND RTS OPERATIONS CENTER HUNTSVILLE, ALABAMA LOCATIONS.

Who is the contractor on this award?

The obligated recipient is RANGE GENERATION NEXT 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 $264.3 million.

What is the period of performance?

Start: 2018-10-02. End: 2024-09-30.

What is the track record of Range Generation Next LLC in supporting similar large-scale government R&D and testing contracts?

Information regarding the specific track record of Range Generation Next LLC in supporting large-scale government R&D and testing contracts is not detailed in the provided data. However, being awarded a single-source definitive contract of this magnitude by the Department of the Army suggests they possess the necessary qualifications, experience, and capacity to fulfill the complex requirements of the Reagan Test Site (RTS) engineering and technical services. Further investigation into their contract history, past performance reviews, and any prior work with the Army Space and Missile Defense Command would provide a more comprehensive understanding of their capabilities and reliability in executing such critical missions.

How does the awarded amount of $264.3 million compare to historical spending on RTS engineering and technical services?

The provided data does not include historical spending figures for RTS engineering and technical services, making a direct comparison difficult. However, a definitive contract valued at over $264 million awarded in 2018 with an end date in 2024 (2190 days duration) indicates a substantial and sustained investment in these capabilities. This value suggests a significant increase or a consistent high level of funding for RTS operations compared to potentially shorter-term or smaller-scale previous contracts. Understanding the scope and inflation adjustments of prior contracts would be necessary for a precise historical context.

What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this specific requirement?

The primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for the RTS Engineering and Technical Services (RETS) contract revolve around potential cost overruns and the complexity of defining and measuring performance incentives. While CPIF aims to incentivize efficiency, if the target costs are set too high or the incentive structure is not well-aligned with mission objectives, the government might end up paying more than necessary. Furthermore, the specialized nature of missile defense testing at remote locations like Kwajalein Atoll can make it challenging to establish objective, measurable performance metrics that accurately reflect true value and drive desired outcomes without unintended consequences. Contractor focus could shift towards meeting incentive metrics rather than overall mission success if not carefully managed.

How effective is the full and open competition process in ensuring value for money for taxpayers in specialized R&D support contracts like this?

The full and open competition process is generally considered the most effective method for ensuring value for money for taxpayers in specialized R&D support contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and ensures the government selects the offeror providing the best overall value, not just the lowest price. For a contract like the RTS Engineering and Technical Services, where specialized expertise is paramount, competition helps identify the contractor best equipped to meet complex technical requirements while managing costs. The presence of 4 bidders in this instance suggests sufficient market interest to facilitate price discovery and performance benchmarking, ultimately benefiting the taxpayer.

What are the potential implications of the contract's geographic scope (Alabama and Marshall Islands) on service delivery and cost?

The geographic scope of this contract, encompassing both domestic (Huntsville, Alabama) and remote international locations (U.S. Army Garrison - Kwajalein Atoll), presents significant logistical and cost implications. Supporting operations at Kwajalein Atoll involves complex transportation, personnel deployment, and infrastructure management, which are inherently more expensive and challenging than domestic operations. These factors likely contribute to the overall contract value. Effective management of these remote logistics, including supply chain, personnel housing, and communication, is critical for ensuring consistent service delivery and controlling costs. Any disruptions or inefficiencies in managing these remote aspects could lead to delays and increased expenditures.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Solicitation ID: W9113M15R0007

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rockwell Collins Australia PTY Limited

Address: 22265 PACIFIC BLVD, STERLING, VA, 20166

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $323,717,025

Exercised Options: $323,717,025

Current Obligation: $264,259,089

Actual Outlays: $15,437

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $4,067,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline