DoD Awards $153M R&D Contract to RANGE GENERATION NEXT LLC for Physical, Engineering, and Life Sciences Research

Contract Overview

Contract Amount: $152,757,759 ($152.8M)

Contractor: Range Generation Next LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2028-09-30

Contract Duration: 1,830 days

Daily Burn Rate: $83.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: STS - TVL, MTL, ODC (BASE YEARS 1-6)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $152.8 million to RANGE GENERATION NEXT LLC for work described as: STS - TVL, MTL, ODC (BASE YEARS 1-6) Key points: 1. The contract, valued at $152.8 million, is for research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, this contract aims to leverage a broad range of capabilities. 3. The contract type is Cost Plus Incentive Fee, which aligns costs with performance incentives. 4. The base period covers 6 years, indicating a long-term need for these R&D services.

Value Assessment

Rating: good

The contract value of $152.8 million over 6 years appears reasonable for specialized R&D services. Benchmarking against similar large-scale R&D contracts would provide further context on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method allows for the widest possible participation, potentially leading to competitive pricing.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for critical R&D needs.

Public Impact

Supports advanced research and development critical for national security and technological advancement. The long-term nature of the contract suggests sustained investment in scientific and engineering capabilities. Potential for innovation and breakthroughs in physical, engineering, and life sciences fields. The award to RANGE GENERATION NEXT LLC signifies a significant investment in a specific R&D provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored.
  • Long-term R&D contracts carry inherent risks related to project scope changes and technological obsolescence.

Positive Signals

  • Awarded under full and open competition, maximizing potential for best value.
  • The contract duration of 6 years indicates a strategic, long-term commitment to R&D.
  • The specific NAICS code (541715) points to a focused area of research.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for innovation and maintaining a technological edge, with significant government investment annually.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-asides for small businesses. Therefore, the direct impact on small businesses is likely limited unless they are subcontractors to the prime awardee.

Oversight & Accountability

The Department of the Army is responsible for oversight. The Cost Plus Incentive Fee structure requires diligent monitoring of costs and performance to ensure accountability and value for taxpayer money.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost overruns inherent in CPIF contracts.
  • Risk of R&D projects not yielding desired technological advancements.
  • Long contract duration may face challenges with evolving technological landscapes.
  • Dependence on a single prime contractor for a broad R&D scope.

Tags

research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $152.8 million to RANGE GENERATION NEXT LLC. STS - TVL, MTL, ODC (BASE YEARS 1-6)

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 $152.8 million.

What is the period of performance?

Start: 2023-09-27. End: 2028-09-30.

What specific R&D projects will this contract fund, and how do they align with current defense priorities?

The contract is for Research and Development in Physical, Engineering, and Life Sciences (NAICS 541715). While the specific projects are not detailed, the Department of the Army's focus typically includes areas like advanced materials, robotics, human performance enhancement, and biotechnologies that support military readiness and technological superiority.

What are the key performance metrics and incentive structures within this Cost Plus Incentive Fee contract?

The Cost Plus Incentive Fee (CPIF) structure means the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against pre-determined targets. Key metrics would likely relate to research milestones, technological advancements, and adherence to project timelines and budgets, with incentives tied to exceeding these targets.

How will the effectiveness and impact of the R&D outcomes be measured and transitioned into operational capabilities?

Effectiveness will likely be measured through rigorous testing, validation of research findings, and successful demonstration of prototypes or technologies. Transition to operational capabilities will depend on the specific R&D outcomes and require further program management, integration efforts, and potential follow-on contracts for development and procurement.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 22270 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: $446,064,597

Exercised Options: $445,818,191

Current Obligation: $152,757,759

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,052,010

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-09-27

Current End Date: 2028-09-30

Potential End Date: 2028-09-30 00:00:00

Last Modified: 2025-12-08

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