DoD's $10.5M Engineering Services Contract Awarded to Aero Thermo Technology, Inc. for Missile Systems

Contract Overview

Contract Amount: $10,524,834 ($10.5M)

Contractor: Aero Thermo Technology, Inc

Awarding Agency: Department of Defense

Start Date: 2006-06-21

End Date: 2011-06-20

Contract Duration: 1,825 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200608!600275!2100!W911YN!USPFO FOR FLORIDA !GS23F0333K !C!N! !N!W911YN06F0100! !20060621!20070620!786272674!786272674!786272674!N!AERO THERMO TECHNOLOGY !620 DISCOVERY DR NW STE 10!HUNTSVILLE !AL!35806!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000005073733!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541330!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!Y! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: CLEARWATER, PINELLAS County, FLORIDA, 33764

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to AERO THERMO TECHNOLOGY, INC for work described as: 200608!600275!2100!W911YN!USPFO FOR FLORIDA !GS23F0333K !C!N! !N!W911YN06F0100! !20060621!20070620!786272674!786272674!786272674!N!AERO THERMO TECHNOLOGY !620 DISCOVERY DR NW STE 10!HUNTSVILLE !AL!35806!12875!103!12!CLEARWATER !PINE… Key points: 1. Contract awarded for engineering and technical services related to missile and space systems. 2. Aero Thermo Technology, Inc. secured this contract, indicating potential specialization in aerospace engineering. 3. The contract duration of 5 years suggests a need for sustained support in a critical defense sector. 4. The award value of over $10.5 million signifies a substantial investment in this capability. 5. The contract falls under the 'Engineering Services' NAICS code, highlighting the technical nature of the work. 6. The 'Missile and Space Systems' product service code points to high-technology defense applications.

Value Assessment

Rating: fair

The contract value of $10.5 million over five years averages to approximately $2.1 million annually. Without specific benchmarks for similar engineering services contracts in missile and space systems, it is difficult to definitively assess value for money. However, the duration and scope suggest a significant need for specialized expertise. Further analysis would require comparison with other contracts for similar services within the Department of Defense or related agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified in the provided data, but full and open competition generally leads to a more robust price discovery process and potentially better pricing for the government. The government received bids from qualified sources.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs through market forces and ensuring the government obtains services at competitive prices.

Public Impact

The Department of the Army benefits from specialized engineering and technical services for its missile and space systems. Aero Thermo Technology, Inc. will deliver critical support, potentially enhancing the performance and reliability of defense assets. The geographic impact is primarily linked to the contractor's location in Huntsville, Alabama, a known hub for aerospace and defense industries. The contract supports a specialized workforce in engineering and technical fields, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Reliance on a single contractor for critical engineering services could pose a risk if performance issues arise.
The specialized nature of missile and space systems may limit the pool of qualified alternative contractors.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Aero Thermo Technology, Inc., is based in Huntsville, AL, a region with significant aerospace and defense expertise.
The contract is for engineering services, indicating a focus on technical problem-solving and innovation.

Sector Analysis

This contract operates within the defense sector, specifically focusing on engineering services for missile and space systems. The market for such specialized services is characterized by high barriers to entry due to technical expertise requirements and security clearances. Spending in this area is driven by national security priorities and technological advancements in defense capabilities. Comparable spending benchmarks would likely be found within other Department of Defense contracts for similar engineering support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Aero Thermo Technology, Inc., is likely a mid-to-large-sized business given the contract value. The impact on the small business ecosystem is indirect, as opportunities may arise if the prime contractor chooses to subcontract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Space Systems Development
Aerospace Engineering Services
Department of Defense Research and Development
Army Aviation and Missile Command Contracts

Risk Flags

Contract awarded to a single entity.
Specialized technical services required.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to AERO THERMO TECHNOLOGY, INC. 200608!600275!2100!W911YN!USPFO FOR FLORIDA !GS23F0333K !C!N! !N!W911YN06F0100! !20060621!20070620!786272674!786272674!786272674!N!AERO THERMO TECHNOLOGY !620 DISCOVERY DR NW STE 10!HUNTSVILLE !AL!35806!12875!103!12!CLEARWATER !PINELLAS !FLORIDA !+000005073733!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A2 !MISSILE AND SPACE SYSTEMS !000 !NOT DISCERNABLE !541330!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is AERO THERMO TECHNOLOGY, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2006-06-21. End: 2011-06-20.

What is the track record of Aero Thermo Technology, Inc. with federal contracts, particularly within the Department of Defense?

Aero Thermo Technology, Inc. has secured this $10.5 million contract with the Department of the Army for engineering services. While this specific award indicates a level of trust and capability recognized by the DoD, a comprehensive assessment of their track record would require examining their entire federal contract history. This includes reviewing past performance on similar contracts, any documented issues or awards, and their overall financial stability. Without access to a broader dataset of their contract awards and performance evaluations, it's difficult to provide a definitive statement on their overall track record beyond this single significant award. However, being awarded a contract of this magnitude suggests they possess the necessary qualifications and experience to meet the government's requirements in a specialized field like missile and space systems.

How does the awarded value of $10.5 million compare to similar engineering services contracts for missile and space systems?

The awarded value of $10.5 million for engineering and technical services related to missile and space systems over a five-year period (2006-2011) represents an average annual value of approximately $2.1 million. To benchmark this effectively, one would need to compare it against other contracts awarded by the Department of Defense or other federal agencies for similar services. Factors such as the specific technical requirements, the complexity of the systems involved, the duration of the contract, and the level of expertise required would influence pricing. Without access to a database of comparable contracts with detailed service descriptions and pricing, it is challenging to definitively state whether this represents a high, low, or average value. However, given the specialized nature of missile and space systems, this figure suggests a significant investment in critical defense capabilities.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract for the Department of Defense include potential performance issues from the contractor, Aero Thermo Technology, Inc., especially given the specialized and critical nature of missile and space systems. There's also a risk of cost overruns if the scope of work expands beyond the initial estimates or if unforeseen technical challenges arise. Another significant risk is contractor dependency; if Aero Thermo Technology, Inc. were to experience financial difficulties or decide to exit the market, the DoD could face disruptions in essential engineering support. Furthermore, the long-term viability and technological relevance of the services provided need continuous assessment to ensure they align with evolving defense needs and threat landscapes.

How effective is the 'full and open competition' approach likely to be for this type of specialized engineering service?

The 'full and open competition' approach is generally considered effective for specialized engineering services as it allows a broad range of qualified contractors to submit proposals. This competition can drive innovation and ensure that the government receives the best possible technical solutions at competitive prices. For missile and space systems, where technical expertise is paramount, this approach helps identify contractors with the most advanced capabilities. However, the effectiveness is contingent on the clarity of the solicitation requirements and the government's ability to accurately evaluate the highly technical proposals. If the market for such specialized services is limited, full and open competition might still result in a relatively small number of bids, but it ensures that all capable sources had an opportunity to compete, which is beneficial for price discovery and taxpayer value.

What are the historical spending patterns for engineering services within the Department of the Army related to missile and space systems?

Historical spending patterns for engineering services within the Department of the Army related to missile and space systems are typically substantial and fluctuate based on defense priorities, technological advancements, and specific program requirements. Agencies like the Army invest heavily in research, development, and sustainment of these critical systems. This often involves long-term contracts for specialized engineering, design, testing, and integration services. Spending can increase during periods of heightened geopolitical tension or when new weapon systems are being developed or upgraded. Conversely, spending might decrease during budget austerity or when existing systems reach their end-of-life. Analyzing historical data for this specific contract's period (2006-2011) and comparing it to subsequent years would reveal trends in investment and the evolution of requirements in this high-technology defense sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620 DISCOVERY DR NW # 100, HUNTSVILLE, AL, 05

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,747,603

Exercised Options: $17,747,603

Current Obligation: $10,524,834

Parent Contract

Parent Award PIID: GS23F0333K

IDV Type: FSS

Timeline