Department of Defense awards $107.38M contract to Astrion Group, LLC for R&D services
Contract Overview
Contract Amount: $107,384,003 ($107.4M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2018-06-20
End Date: 2019-06-20
Contract Duration: 365 days
Daily Burn Rate: $294.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF YEAR 2 LABOR&ODCS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $107.4 million to ASTRION GROUP, LLC for work described as: IGF::OT::IGF YEAR 2 LABOR&ODCS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Research and Development services are critical for technological advancement within the DoD. 4. The contract duration is one year, indicating a focused scope of work. 5. The awardee, Astrion Group, LLC, is a key player in this service area. 6. Geographic location of performance is Alabama, potentially impacting local economies.
Value Assessment
Rating: fair
The contract value of $107.38 million for a one-year R&D effort appears substantial. Benchmarking this against similar R&D contracts within the Department of Defense is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses Astrion Group for allowable costs plus a fixed fee, which can sometimes lead to less price certainty compared to fixed-price contracts. Further analysis would require understanding the specific deliverables and the complexity of the R&D undertaken.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was broad, there was a specific reason for excluding certain sources, which warrants further investigation. The number of bidders is not provided, but the 'full and open' designation suggests multiple entities were likely considered, aiming for the best value. The exclusion of sources could potentially limit the breadth of competition and impact price discovery.
Taxpayer Impact: The exclusion of sources, even within a full and open framework, could mean taxpayers did not benefit from the widest possible pool of competitive bids, potentially affecting the final price.
Public Impact
The primary beneficiaries are the Department of Defense, which receives critical R&D services to enhance its technological capabilities. The services delivered are focused on Research and Development in Physical, Engineering, and Life Sciences, excluding biotechnology. The geographic impact is concentrated in Alabama, where the contract performance is scheduled. Workforce implications may include the creation or sustainment of specialized R&D jobs within Astrion Group and potentially its subcontractors in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
- The 'Exclusion of Sources' in a 'Full and Open' competition needs clarification to ensure maximum competition.
- Limited duration of one year may indicate a project-specific need rather than long-term strategic investment.
Positive Signals
- Awarded through a full and open competition process, indicating a structured procurement.
- The contractor, Astrion Group, LLC, is presumably qualified to perform complex R&D tasks.
- The contract addresses a specific R&D need within the Department of the Army.
Sector Analysis
The contract falls within the Research and Development sector, specifically NAICS code 541712. This sector is vital for defense modernization, encompassing advancements in physical sciences, engineering, and life sciences. The market for defense R&D is highly specialized, with significant government investment. Comparable spending benchmarks would depend on the specific R&D focus, but a $107 million award for a one-year effort suggests a significant project.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, Astrion Group, LLC, is expected to handle the majority of the work, and the impact on the small business ecosystem may be limited unless Astrion Group voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Inspector General's office may also conduct audits or investigations into the contract's performance and financial management, particularly given the CPFF structure. Transparency is facilitated through contract databases, but detailed project-specific oversight mechanisms are internal to the agency.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Research Laboratory Contracts
- Advanced Technology Development Contracts
- Engineering and Technical Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Exclusion of sources in competition warrants further scrutiny.
- Lack of small business subcontracting goals may limit broader economic impact.
Tags
department-of-defense, department-of-the-army, research-and-development, cost-plus-fixed-fee, full-and-open-competition, alabama, large-contract, technology-development, engineering-services, physical-sciences, life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.4 million to ASTRION GROUP, LLC. IGF::OT::IGF YEAR 2 LABOR&ODCS
Who is the contractor on this award?
The obligated recipient is ASTRION GROUP, 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 $107.4 million.
What is the period of performance?
Start: 2018-06-20. End: 2019-06-20.
What is Astrion Group, LLC's track record with similar Department of Defense R&D contracts?
Assessing Astrion Group, LLC's track record requires a deeper dive into their contract history with the DoD. While this specific $107.38 million award is significant, understanding their past performance on similar R&D projects, including their success in meeting technical milestones, managing costs within CPFF structures, and delivering innovative solutions, is crucial. Publicly available data may show previous awards, but detailed performance reviews and past performance questionnaires are typically held by the contracting agency. A review of their portfolio would indicate if they have a history of successful innovation and reliable execution in the physical, engineering, and life sciences R&D domains relevant to the Department of the Army.
How does the $107.38 million value compare to typical one-year R&D contracts in this specific field?
The $107.38 million value for a one-year R&D contract is substantial and suggests a project of significant scope and complexity within the physical, engineering, and life sciences. To benchmark this effectively, one would need to compare it against similar contracts awarded by the Department of Defense or other federal agencies for R&D efforts with comparable objectives and technical requirements. Factors such as the maturity of the technology being researched, the number of personnel involved, and the required facilities and equipment heavily influence contract value. Without more granular detail on the specific R&D focus (e.g., materials science, aerospace engineering, biomedical research), a precise comparison is difficult, but this figure likely places it among larger, more critical R&D initiatives.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable expenses are reimbursed, plus a fixed profit. This can lead to cost overruns if not meticulously monitored. For the contractor, the risk lies in accurately estimating the fixed fee to cover their overhead and profit, especially in R&D where outcomes can be uncertain. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear definition of allowable costs and the fixed fee structure to ensure value for taxpayer money.
What does 'Full and Open Competition After Exclusion of Sources' imply for the procurement process and potential savings?
The term 'Full and Open Competition After Exclusion of Sources' indicates a procurement process that initially aimed for broad competition but subsequently excluded specific sources. This implies that while multiple potential offerors were considered, certain entities were deliberately removed from the bidding pool. The reasons for exclusion could range from national security concerns, prior performance issues, or specific technical requirements that only a subset of vendors could meet. While 'full and open' suggests a competitive environment, the exclusion of sources potentially limits the number of bidders, which could impact the degree of price competition and potentially lead to higher costs for taxpayers compared to a scenario with the absolute maximum number of bidders.
What are the potential implications of performing this R&D work in Alabama?
Performing this $107.38 million R&D contract in Alabama has several potential implications. Economically, it could stimulate the local economy through job creation in specialized R&D fields, increased demand for local goods and services, and potential technology transfer opportunities within the state. It may also bolster Alabama's position in the defense contracting and R&D landscape. Furthermore, it could foster collaborations with local academic institutions or research centers, enhancing the state's research infrastructure and workforce development in critical scientific and engineering disciplines.
How does the NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences) typically align with Department of Defense priorities?
The NAICS code 541712, covering Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), is highly aligned with Department of Defense priorities. The DoD relies heavily on advancements in these fields for developing next-generation military technologies, improving existing systems, and ensuring operational superiority. This includes areas like advanced materials, propulsion systems, cyber technologies, artificial intelligence, sensor development, and medical countermeasures. Contracts under this code often support strategic initiatives aimed at maintaining a technological edge against adversaries and addressing evolving global security challenges.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB16R0024
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 308 VOYAGER WAY, SUITE 200, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $107,713,937
Exercised Options: $107,713,937
Current Obligation: $107,384,003
Actual Outlays: $158,276
Subaward Activity
Number of Subawards: 153
Total Subaward Amount: $40,593,914
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W91CRB17D0009
IDV Type: IDC
Timeline
Start Date: 2018-06-20
Current End Date: 2019-06-20
Potential End Date: 2019-06-20 00:00:00
Last Modified: 2023-08-31
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