DoD's Army Awards $96.6M R&D Contract to Astrion Group, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $96,580,802 ($96.6M)

Contractor: Astrion Group, LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-21

End Date: 2020-06-20

Contract Duration: 365 days

Daily Burn Rate: $264.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ORDERING PERIOD 3 TASK ORDER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $96.6 million to ASTRION GROUP, LLC for work described as: ORDERING PERIOD 3 TASK ORDER Key points: 1. Significant R&D investment of $96.6M highlights focus on advanced research. 2. Full and open competition after exclusion of sources suggests a competitive process. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns. 4. The contract falls within the R&D sector, specifically physical, engineering, and life sciences.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to variability, but this award appears within a typical range for complex research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated but specific sources were excluded. This method aims for competition while potentially narrowing the field.

Taxpayer Impact: The competitive nature of the award is intended to secure fair pricing, but the CPFF structure requires diligent oversight to ensure taxpayer funds are used efficiently.

Public Impact

Advancement in physical, engineering, and life sciences research could lead to new technologies and capabilities for the Department of Defense. The substantial funding allocated suggests a project of high priority and potential impact for national security. Transparency in the procurement process, even with source exclusion, is crucial for public trust in defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type risk
  • Potential for cost overruns without strict oversight
  • Exclusion of sources may limit competition breadth

Positive Signals

  • Significant investment in R&D
  • Awarded under a competitive process
  • Focus on critical research areas

Sector Analysis

This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is critical for innovation and maintaining technological superiority, with typical contract values varying widely based on project scope and duration.

Small Business Impact

The data indicates the awardee is ASTRION GROUP, LLC. There is no specific information provided regarding small business participation or subcontracting goals within this award, which warrants further investigation.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Army to manage costs effectively and ensure the contractor meets performance objectives. Regular audits and performance reviews are essential.

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

  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns
  • Exclusion of sources may limit competition
  • Lack of small business participation detail

Tags

research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.6 million to ASTRION GROUP, LLC. ORDERING PERIOD 3 TASK ORDER

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 $96.6 million.

What is the period of performance?

Start: 2019-06-21. End: 2020-06-20.

What specific research objectives does this $96.6M contract aim to achieve, and how will their successful completion benefit the Department of Defense?

The contract focuses on Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) under NAICS 541712. While specific objectives aren't detailed, such R&D typically aims to develop new technologies, enhance existing systems, or solve complex scientific challenges relevant to defense operations, potentially leading to improved capabilities, cost savings, or strategic advantages.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this $96.6M R&D award, and what mitigation strategies are in place?

The primary risk of CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically include stringent cost monitoring, detailed performance metrics, regular audits, and clear definition of allowable costs to prevent contractor inefficiency from inflating the final price.

How effectively did the 'Full and Open Competition After Exclusion of Sources' method ensure optimal value and innovation for this $96.6M R&D investment?

This procurement method aims to balance competition with specific needs by excluding certain sources. While it likely ensured a competitive environment among the remaining bidders, its effectiveness in achieving optimal value and innovation depends on whether the excluded sources possessed unique capabilities or if the remaining pool was sufficiently diverse to drive the best possible outcome.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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: $97,032,460

Exercised Options: $97,032,460

Current Obligation: $96,580,802

Actual Outlays: $-44,782

Subaward Activity

Number of Subawards: 140

Total Subaward Amount: $35,413,108

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: 2019-06-21

Current End Date: 2020-06-20

Potential End Date: 2020-06-20 00:00:00

Last Modified: 2023-08-22

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