DoD's $103.7M R&D Task Order to Astrion Group Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $103,705,031 ($103.7M)
Contractor: Astrion Group, LLC
Awarding Agency: Department of Defense
Start Date: 2020-06-21
End Date: 2021-06-20
Contract Duration: 364 days
Daily Burn Rate: $284.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ORDERING PERIOD 4 TASK ORDER
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $103.7 million to ASTRION GROUP, LLC for work described as: ORDERING PERIOD 4 TASK ORDER Key points: 1. The contract awarded to Astrion Group, LLC for R&D services totals $103.7 million. 2. Competition was 'Full and Open Competition after Exclusion of Sources', raising questions about its true openness. 3. The contract type is 'Cost Plus Fixed Fee', which can lead to cost overruns. 4. The sector is Research and Development, specifically in Physical, Engineering, and Life Sciences. 5. The ordering period is one year, with a duration of 364 days.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, offers less price certainty than fixed-price contracts. Without detailed cost breakdowns or benchmarks for similar R&D efforts, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition after Exclusion of Sources' suggests that while the competition was intended to be open, specific sources were excluded, potentially limiting the competitive pool and impacting price discovery.
Taxpayer Impact: The CPFF structure and potentially limited competition raise concerns about taxpayer dollars being spent efficiently, as costs are reimbursed with a fixed fee, rather than a predetermined total price.
Public Impact
Taxpayers may be exposed to higher costs due to the CPFF contract type. The exclusion of sources in the competition process could limit innovation and cost savings. The R&D focus means the immediate public benefit might not be apparent, but the long-term impact could be significant if successful.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ambiguous competition method
- Cost-plus contract type
- Lack of clear performance metrics for R&D
Positive Signals
- Awarded to a specific company for R&D services
- Contract duration is clearly defined
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on Physical, Engineering, and Life Sciences. Spending in this area is crucial for technological advancement but often involves higher risk and less predictable outcomes compared to other sectors.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The 'Exclusion of Sources' clause in the competition method warrants further oversight to ensure it was justified and did not unduly restrict competition. The CPFF structure also requires robust oversight to manage costs effectively.
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
- Potential for inflated costs due to CPFF structure.
- Limited competition may have reduced price discovery.
- Lack of transparency regarding excluded sources.
- Difficulty in benchmarking R&D costs.
- Need for clear performance metrics for R&D success.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.7 million to ASTRION GROUP, LLC. ORDERING PERIOD 4 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 $103.7 million.
What is the period of performance?
Start: 2020-06-21. End: 2021-06-20.
What specific criteria were used to exclude sources in the 'Full and Open Competition after Exclusion of Sources' process, and how did this impact the final price?
The exclusion of specific sources suggests that only a pre-selected group of offerors were permitted to bid. This limitation could reduce competitive pressure, potentially leading to higher prices than if a truly open competition had been conducted. Justification for exclusion typically relates to unique capabilities, proprietary data, or specific security requirements.
How does the $103.7 million cost for a one-year R&D task order compare to industry benchmarks for similar research projects?
Benchmarking R&D costs is challenging due to the inherent variability in project scope, complexity, and desired outcomes. However, $103.7 million for a single year's R&D effort is substantial. Without knowing the specific research area and objectives, it's difficult to definitively assess if it's high or low, but it warrants scrutiny for cost-effectiveness.
What are the key performance indicators (KPIs) for this Cost Plus Fixed Fee contract, and how will the success of the R&D be measured?
For CPFF contracts, success is typically measured against defined research objectives, milestones, and deliverables. Robust KPIs are essential to ensure the contractor is progressing effectively and efficiently. The absence of clearly stated KPIs in the summary data raises concerns about accountability and the ability to objectively assess the value derived from the $103.7 million investment.
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: $106,607,150
Exercised Options: $106,607,150
Current Obligation: $103,705,031
Actual Outlays: $8,608,908
Subaward Activity
Number of Subawards: 152
Total Subaward Amount: $42,952,048
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: 2020-06-21
Current End Date: 2021-06-20
Potential End Date: 2021-06-20 00:00:00
Last Modified: 2023-08-28
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