DoD Awards Astrion Group $167M R&D Contract for Physical, Engineering, and Life Sciences Research

Contract Overview

Contract Amount: $167,051,699 ($167.1M)

Contractor: Astrion Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-21

End Date: 2025-12-31

Contract Duration: 1,289 days

Daily Burn Rate: $129.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ORDERING PERIOD 6 - LABOR & ODC

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $167.1 million to ASTRION GROUP, LLC for work described as: ORDERING PERIOD 6 - LABOR & ODC Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Competition method indicates potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with cost-plus-fixed-fee contract type and potential for cost overruns. 4. Sector focus on advanced research and development.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which 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 in scope and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests an initial broad competition followed by a restriction, which may limit price discovery and potentially increase costs compared to unrestricted full and open competition.

Taxpayer Impact: The impact on taxpayers is moderate, as the contract type and limited competition could lead to less favorable pricing than a fully open competition.

Public Impact

Advancement of critical research in physical, engineering, and life sciences. Potential for technological breakthroughs with broad societal applications. Job creation and economic activity in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contract type
  • Exclusion of sources in competition
  • Long contract duration

Positive Signals

  • Focus on critical R&D areas
  • Potential for significant technological advancement

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for innovation but can be subject to cost overruns due to the inherent uncertainties in research.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The 'exclusion of sources' clause requires careful oversight to ensure fair competition and prevent potential price gouging. The Department of the Army's contracting office will be responsible for monitoring performance and costs.

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 cost overruns due to CPFF structure.
  • Limited competition may reduce price competitiveness.
  • Lack of transparency regarding specific research goals.
  • Uncertainty in R&D outcomes and timelines.

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 $167.1 million to ASTRION GROUP, LLC. ORDERING PERIOD 6 - LABOR & ODC

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 $167.1 million.

What is the period of performance?

Start: 2022-06-21. End: 2025-12-31.

What specific research objectives are being pursued under this contract, and how do they align with national priorities?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While the specific objectives are not detailed, such R&D typically aligns with national priorities in areas like defense, health, energy, and technological advancement. The 'exclusion of sources' suggests a specific need or capability that may not be widely available.

What are the potential risks associated with the 'Cost Plus Fixed Fee' contract type in this R&D context?

The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate unexpectedly due to research challenges, the government bears the burden. This necessitates robust oversight to control costs and ensure the fixed fee remains reasonable relative to the effort.

How will the effectiveness of the R&D outcomes be measured, given the nature of scientific discovery?

Effectiveness in R&D is often measured by milestones, deliverables, successful prototypes, publications, patents, and ultimately, the transition of research into practical applications or technologies. The contracting agency will likely establish specific performance metrics and review processes to track progress and assess the value of the research conducted.

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 DEVELOPMENTC – National Defense R&D Services

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: 1100 REDSTONE GTWY SW STE 300, HUNTSVILLE, AL, 35808

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $215,475,786

Exercised Options: $215,475,786

Current Obligation: $167,051,699

Subaward Activity

Number of Subawards: 225

Total Subaward Amount: $37,831,712

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: 2022-06-21

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2026-02-12

More Contracts from Astrion Group, LLC

View all Astrion Group, LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending