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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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
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