DoD's $40.5M R&D Contract Awarded to AEGIS AEROSPACE INC for Research in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $40,506,626 ($40.5M)
Contractor: Aegis Aerospace Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-05
End Date: 2014-03-18
Contract Duration: 2,020 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: CAR
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $40.5 million to AEGIS AEROSPACE INC for work described as: CAR Key points: 1. The contract value of $40.5 million over its duration indicates a significant investment in R&D. 2. AEGIS AEROSPACE INC secured this contract through full and open competition, suggesting a competitive bidding process. 3. The contract type (Time and Materials) and its duration (2020 days) may present cost control risks. 4. The NAICS code 541712 points to research and development in physical, engineering, and life sciences, a critical sector for innovation.
Value Assessment
Rating: fair
The $40.5 million award over approximately 5.5 years, with a delivery order structure, requires careful monitoring. Without specific per-unit cost data or comparison to similar R&D contracts, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure can lead to cost overruns if not managed diligently.
Taxpayer Impact: Full and open competition is intended to ensure taxpayers receive the best value. The effectiveness of this depends on the oversight of the Time and Materials pricing.
Public Impact
This contract supports advanced research and development, potentially leading to technological advancements for the Department of Defense. The duration and value suggest a long-term commitment to a specific research area, impacting future defense capabilities. The use of Time and Materials pricing necessitates robust oversight to prevent cost escalation and ensure efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns.
- Long contract duration requires sustained oversight.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D in physical, engineering, and life sciences.
- Contract awarded to a single entity, potentially allowing for focused expertise.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement and maintaining a competitive edge, with benchmarks varying widely based on the specific research focus.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to AEGIS AEROSPACE INC. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract's duration and Time and Materials pricing structure necessitate strong government oversight to ensure cost control and adherence to research objectives. Regular performance reviews and audits are critical for accountability.
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 Time and Materials pricing.
- Long contract duration requires sustained monitoring.
- Lack of detailed performance metrics in the provided data.
- Risk of scope creep without clear deliverables.
- Dependence on contractor's ability to deliver innovative R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.5 million to AEGIS AEROSPACE INC. CAR
Who is the contractor on this award?
The obligated recipient is AEGIS AEROSPACE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $40.5 million.
What is the period of performance?
Start: 2008-09-05. End: 2014-03-18.
What specific research outcomes are expected from this $40.5 million investment, and how will their success be measured?
The expected outcomes are not detailed in the provided data. Measuring success would likely involve predefined milestones, technical performance metrics, and the successful integration of research findings into defense systems. The government contracting officer and technical team would be responsible for defining and tracking these metrics throughout the contract's lifecycle.
Given the Time and Materials contract type, what measures are in place to mitigate the risk of cost overruns?
Mitigation strategies typically include establishing ceiling prices, requiring detailed cost reporting, implementing strict oversight by contracting officers and technical representatives, and conducting regular audits. The government must actively manage labor hours, material costs, and indirect expenses to ensure the project stays within budget.
How does the R&D conducted under this contract align with current and future Department of Defense strategic priorities?
The alignment depends on the specific research conducted within the 541712 NAICS code. If the research focuses on areas like advanced materials, artificial intelligence, cybersecurity, or next-generation sensing technologies, it would likely align with DoD priorities for modernization and maintaining technological superiority.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 18050 SATURN LANE STE 300, HOUSTON, TX, 77058
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $40,608,609
Exercised Options: $40,506,626
Current Obligation: $40,506,626
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q08A0022
IDV Type: IDC
Timeline
Start Date: 2008-09-05
Current End Date: 2014-03-18
Potential End Date: 2014-03-18 12:03:00
Last Modified: 2021-10-20
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