DoD awards $29.5M R&D contract to AI Signal Research Inc. for physical and engineering sciences

Contract Overview

Contract Amount: $29,515,214 ($29.5M)

Contractor: AI Signal Research Inc

Awarding Agency: Department of Defense

Start Date: 2011-01-31

End Date: 2012-09-30

Contract Duration: 608 days

Daily Burn Rate: $48.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AWARD OF INITIAL ORDER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to AI SIGNAL RESEARCH INC for work described as: AWARD OF INITIAL ORDER Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract is for Research and Development in Physical, Engineering, and Life Sciences, excluding Biotechnology. 3. The award is an initial order with a duration of 608 days. 4. The contractor, AI Signal Research Inc., has secured this significant award from the Department of the Army. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. The contract was awarded in Alabama, suggesting potential local economic impact.

Value Assessment

Rating: fair

The contract value of $29.5 million for an initial order of this duration appears within a reasonable range for specialized R&D services. However, without specific benchmarks for comparable R&D projects in physical and engineering sciences, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure can sometimes lead to higher costs if not carefully managed, but it is appropriate for R&D where scope can be uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'Full and Open Competition After Exclusion of Sources'. This suggests that while the competition was intended to be open, specific sources may have been excluded for particular reasons, potentially limiting the breadth of competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in less downward pressure on pricing compared to a truly unrestricted full and open competition, potentially impacting taxpayer value.

Public Impact

This contract supports advancements in physical and engineering sciences, potentially leading to new technologies or improved defense capabilities. The primary beneficiary is the Department of the Army, seeking innovative solutions through research and development. The contract is geographically focused in Alabama, potentially creating or sustaining high-skilled jobs in the region. The services delivered are research and development, contributing to the nation's scientific and technological base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
The 'after exclusion of sources' clause warrants scrutiny to ensure fair competition.
Limited details on specific R&D deliverables make performance assessment difficult at this stage.

Positive Signals

Awarded to a specialized R&D firm, suggesting expertise in the required domain.
The contract duration of over 600 days indicates a substantial project scope.
The Department of the Army's investment signifies the importance of the R&D area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of advanced technologies. The market for such specialized R&D is often characterized by a limited number of highly qualified contractors. Benchmarking spending in this niche requires comparison with similar government-funded R&D efforts, which can vary significantly based on project complexity and duration.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of R&D in physical and engineering sciences, it is common for larger, more established firms to compete for these awards. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Army's contracting and program management offices. Accountability measures would focus on tracking costs, ensuring adherence to the fixed fee, and monitoring progress against R&D milestones. Transparency is generally maintained through contract reporting mechanisms, though specific project details might be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Investments
Physical and Engineering Sciences Research
Advanced Technology Development Contracts

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Limited competition may impact price discovery.
Lack of specific R&D deliverables makes performance assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to AI SIGNAL RESEARCH INC. AWARD OF INITIAL ORDER

Who is the contractor on this award?

The obligated recipient is AI SIGNAL RESEARCH 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 $29.5 million.

What is the period of performance?

Start: 2011-01-31. End: 2012-09-30.

What is the track record of AI Signal Research Inc. with government contracts, particularly within the Department of Defense?

Information regarding AI Signal Research Inc.'s specific track record with government contracts, especially within the Department of Defense, is not detailed in the provided data. A comprehensive analysis would require accessing contract databases to review past performance, award history, and any reported issues or successes. Understanding their experience with Cost Plus Fixed Fee contracts and R&D projects would be crucial for assessing their capability to successfully execute this current award. Their history could indicate a pattern of successful delivery, cost control, or potential challenges that might inform future performance expectations.

How does the $29.5 million award compare to typical R&D contract values in the physical and engineering sciences for the Department of the Army?

The $29.5 million award for an initial order over approximately two years is a substantial investment. To benchmark this value, one would need to compare it against historical data for similar R&D contracts awarded by the Department of the Army or other defense agencies in the physical and engineering sciences. Factors such as the specific research area, technological maturity, and project scope significantly influence contract values. Without access to a broader dataset of comparable contracts, it's difficult to definitively state whether this award is high, low, or average. However, it suggests a significant undertaking requiring specialized expertise and resources.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how might they be mitigated?

The primary risks with CPFF contracts for R&D include potential cost overruns if the contractor does not manage expenses efficiently, as the government bears the cost of performance. There's also a risk that the fixed fee might not adequately incentivize the contractor to innovate or control costs if it's perceived as too low. Mitigation strategies involve robust government oversight, detailed cost tracking, clear definition of project milestones and deliverables, and strong negotiation of the fee based on realistic cost estimates and contractor performance expectations. Regular reviews and audits are essential to ensure the contractor is operating efficiently and effectively within the contract's framework.

What specific R&D outcomes or technological advancements are expected from this contract?

The provided data specifies the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' but does not detail the specific R&D outcomes or technological advancements expected. This level of detail is typically found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract. Understanding the precise objectives—whether it's developing a new material, improving a sensor system, advancing a computational model, or exploring a novel engineering principle—is crucial for assessing the contract's potential impact and measuring its success. Without this information, the specific contributions to scientific or defense capabilities remain undefined.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category trended over the past five years?

Analyzing the trend of federal spending in 'Research and Development in the Physical, Engineering, and Life Sciences' requires access to historical federal budget data and contract award databases. Generally, R&D spending, particularly in areas relevant to national security and technological advancement, tends to be a priority for the government. However, specific trends can fluctuate based on geopolitical factors, technological breakthroughs, and overall budget allocations. A detailed analysis would involve aggregating spending data across agencies like the Department of Defense, NSF, and NIH within this NAICS code (541712) over several fiscal years to identify patterns of increase, decrease, or stability.

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

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3411 TRIANA BLVD SW, HUNTSVILLE, AL, 35805

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,515,214

Exercised Options: $29,515,214

Current Obligation: $29,515,214

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q11D0008

IDV Type: IDC

Timeline