DoD's $23.6M Engineering Services Contract with Alion Science and Technology Corporation Awarded via Full and Open Competition
Contract Overview
Contract Amount: $23,610,100 ($23.6M)
Contractor: Alion Science and Technology Corporation
Awarding Agency: Department of Defense
Start Date: 2007-10-31
End Date: 2013-04-30
Contract Duration: 2,008 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OTHER DEFENSE (BASIC)
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60616
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $23.6 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: OTHER DEFENSE (BASIC) Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk. 4. The duration of the contract spans over five years, from October 2007 to April 2013. 5. The contract was awarded as a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, Alion Science and Technology Corporation, has a significant presence in the defense sector. 7. The contract was awarded by the Department of the Navy, a major component of the DoD. 8. The North American Industry Classification System (NAICS) code 541330 points to engineering services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the engineering services rendered and comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee, which can lead to higher overall costs if not managed tightly. The total award amount of $23.6 million over five years suggests a moderate investment for specialized engineering support. Without knowing the specific deliverables and their market rates, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the limited number of bidders (two) might suggest specific niche requirements or a concentrated market for the services sought.
Taxpayer Impact: A competitive award process like this generally benefits taxpayers by encouraging lower prices and better service quality through market forces. However, with only two bidders, the potential for significant cost savings might be constrained compared to scenarios with a larger number of competing firms.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring specialized engineering expertise. The services delivered likely involve design, analysis, testing, or other engineering support critical to naval programs. The geographic impact is likely concentrated around naval facilities or program management offices, with potential for broader national security implications. Workforce implications include employment for engineers and technical staff at Alion Science and Technology Corporation and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can incentivize contractors to incur costs, potentially leading to higher final prices than fixed-price contracts if not closely monitored.
- Limited competition (two bidders) may reduce the downward pressure on pricing.
- The long duration of the contract (over 5 years) increases the risk of cost overruns or scope creep if not managed effectively.
Positive Signals
- Awarded under full and open competition, which is a positive indicator for market-driven pricing.
- The contractor, Alion Science and Technology Corporation, is a known entity in the defense sector, suggesting established capabilities.
- The contract was a delivery order, implying it was part of a potentially larger, pre-competed IDIQ contract, which can streamline acquisition.
Sector Analysis
The engineering services sector within the defense industry is highly specialized and critical for developing and maintaining advanced military capabilities. Companies like Alion Science and Technology Corporation operate in a market characterized by complex technical requirements, long development cycles, and significant government investment. Spending in this sector is driven by national security needs, technological advancements, and the lifecycle support of defense platforms. Comparable spending benchmarks would typically involve analyzing other engineering services contracts awarded by the DoD or specific service branches for similar types of support.
Small Business Impact
There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The contract was awarded to Alion Science and Technology Corporation, a large defense contractor. Without specific subcontracting plans or set-aside information, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed cost reporting and performance metrics. Transparency is generally facilitated through contract award databases like FPDS-NG, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research, Development, Test, and Evaluation (RDT&E)
- Naval Sea Systems Command (NAVSEA) Contracts
- Engineering and Technical Services Contracts
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Limited competition (2 bidders) may impact price discovery.
- Long contract duration increases potential for scope creep and cost escalation.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, alion-science-and-technology-corporation, illinois, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.6 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. OTHER DEFENSE (BASIC)
Who is the contractor on this award?
The obligated recipient is ALION SCIENCE AND TECHNOLOGY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.6 million.
What is the period of performance?
Start: 2007-10-31. End: 2013-04-30.
What specific engineering services were provided under this contract, and how did they contribute to naval programs?
The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. While specific details are not available, such services typically encompass a broad range of technical support, including system design, analysis, integration, testing, and lifecycle support for naval platforms and systems. These services are crucial for ensuring the operational effectiveness, reliability, and technological advancement of naval assets, contributing directly to the Navy's mission readiness and capability development. The exact nature of the services would depend on the specific program requirements outlined in the delivery order.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types used for similar engineering services in the DoD?
Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not well-defined or involves significant uncertainty, such as in research and development or complex engineering projects. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can lead to higher costs if not managed diligently, as the government bears the cost risk. Other common types include Firm-Fixed-Price (FFP), which provides cost certainty for the government but shifts risk to the contractor, and Cost Plus Incentive Fee (CPIF), which incentivizes performance through shared cost savings or target achievement. For mature engineering services with well-defined scopes, FFP might be preferred; for R&D or novel engineering, CPFF or CPIF are more common.
What is the typical track record of Alion Science and Technology Corporation in performing similar engineering services contracts for the Department of Defense?
Alion Science and Technology Corporation (now part of Huntington Ingalls Industries) has historically been a significant contractor for the Department of Defense, providing a wide array of engineering, scientific, and technical services. Their track record generally includes supporting complex defense programs across various branches, including the Navy. Performance reviews and past performance information, typically available in government databases, would offer a more granular view of their success rates, adherence to schedule and budget, and overall quality of work on specific contracts. Without access to those detailed records, it's assumed they were selected based on a satisfactory past performance assessment for this particular award.
How does the total award amount of $23.6 million over approximately 5.5 years compare to average spending on similar engineering services contracts by the Navy?
The total award of $23.6 million over roughly 5.5 years equates to an average annual value of approximately $4.3 million. This figure falls within a moderate range for specialized engineering services contracts within the Department of the Navy. The Navy procures a vast portfolio of services, with contract values ranging from small, niche support tasks to multi-billion dollar platform development programs. Contracts in the low millions annually are common for specific technical support, system upgrades, or specialized analysis. Benchmarking requires comparing this to contracts with similar scope, complexity, and duration, which are not detailed here, but the amount itself does not appear exceptionally high or low in the context of large-scale defense spending.
What are the potential risks associated with a Cost Plus Fixed Fee contract for engineering services, and how are they typically mitigated?
The primary risk with CPFF contracts is cost overrun, as the government agrees to reimburse all allowable costs. The fixed fee, while intended to provide profit, doesn't directly incentivize cost reduction beyond what's necessary to complete the work. This can lead to scope creep and inefficient resource utilization if not managed. Mitigation strategies include robust government oversight, detailed cost monitoring and auditing, clearly defined contract milestones and deliverables, and strong program management. Establishing realistic initial estimates, requiring detailed justification for cost changes, and implementing performance metrics tied to the fee structure can also help control costs and ensure value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 10 W 35TH ST, CHICAGO, IL, 60616
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,463,344
Exercised Options: $26,463,344
Current Obligation: $23,610,100
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001404D0502
IDV Type: IDC
Timeline
Start Date: 2007-10-31
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2018-10-17
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