DoD's $16.5M contract for weapon system testing support awarded to AI SIGNAL RESEARCH INC

Contract Overview

Contract Amount: $16,511,689 ($16.5M)

Contractor: AI Signal Research Inc

Awarding Agency: Department of Defense

Start Date: 2007-08-23

End Date: 2010-09-30

Contract Duration: 1,134 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: REDSTONE TECHNICAL TEST CENTER ENVIRONMENTAL TEST DIVISION SUPPORT FOR WEAPON SYSTEM TESTING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to AI SIGNAL RESEARCH INC for work described as: REDSTONE TECHNICAL TEST CENTER ENVIRONMENTAL TEST DIVISION SUPPORT FOR WEAPON SYSTEM TESTING Key points: 1. Value for money appears fair given the specialized nature of weapon system testing support. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement process. 3. Risk indicators are moderate, with a Cost Plus Fixed Fee contract type potentially leading to cost overruns if not managed closely. 4. Performance context is within specialized R&D services for defense weapon systems. 5. Sector positioning is within the defense R&D services market, a critical area for national security. 6. The contract duration of over three years indicates a significant, ongoing need for these services.

Value Assessment

Rating: fair

The contract's value of approximately $16.5 million over three years for specialized environmental testing support for weapon systems appears within a reasonable range for such niche services. Benchmarking against similar contracts is challenging due to the specific nature of weapon system testing. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, carries inherent risks of cost escalation if not meticulously managed. Without detailed cost breakdowns, a precise value-for-money assessment is difficult, but the price seems aligned with the specialized expertise required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bidders is not explicitly stated, but the 'full and open' designation suggests a competitive process was initiated. This approach aims to ensure fair pricing and access to a wide range of qualified contractors, though the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The competitive nature of this award, even with exclusions, is intended to provide the government with the best value and prevent price gouging, ultimately benefiting taxpayers by seeking competitive bids for essential services.

Public Impact

The primary beneficiaries are the Department of Defense and its weapon system development programs, ensuring critical testing is conducted. Services delivered include environmental testing support crucial for validating the performance and reliability of weapon systems under various conditions. The geographic impact is primarily within Alabama, where the Redstone Technical Test Center is located, supporting regional technical expertise. Workforce implications include employment for specialized engineers, technicians, and support staff involved in complex testing procedures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Potential for scope creep in R&D contracts if requirements are not clearly defined and managed.
Reliance on a single contractor for specialized testing could pose a risk if performance issues arise.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
Contract duration of over three years suggests a stable, long-term need for these critical services.
Specialized nature of the service implies a high level of technical expertise from the contractor.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically supporting the defense industry's need for rigorous testing of weapon systems. The market for specialized defense R&D services is highly competitive and technologically advanced, with significant government investment. Comparable spending benchmarks are difficult to establish precisely due to the unique requirements of weapon system environmental testing, but overall defense R&D spending is substantial.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not detailed in this summary, but typically, prime contractors are encouraged to utilize small businesses where feasible. The impact on the small business ecosystem is likely minimal for this particular contract, as it appears to be awarded to a larger entity.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers at the Redstone Technical Test Center. Accountability measures would be embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Weapon System Development
Environmental Testing Services
Research and Development Contracts
Department of Defense Procurement
Technical Support Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for scope creep in R&D services.
Exclusion of sources in competition requires careful justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to AI SIGNAL RESEARCH INC. REDSTONE TECHNICAL TEST CENTER ENVIRONMENTAL TEST DIVISION SUPPORT FOR WEAPON SYSTEM TESTING

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 $16.5 million.

What is the period of performance?

Start: 2007-08-23. End: 2010-09-30.

What is the track record of AI SIGNAL RESEARCH INC. in performing similar defense R&D contracts?

AI SIGNAL RESEARCH INC. has a history of performing various R&D and technical support services for the U.S. government, particularly within the defense sector. While specific details on past performance for environmental testing of weapon systems would require deeper analysis of their contract history, their presence in the defense contracting space suggests experience with government requirements and compliance. A review of their past performance evaluations and any reported issues on similar contracts would provide a clearer picture of their reliability and capability in executing complex R&D projects. Their ability to secure this contract, especially under a competitive process, implies they met the necessary qualifications and demonstrated competence in prior engagements.

How does the pricing structure (Cost Plus Fixed Fee) compare to other weapon system testing contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in R&D and service contracts where the scope of work can be difficult to define precisely upfront or is expected to evolve. For weapon system testing, where unforeseen challenges and iterative development are frequent, CPFF offers flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor is reimbursed for allowable costs plus a fixed fee. Compared to other weapon system testing contracts, CPFF is a standard approach for complex, non-routine services. The 'value for money' is then assessed by comparing the total cost against the achieved performance and deliverables, and ensuring the fixed fee represents reasonable profit for the contractor's effort and risk.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential cost overruns due to the CPFF structure, scope creep if requirements are not tightly managed, and performance issues if the contractor lacks the necessary expertise or resources. Mitigation strategies typically involve robust oversight by the government, detailed performance work statements, regular progress reviews, and clear communication channels. The contracting officer must diligently monitor expenditures, ensure all costs are allowable and reasonable, and manage any changes to the scope through formal modification procedures. Performance metrics and milestones within the contract also serve as key indicators for early detection of potential problems, allowing for corrective actions.

What is the historical spending pattern for environmental test support at Redstone Technical Test Center?

Analyzing historical spending patterns for environmental test support at the Redstone Technical Test Center (RTTC) would reveal the consistency of demand for such services and the typical contract values. This specific contract, valued at approximately $16.5 million over three years, represents a significant investment. Understanding if RTTC consistently awards similar-sized contracts or if this is an outlier would provide context on the program's importance and budget allocation. Trends in spending could indicate increasing or decreasing reliance on external support for testing, potentially influenced by new weapon system development cycles or changes in internal capabilities. A historical view helps in assessing the long-term commitment to this type of support.

How does the 'Full and Open Competition After Exclusion of Sources' impact price discovery and overall value?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad competition with specific procurement needs. While 'full and open' suggests an intent to solicit from all responsible sources, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately not considered. The impact on price discovery depends on the number of bidders that remained after exclusions. If a sufficient number of qualified and competitive bidders were still present, effective price discovery should occur. However, if the exclusions significantly limited the pool of potential offerors, it could potentially reduce competitive pressure and lead to less favorable pricing for the government. The justification for excluding sources is critical in assessing whether this approach truly served the government's best interest.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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: 4

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, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $16,511,689

Exercised Options: $16,511,689

Current Obligation: $16,511,689

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q06D0032

IDV Type: IDC

Timeline