DoD's $17.7M RTTC Environmental Test Support contract awarded to AI Signal Research Inc. for R&D services

Contract Overview

Contract Amount: $17,714,676 ($17.7M)

Contractor: AI Signal Research Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-04

End Date: 2010-09-30

Contract Duration: 756 days

Daily Burn Rate: $23.4K/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 (RTTC) ENVIRONMENTAL TEST DIVISION SUPPORT OPERATIONS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to AI SIGNAL RESEARCH INC for work described as: REDSTONE TECHNICAL TEST CENTER (RTTC) ENVIRONMENTAL TEST DIVISION SUPPORT OPERATIONS Key points: 1. Contract value of $17.7M over two years suggests a significant investment in specialized R&D support. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific justifications. 3. Performance risk appears moderate given the Cost Plus Fixed Fee (CPFF) contract type, which allows for cost adjustments. 4. The contract's focus on environmental testing aligns with critical R&D needs for defense systems. 5. AI Signal Research Inc. is positioned as a key provider for specialized R&D services within the Department of Defense. 6. The duration of 756 days (approx. 2 years) provides a stable period for service delivery and performance evaluation.

Value Assessment

Rating: good

The contract value of $17.7M over approximately two years for specialized environmental testing support appears reasonable for the scope of work. While direct comparisons are difficult without more granular data on similar R&D support contracts, the pricing structure (Cost Plus Fixed Fee) allows for cost recovery while incentivizing efficiency. Benchmarking against industry standards for similar scientific and engineering support services would be necessary for a definitive value assessment, but the amount suggests a substantial and necessary investment for the Redstone Technical Test Center's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a broad competition was initially considered, specific circumstances led to the exclusion of certain sources before the final award. This suggests that multiple potential bidders may have been identified, but only a subset proceeded. The level of competition, while not fully open, likely still provided some price discovery and ensured a qualified contractor was selected.

Taxpayer Impact: This procurement method, while not fully open, aims to balance competition with specific program needs. Taxpayers benefit from a qualified contractor being selected through a process that still incorporates competitive elements, potentially leading to better value than a sole-source award.

Public Impact

The primary beneficiaries are the Department of the Army and its Redstone Technical Test Center (RTTC), receiving critical support for environmental testing. Services delivered include specialized support operations for environmental testing, crucial for validating defense systems and equipment. The geographic impact is centered in Alabama, where the RTTC is located, supporting regional technical expertise and infrastructure. Workforce implications include the potential for skilled scientists, engineers, and technicians employed by AI Signal Research Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' aspect of the competition warrants further understanding to ensure no potentially better-qualified or lower-cost vendors were unfairly excluded.
The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely monitored, requiring robust oversight.
The specific nature of 'environmental test division support operations' may involve unique risks related to hazardous materials or complex testing environments.

Positive Signals

The award to AI Signal Research Inc. indicates a level of trust and proven capability in providing specialized R&D support.
The contract duration of over two years provides stability for the program and allows for consistent service delivery.
The focus on R&D and testing aligns with essential defense modernization and readiness efforts.

Sector Analysis

The Research and Development sector, specifically within the physical, engineering, and life sciences (NAICS 541710), is a critical area for defense modernization. This contract fits within the broader landscape of government R&D spending, which aims to foster innovation and maintain technological superiority. Comparable spending benchmarks in this niche area of environmental testing support are often project-specific, but the $17.7M value over two years suggests a significant, ongoing requirement for specialized expertise.

Small Business Impact

The provided data indicates that small business set-asides (ss) and subcontracting (sb) were not explicitly utilized or reported for this specific contract award. This suggests that the primary award was not designated for small businesses, and there is no immediate indication of a focus on small business subcontracting. Further analysis would be needed to determine if any small businesses were involved as subcontractors or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Army Test and Evaluation Command (ATEC)
Environmental Testing Services
Defense Research Engineering and Production

Risk Flags

Competition Exclusion Justification
Cost Overrun Potential (CPFF)
Environmental Hazard Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to AI SIGNAL RESEARCH INC. REDSTONE TECHNICAL TEST CENTER (RTTC) ENVIRONMENTAL TEST DIVISION SUPPORT OPERATIONS

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 $17.7 million.

What is the period of performance?

Start: 2008-09-04. End: 2010-09-30.

What is the specific nature of the environmental testing support provided under this contract?

The contract, "REDSTONE TECHNICAL TEST CENTER (RTTC) ENVIRONMENTAL TEST DIVISION SUPPORT OPERATIONS," implies services related to the testing and validation of systems and components under various environmental conditions. This could include temperature, humidity, vibration, altitude, and other simulated environmental stresses. The support operations likely involve technical expertise, equipment operation, data collection, and analysis to ensure that defense materiel meets stringent performance and reliability standards before deployment. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify the types of tests, equipment used, and reporting requirements.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process differ from standard full and open competition?

Standard 'full and open competition' requires the Government to provide all responsible prospective contractors an opportunity to submit a proposal. 'Full and open competition after exclusion of sources' is a specific procurement method where the agency initially considers full and open competition but then excludes certain sources based on specific justifications, such as national security, or if only one or a limited number of sources can meet the requirement. This implies that while the initial intent was broad, a deliberate decision was made to limit the pool of eligible bidders, often due to unique capabilities or prior performance. This method requires justification and is less common than standard full and open competition, aiming to balance competition with specific needs or circumstances.

What are the typical risks associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D services?

Cost Plus Fixed Fee (CPFF) contracts are common in R&D where the scope can be uncertain. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which represents profit. If costs escalate beyond initial estimates, the government pays more. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with costs), there's less incentive than in fixed-price contracts. The government bears the risk of cost overruns. For the contractor, the risk is that their actual costs might exceed the estimated costs, reducing their effective profit margin, especially if the fixed fee is not adequately negotiated. Robust oversight and detailed cost tracking are crucial for mitigating government risk.

What is the significance of the Redstone Technical Test Center (RTTC) in the context of this contract?

The Redstone Technical Test Center (RTTC) is a critical facility within the U.S. Army's Redstone Arsenal, specializing in the testing and evaluation of missile systems, electronics, and other advanced technologies. Its Environmental Test Division is responsible for ensuring that these systems can withstand diverse and harsh environmental conditions. This contract directly supports the RTTC's mission by providing essential operational and technical support for its environmental testing capabilities. The RTTC's work is vital for the development, validation, and sustainment of Army and other Department of Defense (DoD) weapon systems, ensuring their reliability and effectiveness in operational environments.

How does the contract's duration (756 days) impact the overall value and performance assessment?

A duration of 756 days, approximately two years, provides a substantial period for the contractor, AI Signal Research Inc., to deliver consistent and high-quality support services to the RTTC. This extended timeframe allows for a more thorough assessment of performance, contractor reliability, and the achievement of program objectives. For the government, it offers stability in obtaining essential R&D support without the frequent need for re-competition. From a value perspective, a longer-term contract can sometimes lead to better pricing through economies of scale and reduced administrative costs associated with contract award and transition. It also allows the contractor to invest in specialized resources and personnel dedicated to the RTTC's mission.

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: $17,714,676

Exercised Options: $17,714,676

Current Obligation: $17,714,676

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q06D0032

IDV Type: IDC

Timeline