DoD's $42.7M R&D contract with Advanced Technology International shows strong competition and long-term performance

Contract Overview

Contract Amount: $42,731,563 ($42.7M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2011-07-28

End Date: 2021-12-31

Contract Duration: 3,809 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)

Place of Performance

Location: ANDERSON, ANDERSON County, SOUTH CAROLINA, 29625

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration (2011-2021) suggests sustained need and successful performance. 3. Cost Plus Award Fee (CPAF) structure incentivizes contractor performance. 4. Focus on R&D in physical, engineering, and life sciences aligns with defense innovation goals. 5. The contract's value is moderate within the broader R&D spending landscape. 6. No small business set-aside indicates a focus on large-scale R&D capabilities.

Value Assessment

Rating: good

The contract's total value of $42.7 million over its 10-year lifespan represents a moderate investment in R&D. Benchmarking against similar R&D contracts is challenging without more specific service details, but the duration and competitive award suggest a fair market price was likely achieved. The Cost Plus Award Fee (CPAF) structure allows for flexibility while incentivizing performance, which is typical for complex research endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors were able to bid. The specific number of bidders is not provided, but this method generally fosters price discovery and ensures the government receives competitive offers. The extensive period of performance implies that the chosen contractor consistently met or exceeded expectations to maintain the contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that the most capable and cost-effective solutions are selected.

Public Impact

Advances in physical, engineering, and life sciences research benefit national security and technological superiority. The contract supports innovation and development within the Department of Defense. Geographic impact is likely concentrated around research facilities, with potential for broader national application of developed technologies. Workforce implications include highly skilled scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess value for money.
CPAF contracts can sometimes lead to cost overruns if not managed tightly.
The long duration might mask potential inefficiencies that developed over time.

Positive Signals

Awarded through full and open competition, indicating strong market engagement.
Long contract period suggests consistent delivery of required R&D outcomes.
Focus on critical R&D areas aligns with strategic defense objectives.
Contractor's sustained engagement implies a positive working relationship and successful project execution.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a critical area for defense innovation, aiming to maintain technological superiority. Spending in this category can vary significantly year-to-year, influenced by emerging threats and technological advancements. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific science and technology investment portfolios.

Small Business Impact

The absence of small business set-asides (ss: false, sb: false) indicates that this contract was not specifically targeted towards small businesses. This is common for large-scale, complex R&D efforts that may require extensive resources and specialized expertise typically found in larger organizations or consortia. Subcontracting opportunities for small businesses may exist but are not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Performance is monitored through the Cost Plus Award Fee structure, where the contractor's achievement of specific award criteria dictates additional fee compensation. Transparency is generally maintained through contract reporting requirements, though detailed performance data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Naval Research and Development
Science and Technology Programs
Advanced Technology Development

Risk Flags

Long contract duration may obscure potential for cost efficiencies over time.
CPAF structure requires diligent oversight to ensure value for money.
Specific performance metrics not detailed, limiting granular assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to ADVANCED TECHNOLOGY INTERNATIONAL. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2011-07-28. End: 2021-12-31.

What specific R&D projects were undertaken under this contract?

The contract data indicates the scope as 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. However, the specific projects or research areas are not detailed in the provided data. Typically, such contracts would fund a portfolio of research initiatives aimed at advancing capabilities in areas like materials science, advanced manufacturing, sensor technology, human performance optimization, or other fields critical to defense operations. The Cost Plus Award Fee (CPAF) structure suggests that performance metrics related to research milestones, innovation, and successful technology transition would have been established and evaluated.

How does the $42.7 million total award compare to similar R&D contracts within the Department of the Navy?

The total award of $42.7 million over a 10-year period (2011-2021) averages to approximately $4.27 million per year. This is a moderate level of funding for R&D within a large organization like the Department of the Navy. The Navy invests billions annually in R&D, encompassing a wide range of projects from basic research to advanced technology development. While this specific contract represents a focused effort in physical, engineering, and life sciences, other contracts might be significantly larger, focusing on major platform development (e.g., shipbuilding, aircraft) or advanced weapon systems. Conversely, smaller grants or contracts might fund highly specialized, early-stage research.

What are the key performance indicators (KPIs) associated with the Cost Plus Award Fee (CPAF) structure for this contract?

While the specific KPIs are not detailed in the provided data, CPAF contracts typically tie award fees to the contractor's performance against pre-defined criteria. For an R&D contract like this, KPIs could include: achieving specific research milestones within projected timelines, successful demonstration of prototypes or technologies, innovation and novelty of research findings, quality of technical reports and documentation, effective collaboration with government researchers, and successful transition of developed technologies to operational use or further development. The 'award' portion of the fee is discretionary and determined by the government's evaluation of the contractor's performance against these metrics.

What is the significance of the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification?

This classification (NAICS 541712) signifies that the contract's primary purpose is to conduct research and development activities in fundamental scientific disciplines and applied engineering fields. This includes areas like physics, chemistry, materials science, mechanical and electrical engineering, computer science (excluding software development as the primary focus), and biological sciences (excluding areas like genetic engineering or biopharmaceuticals). The exclusion of biotechnology suggests a focus on more traditional scientific and engineering domains, potentially related to areas like advanced materials, propulsion, sensors, robotics, or human factors relevant to defense applications.

What does the long contract duration (2011-2021) imply about the contractor's performance and the program's stability?

A contract spanning a decade suggests a high degree of stability and successful performance by Advanced Technology International (ATI). Such long durations are typically awarded when there is a consistent, long-term need for the services provided and when the contractor has demonstrated reliability, technical competence, and effective management. For R&D, it implies that ATI was able to adapt to evolving research requirements, maintain a high level of scientific and technical expertise, and consistently meet the objectives set forth by the Department of the Navy. It also indicates a strong, ongoing relationship between the contractor and the agency.

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 › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Analytic Services Inc.

Address: 81 TECHNOLOGY DR, ANDERSON, SC, 29625

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,817,213

Exercised Options: $50,817,213

Current Obligation: $42,731,563

Subaward Activity

Number of Subawards: 54

Total Subaward Amount: $46,568,884

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001411D0504

IDV Type: IDC

Timeline