DoD's $26.2M R&D contract with AI Signal Research Inc. awarded under full and open competition

Contract Overview

Contract Amount: $26,238,250 ($26.2M)

Contractor: AI Signal Research Inc

Awarding Agency: Department of Defense

Start Date: 2015-05-21

End Date: 2018-09-30

Contract Duration: 1,228 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INITIALIZE TASK ORDER 0005 IGF::OT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to AI SIGNAL RESEARCH INC for work described as: INITIALIZE TASK ORDER 0005 IGF::OT::IGF Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. The contract was competed fully and openly after excluding other sources. 3. Performance period spanned over three years, indicating a medium-term project. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The contractor, AI Signal Research Inc., is based in Alabama. 6. This award represents a significant investment in specialized R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursable nature of the base contract requires diligent oversight to ensure efficiency. Compared to similar R&D contracts, the overall value appears within a typical range for specialized research, but the value-for-money hinges on the successful delivery of research outcomes.

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.' While this indicates an initial broad solicitation, the 'after exclusion of sources' clause suggests specific criteria or prior engagements may have narrowed the field before the final award. The number of bidders is not specified, but the designation implies a competitive process was intended.

Taxpayer Impact: The 'full and open' aspect is generally positive for taxpayers, suggesting a broad search for the best value. However, the exclusion clause warrants scrutiny to ensure no potentially better offers were overlooked.

Public Impact

The primary beneficiaries are likely the Department of Defense, which receives advanced research and development capabilities. The services delivered are specialized R&D in physical, engineering, and life sciences, contributing to technological advancement. The geographic impact is centered in Alabama, where the contractor is located, potentially creating local economic benefits. Workforce implications include employment for specialized researchers and technical staff at AI Signal Research Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
The 'after exclusion of sources' clause in competition type requires further investigation to ensure maximum competition.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the R&D.

Positive Signals

Awarded under a full and open competition framework, suggesting an effort to find competitive solutions.
The contract addresses a specific R&D need within the Department of Defense.
The fixed fee component provides a defined profit margin, offering some predictability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is critical for defense innovation, requiring highly specialized expertise. Spending in this area is often project-specific and driven by evolving technological needs. Comparable benchmarks would involve other DoD R&D contracts for similar scientific disciplines.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity or that small business participation was not a specific focus of this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific R&D details may be sensitive.

Related Government Programs

Department of Defense Research and Development Contracts
Advanced Technology Development Programs
Engineering and Scientific Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost escalations.
The 'after exclusion of sources' clause in competition type warrants further examination for justification.
Lack of specific performance metrics makes independent assessment of R&D value challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to AI SIGNAL RESEARCH INC. INITIALIZE TASK ORDER 0005 IGF::OT::IGF

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 $26.2 million.

What is the period of performance?

Start: 2015-05-21. End: 2018-09-30.

What specific research and development outcomes were achieved under this contract?

Detailed outcomes of this specific Task Order 0005 are not publicly available due to the nature of R&D contracts, which often involve proprietary information or classified research. However, the contract's objective was 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under the Department of the Army. The success of the contract would be measured by the advancement of scientific knowledge, the development of new technologies, or the creation of prototypes relevant to defense applications. The Cost Plus Fixed Fee structure implies that the contractor was reimbursed for allowable costs plus a negotiated fixed fee, incentivizing efficient completion of the research objectives.

How does the $26.2 million cost compare to similar R&D contracts in the physical and engineering sciences?

Comparing the $26.2 million cost requires context on the scope, duration, and complexity of the R&D. For a three-year (1228 days) contract focused on specialized physical, engineering, and life sciences R&D, this amount is within a reasonable range, particularly for projects involving advanced research and development. However, without knowing the specific deliverables, the number of personnel involved, or the novelty of the research, a precise benchmark is difficult. Contracts in this domain can range from a few million to tens or even hundreds of millions of dollars, depending on the strategic importance and technological risk.

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

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of reimbursing all allowable costs. If the R&D proves more complex or time-consuming than initially estimated, costs can escalate significantly. Effective oversight, stringent cost controls, and clear definition of allowable costs are crucial to mitigate this risk. For taxpayers, this means the total expenditure could exceed initial projections if not managed diligently.

What is the significance of the NAICS code 541712 for this contract?

NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies that the contract's scope is highly specialized. It covers a broad range of scientific inquiry and technological innovation, excluding biological research. This code indicates that the work performed likely involves advanced scientific principles, experimentation, and the development of new processes or products within fields like materials science, aerospace engineering, electronics, or environmental science, tailored for defense applications.

What does 'Full and Open Competition After Exclusion of Sources' imply about the bidding process?

This contract type, 'Full and Open Competition After Exclusion of Sources,' suggests a nuanced competitive process. Initially, the solicitation was intended to be open to all responsible sources. However, 'after exclusion of sources' implies that certain potential offerors or types of offers were removed from consideration before the final award, possibly due to specific technical requirements, prior work, or other pre-defined criteria. While it aims for broad competition, the exclusion clause warrants scrutiny to ensure it was justified and did not unduly limit the pool of potential bidders, potentially impacting price discovery and overall value for the government.

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

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: $47,273,048

Exercised Options: $47,273,048

Current Obligation: $26,238,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q11D0008

IDV Type: IDC

Timeline