Alion Science and Technology Corp. awarded $75.2M for Navy Warfare Development Command modeling and simulation support

Contract Overview

Contract Amount: $75,214,769 ($75.2M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2012-09-29

End Date: 2015-10-28

Contract Duration: 1,124 days

Daily Burn Rate: $66.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SNIM TAT 12-0320, NAVY WARFARE DEVELOPMENT COMMAND MODELING AND SIMMULATION ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $75.2 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: SNIM TAT 12-0320, NAVY WARFARE DEVELOPMENT COMMAND MODELING AND SIMMULATION ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely managed. 3. The contract duration of 1124 days indicates a significant, long-term need for these services. 4. The NAICS code 541712 points to R&D in physical and engineering sciences. 5. This contract falls under the broader category of defense research and development spending. 6. The award amount of $75.2M is substantial, reflecting the complexity and scope of the services.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without detailed cost breakdowns and performance metrics. The cost-plus-fixed-fee structure requires diligent oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for the effort. Comparing to similar modeling and simulation contracts would provide better insight into pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders, however, is not specified, which would provide further insight into the level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to offer their services.

Public Impact

The primary beneficiaries are the U.S. Navy's Warfare Development Command, which receives essential modeling and simulation support. Services delivered include advanced technical support for modeling and simulation, crucial for wargaming and strategic planning. The geographic impact is primarily within the defense sector, supporting national security objectives. Workforce implications include the employment of highly skilled scientists, engineers, and technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D and simulation services is highly specialized, with a few large prime contractors and numerous subcontractors. Spending in this area is driven by the need for advanced technological capabilities and strategic planning tools for national defense.

Small Business Impact

The contract does not indicate any specific small business set-aside. However, as a large prime contract, it may offer subcontracting opportunities for small businesses with specialized expertise in modeling and simulation, contributing to the small business ecosystem within the defense industry.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of the Air Force, overseeing the Department of Defense. Accountability measures are tied to the contract's performance clauses and reporting requirements. Transparency is generally maintained through contract award databases, though detailed performance data may be restricted.

Related Government Programs

Risk Flags

Tags

department-of-defense, navy, research-and-development, modeling-and-simulation, cost-plus-fixed-fee, full-and-open-competition, aljon-science-and-technology-corporation, illinois, technical-support, engineering-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.2 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. SNIM TAT 12-0320, NAVY WARFARE DEVELOPMENT COMMAND MODELING AND SIMMULATION ENGINEERING AND TECHNICAL SUPPORT

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 Air Force).

What is the total obligated amount?

The obligated amount is $75.2 million.

What is the period of performance?

Start: 2012-09-29. End: 2015-10-28.

What is Alion Science and Technology Corporation's track record with similar government contracts, particularly in modeling and simulation?

Alion Science and Technology Corporation has a significant history of performing government contracts, including many within the Department of Defense. Their expertise often lies in areas such as systems engineering, simulation, modeling, and advanced research. Reviewing their past performance on contracts with similar scope, complexity, and contract types (like cost-plus-fixed-fee) would be crucial to assess their capability and reliability for this specific award. Data on past performance, including any awards or penalties, would provide a clearer picture of their effectiveness in delivering on similar R&D and technical support requirements.

How does the $75.2 million award compare to other modeling and simulation contracts awarded by the DoD in recent years?

The $75.2 million award for modeling and simulation engineering and technical support is a substantial sum, indicative of a significant and long-term requirement. To benchmark its value, it should be compared against other contracts for similar services awarded by the Department of Defense or other federal agencies. Factors such as contract duration, scope of work, and the specific technologies involved would need to be considered. If comparable contracts are significantly lower or higher, it could suggest either exceptional value or potential overpricing. Without specific comparative data, it's difficult to definitively assess if this award represents optimal value for taxpayer dollars.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can sometimes disincentivize the contractor from aggressively controlling costs, as they are guaranteed their fee regardless of the final cost. The government bears the risk of cost increases above the estimated cost. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the project stays within budget and delivers the intended outcomes.

How effective are modeling and simulation services in supporting strategic decision-making for the Navy Warfare Development Command?

Modeling and simulation services are critical for modern military strategy and decision-making. They allow for the testing of various scenarios, tactics, and technological capabilities in a virtual environment, reducing the need for costly and potentially dangerous real-world exercises. For the Navy Warfare Development Command, these services likely support wargaming, operational planning, force structure analysis, and the development of future naval concepts. The effectiveness hinges on the accuracy of the models, the quality of the data inputs, and the expertise of the analysts interpreting the results. When executed well, these services provide invaluable insights that enhance strategic planning and improve operational readiness.

What has been the historical spending trend for modeling and simulation services within the Department of Defense?

Spending on modeling and simulation (M&S) services within the Department of Defense has generally been on an upward trend, driven by the increasing complexity of modern warfare, the need for advanced training solutions, and the desire to reduce the cost and risk associated with live testing. The DoD invests heavily in M&S across various branches and commands to support acquisition, training, and operational planning. This includes everything from high-fidelity combat simulations to strategic wargaming. Analyzing historical spending patterns can reveal areas of sustained investment and identify shifts in technological focus or strategic priorities within the defense sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA460008R0025

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10 WEST 35TH ST, CHICAGO, IL, 60616

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

Financial Breakdown

Contract Ceiling: $75,250,442

Exercised Options: $75,250,442

Current Obligation: $75,214,769

Subaward Activity

Number of Subawards: 124

Total Subaward Amount: $50,327,742

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA150010D0001

IDV Type: IDC

Timeline

Start Date: 2012-09-29

Current End Date: 2015-10-28

Potential End Date: 2015-10-28 00:00:00

Last Modified: 2021-03-31

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