DoD's $20.1M R&D contract with Alion Science and Technology Corporation awarded under full and open competition

Contract Overview

Contract Amount: $20,108,397 ($20.1M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2004-05-25

End Date: 2010-09-22

Contract Duration: 2,311 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: R&D

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: Key points: 1. Contract awarded for R&D services, indicating investment in innovation and future capabilities. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract duration of 2311 days (over 6 years) points to a long-term project requirement. 4. Awarded by the Department of the Army, aligning with defense modernization efforts. 5. The contract type (Time and Materials) can pose cost control challenges if not managed diligently. 6. The North American Industry Classification System (NAICS) code 541710 signifies a focus on physical, engineering, and life sciences research.

Value Assessment

Rating: fair

Benchmarking the value of this $20.1 million contract is challenging without specific deliverables or performance metrics. Time and Materials contracts, while flexible, can lead to cost overruns if not closely monitored. Comparing this to similar R&D contracts within the Department of Defense would require detailed analysis of the scope of work and technical objectives. The total value over more than six years averages to approximately $3.35 million per year, which is a moderate investment for long-term research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a competitive environment for this R&D requirement. A higher number of bidders generally correlates with more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and innovation for the government's investment in research and development.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units, who will receive the results of advanced research. Services delivered include research and development in physical, engineering, and life sciences, potentially leading to new technologies or improved existing ones. The geographic impact is likely concentrated around Alion Science and Technology Corporation's facilities and DoD research centers. Workforce implications include employment for scientists, engineers, and support staff involved in the R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not managed with strict oversight.
Long contract duration increases the risk of scope creep or evolving requirements impacting final cost.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.

Positive Signals

Full and open competition with 6 bidders suggests a healthy market engagement.
Awarded by the Department of Defense, indicating a critical need for the R&D services.
The contract supports long-term research objectives, potentially yielding significant future benefits.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by agencies like DoD, DARPA, or NASA, considering the specific scientific domains and project lifecycles.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Alion Science and Technology Corporation, is likely a large business. There is no information provided on subcontracting plans, but large R&D contracts often involve a network of subcontractors, which could include small businesses, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would be tied to the contract's performance requirements and milestones. Transparency is generally facilitated through contract award databases, though detailed project specifics might be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Initiatives
Advanced Technology Development Contracts
Physical Sciences Research
Engineering Research Services
Life Sciences Research

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of scope creep over the extended contract duration.
Need for diligent oversight to ensure performance and value.
Limited visibility into specific R&D deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. See the official description on USAspending.

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 Army).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2004-05-25. End: 2010-09-22.

What is Alion Science and Technology Corporation's track record with the Department of Defense?

Alion Science and Technology Corporation has a significant history of contracting with the Department of Defense across various agencies and service branches. Their portfolio includes a wide range of services, from research and development to engineering, logistics, and program management. Analyzing their past performance on similar R&D contracts, particularly those involving long durations and Time and Materials (T&M) pricing, would be crucial. Past performance reviews, contract close-out data, and any documented disputes or awards associated with their DoD work provide insights into their reliability, technical capabilities, and adherence to contract terms. A review of their contract history might reveal patterns in cost performance, schedule adherence, and the quality of deliverables, which are essential for assessing their suitability for current and future engagements.

How does the $20.1 million value compare to similar R&D contracts in physical, engineering, and life sciences?

The $20.1 million value for a contract spanning over six years (2311 days) represents an average annual spend of approximately $3.35 million. This figure is moderate within the context of large-scale federal R&D. Contracts in these scientific domains can range from a few million dollars for specialized research to hundreds of millions or even billions for major technological development programs. To provide a precise comparison, one would need to identify contracts with similar NAICS codes (541710), similar contract durations, and comparable objectives (e.g., fundamental research vs. applied development). Benchmarking against contracts awarded by agencies like DARPA, ONR, or AFRL would offer a more granular perspective on whether this investment level is typical for the scope and ambition of the research undertaken.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risk with a T&M contract of this scale ($20.1 million over 6+ years) is cost escalation due to a lack of a fixed ceiling on labor hours and material costs. While the contract has a ceiling, the government bears the risk of increased costs if the contractor's labor rates are high or if the project requires more hours than initially estimated. For long-term R&D, requirements can evolve, potentially leading to scope creep that further inflates costs. Effective risk mitigation requires stringent oversight, detailed tracking of labor hours and materials, regular performance reviews, and clear communication channels to manage any deviations from the anticipated project trajectory. Without robust management, T&M contracts can significantly exceed their initial budgetary expectations.

How effective is 'full and open competition' in ensuring value for money in defense R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including defense R&D. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices, encourages innovation, and increases the pool of potential solutions. The presence of 6 bidders for this specific contract suggests that the market was receptive and that the Department of the Army likely received a range of technical proposals and pricing structures. While competition is a strong indicator of potential value, the ultimate effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit against cost. Robust competition increases the likelihood of selecting the best-value solution.

What are the historical spending patterns for NAICS code 541710 (R&D in Physical, Engineering, and Life Sciences) within the Department of Defense?

The Department of Defense is consistently one of the largest federal spenders on Research and Development, with a significant portion allocated to NAICS code 541710. Historical data shows substantial and often increasing investments in this category, reflecting the DoD's continuous need for technological advancement to maintain military superiority. Spending within this code supports a wide array of projects, from basic scientific inquiry to applied engineering and the development of advanced materials, systems, and biotechnologies. Analyzing trends over the past decade would reveal fluctuations tied to strategic priorities, emerging threats, and budget allocations. This contract, valued at $20.1 million, represents a single data point within a much larger and dynamic spending landscape for defense R&D.

What are the implications of awarding an R&D contract to a single entity (Alion Science and Technology Corporation) for over six years?

Awarding a significant R&D contract to a single entity for an extended period, like Alion Science and Technology Corporation for over six years, implies a strategic decision to foster deep expertise and long-term collaboration within a specific research area. This can lead to continuity, institutional knowledge, and potentially more integrated solutions. However, it also carries risks, such as potential complacency, reduced pressure to innovate aggressively once the contract is secured, and a lack of exposure to alternative approaches or technologies that might emerge from a more diverse set of contractors. The government must ensure robust performance management and potentially incorporate mechanisms for periodic re-evaluation or competitive phasing to mitigate these risks and maintain optimal value.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DC213

IDV Type: IDC

Timeline