DoD's $225M R&D Contract with ACADEMI TRAINING CENTER LLC Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $225,069,134 ($225.1M)
Contractor: Academi Training Center LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2011-11-30
Contract Duration: 1,157 days
Daily Burn Rate: $194.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: R&D
Official Description: CNTPO SUPPORT - BASE YEAR TAS::97 0100::TAS
Plain-Language Summary
Department of Defense obligated $225.1 million to ACADEMI TRAINING CENTER LLC for work described as: CNTPO SUPPORT - BASE YEAR TAS::97 0100::TAS Key points: 1. Significant contract value of $225M for R&D services. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. Contract duration of over 3 years indicates a substantial, long-term commitment. 4. Research and Development sector, NAICS 541710, often involves complex and evolving requirements. 5. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $225M for a 3-year R&D effort requires further analysis to benchmark against similar fixed-price level of effort contracts. Without detailed task breakdowns and performance metrics, assessing the true value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the effectiveness of this competition in achieving optimal pricing for complex R&D services needs to be evaluated, especially given the contract's significant value.
Taxpayer Impact: Taxpayer funds are being utilized for a substantial R&D investment. Ensuring this investment yields effective results and represents fair pricing is crucial for fiscal responsibility.
Public Impact
Significant federal investment in research and development. Potential for technological advancements or scientific breakthroughs. Contract awarded to a single entity, ACADEMI TRAINING CENTER LLC. Long-term commitment of taxpayer funds for R&D services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Value for Money Assessment
- Performance Metrics Clarity
- Small Business Participation
- Long-term Commitment Risk
Positive Signals
- Full and Open Competition
- Clear Contract Type (Fixed Price Level of Effort)
Sector Analysis
This contract falls within the Research and Development sector (NAICS 541710), which is characterized by innovation and often long project timelines. Benchmarking R&D spending can be difficult due to the unique nature of projects, but significant investments are common in areas like defense.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). Further investigation is needed to determine if opportunities were missed to engage small businesses in this significant R&D effort.
Oversight & Accountability
Oversight is critical for R&D contracts to ensure progress aligns with objectives and funds are used efficiently. The fixed-price level of effort structure requires diligent monitoring of deliverables and milestones to manage risks and ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpricing given the contract value and duration.
- Lack of clarity on specific R&D outcomes and performance metrics.
- Absence of small business participation.
- Long-term commitment may not adapt to evolving research needs.
- Risk of technological obsolescence during the contract period.
Tags
research-and-development-in-the-physical, department-of-defense, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $225.1 million to ACADEMI TRAINING CENTER LLC. CNTPO SUPPORT - BASE YEAR TAS::97 0100::TAS
Who is the contractor on this award?
The obligated recipient is ACADEMI TRAINING CENTER LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $225.1 million.
What is the period of performance?
Start: 2008-09-29. End: 2011-11-30.
How does the $225M contract value compare to similar R&D efforts within the Department of Defense, and what specific deliverables justify this investment?
Benchmarking this $225M contract against similar R&D efforts within the DoD is challenging without more granular data on the specific research areas and expected outcomes. Fixed-price level of effort contracts can sometimes obscure true value if not meticulously managed. Detailed performance metrics and independent cost analyses are necessary to ascertain if the investment aligns with industry standards and delivers expected scientific or technological advancements.
What are the primary risks associated with a 3-year, $225M fixed-price level of effort R&D contract, and how are they being mitigated?
Key risks include scope creep, technological obsolescence, and the contractor's ability to deliver the promised R&D outcomes within the fixed price. Mitigation strategies should involve robust project management, regular technical reviews, clear milestone definitions, and contingency planning for unforeseen research challenges. The long duration amplifies these risks, necessitating continuous oversight.
Given the full and open competition, was the pricing discovery process effective in securing the best possible value for the taxpayer on this $225M R&D contract?
While full and open competition is a positive indicator, its effectiveness in price discovery for complex R&D is not guaranteed. The nature of research can make precise cost estimation difficult. A thorough review of the bidding process, the evaluation criteria used, and the final negotiated price against independent estimates is needed to confirm optimal value was achieved for the taxpayer.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9113M06R0014
Offers Received: 13
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Parent Company: Constellis Holdings, LLC (UEI: 966133477)
Address: 850 PUDDIN RIDGE RD, MOYOCK, NC, 27958
Business Categories: Category Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $407,791,523
Exercised Options: $317,838,009
Current Obligation: $225,069,134
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0005
IDV Type: IDC
Timeline
Start Date: 2008-09-29
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2016-10-17
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