DoD's $35M R&D contract for advanced detached operations processes awarded to Alion Science and Technology Corporation

Contract Overview

Contract Amount: $35,026,798 ($35.0M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2012-09-27

End Date: 2015-09-28

Contract Duration: 1,096 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AMMTIAC TAT 11-182, DEVELOPING ADVANCED PROCESSES FOR DETACHED OPERATIONS

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $35.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: AMMTIAC TAT 11-182, DEVELOPING ADVANCED PROCESSES FOR DETACHED OPERATIONS Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these specialized R&D services. 2. The contract's cost-plus-fixed-fee structure implies potential for cost overruns, requiring close monitoring. 3. Performance period of approximately three years provides a reasonable timeframe for achieving research objectives. 4. The specific focus on 'detached operations processes' indicates a niche but critical area within defense R&D. 5. Awarded by the Department of the Air Force, aligning with air and space-related defense initiatives.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D where scope can evolve, carries inherent risks of cost escalation. Without detailed breakdowns of labor, materials, and indirect costs, a precise value-for-money assessment is difficult. However, the fixed fee component provides some predictability for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. This competitive process is generally expected to drive better pricing and innovation. The presence of two bids suggests a moderate level of competition for this specialized research and development requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider pool of innovative solutions, maximizing the return on investment for federal R&D funds.

Public Impact

The Department of Defense, specifically the Air Force, benefits from advancements in operational processes. This contract supports the development of new technologies and methodologies for military operations. The primary beneficiaries are military personnel who may utilize improved operational processes in the future. Geographic impact is likely concentrated around research facilities and operational commands involved in testing and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The specialized nature of the R&D may limit the number of truly competitive bidders.
Defining and measuring success for advanced process development can be subjective.

Positive Signals

Awarded through full and open competition, indicating a healthy market for the service.
The fixed fee provides a ceiling on contractor profit, offering some cost control.
The contract duration allows for focused development and testing of new processes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541710). This sector is crucial for maintaining technological superiority in defense. Spending in defense R&D is substantial, with agencies like the Department of Defense investing heavily in innovation to address evolving threats and operational challenges. Comparable spending benchmarks would typically be found within broader DoD R&D portfolios, often segmented by specific technological areas or research objectives.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of advanced process development for defense, it is common for prime contracts to be awarded to large, established research corporations. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether Alion Science and Technology Corporation actively seeks small business partners for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would be tied to the delivery of milestones and final research outcomes as defined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though detailed R&D progress reports are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Air Force Advanced Technology Development
Operational Process Improvement Programs
Defense Science and Technology Strategy

Risk Flags

Cost Overrun Risk (CPFF Structure)
Limited Competition Potential (Niche R&D)
Performance Measurement Difficulty (R&D Outcomes)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. AMMTIAC TAT 11-182, DEVELOPING ADVANCED PROCESSES FOR DETACHED OPERATIONS

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 $35.0 million.

What is the period of performance?

Start: 2012-09-27. End: 2015-09-28.

What is the track record of Alion Science and Technology Corporation in delivering similar defense R&D contracts?

Alion Science and Technology Corporation (now part of Huntington Ingalls Industries) has a significant history of performing defense-related research and development contracts across various agencies, including the Department of Defense. Their portfolio often includes work in areas such as systems engineering, simulation and modeling, advanced materials, and C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance). While specific performance metrics for individual contracts are not publicly detailed, their sustained presence in the defense contracting landscape suggests a general capability to meet contract requirements. However, a deeper dive into past performance reviews and any past performance issues or awards would be necessary for a comprehensive assessment.

How does the $35 million contract value compare to other R&D contracts for advanced process development within the DoD?

The $35 million value for this contract, awarded over approximately three years, is within a moderate range for specialized R&D efforts within the Department of Defense. Larger, more complex R&D programs, particularly those involving major system development or foundational research across multiple scientific disciplines, can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused research tasks or feasibility studies might be valued in the low millions. This contract's value suggests a significant but not program-defining scope, likely focused on developing and refining specific operational processes rather than broad technological breakthroughs.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Alion, revolve around cost control and scope management. For the government, the risk is that the actual costs incurred by the contractor could exceed initial estimates, even though the contractor's profit (the 'fee') is fixed. This can lead to the total contract value being higher than anticipated if the 'cost' portion escalates significantly. For the contractor, the risk is that their actual costs might exceed the estimated costs, reducing their overall profit margin if they cannot manage expenses efficiently. Effective oversight, detailed cost tracking, and clear milestone definitions are crucial to mitigate these risks for the government.

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

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including specialized R&D. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices, encourages innovation, and increases the likelihood of selecting the best technical solution at a fair price. For specialized R&D, this approach ensures that the government accesses the widest possible pool of expertise and technology. However, the effectiveness is contingent on the clarity of the solicitation, the realism of the requirements, and the government's ability to evaluate complex technical proposals fairly. In cases where the R&D is highly niche, the number of bidders might be limited, potentially reducing the competitive pressure.

What are the potential implications of focusing R&D on 'detached operations processes' for future military capabilities?

Focusing R&D on 'detached operations processes' implies an effort to enhance the military's ability to conduct operations effectively when units are separated from primary support structures or main force elements. This could involve developing new doctrines, technologies, or logistical frameworks that improve self-sufficiency, communication resilience, situational awareness, and sustainment for dispersed or isolated units. Such advancements are critical for modern warfare scenarios that may involve distributed operations, special forces missions, or operating in contested environments where traditional support lines are vulnerable. The successful development and implementation of these processes could significantly increase operational flexibility, survivability, and mission success rates for deployed forces.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA460005R0010

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $48,320,075

Exercised Options: $48,320,075

Current Obligation: $35,026,798

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $35,378,704

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460006D0003

IDV Type: IDC

Timeline