Alion Science and Technology awarded $21.1M for engineering support, with a significant portion allocated to R&D

Contract Overview

Contract Amount: $21,103,765 ($21.1M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2014-07-11

End Date: 2016-12-29

Contract Duration: 902 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF "RAPID ENGINEERING SOLUTIONS FOR LIFECYCLE SUPPORT"

Place of Performance

Location: BURR RIDGE, COOK County, ILLINOIS, 60527

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: IGF::OT::IGF "RAPID ENGINEERING SOLUTIONS FOR LIFECYCLE SUPPORT" Key points: 1. Contract value of $21.1M over approximately 2.5 years indicates a moderate investment in specialized engineering services. 2. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns, requiring diligent oversight. 3. Full and open competition was utilized, implying a robust market search and potential for competitive pricing. 4. The primary NAICS code (541710) points to a focus on research and development, aligning with innovation goals. 5. Performance occurred primarily in Illinois, suggesting a localized impact on the regional workforce and economy. 6. The contract was awarded as a delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure costs remain within reasonable bounds. Benchmarking this specific contract's value is challenging without knowing the scope of 'RAPID ENGINEERING SOLUTIONS FOR LIFECYCLE SUPPORT.' However, the total award of $21.1M over roughly two and a half years suggests a moderate investment. The contract's duration and cost structure imply a need for strong performance metrics and cost controls to achieve value for money.

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. This approach generally fosters a competitive environment, which can lead to better pricing and a wider selection of qualified contractors. The specific number of bidders is not provided, but the method itself suggests a deliberate effort to maximize market participation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, thereby optimizing the use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense, receiving specialized engineering and R&D support. Services delivered include research and development in physical, engineering, and life sciences, contributing to technological advancements. The geographic impact is concentrated in Illinois, where the contractor Alion Science and Technology Corporation is based or performed the work. Workforce implications may include employment opportunities for engineers, scientists, and support staff within Alion and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit, necessitating robust oversight.
The 'RAPID ENGINEERING SOLUTIONS' title suggests a need for agility, but the contract duration might not fully align with truly rapid development cycles.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the true value and effectiveness of the services rendered.
The contract was a delivery order, implying it was part of a larger IDIQ, which can sometimes obscure the full scope and cumulative cost of related efforts.

Positive Signals

Awarded under full and open competition, suggesting a broad search for the best value.
The contractor, Alion Science and Technology Corporation, is a known entity in the defense and engineering sector, implying a degree of established capability.
The NAICS code indicates a focus on R&D, which can lead to innovation and technological advancements beneficial to national security.
The contract duration of over two years allowed for sustained effort on complex engineering challenges.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541710. This sector is characterized by innovation, scientific inquiry, and the application of research findings to develop new technologies or improve existing ones. The market size for R&D services within the defense sector is substantial, driven by the continuous need for technological superiority. This contract likely represents a component of a larger defense R&D strategy, aiming to enhance specific capabilities or address emerging threats.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, as a large prime contractor, Alion Science and Technology Corporation may engage small businesses as subcontractors, depending on the specific needs of the project and their internal subcontracting policies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, monitoring performance, and verifying costs. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates particularly diligent oversight to control costs and ensure the contractor is operating efficiently and effectively. Transparency would be enhanced through regular reporting requirements and potential audits by the Inspector General.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Task Orders

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
The 'RAPID' nature of the contract title may present challenges in achieving speed within the specified duration and cost structure.
Lack of detailed performance metrics in the provided data hinders a comprehensive assessment of contract effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. IGF::OT::IGF "RAPID ENGINEERING SOLUTIONS FOR LIFECYCLE 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2014-07-11. End: 2016-12-29.

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

Alion Science and Technology Corporation has a significant history of contracting with the Department of Defense across various service areas, including research and development, engineering, and technical support. Their involvement often spans complex projects requiring specialized expertise. While specific performance details for individual contracts are not always publicly available, their continued awards suggest a generally satisfactory performance history and capability to meet DoD requirements. Analyzing past performance reviews, any contract disputes, or awards for exceptional performance would provide a more granular understanding of their track record.

How does the value of this contract compare to similar R&D contracts awarded by the DoD?

The $21.1 million award for this contract, spanning approximately 2.5 years, represents a moderate investment for a research and development project within the Department of Defense. Comparable R&D contracts can range from a few million dollars for specialized studies to hundreds of millions or even billions for large-scale system development. The specific nature of 'RAPID ENGINEERING SOLUTIONS FOR LIFECYCLE SUPPORT' makes direct comparison difficult without detailed scope information. However, for a project focused on engineering solutions and R&D, this award falls within a common range for mid-sized, focused efforts rather than broad, multi-year system acquisition programs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This structure can sometimes incentivize contractors to incur higher costs, as their profit is guaranteed regardless of cost efficiency, unlike fixed-price contracts. For the government, this necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. There's also a risk that the contractor might not be as motivated to innovate cost-saving measures. The 'RAPID' nature of the title could also introduce risk if the fixed fee doesn't adequately compensate for unforeseen challenges in achieving speed.

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

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including R&D. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This method increases the likelihood that the government will receive the best technical solution at the most reasonable cost. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to properly assess proposals. For complex R&D, ensuring proposals are evaluated on technical merit as well as cost is crucial.

What is the historical spending trend for engineering and R&D services by the Department of Defense?

The Department of Defense consistently represents one of the largest government spenders on engineering and Research and Development (R&D) services. Annual spending in these categories typically runs into the tens of billions of dollars, reflecting the critical role of technological advancement and engineering expertise in maintaining national security. Trends show a continuous demand for R&D across various domains, including aerospace, cybersecurity, materials science, and artificial intelligence. While specific figures fluctuate based on geopolitical factors and budget allocations, the overall trend indicates a sustained and significant investment in these critical capabilities.

What are the implications of the 'Delivery Order' award type for this contract?

The designation of this contract as a 'Delivery Order' indicates that it was issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQs provide a flexible contracting vehicle where the government establishes terms and conditions, and then issues specific orders (like this one) for goods or services as needed. This allows for faster procurement and flexibility. For taxpayers, the implication is that this $21.1M is a component of a potentially larger IDIQ program. Understanding the total value and scope of the parent IDIQ contract is essential for a complete picture of the government's investment and the contractor's overall engagement.

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

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: $23,936,197

Exercised Options: $23,936,197

Current Obligation: $21,103,765

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $13,248,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460006D0003

IDV Type: IDC

Timeline