Alion Science and Technology Corp. awarded $39M for DoD materials R&D and testing support

Contract Overview

Contract Amount: $38,959,397 ($39.0M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-12

End Date: 2016-12-29

Contract Duration: 839 days

Daily Burn Rate: $46.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0926, DO 0080, ENTITLED "SCIENTIFIC, TECHNICAL, AND OPERATIONAL SUPPORT INFORMATION (STOSI) RELATING TO MATERIALS, MANUFACTURING AND TESTING RESEARCH AND DEVELOPMENT (R&D), DESIGN, DEVELOPMENT, ANALYSIS, EVALUATION, OPERATIONS AND MAINTENANCE OF DOD SYSTEMS AND MILITARY SYSTEMS FOR ARDEC AND ASSOCIATED PM PROGRAMS"

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: IGF::CL::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0926, DO 0080, ENTITLED "SCIENTIFIC, TECHNICAL, AND OPERATIONAL SUPPORT INFORMATION (STOSI) RELATING TO MATERIALS, MANUFACTURING AND TESTING RESEARCH AND DEVELOPMENT (R&D), DESIGN, DEVELOPMENT, ANALYSIS, EVALUATION, OPERATIONS AND M… Key points: 1. Contract provides scientific, technical, and operational support for materials, manufacturing, and testing R&D. 2. Services encompass design, development, analysis, evaluation, operations, and maintenance of DoD systems. 3. Focus on ARDEC and associated Program Manager (PM) programs within the Department of Defense. 4. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. Performance period spans over two years, from September 2014 to December 2016. 6. This award represents a significant investment in advanced materials and manufacturing capabilities for defense. 7. The contract is a Delivery Order under 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 cost efficiency. While CPFF contracts can be suitable for R&D where costs are uncertain, they carry a higher risk of exceeding initial estimates compared to fixed-price contracts. Benchmarking the specific services against similar R&D support contracts would provide a clearer picture of value for money. Without detailed cost breakdowns or comparisons to market rates for specialized scientific and technical support, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting a robust bidding process. The specific number of bidders is not provided, but full and open competition generally aims to maximize the pool of potential offerors, fostering price discovery and potentially leading to more competitive pricing. The Department of Defense's use of this method indicates a commitment to leveraging the broadest possible market for specialized R&D support.

Taxpayer Impact: Taxpayers benefit from a competitive process that should drive down costs and ensure the government receives the best value for its investment in critical research and development.

Public Impact

The primary beneficiaries are the Department of the Army's Research, Development and Engineering Command (ARDEC) and associated Program Manager programs. Services delivered include critical scientific, technical, and operational support for materials, manufacturing, and testing R&D. The geographic impact is primarily within the Department of Defense's research and development infrastructure. Workforce implications include employment for scientists, engineers, technicians, and support staff at Alion Science and Technology Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed diligently.
Lack of specific bidder count for full and open competition limits detailed analysis of competitive intensity.
The nature of R&D contracts can involve inherent uncertainties in cost and timeline.
Specific performance metrics and their outcomes are not detailed in the provided data.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
Contract supports critical R&D for advanced materials and defense systems.
The contract is a Delivery Order under an IDIQ, suggesting a pre-vetted contractor.
The contractor, Alion Science and Technology Corporation, likely possesses specialized expertise in the required technical areas.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D support is highly specialized, involving contractors with deep technical expertise and security clearances. Comparable spending benchmarks would typically be found within broader DoD R&D spending reports or specific program office budgets. The total award amount of approximately $39 million for a two-year period is substantial for specialized R&D support services.

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. The primary focus is on large business prime contractors and their ability to deliver specialized R&D services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency (Department of the Air Force, acting on behalf of the Department of Defense) and potentially the Department of Defense's Inspector General. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed programmatic oversight information is not publicly available.

Related Government Programs

Department of Defense Research and Development Programs
Materials Science and Engineering R&D
Advanced Manufacturing Technologies
Defense Systems Development and Testing
ARDEC Program Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risk.
Lack of detailed bidder information limits assessment of competitive intensity.
R&D projects inherently involve technical and programmatic uncertainties.
Specific performance metrics and outcomes are not detailed in the award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. IGF::CL::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0926, DO 0080, ENTITLED "SCIENTIFIC, TECHNICAL, AND OPERATIONAL SUPPORT INFORMATION (STOSI) RELATING TO MATERIALS, MANUFACTURING AND TESTING RESEARCH AND DEVELOPMENT (R&D), DESIGN, DEVELOPMENT, ANALYSIS, EVALUATION, OPERATIONS AND MAINTENANCE OF DOD SYSTEMS AND MILITARY SYSTEMS FOR ARDEC AND ASSOCIATED PM PROGRAMS"

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 $39.0 million.

What is the period of performance?

Start: 2014-09-12. End: 2016-12-29.

What is Alion Science and Technology Corporation's track record with the Department of Defense, particularly in R&D support?

Alion Science and Technology Corporation has a significant history of contracting with the Department of Defense across various R&D, engineering, and technical support domains. Their portfolio often includes work related to advanced materials, systems engineering, simulation, and training. Prior to this specific award, Alion would have been assessed for its technical capabilities, past performance, and financial stability. The award of this $39 million contract suggests a positive assessment of their capabilities and past performance relevant to the scientific, technical, and operational support requirements for ARDEC and associated PM programs. Further analysis would involve examining their performance on previous DoD contracts, including any awards, penalties, or significant issues encountered.

How does the $39 million award compare to similar R&D support contracts within the DoD?

The $39 million award for a roughly two-year period for specialized R&D support is a substantial but not extraordinary amount within the context of large defense contracts. The DoD procures billions of dollars annually in R&D services. To benchmark this specific contract, one would compare it to other contracts for scientific, technical, and operational support, particularly those focused on materials, manufacturing, and testing for similar military systems or research commands like ARDEC. Factors such as the specific technical scope, duration, and contract type (e.g., CPFF vs. fixed-price) influence comparability. Without access to a comprehensive database of comparable contracts and their specific scopes, a precise comparison is difficult, but the amount indicates a significant investment in a focused area of defense R&D.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's actual costs exceed initial estimates, the government bears the burden of these increased costs, while the contractor's profit remains fixed. This can lead to the total contract value exceeding the initially anticipated amount. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. Additionally, there's a risk that the contractor may not be sufficiently incentivized to control costs as tightly as they might under a fixed-price arrangement.

How effective is the full and open competition process in ensuring value for money for this type of specialized R&D support?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For specialized R&D support, this process allows the government to solicit proposals from companies with unique expertise. However, the effectiveness hinges on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit alongside cost. While competition is a strong indicator of potential value, the specific outcomes depend on the market dynamics for the niche services required and the rigor of the source selection process.

What are the historical spending patterns for similar scientific and technical support services within the DoD's R&D sector?

Historical spending patterns for scientific and technical support services within the DoD's R&D sector show a consistent and significant investment. The DoD relies heavily on external contractors to supplement its organic research capabilities, particularly in specialized areas like materials science, advanced manufacturing, and systems engineering. Spending in this category typically fluctuates based on strategic priorities, technological advancements, and specific program needs. Contracts for R&D support are often awarded under IDIQ vehicles, allowing for task orders like the one issued to Alion. Analyzing historical data would reveal trends in contract types, average award values, and the prevalence of specific service categories, indicating a sustained demand for such expertise.

What are the implications of this contract being a Delivery Order under an IDIQ contract?

This contract being a Delivery Order (DO) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies that a broader contract vehicle was previously established through competition, allowing for the issuance of multiple task or delivery orders over a period. For this specific award, it means Alion Science and Technology Corporation was pre-selected as a capable vendor under the IDIQ. The $39 million represents the value of this particular delivery order. The IDIQ structure provides flexibility for the government to procure services as needed, while the initial competition for the IDIQ itself should have established a baseline for pricing and performance. This approach streamlines the procurement process for subsequent needs within the scope of the IDIQ.

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: $49,379,837

Exercised Options: $49,379,837

Current Obligation: $38,959,397

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $73,023,101

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460006D0003

IDV Type: IDC

Timeline