Alion Science and Technology Corp. awarded $24.9M for underwater vehicle R&D, with a 2-year duration

Contract Overview

Contract Amount: $24,926,478 ($24.9M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-17

End Date: 2016-12-29

Contract Duration: 834 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0999, DO 0083, ENTITLED "UNDERWATER VEHICLE S MATERIALS AND PROCESSES SCIENCE, ENGINEERING, TESTING, AND EVALUATION"

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: IGF::OT::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0999, DO 0083, ENTITLED "UNDERWATER VEHICLE S MATERIALS AND PROCESSES SCIENCE, ENGINEERING, TESTING, AND EVALUATION" Key points: 1. Contract value represents a significant investment in advanced materials and processes for underwater vehicles. 2. The fixed-fee structure on a cost-plus award suggests a focus on managing project scope and contractor profit. 3. A relatively short performance period of 834 days indicates a project with defined deliverables and timelines. 4. The contract's focus on science, engineering, testing, and evaluation points to a research-intensive effort. 5. This award falls within the broader category of defense research and development, supporting national security objectives.

Value Assessment

Rating: fair

The contract value of $24.9 million for a two-year R&D effort appears within a reasonable range for specialized technical services. However, without specific benchmarks for similar 'Underwater Vehicle Materials and Processes Science, Engineering, Testing, and Evaluation' tasks, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can sometimes lead to less cost certainty compared to fixed-price contracts. Further analysis would require comparing the scope of work and deliverables to other contracts of a similar nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specialized R&D requirement. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the limited number of bidders could imply a niche market or specific technical expertise required, potentially impacting the degree of price negotiation.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and allowing for the selection of the most capable contractor. This approach helps prevent inflated costs that might arise from sole-source or limited-source procurements.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Navy, who will receive advancements in underwater vehicle technology. Services delivered include scientific research, engineering design, testing, and evaluation related to materials and processes for underwater vehicles. The geographic impact is primarily within the United States, supporting defense research facilities and potentially contributing to domestic technological innovation. Workforce implications include employment for scientists, engineers, technicians, and support staff at Alion Science and Technology Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee contract type can introduce cost uncertainty if not managed rigorously.
Limited competition (2 bidders) may indicate a specialized market where price discovery could be constrained.
The relatively short performance period might lead to rushed development or testing if not adequately resourced.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Focus on R&D in a critical defense area (underwater vehicles) suggests strategic importance.
The contractor, Alion Science and Technology, likely possesses specialized expertise relevant to the task.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced materials and processes for defense applications, particularly in naval and underwater systems, is highly specialized. Spending in this area is driven by the need for technological superiority and maintaining a strategic advantage. Comparable spending benchmarks would typically be found within other defense R&D contracts for similar scientific and engineering services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Alion Science and Technology Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Research and Development
Advanced Materials Science
Defense Engineering Services
Underwater Systems Technology
Science and Technology Research Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of research not yielding desired technical outcomes.
Limited competition may impact price negotiation.
Short performance period requires efficient project management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. IGF::OT::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-0999, DO 0083, ENTITLED "UNDERWATER VEHICLE S MATERIALS AND PROCESSES SCIENCE, ENGINEERING, TESTING, AND EVALUATION"

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 $24.9 million.

What is the period of performance?

Start: 2014-09-17. End: 2016-12-29.

What is Alion Science and Technology Corporation's track record with similar Department of Defense R&D contracts?

Alion Science and Technology Corporation has a significant history of performing research and development services for the Department of Defense across various domains, including but not limited to, naval systems, aerospace, and C5ISR. Their portfolio often includes complex engineering, testing, and evaluation tasks. Analyzing their past performance on contracts with similar technical scopes and pricing structures (e.g., CPFF) would provide insight into their ability to successfully execute this specific task. A review of past performance evaluations and any contract disputes or awards would be crucial for a comprehensive assessment. Their extensive experience suggests a strong capability in handling advanced scientific and engineering challenges for the DoD.

How does the $24.9 million value compare to other contracts for underwater vehicle materials and processes R&D?

Benchmarking the $24.9 million contract value requires comparing it against similar contracts specifically focused on 'Underwater Vehicle Materials and Processes Science, Engineering, Testing, and Evaluation.' Without access to a comprehensive database of such specialized R&D contracts, a precise comparison is difficult. However, for a two-year effort involving advanced scientific research, engineering, and testing, this value appears within a plausible range for a niche defense technology area. Factors influencing this value would include the complexity of the materials, the novelty of the processes, the rigor of testing required, and the specific expertise of the contractor. A broader comparison to general defense R&D contracts might show this as a moderate-sized award.

What are the primary risks associated with this contract, given its R&D nature and CPFF structure?

The primary risks associated with this contract stem from its Research and Development (R&D) nature and the Cost-Plus-Fixed-Fee (CPFF) structure. For R&D, the inherent risk is the uncertainty of achieving desired technical outcomes; the research may not yield the expected results or breakthroughs. The CPFF structure carries the risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, it doesn't cap the total cost to the government. Effective oversight, clear milestones, and robust technical monitoring are crucial to mitigate these risks and ensure the government receives value for its investment.

How effective is the 'full and open competition' approach likely to be given only two bidders responded?

The effectiveness of 'full and open competition' when only two bidders respond is a nuanced question. On the positive side, it still signifies that the opportunity was broadly advertised, and multiple entities could have participated. The presence of two bidders suggests some level of market interest and potential for competitive pricing. However, a low number of bids can also indicate a highly specialized market where only a few companies possess the requisite technical expertise or capacity. In such cases, the competitive pressure might be less intense than with a larger number of bidders, potentially impacting the government's ability to secure the lowest possible price. The government must ensure the solicitation was clear and accessible to all qualified sources.

What are the potential long-term implications of advancements in underwater vehicle materials and processes funded by this contract?

Advancements in underwater vehicle materials and processes funded by this contract could have significant long-term implications for national security and naval capabilities. Improved materials could lead to more durable, stealthier, or faster underwater vehicles, enhancing submarine performance and unmanned underwater vehicle (UUV) effectiveness. Enhanced processes might enable more efficient manufacturing or repair, reducing lifecycle costs. These technological leaps can bolster the U.S. Navy's operational advantage, improve intelligence gathering, and support a wider range of missions, from reconnaissance to undersea warfare. The research could also spur innovation in related commercial sectors, such as deep-sea exploration or offshore energy.

What is the significance of the 'Illinois' location (IL) for this contract's execution?

The 'Illinois' location (IL) noted as 'ST' (State) likely refers to the state where Alion Science and Technology Corporation's relevant facility or a significant portion of the contract work is being performed or managed. While the specific impact of the Illinois location isn't detailed in the provided data, it could imply the utilization of state-based research institutions, workforce, or infrastructure. For a contract focused on R&D, the presence of specialized labs, universities, or a skilled technical workforce in Illinois could be advantageous. It may also influence logistical considerations and the geographic distribution of subcontracting opportunities, if any.

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: $24,926,478

Exercised Options: $24,926,478

Current Obligation: $24,926,478

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $24,125,114

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460006D0003

IDV Type: IDC

Timeline