DoD's $49.8M F-35 R&D contract awarded to Alion Science and Technology Corporation

Contract Overview

Contract Amount: $49,797,929 ($49.8M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-24

End Date: 2016-12-29

Contract Duration: 827 days

Daily Burn Rate: $60.2K/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 14-1004, DO 0084, ENTITLED "APPLICATION OF MATERIALS, MANUFACTURING AND TESTING TO INCREASE SUPPORTABILITY, SURVIVABILITY, PRODUCIBILITY, AND AFFORDABILITY OF THE F-35 LIGHTNING II PROGRAM"

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $49.8 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: IGF::OT::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-1004, DO 0084, ENTITLED "APPLICATION OF MATERIALS, MANUFACTURING AND TESTING TO INCREASE SUPPORTABILITY, SURVIVABILITY, PRODUCIBILITY, AND AFFORDABILITY OF THE F-35 LIGHTNING II PROGRAM" Key points: 1. Contract focuses on enhancing F-35 supportability, survivability, and affordability through advanced materials and manufacturing. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period of 827 days indicates a medium-term research and development effort. 4. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, balancing flexibility with contractor incentive. 5. Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710) is a critical area for defense modernization. 6. The contract was issued as a Delivery Order, likely part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without comparable task orders or broader program cost data. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs than fixed-price contracts if not managed carefully, but it is appropriate for R&D where costs are uncertain. The total award amount of $49.8 million over approximately two years suggests a significant investment in specialized research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred, the number of bidders can influence price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value for the government.

Public Impact

The primary beneficiary is the F-35 Lightning II Program, aiming to improve its long-term viability and reduce operational costs. Services delivered include research and development in materials science, manufacturing processes, and testing methodologies. The geographic impact is primarily within the United States, supporting advanced manufacturing and research capabilities. Workforce implications include employment for scientists, engineers, and technicians involved in specialized R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize cost overruns if not closely monitored.
The specific technical outcomes and their impact on affordability are not detailed, requiring further analysis.
Reliance on a single delivery order under a potential IDIQ may limit broader market engagement if not managed strategically.

Positive Signals

Awarded through full and open competition, promoting a fair marketplace.
Focus on R&D for affordability and survivability aligns with long-term program goals.
Alion Science and Technology Corporation's expertise in technical areas is likely a positive signal for successful execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced materials and manufacturing for aerospace applications. The aerospace and defense R&D market is highly specialized, driven by government funding and technological innovation. Comparable spending benchmarks would involve other R&D contracts for major defense platforms, where significant investments are made to enhance capabilities and reduce lifecycle costs.

Small Business Impact

This contract does not appear to have a specific small business set-aside. As a research and development effort for a major defense program, the prime contractor, Alion Science and Technology Corporation, is a large business. 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 the extent of subcontracting.

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. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and overall budget. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be sensitive.

Related Government Programs

F-35 Lightning II Program
Advanced Materials Research
Aerospace Manufacturing Technologies
Defense Research and Development Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technical Uncertainty in R&D
Integration Challenges of New Technologies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.8 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. IGF::OT::IGF NEW AMMTIAC TECHNICAL AREA TASK 14-1004, DO 0084, ENTITLED "APPLICATION OF MATERIALS, MANUFACTURING AND TESTING TO INCREASE SUPPORTABILITY, SURVIVABILITY, PRODUCIBILITY, AND AFFORDABILITY OF THE F-35 LIGHTNING II PROGRAM"

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 $49.8 million.

What is the period of performance?

Start: 2014-09-24. End: 2016-12-29.

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

Alion Science and Technology Corporation has a history of performing various research, development, and engineering services for the Department of Defense. Their portfolio often includes work related to advanced technologies, systems engineering, and program support across different military branches. Specific to R&D, they have been involved in projects aimed at enhancing platform performance, survivability, and operational efficiency. Analyzing their past performance on similar CPFF contracts would provide insight into their ability to manage costs and deliver technical solutions effectively within the DoD environment. Their experience with complex programs like the F-35 suggests a capability to handle challenging technical requirements.

How does the $49.8 million award compare to other R&D contracts for the F-35 program or similar defense platforms?

The $49.8 million award for this specific task order represents a significant but not exceptionally large investment within the context of major defense platform R&D. The F-35 program itself involves hundreds of billions of dollars in development and sustainment costs. Individual R&D contracts for specific enhancements or problem-solving can range from a few million to tens or even hundreds of millions of dollars, depending on the scope and duration. This particular contract's value is consistent with specialized research efforts aimed at improving specific aspects of the aircraft, such as materials and manufacturing, over a roughly two-year period. It is a component of the broader F-35 sustainment and modernization strategy.

What are the key risks associated with this Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a ceiling on their profit. If costs escalate significantly beyond initial estimates due to unforeseen technical challenges or scope creep, the government bears the brunt of the increased expenditure. Effective oversight is crucial to ensure that costs are reasonable and allocable, and that the contractor is making diligent efforts to control expenses. Another risk is that the contractor might not be sufficiently incentivized to control costs as rigorously as they would under a fixed-price contract, although the fixed fee does provide some incentive.

How effective are R&D contracts like this in achieving long-term affordability and survivability goals for major defense systems?

R&D contracts focused on materials, manufacturing, and testing are critical for achieving long-term affordability and survivability goals. Innovations in these areas can lead to lighter, stronger, or more durable components, reducing maintenance needs and increasing operational lifespan (survivability). Improved manufacturing processes can lower production costs and enhance reliability. For affordability, advancements can reduce the total cost of ownership through decreased fuel consumption, fewer repairs, and extended service life. The success of such contracts hinges on rigorous testing, validation, and successful integration of the developed technologies into the platform, which requires sustained program management and technical oversight.

What are the historical spending patterns for R&D related to the F-35 program, and how does this contract fit in?

Historical spending on the F-35 program's R&D has been substantial, encompassing initial development, upgrades, and ongoing sustainment engineering. This contract, valued at $49.8 million over approximately two years, represents a specific investment within the broader R&D and sustainment budget for the F-35. It aligns with a continuous effort to enhance the aircraft's capabilities and reduce its lifecycle costs. Such task orders are typical within larger IDIQ vehicles designed to provide agile acquisition of specialized R&D services as needed throughout the program's extensive operational life. It reflects a commitment to ongoing technological improvement rather than a one-time development effort.

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: $49,928,409

Exercised Options: $49,928,409

Current Obligation: $49,797,929

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $38,660,960

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA460006D0003

IDV Type: IDC

Timeline