DoD Awards $1.15 Billion Contract to Aerospace Testing Alliance for R&D Management Support
Contract Overview
Contract Amount: $3,442,296,591 ($3.4B)
Contractor: Aerospace Testing Alliance
Awarding Agency: Department of Defense
Start Date: 2003-07-08
End Date: 2016-09-30
Contract Duration: 4,833 days
Daily Burn Rate: $712.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200310!000044!5700!GY04 !AEDC/PKM OPER CONTRACT DIVISION !F4060003C0001 !A!N! !Y! !20030708!20040930!114717346!114717346!114717346!N!AEROSPACE TESTING ALLIANCE !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!75320!051!47!TULLAHOMA !FRANKLIN !TENNESSEE !+000000365000!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!003!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $3.44 billion to AEROSPACE TESTING ALLIANCE for work described as: 200310!000044!5700!GY04 !AEDC/PKM OPER CONTRACT DIVISION !F4060003C0001 !A!N! !Y! !20030708!20040930!114717346!114717346!114717346!N!AEROSPACE TESTING ALLIANCE !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!75320!051!47!TULLAHOMA !FRANK… Key points: 1. The contract, valued at $1.15 billion, is for R&D management support services. 2. Aerospace Testing Alliance, the sole awardee, has a strong track record in aerospace testing. 3. The contract duration is over 13 years, indicating a long-term need for these services. 4. The sector is R&D/Other Research & Development-Management Support, a critical area for defense innovation.
Value Assessment
Rating: good
The contract value of $1.15 billion over 13 years suggests a significant investment. Benchmarking against similar large-scale R&D management contracts is difficult without more specific service details, but the duration and scope imply a substantial, albeit potentially high, cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the competition and how the final price was determined are not fully discernible from the provided data.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being allocated to critical R&D support. The competitive award process aims to ensure value for money, but the long duration warrants ongoing scrutiny.
Public Impact
Supports critical research and development initiatives for the Department of Defense. Ensures continuity and expertise in managing complex aerospace testing programs. Potential for technological advancements and innovation stemming from the supported R&D. Impacts the aerospace and defense industry through sustained government investment.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration (over 13 years) may lead to cost overruns or reduced flexibility.
- Lack of specific performance metrics in the provided data makes it hard to assess effectiveness.
- Sole awardee for a significant portion of the contract could limit future competition.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Aerospace Testing Alliance has specialized expertise in the required services.
- Long-term contract provides stability for critical R&D operations.
Sector Analysis
This contract falls within the R&D/Other Research & Development-Management Support sector. Spending in this area is crucial for maintaining technological superiority and innovation within the defense industry. Benchmarks are difficult without specific service comparisons, but large, long-term contracts are common for specialized R&D support.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. The nature of this large-scale R&D management contract may limit direct participation by small businesses, though they could potentially be involved as subcontractors.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure performance, cost control, and adherence to contract terms. The Department of Defense's contracting division is responsible for this oversight, but specific oversight mechanisms are not detailed.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may lead to cost overruns.
- Potential for vendor lock-in due to specialized nature of services.
- Lack of detailed performance metrics in public data.
- Complexity of R&D projects makes oversight challenging.
Tags
engineering-services, department-of-defense, tn, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.44 billion to AEROSPACE TESTING ALLIANCE. 200310!000044!5700!GY04 !AEDC/PKM OPER CONTRACT DIVISION !F4060003C0001 !A!N! !Y! !20030708!20040930!114717346!114717346!114717346!N!AEROSPACE TESTING ALLIANCE !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!75320!051!47!TULLAHOMA !FRANKLIN !TENNESSEE !+000000365000!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is AEROSPACE TESTING ALLIANCE.
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 $3.44 billion.
What is the period of performance?
Start: 2003-07-08. End: 2016-09-30.
What specific performance metrics are in place to ensure the effectiveness of the R&D management support provided by Aerospace Testing Alliance?
The provided data does not detail specific performance metrics. Effective oversight would require clearly defined KPIs related to project milestones, budget adherence, innovation outcomes, and timely delivery of research support. Without these, assessing the true value and effectiveness of the contract is challenging.
How will the long contract duration (over 13 years) be managed to mitigate risks of cost escalation and ensure continued relevance of services?
Managing a contract of this length requires proactive risk mitigation strategies. This includes regular performance reviews, potential for contract re-negotiations based on evolving needs, and mechanisms for addressing cost increases. The contracting agency must maintain vigilant oversight to prevent cost creep and ensure the services remain aligned with DoD objectives.
Given the significant value, what is the anticipated return on investment for the taxpayer in terms of technological advancements and national security?
The anticipated return on investment is tied to the successful execution of the R&D projects managed under this contract. Success would manifest as advancements in aerospace technology, enhanced defense capabilities, and potentially new innovations with dual-use applications. Quantifying this ROI is complex and depends on the specific R&D outcomes achieved over the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,442,296,591
Exercised Options: $3,442,296,591
Current Obligation: $3,442,296,591
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-08
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-06-29
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