DoD awards $62.6M contract for testing services, with The Bionetics Corp as prime
Contract Overview
Contract Amount: $62,627,191 ($62.6M)
Contractor: THE Bionetics Corp
Awarding Agency: Department of Defense
Start Date: 2022-11-04
End Date: 2026-11-30
Contract Duration: 1,487 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AFPSL RECOMPETE
Place of Performance
Location: HEATH, LICKING County, OHIO, 43056
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $62.6 million to THE BIONETICS CORP for work described as: AFPSL RECOMPETE Key points: 1. Contract value appears reasonable given the scope of testing services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 5 years provides stability for service delivery. 5. The Bionetics Corp has a significant presence in government contracting. 6. Services are essential for ensuring the reliability of defense systems.
Value Assessment
Rating: good
The contract's value of $62.6 million over approximately five years suggests a moderate annual spend. Benchmarking against similar contracts for testing laboratories and services is crucial for a definitive value assessment. However, the firm fixed-price nature of the award indicates that the government has secured a defined cost for the services, which is a positive indicator for value.
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 offers. The presence of 5 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.
Public Impact
The Department of Defense benefits from reliable testing and evaluation of its systems and equipment. This contract supports critical testing laboratories and services necessary for national security. The geographic impact is primarily within Ohio, where the contractor is located. Workforce implications include employment opportunities for scientists, technicians, and support staff in the testing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single contractor for critical testing services could pose a risk if performance degrades.
Positive Signals
- Firm fixed-price contract limits the government's exposure to cost increases.
- Full and open competition indicates a robust market and potential for future competitive awards.
- The Bionetics Corp's established presence suggests experience and capability in delivering these services.
Sector Analysis
The contract falls within the 'Testing Laboratories and Services' sector (NAICS 541380), a critical component of the broader professional, scientific, and technical services industry. This sector supports various government agencies by providing specialized testing, analysis, and evaluation. Spending in this area is often driven by the need for quality assurance, research and development validation, and compliance verification for complex systems, particularly within defense and aerospace.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, The Bionetics Corp, is not identified as a small business. Further analysis would be needed to determine if subcontracting opportunities exist within the small business ecosystem.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically be managed by contracting officers and program managers within the Air Force. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development
- Air Force Logistics and Maintenance Services
- Defense Contract Audit Agency Oversight
- Federal Acquisition Regulation Compliance
Risk Flags
- Contract duration may lead to contractor complacency if not actively managed.
- Reliance on a single prime contractor for critical services warrants close performance monitoring.
Tags
defense, department-of-defense, air-force, testing-laboratories, definitive-contract, firm-fixed-price, full-and-open-competition, ohio, professional-scientific-and-technical-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.6 million to THE BIONETICS CORP. AFPSL RECOMPETE
Who is the contractor on this award?
The obligated recipient is THE BIONETICS CORP.
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 $62.6 million.
What is the period of performance?
Start: 2022-11-04. End: 2026-11-30.
What is The Bionetics Corp's track record with the Department of Defense and other federal agencies?
The Bionetics Corporation has a substantial history of contracting with the U.S. federal government, particularly the Department of Defense. Reviewing historical contract data reveals numerous awards across various agencies, including the Air Force, Army, and Navy, for a range of services. These often include scientific, engineering, technical, and testing services. While specific performance metrics for past contracts are not detailed here, the consistent award of contracts suggests a perceived capability and reliability by government agencies. A deeper dive into past performance evaluations and any reported issues would provide a more comprehensive understanding of their track record.
How does the $62.6 million contract value compare to similar testing services contracts awarded by the DoD?
The $62.6 million contract value for testing laboratories and services is a significant award, but its relative value depends heavily on the specific scope and duration. To benchmark effectively, one would compare it against contracts for similar services (e.g., environmental testing, materials testing, systems validation) awarded by the Air Force or other DoD branches over comparable periods. The provided data indicates a 5-year duration (approx. 1487 days), making the annual value around $12.5 million. This figure needs to be assessed against the market rates for specialized testing capabilities, the complexity of the items being tested, and the number of bidders. Without specific comparable contract data, it's difficult to definitively state if this represents excellent, fair, or questionable value.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks for this contract include potential performance failures by the contractor, leading to delays or compromised testing integrity, and the risk of cost growth if the firm fixed-price (FFP) structure is not adequately managed or if unforeseen technical challenges arise. Mitigation strategies include the FFP award type itself, which shifts cost risk to the contractor. The government's oversight by contracting officers and program managers is crucial for monitoring performance against contract requirements and addressing any deviations promptly. The competitive nature of the award also incentivizes the contractor to perform well to secure future business. Furthermore, the contract's duration allows for a stable, long-term relationship, potentially fostering better communication and issue resolution.
How effective is the 'full and open competition' approach in ensuring competitive pricing for testing services?
The 'full and open competition' approach is generally considered the most effective method for ensuring competitive pricing because it maximizes the pool of potential bidders. By allowing all responsible sources to compete, the government increases the likelihood of receiving multiple proposals, which drives down prices through market forces. In this case, with 5 bidders, there was a reasonable level of competition. This process encourages contractors to offer their best pricing and technical solutions to win the award. While 5 bidders is a healthy number, the effectiveness can be further assessed by examining the price spread between the bids and whether the winning bid was significantly lower than others, indicating strong price competition.
What are the historical spending patterns for testing laboratories and services within the Department of the Air Force?
Historical spending patterns for testing laboratories and services within the Department of the Air Force (and DoD broadly) tend to be substantial and consistent, driven by the continuous need to validate the performance, safety, and reliability of complex military systems, aircraft, and equipment. Spending often fluctuates based on major acquisition programs, modernization efforts, and research and development initiatives. Contracts in this category can range from small, specialized testing engagements to large, multi-year agreements like the one awarded to The Bionetics Corp. Analysis of past spending would likely show a steady demand for these services, with significant portions allocated to defense readiness and technological advancement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA226320R0002
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Bionetics Corporation
Address: 101 PRODUCTION DR, YORKTOWN, VA, 23693
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $180,155,714
Exercised Options: $71,802,375
Current Obligation: $62,627,191
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $6,248,290
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-04
Current End Date: 2026-11-30
Potential End Date: 2032-11-30 00:00:00
Last Modified: 2025-12-15
More Contracts from THE Bionetics Corp
- On-Site Nctr Animal Care, Technical Procedures, Formulations and Veterinary Care Services — $27.3M (Department of Health and Human Services)
- Test Equipment Calibration Igf::ot::igf — $27.0M (Department of Transportation)
- On-Site Animal Care/Diet Preparation — $20.2M (Department of Health and Human Services)
- 200303!000171!5700!GD20 !oklahoma City Alc/Pko !F3465003C0008 !A!N! !Y! !20021210!20080131!062363619!062363619!062363619!n!the Bionetics Corporation !11833 Canon Blvd , Suite 1!newport News !va!23606!73800!017!40!tinker AFB !canadian !oklahoma !+000002852829!n!n!000012633707!j066!maint & Repair of Eq/Instruments & LAB Equipment !S1 !services !3000!NOT Discernable or Classified !811310!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!003!b! !C!N!Z! ! !Y!C!N! ! ! !c!d!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $15.5M (Department of Defense)
- Nctr On-Site Animal Care and Technical Procedures in Accordance With PWS and Appendices — $15.2M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)