DoD's $30.8M R&D contract with Axient LLC for advanced technology development shows fair value

Contract Overview

Contract Amount: $30,818,269 ($30.8M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-01

End Date: 2018-05-24

Contract Duration: 2,457 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PHASE-IN

Place of Performance

Location: COCOA BEACH, BREVARD County, FLORIDA, 32931

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to AXIENT LLC for work described as: PHASE-IN Key points: 1. Contract awarded to Axient LLC for research and development in physical, engineering, and life sciences. 2. The contract type is Cost Plus Fixed Fee, indicating shared risk between the government and contractor. 3. A definitive contract with a duration of 2457 days suggests a long-term commitment to the R&D effort. 4. The contract was competed under 'Full and Open Competition After Exclusion of Sources', implying a competitive process with specific justifications. 5. The North American Industry Classification System (NAICS) code 541712 points to a focus on scientific research and development services. 6. The contract was awarded by the Department of the Air Force, a major component of the Department of Defense. 7. The contract's value of approximately $30.8 million over its duration indicates a significant investment in technological advancement.

Value Assessment

Rating: good

The contract's value of $30.8 million over nearly seven years for R&D services appears reasonable when benchmarked against similar long-term, complex research projects within the Department of Defense. While specific cost breakdowns are not provided, the Cost Plus Fixed Fee structure allows for flexibility in research while capping the contractor's profit. The absence of detailed performance metrics makes a precise value-for-money assessment challenging, but the duration suggests a sustained effort deemed worthwhile by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This designation suggests that while the competition was intended to be broad, specific circumstances or justifications led to the exclusion of certain potential sources. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a more tailored competition than a purely open solicitation. This approach can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may have resulted in a higher price than could have been achieved through a completely unrestricted bidding process, potentially impacting taxpayer value.

Public Impact

This contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and capabilities for the Department of Defense. The research and development activities are likely to benefit national security by enhancing military readiness and technological superiority. The contract's duration suggests a sustained effort that could lead to significant breakthroughs in the targeted scientific fields. The geographic impact is primarily within Florida, where the contract was administered, potentially creating local economic benefits and employment opportunities in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' aspect of the competition warrants further scrutiny to ensure maximum value was obtained for taxpayer funds.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and efficiency of the R&D investment.
The Cost Plus Fixed Fee structure, while flexible, can sometimes incentivize cost overruns if not rigorously managed.

Positive Signals

The long contract duration (2457 days) indicates a strategic, long-term investment by the Air Force in critical R&D areas.
The contract was awarded to Axient LLC, suggesting a potentially established relationship or recognized expertise in the relevant scientific fields.
The research focus aligns with critical defense needs, promising advancements in technology.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The R&D sector is characterized by innovation and long-term investment, often involving specialized expertise and significant government funding to drive technological progress. Comparable spending benchmarks in this area are highly variable, depending on the specific scientific domain and the scale of the research. The Department of Defense is a major investor in R&D, seeking to maintain a technological edge.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem mandated by this award. The focus appears to be on securing specialized R&D capabilities from the prime contractor, Axient LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract databases and agency reporting, though specific R&D project details may be subject to security or proprietary restrictions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Cost Plus Fixed Fee Research Contracts

Risk Flags

Competition level may limit price discovery.
Cost overruns possible with CPFF structure.
Lack of detailed performance metrics hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to AXIENT LLC. PHASE-IN

Who is the contractor on this award?

The obligated recipient is AXIENT LLC.

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 $30.8 million.

What is the period of performance?

Start: 2011-09-01. End: 2018-05-24.

What is Axient LLC's track record with similar R&D contracts for the Department of Defense?

Axient LLC has a history of performing research and development services for the Department of Defense. While specific details on past performance for similar R&D contracts are not provided in this data snippet, their engagement on a $30.8 million contract suggests a level of established capability and trust. A deeper dive into their contract history, including past performance reviews and any documented issues, would be necessary for a comprehensive assessment. However, securing a multi-year, significant R&D award indicates they meet certain agency standards for technical expertise and project management in complex scientific endeavors.

How does the $30.8 million cost compare to similar R&D efforts in physical, engineering, and life sciences?

Benchmarking the $30.8 million cost requires comparing it to contracts with similar scope, duration, and scientific focus within the physical, engineering, and life sciences R&D domain. Given the contract's duration of 2457 days (nearly 7 years), the annual average cost is approximately $4.2 million. This figure needs to be assessed against the complexity and novelty of the research. Without specific details on the project's objectives and deliverables, a precise comparison is difficult. However, for long-term, high-risk R&D projects within DoD, this level of investment is not uncommon, reflecting the specialized personnel, equipment, and time required for scientific advancement.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and potential for cost overruns. While the 'fixed fee' component caps the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the R&D effort proves more complex or time-consuming than initially estimated, costs can escalate significantly, potentially exceeding initial budget projections. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks. The government also bears the risk if the R&D does not yield the desired technological outcomes, despite incurring costs.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for money?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance competitive principles with specific agency needs. It suggests that the agency initially considered a broad competition but then excluded certain sources based on defined criteria (e.g., specific technical capabilities, national security concerns, or prior development efforts). While it is more competitive than a sole-source award, the exclusion of potential bidders inherently limits the breadth of competition. The effectiveness in ensuring value for money depends heavily on the justification for exclusion and the number of remaining bidders. If the exclusions were well-founded and sufficient competition remained, good value can be achieved. However, if exclusions were overly broad, it could lead to reduced price competition and potentially higher costs for the government.

What are the historical spending patterns for R&D in physical, engineering, and life sciences by the Department of the Air Force?

The Department of the Air Force consistently allocates significant funding towards Research and Development (R&D) in physical, engineering, and life sciences. Historical spending patterns show a strong emphasis on advancing technologies critical for air and space superiority, encompassing areas like materials science, aerospace engineering, advanced computing, and human systems integration. These investments are often characterized by long-term projects, reflecting the iterative nature of scientific discovery and technological maturation. The total annual R&D spending by the Air Force can fluctuate based on strategic priorities, budget allocations, and emerging technological threats or opportunities, but it generally represents a substantial portion of its overall budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA252110R0002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2231 CRYSTAL DR STE 711, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,255,629

Exercised Options: $31,255,629

Current Obligation: $30,818,269

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $306,769

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline