DoD's $25M contract for space vehicle and directed energy advisory services awarded to Apogee Engineering, LLC

Contract Overview

Contract Amount: $25,093,069 ($25.1M)

Contractor: Apogee Engineering, LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-15

End Date: 2024-11-15

Contract Duration: 2,011 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS TO OBTAIN ADVISORY AND ASSISTANCE SERVICES IN THE FIELD OF SPACE VEHICLES AND DIRECTED ENERGY.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to APOGEE ENGINEERING, LLC for work described as: THIS REQUIREMENT IS TO OBTAIN ADVISORY AND ASSISTANCE SERVICES IN THE FIELD OF SPACE VEHICLES AND DIRECTED ENERGY. Key points: 1. Contract provides critical advisory and assistance services for space vehicles and directed energy. 2. Awarded through full and open competition, suggesting a competitive marketplace for these specialized services. 3. The contract duration extends over five years, indicating a long-term need for these capabilities. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 5. The primary agency is the Department of the Air Force, a key player in space and directed energy development. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a broad but relevant category.

Value Assessment

Rating: good

The total contract value of approximately $25 million over five years suggests a moderate investment in specialized advisory services. Benchmarking this against similar contracts for space vehicle and directed energy expertise is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can be a reasonable approach for complex, evolving technical services where precise costs are difficult to predict upfront. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which is a specific type of competitive procedure. It implies that the agency initially considered multiple sources but then excluded some before proceeding with a competitive award. The fact that it was competed suggests that multiple firms likely had the capability to provide these specialized advisory services. The number of bidders is not explicitly stated, but the competitive nature should have driven price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions.

Public Impact

The Department of the Air Force benefits from expert advisory services to support its programs in space vehicles and directed energy. These services are crucial for the development and sustainment of advanced defense capabilities. The contract supports the advancement of technologies critical to national security in space and directed energy domains. The geographic impact is likely concentrated around the Air Force facilities where these advisory services are rendered, potentially within Alabama where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs.
The specific nature of 'advisory and assistance services' can sometimes be broad, requiring clear performance metrics to ensure value.
The 'exclusion of sources' in the competition type warrants further understanding to ensure maximum competitive benefit was achieved.

Positive Signals

Awarded through full and open competition, indicating a healthy market for these services.
The contract duration suggests a stable, long-term need and commitment from the agency.
Apogee Engineering, LLC, as the awardee, likely possesses specialized expertise in space vehicles and directed energy.

Sector Analysis

The defense sector, particularly within the Air Force, heavily invests in research, development, and acquisition of advanced technologies like space vehicles and directed energy. This contract fits within the broader engineering services market, supporting the government's need for specialized technical expertise. Comparable spending benchmarks would depend on the specific sub-disciplines within space vehicles and directed energy, but advisory services for such critical areas are typically high-value contracts.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor, Apogee Engineering, LLC, may engage small businesses as subcontractors to fulfill parts of the contract requirements, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the contracting officer and their representatives (CORs) to monitor costs, performance, and compliance. The Department of the Air Force has established procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Vehicle Development Programs
Directed Energy Weapon Systems
Aerospace Engineering Services
Defense Research and Development
Air Force Acquisition Programs

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Definition of 'Advisory Services'
Effectiveness of Competition Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to APOGEE ENGINEERING, LLC. THIS REQUIREMENT IS TO OBTAIN ADVISORY AND ASSISTANCE SERVICES IN THE FIELD OF SPACE VEHICLES AND DIRECTED ENERGY.

Who is the contractor on this award?

The obligated recipient is APOGEE ENGINEERING, 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 $25.1 million.

What is the period of performance?

Start: 2019-05-15. End: 2024-11-15.

What is Apogee Engineering, LLC's track record with the Department of Defense, particularly in space vehicles and directed energy?

Apogee Engineering, LLC has a history of contracting with the Department of Defense, as evidenced by this award. While specific details on their past performance in space vehicles and directed energy are not provided in the summary data, their selection for this significant contract suggests they possess the requisite expertise and capabilities. Further analysis would involve reviewing their contract history, past performance evaluations, and any publicly available project information to assess their experience and success rate in these specialized technical fields. Understanding their prior work on similar complex projects would provide a clearer picture of their capabilities and reliability.

How does the $25 million contract value compare to similar advisory services contracts for space vehicles and directed energy?

The $25 million contract value over five years, averaging $5 million annually, represents a moderate investment for specialized advisory services in cutting-edge fields like space vehicles and directed energy. Without access to a comprehensive database of comparable contracts, a precise benchmark is difficult. However, contracts for highly specialized engineering and advisory support within the defense sector can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. This award appears to be within a typical range for focused, long-term advisory support for specific technological domains within the Department of the Air Force.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advisory services in advanced technology areas?

The primary risks with a CPFF contract for advanced technology advisory services include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, leading to increased expenses beyond initial projections. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of reimbursing allowable costs. For advisory services, defining clear deliverables and performance metrics is crucial to prevent scope creep and ensure the contractor remains focused on providing valuable, cost-effective guidance. Effective government oversight is paramount to monitor expenditures, ensure efficiency, and validate the necessity of all incurred costs.

How effective is 'full and open competition after exclusion of sources' in ensuring competitive pricing for specialized defense services?

The effectiveness of 'full and open competition after exclusion of sources' in ensuring competitive pricing can be variable. This method implies that the agency identified potential sources, excluded some based on specific criteria (e.g., capability, past performance, or other pre-defined factors), and then competed the requirement among the remaining eligible sources. While it aims to ensure a competitive environment, the exclusion of certain sources could potentially limit the overall pool of bidders and, consequently, the intensity of price competition. The degree of competition achieved depends heavily on the number of sources remaining after exclusions and the rigor of the evaluation process.

What is the historical spending pattern for advisory and assistance services related to space vehicles and directed energy within the Department of the Air Force?

Analyzing historical spending patterns for advisory and assistance services related to space vehicles and directed energy within the Department of the Air Force would require access to detailed historical contract data. Such an analysis would typically involve querying federal procurement databases (like FPDS or USASpending) for relevant NAICS codes (e.g., 541330 for Engineering Services) and keywords related to 'space vehicles,' 'directed energy,' and 'advisory services' over several fiscal years. This would reveal trends in contract awards, average contract values, prime contractors, and the overall investment in these support services, helping to contextualize the current $25 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA945318R0007

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8610 EXPLORER DRIVE, SUITE 305, COLORADO SPRINGS, CO, 80920

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,290,165

Exercised Options: $30,290,165

Current Obligation: $25,093,069

Actual Outlays: $1,567,414

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $11,353,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS133

IDV Type: IDC

Timeline