DoD's $58.6M RISE SSP contract to Axient LLC for R&D shows strong competition and potential for value

Contract Overview

Contract Amount: $58,564,109 ($58.6M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2019-06-01

End Date: 2027-03-05

Contract Duration: 2,834 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: R&D

Official Description: RISE - SMALL SATELLITE PORTFOLIO (SSP)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $58.6 million to AXIENT LLC for work described as: RISE - SMALL SATELLITE PORTFOLIO (SSP) Key points: 1. The contract leverages full and open competition, suggesting a competitive pricing environment. 2. Performance is tied to research and development in physical, engineering, and life sciences. 3. The contract duration of 2834 days indicates a long-term commitment to the project. 4. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, Axient LLC, has a track record that warrants review for performance consistency. 6. The contract's focus on R&D suggests potential for innovation and technological advancement.

Value Assessment

Rating: good

Benchmarking the value of this $58.6 million R&D contract is challenging without specific deliverables or comparable projects. However, the 'COST NO FEE' contract type suggests the government aims to reimburse reasonable costs incurred by the contractor, with the fee structure potentially incentivizing efficient cost management. The long duration implies a significant scope of work, and the competitive award process is a positive indicator for achieving fair pricing. Further analysis would require understanding the specific research objectives and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial exclusions might have occurred, the final award was made through a broad competitive process. This suggests multiple bidders likely vied for the contract, fostering price discovery and potentially leading to more favorable terms for the government. The level of competition is a positive sign for achieving value for taxpayer money.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by encouraging multiple companies to offer their best terms. This reduces the risk of overpayment and promotes efficiency.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, gaining access to advanced research and development capabilities. The contract supports research and development in physical, engineering, and life sciences, potentially leading to new technologies and improved defense capabilities. The geographic impact is noted as Alabama (AL), suggesting a concentration of R&D activities and potential workforce implications within that state. The contract may stimulate innovation and create or sustain high-skilled jobs in the R&D sector within Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type requires careful monitoring of incurred costs to ensure reasonableness and prevent potential overruns.
The long contract duration (2834 days) necessitates sustained oversight to ensure continued relevance and effective execution of R&D objectives.
The specific nature of R&D can introduce inherent risks related to achieving desired outcomes and technological breakthroughs.
The 'after exclusion of sources' clause in the competition type warrants a review to understand any initial limitations on the competitive pool.

Positive Signals

The award was made under full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contract is for Research and Development, aligning with strategic goals for technological advancement and future capabilities.
The contractor, Axient LLC, is likely selected based on demonstrated expertise in the relevant R&D fields.
The delivery order structure suggests it might be part of a larger, established framework, potentially indicating streamlined processes.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, involving significant investment in innovation. The market for such specialized R&D services is competitive, with numerous firms capable of undertaking complex scientific and engineering tasks. Comparable spending benchmarks would typically be found within broader DoD R&D budgets and specific science and technology program allocations.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was awarded under full and open competition, it suggests that small businesses may have participated in the bidding process, but there is no specific indication of a set-aside. Further investigation into subcontracting requirements would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and cost controls. Transparency is generally maintained through contract award databases and public reporting, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Small Satellite Portfolio Initiatives
Advanced Engineering Services Contracts
Physical and Engineering Sciences Research

Risk Flags

Long contract duration requires sustained oversight.
R&D inherently carries technical and schedule risks.
Cost-reimbursement contract type necessitates robust cost monitoring.
Competition clause requires understanding initial exclusions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.6 million to AXIENT LLC. RISE - SMALL SATELLITE PORTFOLIO (SSP)

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 $58.6 million.

What is the period of performance?

Start: 2019-06-01. End: 2027-03-05.

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

Axient LLC has a history of performing various technical services and R&D for the Department of Defense. Analyzing their past performance on similar contracts, particularly those involving research and development in physical, engineering, and life sciences, is crucial. Key metrics to examine include on-time delivery, adherence to budget, quality of deliverables, and any past performance issues or awards. Understanding their experience with 'COST NO FEE' contracts and long-duration projects would provide further insight into their capabilities and reliability for the RISE - SMALL SATELLITE PORTFOLIO (SSP) contract.

How does the $58.6 million value compare to similar R&D contracts for small satellite technology?

Comparing the $58.6 million value requires identifying comparable contracts for small satellite R&D. This involves looking at contracts awarded by DoD or other federal agencies for similar research objectives, technological scopes, and durations. Factors such as the specific research areas (e.g., propulsion, communication, sensors), the maturity of the technology being developed, and the contractor's overhead structure influence pricing. Without specific benchmarks for small satellite R&D, it's difficult to definitively assess if $58.6 million represents a high, low, or average investment. However, the 'full and open competition' aspect suggests market forces are at play to achieve a reasonable price.

What are the primary risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' scope of this contract?

The primary risks associated with R&D in these fields are inherent to the nature of innovation. These include technical risks, such as the possibility that the research may not yield the desired technological advancements or breakthroughs. Schedule risks can arise from unforeseen scientific challenges or experimental delays. Cost risks are also present, as R&D projects can sometimes exceed initial budget estimates if new avenues of investigation prove more resource-intensive than anticipated. Furthermore, the 'COST NO FEE' structure requires diligent oversight to manage cost incurrence effectively. The long duration of the contract also introduces risks related to evolving technological landscapes and potential shifts in strategic priorities.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayer money in R&D?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad market access with potential efficiencies. Initially excluding certain sources might be based on specific technical requirements or past performance, potentially narrowing the field. However, the subsequent 'full and open' phase allows any responsible source to compete, maximizing the number of bidders. This broad competition is generally effective in driving down prices and encouraging innovation as contractors vie for the award. For R&D, it ensures that the most capable and cost-effective solutions are considered, ultimately benefiting taxpayers by fostering a competitive environment that rewards efficiency and technical merit.

What are the historical spending patterns for the Small Satellite Portfolio (SSP) within the Department of the Air Force?

Analyzing historical spending patterns for the Small Satellite Portfolio (SSP) within the Department of the Air Force is essential for context. This involves examining previous contract awards, their values, durations, and the types of services or technologies procured. Understanding trends in SSP spending can reveal whether this $58.6 million contract represents a significant increase or decrease in investment, or if it aligns with established budgetary allocations. It also helps in identifying key contractors, common contract types, and the overall strategic direction of the Air Force in small satellite development and deployment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA945318R0003

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 360A QUALITY CIRCLE, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,966,479

Exercised Options: $99,966,479

Current Obligation: $58,564,109

Actual Outlays: $3,524,563

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $39,737,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA945319D0002

IDV Type: IDC

Timeline