DoD's $55.8M Space Solar Power contract awarded to AXIENT LLC for R&D

Contract Overview

Contract Amount: $55,768,716 ($55.8M)

Contractor: Axient LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-08

End Date: 2026-12-05

Contract Duration: 2,341 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW RISE TO5 - SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $55.8 million to AXIENT LLC for work described as: NEW RISE TO5 - SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR) Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration is substantial, spanning over 2300 days, suggesting a long-term R&D effort. 4. Performance is expected in Alabama, potentially impacting the local economy and workforce. 5. The Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring of costs to ensure value. 6. This contract falls under the R&D sector, specifically focusing on advanced physical sciences.

Value Assessment

Rating: fair

The contract value of $55.8 million for a multi-year R&D effort appears within a reasonable range for specialized research. However, without specific benchmarks for space solar power R&D, a precise value-for-money assessment is challenging. The CPFF structure necessitates close oversight to prevent cost overruns and ensure efficient use of funds. Comparing this to similar large-scale R&D initiatives in aerospace would provide better context.

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.' This suggests that while the competition was open, certain sources may have been excluded based on specific criteria, possibly related to technical capabilities or prior involvement. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was intended, which should theoretically drive better pricing and innovation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely led to a more favorable price and a wider range of technical solutions being considered, maximizing the return on investment for this critical research.

Public Impact

The primary beneficiaries are the Department of Defense and potentially future space exploration and energy initiatives. The contract will deliver research and development services related to space solar power. Geographic impact is concentrated in Alabama, where the contractor is located. Workforce implications include potential job creation in specialized R&D fields within Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not managed carefully.
The exclusion of sources, even within a full and open competition, warrants understanding the rationale to ensure fairness and optimal competition.
Long contract duration increases the risk of scope creep or technological obsolescence if not actively managed.

Positive Signals

Awarding under full and open competition suggests a commitment to leveraging the best available capabilities.
The focus on R&D in a critical area like space solar power indicates investment in future technological advancements.
The contractor, AXIENT LLC, is likely selected based on demonstrated expertise in relevant scientific and engineering fields.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to space-based solar power. The market for such specialized R&D is often characterized by a limited number of highly capable firms. Spending in this niche is driven by government investment in future technologies, defense applications, and potentially long-term energy solutions. Comparable spending benchmarks would likely be found within large-scale aerospace and defense R&D programs.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, the direct impact on small businesses through set-asides is minimal. However, AXIENT LLC may engage small businesses as subcontractors, which could provide indirect opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Air Force's contracting officers and technical representatives. Accountability measures will focus on adherence to the Statement of Work, cost control, and timely delivery of research milestones. Transparency is typically managed through contract reporting requirements and potential public affairs releases on research progress. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Solar Power Research
Advanced Propulsion Systems R&D
Aerospace Technology Development
Department of Defense Research Contracts
Satellite Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep Potential
Uncertain R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.8 million to AXIENT LLC. NEW RISE TO5 - SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR)

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 $55.8 million.

What is the period of performance?

Start: 2020-07-08. End: 2026-12-05.

What is AXIENT LLC's track record with similar large-scale R&D contracts, particularly in aerospace and defense?

AXIENT LLC has a history of performing various government contracts, including those related to research and development, engineering services, and technical support. While specific details on their past performance on contracts of this exact magnitude and focus (space solar power R&D) would require deeper analysis of contract databases and performance reports, their award on this significant DoD contract suggests they possess the requisite technical capabilities and experience. A review of their past performance ratings, any past performance issues, and the types of agencies they have served would provide a clearer picture of their suitability and reliability for this complex R&D effort.

How does the $55.8 million value compare to other R&D contracts in the space solar power domain?

Benchmarking the $55.8 million value requires comparing it against similar R&D contracts specifically focused on space solar power. This is a niche area, and large-scale R&D efforts can vary significantly in cost depending on the phase (e.g., conceptual, design, prototyping, testing), technological maturity, and specific objectives. Without access to a comprehensive database of comparable space solar power R&D contracts, it's difficult to definitively state if this value is high, low, or average. However, for a multi-year, complex R&D initiative involving advanced physics and engineering, a value in the tens of millions is not uncommon for government-funded projects aiming for significant technological advancement.

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

The primary risks with a CPFF contract for advanced R&D revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. If not rigorously managed, this can incentivize the contractor to incur higher costs, as their fee is fixed regardless of the total cost. For R&D, where outcomes can be uncertain and requirements may evolve, there's a risk of cost overruns if the scope isn't well-defined or if unforeseen technical challenges arise. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the taxpayer.

What are the potential long-term program effectiveness implications of this R&D contract?

The long-term effectiveness of this R&D contract hinges on the successful development and validation of space solar power technologies. If the research yields viable solutions, it could significantly impact future energy strategies, potentially providing a clean and sustainable power source for terrestrial use or for powering space-based assets. For the Department of Defense, advancements could lead to enhanced operational capabilities, reduced reliance on vulnerable ground-based infrastructure, and new strategic advantages. However, R&D is inherently uncertain; the program's effectiveness will ultimately be measured by its ability to overcome technical hurdles and produce practical, scalable, and cost-effective technologies that meet future needs.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) trended in recent years?

Federal spending within the NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' has generally shown a consistent upward trend over the past decade, driven by significant investments from agencies like the Department of Defense, National Science Foundation, and Department of Energy. This category encompasses a broad range of scientific inquiry and technological innovation crucial for national security, economic competitiveness, and scientific advancement. While specific year-over-year fluctuations occur based on budgetary priorities and emerging research areas, the overall trajectory indicates a sustained commitment to funding fundamental and applied research within these critical scientific domains.

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

Pricing Type: COST PLUS FIXED FEE (U)

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: $66,639,155

Exercised Options: $66,639,155

Current Obligation: $55,768,716

Actual Outlays: $4,346,238

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $23,287,437

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