DoD's $80M Contract for Advanced Tech R&D with ATI Raises Questions on Value and Competition
Contract Overview
Contract Amount: $79,860,229 ($79.9M)
Contractor: Advanced Technology International
Awarding Agency: Department of Defense
Start Date: 2003-06-30
End Date: 2017-12-19
Contract Duration: 5,286 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200309!001813!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0413 !A!N! !N! !20030630!20080630!025172953!025172953!025172953!N!ADVANCED TECHNOLOGY INSTITUTE !5300 INTERNATIONAL BLVD !NORTH CHARLEST !SC!29418!50875!019!45!NORTH CHARLESTON !CHARLESTON !S CAROLINA!+000000490000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!003!B! !Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29418
Plain-Language Summary
Department of Defense obligated $79.9 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: 200309!001813!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0413 !A!N! !N! !20030630!20080630!025172953!025172953!025172953!N!ADVANCED TECHNOLOGY INSTITUTE !5300 INTERNATIONAL BLVD !NORTH CHARLEST !SC!29418!50875!019!45!NORTH CHARLESTON !CHARL… Key points: 1. The contract awarded to Advanced Technology International (ATI) for $79.86M focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded under Full and Open Competition, the contract's pricing and specific deliverables require further scrutiny to ensure optimal taxpayer value. 3. The duration of the contract (over 14 years) and its Cost Plus Fixed Fee structure warrant an assessment of potential cost overruns and efficiency. 4. While ATI is a significant player, the limited information on alternative solutions and the specific nature of the R&D may obscure competitive advantages.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure and extended duration (over 14 years) suggest potential for cost escalation. Benchmarking against similar R&D contracts is difficult without more detailed performance and cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating a broad solicitation. However, the specific evaluation criteria and the rationale for selecting ATI over other potential offerors are not detailed, impacting the assessment of price discovery.
Taxpayer Impact: The extended duration and cost-plus nature of the contract necessitate careful oversight to ensure that taxpayer funds are used efficiently and effectively for the intended research outcomes.
Public Impact
Taxpayers may be funding long-term research with uncertain immediate applications, requiring robust oversight to ensure progress and relevance. The significant investment in advanced technology R&D could lead to breakthroughs with substantial economic or national security benefits. The contract's complexity and duration mean that accountability for performance and cost management is crucial throughout its lifecycle.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration (over 14 years)
- Cost Plus Fixed Fee pricing structure
- Limited transparency on specific R&D outcomes and benchmarks
Positive Signals
- Awarded under Full and Open Competition
- Focus on critical R&D for national security
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Defense R&D spending is a significant portion of the federal budget, with benchmarks varying widely based on the specific research area and technological maturity.
Small Business Impact
The provided data does not indicate any specific provisions or subcontracting goals for small businesses within this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and cost-plus nature necessitate strong oversight mechanisms to monitor performance, control costs, and ensure accountability. Regular reviews and reporting by the Department of Defense are critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure
- Extended contract duration may reduce flexibility and increase long-term risk
- Difficulty in benchmarking R&D contracts due to unique deliverables
- Lack of detailed performance metrics in summary data
Tags
research-and-development-in-the-physical, department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $79.9 million to ADVANCED TECHNOLOGY INTERNATIONAL. 200309!001813!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0413 !A!N! !N! !20030630!20080630!025172953!025172953!025172953!N!ADVANCED TECHNOLOGY INSTITUTE !5300 INTERNATIONAL BLVD !NORTH CHARLEST !SC!29418!50875!019!45!NORTH CHARLESTON !CHARLESTON !S CAROLINA!+000000490000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ADVANCED TECHNOLOGY INTERNATIONAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $79.9 million.
What is the period of performance?
Start: 2003-06-30. End: 2017-12-19.
What specific technological advancements or capabilities are expected from this $80M investment, and how will their achievement be measured?
The contract aims to advance research in physical, engineering, and life sciences. Measuring achievement will likely involve milestones related to prototype development, scientific publications, and successful testing of new technologies. Specific metrics should be detailed in the contract's statement of work and performance metrics, requiring review for clarity and measurability.
Given the Cost Plus Fixed Fee structure and long duration, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of funds?
Mitigation strategies typically include robust government oversight, regular performance reviews, detailed cost tracking, and potentially incentive clauses for cost savings or early completion. The fixed fee component provides some cost certainty, but the 'cost plus' aspect requires diligent monitoring by the contracting agency to prevent unnecessary expenditures.
How does the achieved value of the R&D align with the significant investment, and are there clear indicators of return on investment for the taxpayer?
Assessing the 'value' of R&D is inherently challenging due to its long-term and often uncertain nature. While breakthroughs can yield substantial returns, immediate ROI is rarely apparent. The government must track progress against research objectives and assess the potential future impact of the developed technologies to justify the investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Analytic Services Inc.
Address: 5300 INTERNATIONAL BLVD, NORTH CHARLEST, SC, 29418
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $84,405,555
Exercised Options: $84,405,555
Current Obligation: $79,860,229
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-06-30
Current End Date: 2017-12-19
Potential End Date: 2017-12-19 00:00:00
Last Modified: 2022-12-22
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