DoD's $35.7M Composites Manufacturing Tech Center contract awarded to Advanced Technology International for R&D

Contract Overview

Contract Amount: $35,680,324 ($35.7M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2024-12-31

Contract Duration: 2,160 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF MANUFACTURING TECHNOLOGY (MANTECH) COMPOSITES MANUFACTURING TECHNOLOGY CENTER (CMTC) MEGA RAPID RESPONSE TASK ORDER

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29601

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: IGF::CT::IGF MANUFACTURING TECHNOLOGY (MANTECH) COMPOSITES MANUFACTURING TECHNOLOGY CENTER (CMTC) MEGA RAPID RESPONSE TASK ORDER Key points: 1. Contract awarded for advanced composites manufacturing research and development. 2. Focus on enhancing materials and processes for defense applications. 3. Long-term contract duration suggests sustained need for technological advancement. 4. Research and Development sector is critical for maintaining technological superiority. 5. The contract's value indicates significant investment in future defense capabilities. 6. Performance is likely measured by milestones in material science and manufacturing efficiency.

Value Assessment

Rating: good

The contract value of $35.7 million over its period of performance appears reasonable for specialized R&D in advanced materials. Benchmarking against similar large-scale R&D initiatives in composites would provide further context, but the scope suggests a significant investment. The cost-plus-fixed-fee structure allows for flexibility in research while providing a defined profit margin for the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to yield a fair price and ensure the selection of a capable contractor. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best value for its investment.

Public Impact

Benefits the Department of Defense by advancing critical materials and manufacturing technologies. Delivers research and development services aimed at improving the performance and durability of defense assets. Geographic impact is primarily within South Carolina, where the CMTC is located, but the technological advancements have national defense implications. Workforce implications include highly skilled researchers, engineers, and technicians in the field of advanced materials and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in R&D projects if not closely managed.
Reliance on a single contractor for specialized R&D could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long contract duration indicates a stable and ongoing need for the services provided.
Focus on advanced technology development aligns with strategic defense priorities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced materials and manufacturing technologies. The market for such specialized R&D is driven by government defense needs and technological innovation. Comparable spending benchmarks would involve looking at other large-scale R&D contracts within the Department of Defense or other federal agencies focused on materials science and engineering.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The contractor, Advanced Technology International, is likely a larger entity capable of managing complex R&D projects. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. Performance reviews, milestone tracking, and financial audits are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D progress details may be sensitive.

Related Government Programs

DoD Manufacturing Technology Program
Advanced Materials Research Contracts
Naval Research Laboratory Contracts
Defense Advanced Research Projects Agency (DARPA) Projects

Risk Flags

Cost Overrun Potential
Reliance on Contractor Expertise
Uncertainty in R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to ADVANCED TECHNOLOGY INTERNATIONAL. IGF::CT::IGF MANUFACTURING TECHNOLOGY (MANTECH) COMPOSITES MANUFACTURING TECHNOLOGY CENTER (CMTC) MEGA RAPID RESPONSE TASK ORDER

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 $35.7 million.

What is the period of performance?

Start: 2019-02-01. End: 2024-12-31.

What is the track record of Advanced Technology International in managing large-scale R&D contracts for the Department of Defense?

Advanced Technology International (ATI) has a significant track record of managing complex research and development consortia and contracts for various government agencies, including the Department of Defense. ATI often serves as an intermediary, facilitating collaboration between government entities and a broad network of industry and academic partners. Their expertise lies in establishing and managing these collaborative ecosystems to address specific technological challenges. While specific performance metrics for individual contracts are not publicly detailed, ATI's repeated awards and long-standing relationships suggest a satisfactory performance history in executing R&D programs. Their model focuses on leveraging a wide range of expertise to accelerate innovation, which is crucial for advanced manufacturing and materials science projects like the CMTC.

How does the $35.7 million contract value compare to similar R&D investments in composites manufacturing technology?

The $35.7 million contract value for the Composites Manufacturing Technology Center (CMTC) represents a substantial, but not unprecedented, investment in specialized R&D. Large-scale R&D initiatives within the defense sector often range from tens to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. For instance, programs managed by DARPA or specific service branches focusing on next-generation materials or manufacturing processes can command similar or larger budgets. The value here suggests a focused, multi-year effort to achieve specific advancements in composites, likely involving significant personnel, equipment, and testing. Benchmarking against other 'Manufacturing Technology' (MANTECH) programs within the DoD would provide a more direct comparison, as these are specifically designed to transition laboratory innovations into production capabilities.

What are the primary risks associated with this type of cost-plus-fixed-fee R&D contract?

Cost-plus-fixed-fee (CPFF) contracts, while offering flexibility for R&D, carry inherent risks. For the government, the primary risk is that the contractor may not have sufficient incentive to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns if the contractor's estimates are inaccurate or if unforeseen technical challenges arise, increasing the actual costs incurred. Another risk is ensuring that the contractor maintains a high level of effort and efficiency throughout the project lifecycle. For the contractor, the risk lies in underestimating the costs required to complete the research, potentially leading to a lower-than-expected profit margin if actual costs significantly exceed projections. Effective oversight and robust cost-tracking mechanisms are crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money, even in specialized R&D contracts. By allowing all responsible sources to submit proposals, the government maximizes the pool of potential contractors, fostering a competitive environment that drives innovation and encourages competitive pricing. This approach increases the likelihood of identifying the most technically capable and cost-effective solution. For R&D, it means that diverse approaches and novel ideas can be brought forward. While R&D inherently involves uncertainty, a well-defined solicitation and rigorous evaluation process under full and open competition help ensure that the selected contractor offers the best balance of technical merit and price, thereby maximizing the return on taxpayer investment.

What are the historical spending patterns for composites manufacturing technology R&D within the Department of Defense?

Historical spending patterns for composites manufacturing technology R&D within the Department of Defense show a consistent and often increasing investment over the past two decades. Driven by the need for lighter, stronger, and more durable materials for aircraft, vehicles, and other platforms, the DoD has prioritized advancements in this area. Funding often flows through various programs, including the Manufacturing Technology (MANTECH) program, service-specific research initiatives, and grants managed by agencies like DARPA. Spending can fluctuate based on emerging threats, technological breakthroughs, and strategic priorities, but the overall trend indicates a sustained commitment to enhancing domestic capabilities in advanced composites. Contracts like this one are part of a larger, ongoing effort to maintain a technological edge.

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: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 315 SIGMA DR, SUMMERVILLE, SC, 29486

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,118,271

Exercised Options: $39,118,271

Current Obligation: $35,680,324

Actual Outlays: $2,594,537

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $30,926,486

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001417D4003

IDV Type: IDC

Timeline