DoD's $6.4M Composites Manufacturing Center contract awarded to Advanced Technology International for R&D

Contract Overview

Contract Amount: $6,410,002 ($6.4M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2021-06-16

End Date: 2026-06-15

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANUFACTURING TECHNOLOGY (MANTECH) - COMPOSITES MANUFACTURING CENTER (CMC)

Place of Performance

Location: SUMMERVILLE, BERKELEY County, SOUTH CAROLINA, 29486

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: MANUFACTURING TECHNOLOGY (MANTECH) - COMPOSITES MANUFACTURING CENTER (CMC) Key points: 1. Contract supports advanced materials research and development, focusing on composites manufacturing. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of five years indicates a long-term investment in technological advancement. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 5. The Cost Plus Fixed Fee pricing structure allows for flexibility in research while managing contractor profit. 6. The contract is a Delivery Order under a larger agreement, typical for phased R&D projects.

Value Assessment

Rating: fair

Benchmarking the value of this specific $6.4 million contract is challenging without more detailed cost breakdowns or comparable R&D projects. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not tightly managed, as it incentivizes cost incurrence. However, for complex R&D where the scope may evolve, CPFF can be appropriate. Further analysis would require understanding the specific deliverables and the contractor's historical performance on similar cost-reimbursable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the opportunity. The level of competition is generally positive for price discovery and ensuring the government receives competitive offers, though the specific number of bidders is not provided.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, particularly the Navy, through advancements in composite materials. The contract facilitates research and development in composites manufacturing, potentially leading to lighter, stronger, and more durable materials for defense applications. The geographic impact is centered in South Carolina, where the Composites Manufacturing Center is located, potentially creating or sustaining high-skill jobs in the region. Workforce implications include the need for specialized engineers, technicians, and researchers in advanced materials science and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and aligned with project goals.
The R&D nature of the contract means outcomes are not guaranteed, posing a risk of investment without desired technological breakthroughs.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that can lead to better value.
The contract supports critical defense research in advanced materials, aligning with strategic modernization goals.
The five-year duration allows for sustained focus and development in a specialized technological area.

Sector Analysis

This contract falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' sector, specifically focusing on advanced materials like composites. The market for advanced manufacturing and materials science R&D is highly specialized, with significant government investment driven by defense and aerospace needs. Comparable spending benchmarks would typically be found within other DoD R&D programs focused on materials innovation or advanced manufacturing centers.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. However, the prime contractor, Advanced Technology International, may engage small businesses as subcontractors, which would be a positive outcome for the small business ecosystem if such opportunities arise.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy, a component of the Department of Defense. The Cost Plus Fixed Fee structure necessitates robust financial oversight to monitor expenditures and ensure they are reasonable and allocable to the contract. Accountability measures would be tied to the achievement of R&D milestones and deliverables. Transparency is generally maintained through contract award databases, though specific project details might be sensitive.

Related Government Programs

Manufacturing Technology (ManTech) Program
Advanced Materials Research Programs
Department of Defense Research and Development Contracts
Composites Manufacturing Initiatives

Risk Flags

Cost Overruns Risk
Research Outcome Uncertainty
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to ADVANCED TECHNOLOGY INTERNATIONAL. MANUFACTURING TECHNOLOGY (MANTECH) - COMPOSITES MANUFACTURING CENTER (CMC)

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 $6.4 million.

What is the period of performance?

Start: 2021-06-16. End: 2026-06-15.

What is the track record of Advanced Technology International (ATI) in managing Cost Plus Fixed Fee (CPFF) R&D contracts for the Department of Defense?

Assessing Advanced Technology International's (ATI) track record with CPFF R&D contracts for the DoD requires a detailed review of their past performance evaluations and contract history. CPFF contracts are common in R&D due to the inherent uncertainties in research outcomes. ATI's success in such contracts would be measured by their ability to manage costs effectively, deliver on research objectives within projected timelines, and maintain high levels of technical performance. Without specific data on ATI's past CPFF R&D performance, it's difficult to definitively assess their capability. However, their role as a prime contractor suggests they have demonstrated competence in managing complex projects. Further investigation into their contract closeouts, any incurred cost audits, and stakeholder feedback would provide a clearer picture of their proficiency in this specific contract type and research domain.

How does the $6.4 million funding for the Composites Manufacturing Center (CMC) compare to similar R&D initiatives within the DoD?

The $6.4 million funding for the Composites Manufacturing Center (CMC) represents a modest investment within the broader Department of Defense R&D portfolio. The DoD's total R&D budget often runs into the tens of billions of dollars annually, funding a wide array of projects from basic research to advanced technology development. Specific R&D initiatives in advanced materials, such as composites, can vary significantly in cost depending on their scope, duration, and technological maturity. While $6.4 million might be substantial for a single focused research center or a specific project phase, it is relatively small compared to major platform development or large-scale system integration programs. To provide a precise comparison, one would need to identify comparable R&D efforts within the DoD focused on materials science, manufacturing technologies, or specific component development, and analyze their funding levels and contract durations.

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

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for composites manufacturing R&D revolve around cost control and the inherent uncertainty of research outcomes. For the government, the main risk is that costs could escalate beyond initial projections, even with a fixed fee, if the contractor is not diligent in managing expenses or if unforeseen technical challenges arise. The CPFF structure can sometimes incentivize contractors to incur costs to achieve the fee, necessitating strong government oversight. For the contractor, the risk lies in accurately estimating the effort required and managing the project within the anticipated cost base to ensure the fixed fee remains profitable. Furthermore, R&D projects carry the inherent risk that the desired technological advancements may not be achieved, potentially rendering the investment less valuable than anticipated. Effective risk mitigation would involve rigorous cost monitoring, clear milestone definitions, and adaptive management strategies.

What is the expected impact of the Composites Manufacturing Center (CMC) on the advancement of defense capabilities?

The Composites Manufacturing Center (CMC) is expected to significantly impact defense capabilities by driving innovation in lightweight, high-strength materials. Composites offer advantages over traditional materials like metals in terms of weight reduction, corrosion resistance, and design flexibility. Advancements in composites manufacturing can lead to more fuel-efficient aircraft and vehicles, enhanced survivability for personnel through improved armor, and novel designs for structures and components. This R&D effort could result in next-generation platforms with superior performance characteristics, reduced maintenance costs, and extended operational ranges. The focus on manufacturing processes also implies a goal of translating laboratory breakthroughs into scalable, cost-effective production methods, ensuring that these advanced materials can be integrated into fielded systems.

How has federal spending in advanced materials R&D, particularly in composites, evolved over the past five years?

Federal spending in advanced materials R&D, including composites, has generally seen consistent or increasing investment over the past five years, driven by national security priorities and the pursuit of technological superiority. Agencies like the Department of Defense (DoD), NASA, and the Department of Energy are key funders. The DoD, in particular, has prioritized materials innovation to enhance platform performance, reduce lifecycle costs, and maintain a technological edge. This includes research into novel composites, additive manufacturing techniques for advanced materials, and sustainable material solutions. While specific figures fluctuate annually based on budget allocations and strategic shifts, the overall trend indicates a sustained commitment to advancing materials science and manufacturing capabilities critical for defense and other high-tech sectors. The $6.4 million contract for the CMC aligns with this broader trend of investing in specialized R&D centers.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001420R0007

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: $8,802,958

Exercised Options: $8,802,958

Current Obligation: $6,410,002

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,700,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001421D7001

IDV Type: IDC

Timeline