DoD's Naval Shipbuilding Advanced Manufacturing contract awarded for $10.8M to support R&D in manufacturing technology

Contract Overview

Contract Amount: $10,799,564 ($10.8M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2023-02-24

End Date: 2026-08-21

Contract Duration: 1,274 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM) Key points: 1. Contract supports critical research and development in advanced manufacturing for naval shipbuilding. 2. Focus on enhancing manufacturing processes and technologies for the U.S. Navy. 3. Long-term contract duration suggests sustained investment in this area. 4. Potential for significant technological advancements impacting naval capabilities. 5. Requires specialized expertise in physical, engineering, and life sciences R&D. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility in research projects.

Value Assessment

Rating: good

The contract value of $10.8 million for a period of over three years appears reasonable for specialized R&D in advanced manufacturing. Benchmarking against similar large-scale R&D initiatives within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure is common for research where exact costs are difficult to predict, but it necessitates careful oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The extensive competition period suggests a robust market for these specialized R&D services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives efficiency and potentially lower costs through market forces, ensuring government funds are used effectively.

Public Impact

Benefits the U.S. Navy by advancing shipbuilding and manufacturing technologies. Delivers research and development services aimed at improving operational capabilities. Impacts the advanced manufacturing sector by stimulating innovation and investment. Supports a specialized workforce in research, engineering, and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The long duration of the contract necessitates ongoing performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Focus on advanced manufacturing aligns with strategic national defense priorities.
Contract supports critical R&D for naval shipbuilding.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced manufacturing technologies relevant to naval shipbuilding. The market for such specialized R&D is driven by defense needs and technological advancements. Comparable spending benchmarks would likely be found within other large-scale defense R&D contracts aimed at enhancing military capabilities through technological innovation.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if the prime contractor, Advanced Technology International, engages them. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of small businesses with the required specialized expertise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring performance, cost, and adherence to research objectives. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency will be maintained through regular reporting requirements from the contractor and potential reviews by the Government Accountability Office or the Department of Defense Inspector General.

Related Government Programs

Naval Shipbuilding Programs
Advanced Manufacturing Initiatives
Defense Research and Development

Risk Flags

Cost Overruns Risk (CPFF)
Performance Monitoring Challenges
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to ADVANCED TECHNOLOGY INTERNATIONAL. MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM)

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 $10.8 million.

What is the period of performance?

Start: 2023-02-24. End: 2026-08-21.

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

Advanced Technology International (ATI) has a significant track record in managing complex research and development initiatives, particularly within the defense sector. They often serve as a consortium management organization, bringing together various research institutions and companies to address specific technological challenges. For instance, ATI has managed other Manufacturing Technology (ManTech) programs and advanced prototyping efforts for various government agencies, including the Department of Defense. Their experience typically involves coordinating multi-disciplinary teams, managing intellectual property, and ensuring timely delivery of research outcomes. While specific details on past performance for contracts of this exact size and scope are not detailed here, ATI's established role in the defense R&D ecosystem suggests a capacity to handle such requirements. A deeper dive into their past performance reports and contract awards would provide more granular insights into their success rates and areas of expertise.

How does the awarded amount of $10.8 million compare to typical R&D spending for naval shipbuilding advancements?

The awarded amount of $10.8 million for the "MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM)" contract is a moderate investment for a specific R&D initiative within naval shipbuilding. Large-scale naval shipbuilding programs often involve billions of dollars in overall expenditure, but R&D components can vary significantly. Smaller, focused R&D contracts like this one are crucial for targeted technological improvements. For context, other ManTech program awards can range from a few million to tens of millions of dollars annually, depending on the specific technology focus and duration. This $10.8 million over approximately 3.5 years suggests a focused effort on specific manufacturing technologies rather than a broad, multi-year platform development. It is a reasonable allocation for advancing specific manufacturing processes or materials critical to naval platforms.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is that the contractor may not be sufficiently incentivized to control costs, as they are reimbursed for allowable expenses plus a fixed fee. This can lead to cost overruns if not managed carefully. For the government, the risk is paying more than necessary if the contractor's efficiency is low. Mitigation strategies are crucial. These include rigorous government oversight of all incurred costs to ensure they are reasonable, allocable, and allowable. Detailed work breakdown structures, regular progress reviews, and performance metrics help track progress against objectives. The fixed fee itself acts as a ceiling on the contractor's profit, providing some incentive for efficiency. Furthermore, clear contract terms and conditions, including defined scope and deliverables, are essential. The Department of the Navy will need to actively manage the contractor's performance and expenditures to ensure value for money.

What is the expected impact of this contract on the advancement of manufacturing technologies within the U.S. Navy?

This contract is expected to significantly impact the advancement of manufacturing technologies within the U.S. Navy by fostering innovation in areas critical to naval shipbuilding. The focus on "MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM)" implies that the research will target improvements in production processes, materials, and automation relevant to building and maintaining naval vessels. This could lead to enhanced efficiency in construction, reduced production costs, improved material properties for greater durability or performance, and the adoption of cutting-edge techniques like additive manufacturing or advanced robotics. Ultimately, these advancements aim to enhance the Navy's operational capabilities, readiness, and technological superiority by ensuring that its platforms are built using the most effective and modern manufacturing methods available.

How does the North American Industry Classification System (NAICS) code 541715 relate to the contract's objectives?

The North American Industry Classification System (NAICS) code 541715, "Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)," directly aligns with the objectives of this contract. The "MANUFACTURING TECHNOLOGY (MANTECH) NAVAL SHIPBUILDING AND ADVANCED MANUFACTURING (NSAM)" contract is fundamentally a research and development effort. It focuses on applying scientific and engineering principles to discover or invent new processes, products, or services, or to improve existing ones, specifically within the physical and engineering sciences related to manufacturing. Naval shipbuilding and advanced manufacturing are complex fields that heavily rely on advancements in materials science, mechanical engineering, industrial engineering, and other physical and engineering disciplines. Therefore, NAICS code 541715 accurately categorizes the nature of the R&D work being undertaken to enhance these manufacturing capabilities for the Navy.

What is the significance of the contract being a 'Delivery Order' (aw: DELIVERY ORDER)?

The designation 'DELIVERY ORDER' (aw: DELIVERY ORDER) typically indicates that this contract is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. In such structures, a base contract is established, allowing the government to issue multiple delivery orders for specific goods or services over a period. This particular delivery order represents a specific task or project funded under that overarching agreement, with a defined scope, cost, and delivery timeline (ending 2026-08-21). The total value of this specific order is $10.8 million. This approach provides flexibility for the agency to procure needed services incrementally as requirements arise, while potentially having pre-negotiated terms and conditions in place from the base contract. It allows for agile acquisition of R&D support.

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

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: $12,283,644

Exercised Options: $12,283,644

Current Obligation: $10,799,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001419D7001

IDV Type: IDC

Timeline