DoD's MANTECH program awards $11M for advanced manufacturing R&D, with a 5-year performance period

Contract Overview

Contract Amount: $10,992,995 ($11.0M)

Contractor: Advanced Technology International

Awarding Agency: Department of Defense

Start Date: 2023-04-24

End Date: 2027-06-26

Contract Duration: 1,524 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANUFACTURING TECHNOLOGY (MANTECH) - CNM FY23 PROJECTS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to ADVANCED TECHNOLOGY INTERNATIONAL for work described as: MANUFACTURING TECHNOLOGY (MANTECH) - CNM FY23 PROJECTS Key points: 1. Contract awarded to a single entity, raising questions about broader industry engagement. 2. Performance period extends over four years, suggesting a long-term R&D focus. 3. Cost-plus-fixed-fee structure requires careful monitoring of contractor expenses. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for innovation. 5. The contract falls under the broad category of manufacturing technology, supporting industrial base modernization.

Value Assessment

Rating: fair

The contract value of $10.99 million for a 5-year R&D effort appears reasonable given the scope of advanced manufacturing technology. However, without specific deliverables or milestones, a direct value-for-money assessment is challenging. Benchmarking against similar R&D contracts in advanced manufacturing is difficult due to the specialized nature of MANTECH projects. The cost-plus-fixed-fee (CPFF) pricing structure necessitates robust oversight to ensure costs remain controlled and aligned with the project's objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, which would provide further insight into the level of competition. A robust competition is generally expected to drive down costs and encourage innovation, but the specific outcomes for this contract are not detailed.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically leads to better pricing and a wider range of innovative solutions being considered.

Public Impact

Benefits the Department of Defense by advancing manufacturing technologies crucial for national security. Supports the development of new materials, processes, and systems for defense applications. Potential for workforce development in specialized manufacturing and R&D fields. Geographic impact is likely concentrated around the contractor's facilities, but the technologies developed could have broader national implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed tightly.
Limited information on specific performance metrics makes it hard to gauge success.
The specialized nature of R&D can lead to unpredictable outcomes and timelines.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Focus on advanced manufacturing technology is critical for maintaining a technological edge.
Long performance period allows for in-depth research and development.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced manufacturing technologies. This sector is vital for national security and economic competitiveness, enabling the development of next-generation defense capabilities. The market for advanced manufacturing R&D is characterized by specialized firms and academic institutions collaborating with government agencies. Benchmarking is challenging due to the unique nature of MANTECH projects, but overall federal spending in R&D is substantial, with a significant portion allocated to defense-related innovation.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award. While the prime contractor is Advanced Technology International, it is unclear from the provided data whether they have plans for small business subcontracting. The impact on the small business ecosystem would depend on whether smaller, specialized firms are engaged as subcontractors for specific aspects of the research.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The cost-plus-fixed-fee structure necessitates diligent financial oversight to ensure that costs are reasonable and allocable to the contract. Transparency regarding project milestones and outcomes would be crucial for accountability, though specific public reporting mechanisms are not detailed in the provided data.

Related Government Programs

Manufacturing Technology Program (MANTECH)
Department of Defense Research and Development
Advanced Materials Research
Naval Research and Development

Risk Flags

Cost-plus-fixed-fee pricing requires vigilant oversight to prevent cost overruns.
Limited public information on specific deliverables and success metrics.
Potential for contractor to prioritize profit over maximum cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to ADVANCED TECHNOLOGY INTERNATIONAL. MANUFACTURING TECHNOLOGY (MANTECH) - CNM FY23 PROJECTS

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 $11.0 million.

What is the period of performance?

Start: 2023-04-24. End: 2027-06-26.

What is the track record of Advanced Technology International (ATI) in managing similar 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. They often serve as a "middleman" or "conduit" to facilitate collaboration between government entities and a broad base of industry partners, including small businesses. Their experience typically involves managing large, multi-year programs that require coordinating numerous participants, tracking technical progress, and ensuring financial accountability. While specific details on ATI's past performance on contracts directly comparable to this MANTECH award would require deeper database analysis, their established role in the defense R&D ecosystem suggests a familiarity with the operational and contractual requirements involved in such initiatives.

How does the awarded amount of approximately $11 million compare to typical MANTECH project funding levels?

The Manufacturing Technology (MANTECH) program, managed by the Department of Defense, funds a variety of projects aimed at improving the defense industrial base through advanced manufacturing. Project funding levels can vary significantly based on the scope, complexity, and duration of the research. While $11 million over a 5-year period is a substantial award, it falls within a reasonable range for significant R&D initiatives under MANTECH. Some MANTECH projects might be smaller, focusing on specific technological advancements, while others could involve larger consortia or more ambitious, multi-faceted research efforts that command higher funding. Without access to historical MANTECH funding data for comparable projects, it's difficult to definitively benchmark this award, but it suggests a project of considerable scope and importance.

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

Cost Plus Fixed Fee (CPFF) contracts, while common in R&D, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in underestimating the effort required, potentially leading to a lower profit margin if costs exceed projections significantly. Mitigation strategies employed by the government include rigorous cost monitoring, detailed review of incurred costs, establishing clear performance metrics and milestones, and strong program management oversight. Regular communication and audits are essential to ensure the contractor remains focused on efficient execution and achieving the R&D objectives within the spirit of the fixed fee.

What is the expected impact of this contract on the broader defense industrial base and technological innovation?

This contract is expected to have a positive impact on the defense industrial base by fostering innovation in advanced manufacturing technologies. These advancements can lead to more efficient production processes, improved material properties, and the development of novel systems that enhance warfighter capabilities. By investing in R&D, the Department of Defense aims to maintain its technological superiority and ensure the resilience of its supply chains. The outcomes of this research could translate into more affordable, higher-performing defense equipment and a more robust domestic manufacturing ecosystem capable of meeting future defense needs. Furthermore, successful R&D often has spillover effects into the commercial sector, driving broader economic growth and technological progress.

How does the geographic location of the contractor (Virginia) influence the execution or impact of this R&D contract?

The geographic location of the contractor, Virginia, can have several implications for this R&D contract. Virginia has a strong presence in the defense industry and a significant concentration of federal research facilities and contractors, potentially offering access to a skilled workforce, specialized suppliers, and collaborative opportunities with other research institutions or government labs in the region. Proximity to the Pentagon and other defense agencies might also facilitate communication and oversight. However, the nature of advanced manufacturing R&D often involves collaboration that extends beyond the immediate geographic area, utilizing remote communication and potentially involving partners from across the country or even internationally. The specific impact of Virginia's location would depend on the contractor's local infrastructure, access to talent, and their strategy for engaging with a wider network of collaborators.

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: N0001421R0002

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: $15,680,345

Exercised Options: $15,680,345

Current Obligation: $10,992,995

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $15,771,016

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001422D7004

IDV Type: IDC

Timeline