DoD Awards $1.23B for Integrated Power System Engineering Services to Alion Science and Technology
Contract Overview
Contract Amount: $12,303,640 ($12.3M)
Contractor: Alion Science and Technology Corporation
Awarding Agency: Department of Defense
Start Date: 2008-02-04
End Date: 2018-09-30
Contract Duration: 3,891 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: INTEGRATED POWER SYSTEM
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60616
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: INTEGRATED POWER SYSTEM Key points: 1. Significant contract value of $1.23 billion over a decade. 2. Alion Science and Technology Corporation is the sole awardee. 3. Potential risk associated with a single contractor for a long duration. 4. Engineering services sector, specifically within defense. 5. Contract awarded under full and open competition.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is substantial, but without per-unit cost data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single awardee for a long duration may limit future competitive opportunities.
Taxpayer Impact: While competition was initially open, the long-term sole awardee structure could potentially lead to less cost-effective solutions for taxpayers over the contract's life.
Public Impact
Impacts the Department of the Navy's power system capabilities. Long-term commitment to a single contractor for critical engineering services. Potential for technological advancements or stagnation depending on contractor performance. Significant taxpayer investment over an 11-year period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term sole awardee
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Awarded under full and open competition
- Significant investment in critical infrastructure
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The $1.23 billion award over nearly 11 years represents a substantial investment in specialized technical expertise for the Department of Defense.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract award.
Oversight & Accountability
The contract's long duration and cost-plus nature necessitate robust oversight from the Department of the Navy to ensure cost control and effective performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration
- Cost-plus contract type
- Single awardee
- Lack of small business participation noted
- Potential for cost overruns
- Limited future competition
Tags
engineering-services, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. INTEGRATED POWER SYSTEM
Who is the contractor on this award?
The obligated recipient is ALION SCIENCE AND TECHNOLOGY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.3 million.
What is the period of performance?
Start: 2008-02-04. End: 2018-09-30.
What specific performance metrics and deliverables were established to ensure the value and effectiveness of the Integrated Power System engineering services?
The provided data lacks specific performance metrics or deliverables. A Cost Plus Fixed Fee contract requires diligent oversight to ensure the contractor meets defined objectives and provides value for the fixed fee. Without detailed contract clauses on performance, assessing the true value and effectiveness is challenging.
What are the risks associated with a single contractor holding this large, long-term contract for critical power systems?
The primary risks include potential vendor lock-in, reduced incentive for innovation, and a lack of competitive pressure to drive down costs over time. If the contractor underperforms or faces financial difficulties, it could significantly disrupt critical power system development and maintenance for the Navy.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness for the taxpayer on this extensive project?
Cost Plus Fixed Fee contracts allow for cost reimbursement plus a predetermined profit. While intended to facilitate complex projects, they carry a risk of cost overruns if the government's oversight is insufficient. The fixed fee provides some cost certainty, but the variable cost component requires careful monitoring to ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10 WEST 35TH STREET, CHICAGO, IL, 60616
Business Categories: Category Business, HUBZone Firm, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $12,742,370
Exercised Options: $12,742,370
Current Obligation: $12,303,640
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-04
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-07-02
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