DoD awards $21M engineering services contract to Alion Science and Technology Corp

Contract Overview

Contract Amount: $20,970,013 ($21.0M)

Contractor: Alion Science and Technology Corporation

Awarding Agency: Department of Defense

Start Date: 2008-11-18

End Date: 2009-10-31

Contract Duration: 347 days

Daily Burn Rate: $60.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOR FUNDING PURPOSES ONLY

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60616

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION for work described as: FOR FUNDING PURPOSES ONLY Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The duration of the contract is approximately one year, indicating a project-specific or short-term need. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. The contract was awarded in Illinois, suggesting a specific geographic focus for the services.

Value Assessment

Rating: fair

The contract value of approximately $21 million for engineering services over a one-year period appears to be within a reasonable range for specialized defense sector work. Without specific details on the scope of engineering services, direct comparison to similar contracts is challenging. However, the fixed-price nature of the award suggests an expectation of defined deliverables and cost control. Further analysis would require understanding the specific technical requirements and the market rates for such specialized engineering expertise within the defense industry.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically suggests a competitive environment where multiple companies had the opportunity to vie for the work. The number of bidders is not specified, but the open competition method generally promotes price discovery and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and ensure the government receives competitive bids.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations and projects. The services delivered likely involve technical design, analysis, or support for naval systems or infrastructure. The geographic impact is centered in Illinois, where the contractor is located, though the services may support broader naval activities. The contract supports the defense industrial base and potentially a specialized engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The engineering services sector within the defense industry is critical for supporting the development, maintenance, and modernization of military platforms and systems. This contract, valued at approximately $21 million, falls within the typical range for specialized engineering support. The Department of Defense is a significant consumer of such services, often seeking expertise in areas like systems engineering, naval architecture, and advanced technology integration. Benchmarking this contract would involve comparing its value and scope to other engineering service contracts awarded by the DoD or its branches for similar technical requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. Analysis of potential subcontracting opportunities would depend on Alion Science and Technology Corporation's own subcontracting plan, which is not detailed in this data. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-navy, engineering-services, firm-fixed-price, full-and-open-competition, al-ion-science-and-technology-corporation, illinois, naics-541330, contract-award, medium-value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to ALION SCIENCE AND TECHNOLOGY CORPORATION. FOR FUNDING PURPOSES ONLY

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 $21.0 million.

What is the period of performance?

Start: 2008-11-18. End: 2009-10-31.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services in the defense sector can encompass a wide range of activities, including systems engineering, design, analysis, testing, integration, and technical support for naval platforms, weapons systems, or infrastructure. Without further documentation, it is impossible to ascertain the precise technical tasks performed under this $21 million award.

How does the $21 million contract value compare to similar engineering services contracts awarded by the Navy?

Comparing the $21 million contract value requires access to a broader dataset of similar Navy engineering services contracts, ideally with comparable scope and duration. The provided data offers limited context for benchmarking. However, for a one-year firm-fixed-price contract, $21 million suggests a significant scope of work, likely involving specialized expertise or a substantial team of engineers. Without specific details on the technical requirements, it's difficult to definitively state if this represents high or low value. A comprehensive analysis would involve identifying contracts with similar NAICS codes, agencies, and service descriptions.

What is Alion Science and Technology Corporation's track record with the Department of Defense?

Alion Science and Technology Corporation (now part of Huntington Ingalls Industries) has a substantial history of contracting with the Department of Defense. While this specific $21 million contract from 2008-2009 provides a data point, their broader portfolio includes numerous awards across various defense agencies and branches for a wide array of services, including research and development, engineering, simulation, and logistics. Their track record generally indicates experience in complex defense programs, though the success and value of individual contracts would require detailed performance reviews.

What are the potential risks associated with a firm-fixed-price contract for engineering services?

A firm-fixed-price (FFP) contract, like the one awarded to Alion Science and Technology Corporation, shifts the majority of the cost risk to the contractor. For engineering services, potential risks include the contractor underestimating the complexity or effort required, leading to reduced profit margins or potential quality compromises if they attempt to cut corners to meet the fixed price. Conversely, if the contractor accurately estimates and executes efficiently, the government benefits from cost certainty. The risk for the government lies in ensuring the contractor has the capability and incentive to deliver the required quality within the fixed price, especially if the scope is not perfectly defined upfront.

How has federal spending on engineering services evolved since this contract was awarded in 2008?

Federal spending on engineering services has generally remained a significant component of the Department of Defense and other agencies' budgets since 2008. While specific figures fluctuate based on geopolitical events, technological advancements, and budget priorities, the demand for specialized engineering expertise in areas like cybersecurity, advanced materials, aerospace, and naval systems has persisted and often grown. The total outlays for engineering services across the federal government likely represent billions of dollars annually, with the DoD being a primary driver of this spending. Trends may show increased investment in areas related to emerging technologies and sustainment of aging platforms.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 W 35TH ST, CHICAGO, IL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,970,013

Exercised Options: $20,970,013

Current Obligation: $20,970,013

Parent Contract

Parent Award PIID: GS23F0291P

IDV Type: FSS

Timeline

Start Date: 2008-11-18

Current End Date: 2009-10-31

Potential End Date: 2009-10-31 00:00:00

Last Modified: 2014-05-28

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