DoD Awards $37.4M Engineering Services Contract to AI Signal Research Inc. for Potomac River Test Range Support
Contract Overview
Contract Amount: $37,361,080 ($37.4M)
Contractor: AI Signal Research Inc
Awarding Agency: Department of Defense
Start Date: 2022-05-03
End Date: 2026-05-02
Contract Duration: 1,460 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: POTOMAC RIVER TEST RANGE SUPPORT
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $37.4 million to AI SIGNAL RESEARCH INC for work described as: POTOMAC RIVER TEST RANGE SUPPORT Key points: 1. Contract awarded to AI Signal Research Inc. for engineering services. 2. The contract is for support of the Potomac River Test Range. 3. The total value of the contract is $37.4 million. 4. The contract duration is 1460 days, ending May 2, 2026. 5. This award falls under the Engineering Services sector.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering support contracts is recommended.
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. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for the services rendered.
Public Impact
Ensures continued operational support for critical Navy testing and evaluation activities. Supports advanced engineering services essential for maintaining and improving test range capabilities. Contributes to the readiness and effectiveness of naval platforms and systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Potential for scope creep in engineering services contracts.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stable support for a critical facility.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for supporting complex government operations and infrastructure. Spending in this sector is often driven by defense and national security needs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard government oversight mechanisms for cost-plus contracts should be in place to ensure performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun risk due to Cost Plus Fixed Fee structure.
- Potential for undefined scope leading to contract modifications.
- Dependence on a single contractor for critical range support.
- Ensuring continued technological relevance of services provided.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.4 million to AI SIGNAL RESEARCH INC. POTOMAC RIVER TEST RANGE SUPPORT
Who is the contractor on this award?
The obligated recipient is AI SIGNAL RESEARCH INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $37.4 million.
What is the period of performance?
Start: 2022-05-03. End: 2026-05-02.
What specific engineering services are included in this contract, and how do they align with current and future test range needs?
The contract specifies engineering services for the Potomac River Test Range. While the exact scope isn't detailed here, it likely encompasses technical support, system maintenance, upgrades, and potentially development of new capabilities to support evolving naval testing requirements. A detailed review of the SOW would clarify alignment with future needs.
What are the key performance indicators (KPIs) for this contract, and how will performance be measured to ensure value for money?
Key performance indicators are not explicitly provided in this summary. However, for a Cost Plus Fixed Fee contract, KPIs would typically focus on timely delivery of services, adherence to technical specifications, and successful completion of engineering tasks. The government's quality assurance personnel will monitor performance against the contract's Statement of Work.
How does the fixed fee component of this contract compare to industry standards for similar engineering support services?
The fixed fee is a component of the total contract value and represents the contractor's profit. Without knowing the total estimated cost, it's difficult to assess the fixed fee's reasonableness. A comparison to industry benchmarks for fixed fees on similar engineering services contracts would be necessary to determine if it's competitive.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0017821R3028
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2001 NICHOLS DR STE 300, HUNTSVILLE, AL, 35802
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,122,630
Exercised Options: $40,547,268
Current Obligation: $37,361,080
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7077
IDV Type: IDC
Timeline
Start Date: 2022-05-03
Current End Date: 2026-05-02
Potential End Date: 2027-05-02 00:00:00
Last Modified: 2026-02-18
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