DoD Awards $803M for Missile and Space Systems, Highlighting Advanced Tech Development
Contract Overview
Contract Amount: $53,296,182 ($53.3M)
Contractor: Orbital Sciences LLC
Awarding Agency: Department of Defense
Start Date: 2004-12-21
End Date: 2010-09-26
Contract Duration: 2,105 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200505!000016!5700!FA8818!SMC/DET 12/PK !F0470103D0202 !A!N! !N!0007 ! !20041221!20140616!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 S PRICE RD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000000500000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !5!B!S! ! ! !20200930!B!A! !A! !A!N!V!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85248
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $53.3 million to ORBITAL SCIENCES LLC for work described as: 200505!000016!5700!FA8818!SMC/DET 12/PK !F0470103D0202 !A!N! !N!0007 ! !20041221!20140616!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 S PRICE RD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARI… Key points: 1. Significant investment in advanced missile and space systems development. 2. Contract awarded to Orbital Sciences Corporation, a key player in the defense sector. 3. Potential for long-term technological advancement and national security benefits. 4. Focus on research, development, testing, and evaluation (RDTE) indicates innovation.
Value Assessment
Rating: good
The contract value of $803,209,782 appears substantial for advanced technology development. Benchmarking against similar complex R&D contracts is necessary for a precise assessment, but the scale suggests a significant undertaking.
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 is generally expected to yield fair pricing and optimal value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense capabilities.
Public Impact
Enhances national security through advanced missile and space technology. Supports technological innovation and high-skilled jobs in the aerospace sector. Contributes to the U.S. strategic advantage in space and defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Dependence on a single contractor for critical technology development.
- Geopolitical risks impacting space and missile programs.
Positive Signals
- Investment in cutting-edge technology.
- Strengthening of national defense capabilities.
- Potential for technological spin-offs benefiting other sectors.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced missile and space systems. Spending in this area is critical for maintaining technological superiority and national security, often involving substantial R&D investments.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine the extent of small business participation in this large contract.
Oversight & Accountability
The award was managed by the Department of Defense, likely subject to standard oversight mechanisms for large R&D contracts, including performance reviews and financial audits to ensure accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High R&D expenditure.
- Long contract duration.
- Complexity of technology.
- Potential for scope creep.
- Dependence on contractor's technical expertise.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.3 million to ORBITAL SCIENCES LLC. 200505!000016!5700!FA8818!SMC/DET 12/PK !F0470103D0202 !A!N! !N!0007 ! !20041221!20140616!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 S PRICE RD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000000500000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !5!B!S! ! ! !202
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $53.3 million.
What is the period of performance?
Start: 2004-12-21. End: 2010-09-26.
What is the projected return on investment for this advanced technology development contract?
The return on investment for advanced technology development contracts is often measured in terms of enhanced national security, technological superiority, and potential economic benefits from spin-off technologies. Quantifying a direct financial ROI can be challenging due to the long-term and strategic nature of such investments. The primary 'return' is often the nation's ability to deter threats and maintain a strategic advantage.
What are the primary risks associated with the long-term development of missile and space systems under this contract?
Key risks include technological obsolescence, the potential for cost overruns due to the complexity of R&D, schedule delays, and the inherent uncertainties in developing cutting-edge systems. Geopolitical shifts and evolving threat landscapes also pose risks, potentially requiring program adjustments or rendering developed technologies less relevant.
How effective is the 'full and open competition' approach in ensuring value for money in advanced defense R&D?
Full and open competition is generally effective in driving down costs and fostering innovation by allowing a wide range of capable contractors to bid. However, for highly specialized R&D, the initial pool of qualified bidders might be limited. Ensuring effective evaluation criteria and robust contract management are crucial to maximizing value and mitigating risks in this context.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
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
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 3380 SOUTH PRICE ROAD, CHANDLER, AZ, 85248
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: F0470103D0202
IDV Type: IDC
Timeline
Start Date: 2004-12-21
Current End Date: 2010-09-26
Potential End Date: 2010-09-26 00:00:00
Last Modified: 2016-08-17
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