NASA Orion ATB Contract Awarded to Orbital Sciences LLC for $42.8M
Contract Overview
Contract Amount: $42,791,486 ($42.8M)
Contractor: Orbital Sciences LLC
Awarding Agency: Department of Defense
Start Date: 2014-06-25
End Date: 2019-10-02
Contract Duration: 1,925 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::CT::IGF SRP-3 NASA ORION ATB
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85248
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to ORBITAL SCIENCES LLC for work described as: IGF::CT::IGF SRP-3 NASA ORION ATB Key points: 1. Contract awarded for Guided Missile and Space Vehicle Manufacturing. 2. Orbital Sciences LLC is the contractor. 3. Full and open competition was used. 4. The contract duration is 1925 days. 5. The contract is a Cost Plus Incentive Fee type.
Value Assessment
Rating: fair
The contract value is $42.8 million. Without specific benchmarks for similar contracts, assessing the value is difficult. The Cost Plus Incentive Fee structure suggests potential for cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing mechanisms within the Cost Plus Incentive Fee structure need careful monitoring to ensure value for money.
Taxpayer Impact: Taxpayer funds are being used for the development and manufacturing of space vehicle components. The effectiveness of the incentive fee structure will determine the ultimate cost efficiency.
Public Impact
Supports NASA's space exploration initiatives. Contributes to the aerospace manufacturing sector. Potential for technological advancements in space vehicles. Job creation in the aerospace industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to higher costs if incentives are not well-aligned with performance.
- Long contract duration increases exposure to market and technological changes.
- Lack of specific performance metrics makes it hard to assess efficiency.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Contract supports a critical national program (NASA Orion).
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of the aerospace industry. Spending in this sector is often characterized by high R&D costs and long development cycles.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract is managed by the Department of the Air Force, which is responsible for oversight. The Cost Plus Incentive Fee structure requires diligent monitoring of costs and performance to ensure accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Long contract duration increases risk exposure.
- Lack of detailed performance metrics.
- Dependence on a single contractor for a critical component.
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 $42.8 million to ORBITAL SCIENCES LLC. IGF::CT::IGF SRP-3 NASA ORION ATB
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $42.8 million.
What is the period of performance?
Start: 2014-06-25. End: 2019-10-02.
What are the key performance indicators (KPIs) tied to the incentive fee structure, and how are they measured?
The effectiveness of the incentive fee structure hinges on clearly defined and measurable KPIs. These should align with program objectives, such as timely delivery, adherence to technical specifications, and cost control. Without this information, it's difficult to assess if the incentives are driving the desired outcomes or if they might inadvertently encourage cost escalation.
What is the projected cost variance for this contract, and what are the contingency plans?
Given the Cost Plus Incentive Fee (CPIF) nature, cost variances are expected. The agency should have established baseline cost estimates and mechanisms for tracking deviations. Contingency plans should outline how cost overruns will be managed, including potential re-negotiation of incentives or scope adjustments, to mitigate taxpayer impact.
How does the performance of Orbital Sciences LLC on similar contracts inform the risk assessment for this award?
Assessing Orbital Sciences LLC's past performance on comparable contracts is crucial for understanding their reliability and efficiency. A review of their track record regarding cost adherence, schedule management, and quality of deliverables on previous CPIF contracts would provide valuable insights into the potential risks associated with this award and inform future oversight strategies.
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
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $43,809,780
Exercised Options: $43,809,780
Current Obligation: $42,791,486
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $9,809,563
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881808D0036
IDV Type: IDC
Timeline
Start Date: 2014-06-25
Current End Date: 2019-10-02
Potential End Date: 2019-10-02 00:00:00
Last Modified: 2020-06-08
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