DoD Awards $43.3M for TACSAT-4 Satellite Manufacturing to Orbital Sciences LLC
Contract Overview
Contract Amount: $43,282,671 ($43.3M)
Contractor: Orbital Sciences LLC
Awarding Agency: Department of Defense
Start Date: 2007-08-14
End Date: 2012-12-06
Contract Duration: 1,941 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: TACSAT-4
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85248
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $43.3 million to ORBITAL SCIENCES LLC for work described as: TACSAT-4 Key points: 1. Significant investment in satellite technology for defense applications. 2. Orbital Sciences LLC, a major aerospace contractor, secured the award. 3. Potential risks include program delays and cost overruns common in complex aerospace projects. 4. Spending falls within the Defense sector, specifically guided missile and space vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $43.3 million for TACSAT-4 appears reasonable given the complexity of guided missile and space vehicle manufacturing. Benchmarking against similar satellite development contracts would provide a more precise assessment.
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 that likely led to a fair price discovery. The use of a fixed-price incentive contract aims to balance cost control with performance incentives.
Taxpayer Impact: Taxpayer funds are being utilized for advanced defense technology, with competition aiming to ensure value for money.
Public Impact
Enhances national security capabilities through advanced satellite technology. Supports technological innovation in the aerospace and defense industry. Contributes to the operational readiness of the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule slippage in complex aerospace projects.
- Fixed-price incentive contracts can lead to cost increases if performance targets are not met efficiently.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Utilizes a fixed-price incentive contract to align contractor and government interests.
Sector Analysis
This contract falls under the Defense sector, specifically within guided missile and space vehicle manufacturing. Spending in this area is critical for national security and technological advancement, with significant government investment typical for such complex systems.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight, ensuring contract compliance and performance. The fixed-price incentive structure also provides a mechanism for monitoring and incentivizing contractor performance.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Complex technology development
- Potential for schedule delays
- Cost overrun risk
- Reliance on a single contractor for a critical system
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 $43.3 million to ORBITAL SCIENCES LLC. TACSAT-4
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 $43.3 million.
What is the period of performance?
Start: 2007-08-14. End: 2012-12-06.
What is the specific mission objective of TACSAT-4 and how does its performance align with the awarded contract value?
The specific mission objective of TACSAT-4 is not detailed in the provided data. However, as a satellite for the Department of Defense, it likely serves intelligence, surveillance, reconnaissance, or communication purposes. The contract value of $43.3 million suggests a significant technological undertaking. A detailed analysis of the satellite's capabilities and performance metrics against the contract's requirements would be necessary to fully assess value for money.
What are the primary risks associated with the TACSAT-4 program, and what mitigation strategies are in place?
Primary risks include technical challenges inherent in satellite development, potential schedule delays, and cost overruns, especially with fixed-price incentive contracts. Mitigation strategies likely involve robust program management by the DCMA, clear performance metrics, and contingency planning. The contract's structure incentivizes the contractor to manage costs and schedules effectively to achieve target objectives.
How effective is the full and open competition process in ensuring the best value for taxpayer dollars in complex defense procurements like TACSAT-4?
Full and open competition is generally considered the most effective method for ensuring best value by fostering a competitive environment that drives down prices and encourages innovation. For complex procurements like TACSAT-4, it allows a wider range of qualified contractors to bid, increasing the likelihood of selecting a solution that meets technical requirements at a competitive price. However, effective solicitation design and evaluation are crucial.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,893,841
Exercised Options: $43,632,612
Current Obligation: $43,282,671
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0470103D0202
IDV Type: IDC
Timeline
Start Date: 2007-08-14
Current End Date: 2012-12-06
Potential End Date: 2012-12-06 00:00:00
Last Modified: 2020-08-19
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