Orbital Sciences Corporation awarded $35.3M for missile and space systems R&D, with a 5-year contract duration

Contract Overview

Contract Amount: $35,311,675 ($35.3M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2001-10-05

End Date: 2012-01-03

Contract Duration: 3,742 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200207!000485!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0017 !20011005!20030331!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000005852468!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M!A!A!B!20030228!B! ! !A! !A!U!U!2!003!A! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: CHANDLER, MARICOPA County, ARIZONA, 85248

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to ORBITAL SCIENCES LLC for work described as: 200207!000485!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0017 !20011005!20030331!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARIC… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant portion allocated to ballistic missile defense systems. 3. Contractor has a substantial track record in defense contracting. 4. Performance period spans over 5 years, indicating a long-term project. 5. Awarded under full and open competition, suggesting a competitive bidding process. 6. Research and Development focus highlights innovation in defense capabilities.

Value Assessment

Rating: good

The contract value of $35.3 million for a duration of over 5 years appears reasonable for advanced research and development in missile and space systems. Benchmarking against similar R&D contracts in this specialized sector is challenging due to unique technological requirements. However, the cost-plus-fixed-fee structure suggests that while the contractor is incentivized to control costs, the government bears the risk of cost overruns. Further analysis would require detailed cost breakdowns and comparison with industry R&D investment levels.

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. The presence of 3 bidders suggests a moderate level of competition for this specialized R&D requirement. While not a highly crowded field, the competition likely contributed to price discovery and ensured a selection based on technical merit and proposed cost.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. The presence of multiple bidders suggests that taxpayer funds are being utilized in a manner that seeks the best value.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies requiring advanced missile and space system technologies. Services delivered include research and development for missile and space systems, with a focus on ballistic missile defense. The geographic impact is primarily within the United States, supporting domestic defense capabilities. Workforce implications include employment for scientists, engineers, and technical staff involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
The specialized nature of R&D may limit the pool of qualified bidders in future procurements.
Long contract durations require sustained oversight to ensure objectives are met.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contractor has a significant presence and experience in the defense sector.
Focus on advanced technology development aligns with strategic defense needs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. Spending in this area is critical for maintaining technological superiority in defense. Comparable spending benchmarks are difficult to establish precisely due to the highly specialized and often classified nature of missile and space R&D, but significant government investment is typical.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though Orbital Sciences Corporation may engage small businesses as part of its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, though specific R&D details may be sensitive.

Related Government Programs

Missile Defense Systems
Space Systems Development
Advanced Technology Research
Ballistic Missile Defense Program

Risk Flags

Cost Overrun Risk (CPFF contract type)
Technical Feasibility Risk (Advanced R&D)
Long-Term Project Management Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to ORBITAL SCIENCES LLC. 200207!000485!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0017 !20011005!20030331!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000005852468!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M!A!A!B!20030228!B

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 $35.3 million.

What is the period of performance?

Start: 2001-10-05. End: 2012-01-03.

What is Orbital Sciences Corporation's track record with similar Department of Defense contracts?

Orbital Sciences Corporation (now part of Northrop Grumman) has a substantial track record with the Department of Defense, particularly in areas related to space systems, missile defense, and launch services. They have been a key contractor for various programs, including satellite development, launch vehicle integration, and components for missile defense systems. Their history includes both successes and challenges, typical for large defense contractors operating in complex technological domains. Analyzing their past performance on cost, schedule, and technical delivery for similar R&D and production contracts would provide further insight into their reliability and capability for this specific award.

How does the awarded value compare to similar R&D contracts for missile and space systems?

Comparing the $35.3 million award value for this contract to similar R&D contracts in missile and space systems is complex due to the highly specialized nature of the work and the proprietary information often involved. However, for advanced technology development in areas like ballistic missile defense, this value appears to be within a reasonable range for a multi-year effort. Contracts for fundamental research might be smaller, while those involving extensive prototyping and testing could be significantly larger. The duration of over 5 years also suggests a substantial scope of work, making the total value proportionate to the expected deliverables.

What are the primary risks associated with this cost-plus-fixed-fee contract?

The primary risks associated with this cost-plus-fixed-fee (CPFF) contract revolve around cost control and potential overruns. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost-plus' element means the government is responsible for reimbursing the contractor's allowable costs. If the project encounters unforeseen technical challenges, material cost increases, or scope creep, the total cost to the government could exceed initial estimates. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to monitor expenditures, validate costs, and ensure the contractor remains incentivized to manage expenses efficiently.

How effective is the R&D focus on advancing ballistic missile defense capabilities?

The effectiveness of this R&D contract in advancing ballistic missile defense (BMD) capabilities depends heavily on the specific objectives, technological breakthroughs achieved, and successful integration of developed technologies into operational systems. Contracts focused on 'Advanced Tech Dev' within BMD aim to explore novel concepts, improve existing technologies (e.g., sensors, interceptors, tracking algorithms), and develop next-generation capabilities. The success is measured not just by the research conducted but by its transition to practical application, contributing to the overall effectiveness and resilience of the nation's BMD architecture against evolving threats. Continuous evaluation and testing are key to assessing this effectiveness.

What are the historical spending patterns for missile and space systems R&D within the Department of Defense?

Historical spending patterns for missile and space systems R&D within the Department of Defense have generally shown consistent, significant investment, reflecting the strategic importance of these capabilities. Budgets fluctuate based on geopolitical threats, technological advancements, and overall defense priorities. Major programs like missile defense, space-based intelligence, surveillance, and reconnaissance (ISR), and advanced propulsion systems consistently receive substantial funding. Over the years, there has been a trend towards integrating space and missile defense capabilities, requiring increased R&D in areas such as hypersonics, cyber resilience for space assets, and advanced sensor technologies. This contract aligns with those ongoing investment trends.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 3380 S PRICE RD, CHANDLER, AZ, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASG6098D0003

IDV Type: IDC

Timeline