Orbital Sciences Corporation awarded $38M for missile defense R&D, with a significant portion for advanced technology development

Contract Overview

Contract Amount: $38,004,772 ($38.0M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2003-04-16

End Date: 2006-10-31

Contract Duration: 1,294 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200307!001708!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0028 !20030416!20051230!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000004560243!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!A!M! !A!D!20051230!B! ! !A! !A!U!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!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 $38.0 million to ORBITAL SCIENCES LLC for work described as: 200307!001708!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0028 !20030416!20051230!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARIC… Key points: 1. Contract focused on advanced technology development for missile and space systems. 2. Significant investment in research and development for ballistic missile defense. 3. Contract awarded through full and open competition, suggesting a competitive bidding process. 4. Performance period spanned over two years, indicating a substantial development cycle. 5. The contract's value suggests a complex and critical technological undertaking. 6. Geographic focus on Arizona for contract performance.

Value Assessment

Rating: good

The contract value of approximately $38 million for R&D in missile and space systems appears reasonable given the scope of advanced technology development. Benchmarking against similar contracts for ballistic missile defense systems would provide further context, but the duration and nature of the work suggest a significant investment. The cost-plus-fixed-fee structure implies that while the contractor's fee is fixed, the government bears the risk of cost overruns, which is common in R&D but requires careful oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of contractors and potentially better pricing due to market forces. The number of bidders is not specified, but the competitive nature suggests that the government sought the best value proposition from multiple interested parties.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through advancements in missile defense capabilities. Services delivered include research, development, and advanced technology creation for missile and space systems. Geographic impact is centered in Arizona, where the contractor's facilities are located. 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 managed tightly.
The specific technological advancements and their effectiveness are not detailed in the provided data.
Long-term sustainment and integration costs of developed technologies are not addressed.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Focus on advanced technology development aligns with strategic defense needs.
Contract duration indicates a commitment to a substantial R&D effort.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems. The market for defense R&D is characterized by high technological complexity, significant government investment, and a focus on national security. Comparable spending benchmarks would involve looking at other advanced technology development contracts within the Department of Defense, particularly those related to missile defense and strategic systems, which often represent substantial investments due to their critical nature.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Given the nature of advanced R&D in missile and space systems, it is possible that the prime contractor, Orbital Sciences Corporation, would engage specialized subcontractors, but there is no explicit information to confirm this or its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures would be tied to the achievement of R&D milestones and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details of R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Ballistic Missile Defense Systems
Advanced Technology Development
Missile and Space Systems R&D
Department of Defense Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Feasibility Uncertainty
Limited Publicly Available Technical Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to ORBITAL SCIENCES LLC. 200307!001708!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0003 !A!N! !N!0028 !20030416!20051230!803209782!803209782!101916062!N!ORBITAL SCIENCES CORPORATION !3380 SOUTH PRICE ROAD !CHANDLER !AZ!85248!12000!013!04!CHANDLER !MARICOPA !ARIZONA !+000004560243!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !4CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!A!M! !A!D!20051230!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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2003-04-16. End: 2006-10-31.

What specific technological advancements were pursued under this contract, and what was their impact on missile defense capabilities?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences,' specifically related to 'MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and 'BALLISTIC MISSILE DEFENSE SYS.' While the contract number and award details are available, the specific technological breakthroughs or the precise impact on missile defense capabilities are not detailed in this summary. Such information would typically be found in program office reports, technical documentation, or classified assessments, as the nature of advanced defense R&D often involves sensitive information. The contract's focus suggests efforts to enhance early warning, tracking, interception, or countermeasures related to ballistic missiles.

How does the awarded amount of approximately $38 million compare to other contracts for similar missile defense R&D projects?

Comparing the $38 million award to other missile defense R&D contracts requires access to a broader dataset of federal procurements. However, for advanced technology development in complex defense systems like ballistic missile defense, this amount is not unusual. Major defense programs often involve R&D phases costing tens to hundreds of millions of dollars, sometimes billions, depending on the scale and technological ambition. This contract, with a duration of over two years, suggests a significant but potentially focused R&D effort rather than a full-scale system development. Benchmarking would involve identifying contracts with similar scope (e.g., advanced component development, simulation, prototyping) within the missile defense domain.

What were the key performance indicators or milestones for Orbital Sciences Corporation under this contract?

The provided data does not explicitly list the key performance indicators (KPIs) or milestones for this contract. In Cost Plus Fixed Fee (CPFF) R&D contracts, milestones are typically tied to the delivery of research reports, prototypes, feasibility studies, technical demonstrations, or the successful completion of specific research phases. Orbital Sciences Corporation would have been expected to meet these defined objectives to earn their fixed fee. The government's contracting officers and technical representatives would monitor progress against these milestones to ensure the R&D objectives were being met and to manage the contract effectively.

What is the track record of Orbital Sciences Corporation (now part of Northrop Grumman) in defense R&D, particularly in missile defense?

Orbital Sciences Corporation, now part of Northrop Grumman, has a long-standing history in aerospace and defense, including significant contributions to space systems, launch vehicles, and defense technologies. Prior to its acquisition, Orbital Sciences was known for its work on satellite technology, launch services, and various defense programs. In the realm of missile defense, the company has been involved in developing components, sensors, and systems that support missile warning, tracking, and potentially interception capabilities. Their expertise in space systems and advanced engineering has been a foundation for their involvement in complex defense R&D projects, including those related to strategic defense initiatives.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced technology development?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Orbital Sciences Corporation, carry specific risks, particularly in advanced technology development. The primary risk for the government is that the contractor may incur costs exceeding initial estimates, although the contractor's profit (fee) remains fixed. This can lead to the government paying more than anticipated if cost controls are not robust. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient. In R&D, where outcomes are uncertain, there's a risk that the technology may not prove feasible or meet performance requirements, potentially leading to contract modifications or termination. Effective oversight is crucial to mitigate these risks.

How has spending on missile and space systems R&D evolved within the Department of Defense over the years?

Spending on missile and space systems R&D within the Department of Defense has generally been a consistent priority, driven by evolving threats and technological advancements. Historically, significant investments were made during the Cold War for strategic defense systems. Post-Cold War, focus shifted towards missile defense against emerging threats, space-based capabilities, and advanced reconnaissance. Funding levels fluctuate based on geopolitical conditions, technological breakthroughs, and budgetary priorities. Contracts like this one, awarded in the early 2000s, reflect a period of increased emphasis on missile defense technologies. Overall, R&D spending in this area remains substantial, reflecting the critical role of space and missile technology in modern warfare and national security.

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: 1

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