DoD's $49.7M contract with ORBITAL SCIENCES LLC for services, awarded under full and open competition

Contract Overview

Contract Amount: $49,702,974 ($49.7M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 1999-11-22

End Date: 2003-11-30

Contract Duration: 1,469 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Place of Performance

Location: CHANDLER, MARICOPA County, ARIZONA, 85286

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $49.7 million to ORBITAL SCIENCES LLC for work described as: Key points: 1. Contract value of $49.7M suggests a significant investment in specialized services. 2. Awarded under 'full and open competition', indicating a broad market solicitation. 3. The contract duration of 1469 days (approx. 4 years) points to a long-term need. 4. Cost Plus Incentive Fee (CPIF) pricing structure suggests performance-based incentives. 5. The contract was awarded by the Department of Defense, a major federal spender. 6. The presence of 3 bidders indicates a moderate level of competition for this award.

Value Assessment

Rating: fair

The contract's value of $49.7M is substantial, but without specific service details, a direct value-for-money assessment is challenging. The Cost Plus Incentive Fee (CPIF) structure implies an attempt to control costs through performance incentives, which can be effective if well-defined. Benchmarking against similar long-term service contracts within the DoD would be necessary for a more precise valuation. The number of bidders (3) suggests some competition, but the ultimate pricing effectiveness depends on the incentive structure and the baseline cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition', meaning all responsible sources were permitted to submit offers. With three bidders, the competition level appears moderate. This suggests that while the market was broadly solicited, the specific nature of the services or the requirements may have limited the number of capable participants. Moderate competition can lead to reasonable price discovery, but it might not achieve the aggressive cost reductions seen in highly competitive procurements.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging multiple firms to bid, potentially leading to more competitive pricing than a sole-source award. However, it may not yield the absolute lowest prices achievable in a more crowded marketplace.

Public Impact

The Department of Defense is the primary beneficiary, receiving specialized services. The contract likely supports critical defense operations or infrastructure. The geographic impact is centered in Arizona, where the contract was managed. Workforce implications could include specialized technical or support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it difficult to assess the true value and necessity of the contract.
The Cost Plus Incentive Fee structure, while incentivizing, can still lead to cost overruns if not managed rigorously.
The moderate competition level might mean that taxpayers are not receiving the absolute best possible price.
The contract's long duration could pose risks if technology or requirements change significantly over its term.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The use of an incentive fee structure suggests a focus on performance and cost control.
The contract was managed by the Defense Contract Management Agency, indicating established oversight processes.
The award to ORBITAL SCIENCES LLC, a known entity in the aerospace and defense sector, suggests a degree of contractor capability.

Sector Analysis

The aerospace and defense sector is characterized by complex, high-value contracts often involving advanced technology and specialized services. This $49.7M contract fits within this landscape, likely supporting a specific defense requirement. The market for such services is often concentrated among a few large, specialized contractors. Benchmarking against similar long-term service contracts within the DoD, which can range from tens to hundreds of millions of dollars, would provide further context.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor, ORBITAL SCIENCES LLC, likely possesses the capabilities to fulfill the contract requirements directly or through larger partners, potentially limiting opportunities for small businesses in this particular procurement.

Oversight & Accountability

Oversight for this contract would fall under the purview of the Department of Defense and potentially the Defense Contract Management Agency (DCMA), which managed the contract's administration in Arizona. The 'Cost Plus Incentive Fee' (CPIF) structure implies ongoing monitoring of costs and performance against defined incentives. Transparency would depend on the DoD's reporting practices for this specific contract type and the availability of Inspector General reports related to its execution.

Related Government Programs

Department of Defense Services Contracts
Aerospace and Defense Sector Procurement
Cost Plus Incentive Fee Contracts
Long-Term Service Agreements

Risk Flags

Lack of specific service details
Potential for cost overruns in CPIF contracts
Moderate competition may not yield lowest prices
Long contract duration increases risk of obsolescence or scope change

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.7 million to ORBITAL SCIENCES LLC. See the official description on USAspending.

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 $49.7 million.

What is the period of performance?

Start: 1999-11-22. End: 2003-11-30.

What specific services were provided under this $49.7M contract?

The provided data does not specify the exact services rendered under this contract. However, given the contractor (ORBITAL SCIENCES LLC, now part of Northrop Grumman's defense sector) and the awarding agency (Department of Defense), the services likely pertained to aerospace, defense systems, research and development, or specialized technical support critical to military operations. Without further details on the contract's statement of work, a precise description of services is not possible. The contract type (Cost Plus Incentive Fee) suggests services where performance targets and cost efficiencies were key objectives.

How does the $49.7M contract value compare to similar DoD service contracts?

A contract value of $49.7M for services is substantial but falls within a common range for significant DoD procurements. The DoD awards thousands of contracts annually, with values spanning from small purchases to multi-billion dollar programs. For specialized technical services or long-term support, $49.7M over approximately four years represents a considerable investment. To provide a precise comparison, one would need to benchmark against contracts with similar service descriptions, durations, and complexity within the DoD's vast portfolio. However, it indicates a significant commitment to acquiring specific capabilities or support.

What are the key risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude?

The primary risks with a CPIF contract of this magnitude ($49.7M) revolve around cost control and performance definition. While CPIF aims to incentivize efficiency, there's a risk that the baseline cost estimates might be inflated, or the incentive targets could be set too leniently, leading to higher-than-expected final costs. If the performance metrics are poorly defined or difficult to measure, the incentive aspect may be ineffective. Furthermore, the long duration (1469 days) increases the risk of scope creep, changing requirements, or unforeseen technical challenges that could impact both cost and performance, requiring diligent oversight from the contracting agency.

What does the moderate competition (3 bidders) imply for the effectiveness of this procurement?

Moderate competition, with three bidders for this $49.7M contract, suggests a reasonably competitive environment but not one that necessarily drives prices to the absolute lowest possible level. It indicates that the market likely has a limited number of qualified contractors capable of meeting the specific requirements. While this level of competition is generally positive for taxpayers compared to sole-source awards, it might mean that the government did not achieve the most aggressive pricing achievable in a more crowded field. The effectiveness also hinges on the clarity of the solicitation and the evaluation criteria used.

What is the historical spending pattern for ORBITAL SCIENCES LLC with the Department of Defense?

While the provided data is for a single contract, ORBITAL SCIENCES LLC (now part of Northrop Grumman) has a significant history of contracting with the Department of Defense. They have been involved in numerous contracts related to space systems, missile defense, and aerospace technologies. This $49.7M contract represents one data point in a broader pattern of DoD investment in companies with specialized capabilities in these areas. Analyzing their complete contract history would reveal trends in contract types, values, and the specific defense programs they have supported over time.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline