DOE's $95.8M MMRTG contract to Aerojet Rocketdyne for space research technology shows long-term development needs
Contract Overview
Contract Amount: $95,777,286 ($95.8M)
Contractor: Aerojet Rocketdyne of DE, Inc
Awarding Agency: Department of Energy
Start Date: 2003-06-24
End Date: 2014-05-31
Contract Duration: 3,994 days
Daily Burn Rate: $24.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DESIGN, DEVELOPMENT, PRODUCTION, AND SYSTEM INTEGRATION OF A MULTI-MISSION RADIOISOTOPE THERMOELECTRIC GENERATOR (MMRTG)
Place of Performance
Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91309
Plain-Language Summary
Department of Energy obligated $95.8 million to AEROJET ROCKETDYNE OF DE, INC for work described as: DESIGN, DEVELOPMENT, PRODUCTION, AND SYSTEM INTEGRATION OF A MULTI-MISSION RADIOISOTOPE THERMOELECTRIC GENERATOR (MMRTG) Key points: 1. The contract's duration of nearly 11 years suggests a complex, long-term project with evolving requirements. 2. Aerojet Rocketdyne's role in producing thermoelectric generators highlights critical infrastructure for deep space missions. 3. The cost-plus-fixed-fee structure indicates potential for cost overruns, requiring close monitoring of expenditures. 4. The definitive contract type suggests a single, overarching agreement for a substantial period. 5. The absence of small business set-asides means opportunities for smaller firms in this specialized sector may be limited. 6. The contract's focus on radioisotope thermoelectric generators points to a niche but vital area of technological development.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its highly specialized nature and long duration. The total award of over $95 million spread across nearly 11 years indicates a significant investment in a critical technology. Without comparable contracts for similar multi-mission radioisotope thermoelectric generators, assessing precise value-for-money is difficult. However, the extended period suggests a sustained effort to develop and produce a complex system, which inherently carries substantial costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of two bidders (no: 2) suggests a competitive environment, though the specialized nature of the technology may limit the pool of qualified companies. Full and open competition is generally expected to drive better pricing and innovation, but the long-term, complex nature of this project might have influenced the final negotiated price.
Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the best possible price for this advanced technology. However, the long duration and cost-plus-fixed-fee structure necessitate vigilant oversight to ensure costs remain controlled and justified.
Public Impact
The primary beneficiaries are NASA and other space exploration entities requiring reliable power sources for deep space missions. The contract delivers essential components for scientific research and exploration beyond Earth's orbit. The geographic impact is primarily national, supporting U.S. leadership in space technology and exploration. Workforce implications include highly skilled engineers, scientists, and technicians in specialized fields like nuclear materials and aerospace engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
- The long contract duration increases the risk of scope creep and potential cost escalations over time.
- The specialized nature of radioisotope thermoelectric generators means limited competition and potential for higher unit costs.
- Reliance on a single contractor for such a critical component could pose supply chain risks.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process to select the best value.
- The contract supports critical national objectives in space exploration and scientific discovery.
- Aerojet Rocketdyne is a known entity in aerospace and defense, potentially bringing established expertise.
- The definitive contract structure provides a clear framework for a long-term, complex project.
Sector Analysis
The contract falls within the 'Space Research and Technology' sector, a highly specialized area of the aerospace industry. This sector is characterized by significant R&D investment, long development cycles, and stringent performance requirements. Companies operating in this space often have unique expertise and capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of MMRTG technology, but overall federal spending on space exploration and technology development runs into billions annually, with significant portions dedicated to advanced propulsion and power systems.
Small Business Impact
This contract was not set aside for small businesses (ss: false, sb: false). The highly specialized nature of producing multi-mission radioisotope thermoelectric generators likely limits the pool of qualified small businesses. Consequently, small businesses may not directly benefit from prime contract awards in this specific area, though they might participate as subcontractors if opportunities arise. The lack of small business participation suggests a focus on established, large-scale aerospace contractors with the requisite technical capabilities and infrastructure.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy (DOE), with potential involvement from agencies like NASA, depending on the end-use of the MMRTG. The cost-plus-fixed-fee (pt: COST PLUS FIXED FEE) structure necessitates rigorous financial oversight to monitor expenditures and ensure costs are reasonable and allocable. Transparency is expected through contract reporting mechanisms, though specific details of ongoing oversight activities are not publicly detailed. Inspector General jurisdiction would apply to investigate fraud, waste, and abuse.
Related Government Programs
- NASA Space Exploration Programs
- Department of Energy Nuclear Technologies
- Advanced Power Systems Development
- Radioisotope Power Systems
Risk Flags
- Long Contract Duration
- Cost-Plus-Fixed-Fee Structure
- Specialized Technology
- Potential for Scope Creep
Tags
department-of-energy, aerojet-rocketdyne, space-research-and-technology, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, california, nasa-support, long-term-project, advanced-technology, nuclear-technology, power-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $95.8 million to AEROJET ROCKETDYNE OF DE, INC. DESIGN, DEVELOPMENT, PRODUCTION, AND SYSTEM INTEGRATION OF A MULTI-MISSION RADIOISOTOPE THERMOELECTRIC GENERATOR (MMRTG)
Who is the contractor on this award?
The obligated recipient is AEROJET ROCKETDYNE OF DE, INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $95.8 million.
What is the period of performance?
Start: 2003-06-24. End: 2014-05-31.
What is the historical spending trend for MMRTG development and production by the Department of Energy?
Historical spending data specifically for Multi-Mission Radioisotope Thermoelectric Generator (MMRTG) development and production by the Department of Energy (DOE) is highly specialized and not readily available in aggregated public datasets. The provided contract, awarded in 2003 and ending in 2014 for approximately $95.8 million, represents a significant investment in this technology. Prior to this, the DOE has been involved in developing radioisotope power systems for decades, including earlier generations of thermoelectric generators for space missions. However, tracking precise year-over-year spending solely on MMRTG production is challenging without access to detailed internal DOE budget allocations for specific projects. The significant cost of this single contract suggests that MMRTG development is a high-cost, low-volume endeavor, likely funded through specific appropriations for critical national security or space exploration initiatives.
How does the cost-plus-fixed-fee (CPFF) structure impact the potential for cost overruns in this contract?
The Cost-Plus-Fixed-Fee (CPFF) contract structure, as used in this MMRTG award, presents a moderate risk of cost overruns. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides an incentive for the contractor to control costs (as their profit is capped), it does not directly penalize them for exceeding the estimated cost. If costs escalate beyond the estimate, the government still pays the actual costs incurred, plus the fixed fee. This can lead to the total contract value exceeding initial projections. Robust government oversight, detailed cost accounting, and clear definition of allowable costs are crucial to mitigate the risk of cost overruns under a CPFF arrangement, especially for long-duration, complex projects like MMRTG development.
What are the key performance indicators (KPIs) typically used to evaluate the success of MMRTG contracts?
Key Performance Indicators (KPIs) for Multi-Mission Radioisotope Thermoelectric Generator (MMRTG) contracts typically focus on technical performance, reliability, and schedule adherence. For MMRTG, critical KPIs would include: 1) Electrical Power Output: Ensuring the generator consistently produces the required wattage over its operational lifespan. 2) Thermal Efficiency: Measuring how effectively the heat from the radioisotope is converted into electricity. 3) Reliability and Longevity: Demonstrating the system's ability to operate without failure for the mission duration (often decades). 4) Safety Compliance: Adherence to stringent nuclear safety regulations during production, handling, and integration. 5) Schedule Milestones: Timely completion of design, fabrication, testing, and delivery phases. 6) Cost Performance: While not strictly a technical KPI, managing costs within budget is crucial, especially given the CPFF structure. Success is ultimately measured by the MMRTG's ability to reliably power deep space missions.
What is Aerojet Rocketdyne's track record in developing and producing advanced power systems for space applications?
Aerojet Rocketdyne (and its predecessor companies) has a significant and long-standing track record in developing and producing advanced propulsion and power systems for space applications. They have been a key player in numerous U.S. space missions, providing engines, thrusters, and other critical components. While specific details on their MMRTG production history prior to this contract might be proprietary, their broader experience in handling complex, high-reliability systems for aerospace is well-established. Their involvement in projects ranging from launch vehicle engines to deep space propulsion systems indicates a deep technical capability and experience with the stringent requirements of the space industry. This background suggests a strong foundation for undertaking the MMRTG contract, although the specific challenges of radioisotope power systems require specialized expertise.
How does the $95.8 million award compare to other federal contracts for similar specialized technology development?
Comparing the $95.8 million award for MMRTG development to other federal contracts for similar specialized technology is challenging due to the unique nature of radioisotope power systems. MMRTGs are critical for deep space missions where solar power is insufficient, making them a niche technology. Contracts for advanced propulsion systems, satellite components, or other high-tech aerospace R&D can range widely, from tens of millions to billions of dollars, depending on scope, duration, and technological complexity. For instance, contracts for developing new rocket engines or advanced satellite platforms can easily reach or exceed this figure. The $95.8 million over nearly 11 years suggests a substantial, long-term investment in a critical, albeit specialized, capability. It reflects the high cost associated with nuclear materials, stringent safety protocols, and the complex engineering required for space-qualified hardware.
What are the potential risks associated with the long duration (3994 days) of this contract?
The long duration of this contract, approximately 11 years (3994 days), introduces several potential risks. Firstly, **scope creep** is a significant concern; requirements may evolve over such an extended period, leading to changes that increase costs and delay schedules. Secondly, **technological obsolescence** is possible, where advancements in alternative power technologies could emerge, potentially making the MMRTG less relevant or requiring costly upgrades. Thirdly, **contractor performance stability** can be a risk; key personnel may leave, or the contractor's financial health could change over a decade. Fourthly, **economic fluctuations** and inflation can impact the cost of materials and labor, potentially straining the fixed-fee component if not adequately managed. Finally, **regulatory changes** related to nuclear materials or safety standards could necessitate costly modifications to the design or production process.
Industry Classification
NAICS: Public Administration › Space Research and Technology › Space Research and Technology
Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)
Address: 6633 CANOGA AVENE, CANOGA PARK, CA, 91309
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $119,685,464
Exercised Options: $119,685,464
Current Obligation: $95,777,286
Actual Outlays: $61,145
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-06-24
Current End Date: 2014-05-31
Potential End Date: 2020-09-22 00:00:00
Last Modified: 2020-09-22
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