Boeing North American awarded $13.2M for missile and space systems R&D, with a 1274-day duration
Contract Overview
Contract Amount: $13,245,626 ($13.2M)
Contractor: Aerojet Rocketdyne of DE, Inc
Awarding Agency: Department of Defense
Start Date: 1999-11-29
End Date: 2003-05-26
Contract Duration: 1,274 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200004!5700!000003!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461197C0062 !A!*!P00018 !19991129!20010630!057366924!009256819!009256819!N!5R411!BOEING NORTH AMERICAN, INC. !8900 DE SOTO AVENUE !CANOGA PARK !CA!91304!10788!037!06!CANOGA PARK !LOS ANGELES !CALIFORNIA!0001!+000001000000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!C!B!N!A!D !N!U!1!001!N!2A!Z!Y!Z!* !* !N!C!*!B!B!A!A!A!A!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91304
Plain-Language Summary
Department of Defense obligated $13.2 million to AEROJET ROCKETDYNE OF DE, INC for work described as: 200004!5700!000003!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461197C0062 !A!*!P00018 !19991129!20010630!057366924!009256819!009256819!N!5R411!BOEING NORTH AMERICAN, INC. !8900 DE SOTO AVENUE !CANOGA PARK !CA!91304!10788!037!06!CANOGA PARK !LOS… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant duration of over three years suggests a complex, long-term research effort. 3. Sole-source award raises questions about potential cost efficiencies and market competition. 4. Contract type is Cost Plus Fixed Fee, which can incentivize contractor spending. 5. Geographic location of contractor in Canoga Park, California. 6. The contract falls under the broader category of Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The contract's value of $13.2 million for a 1274-day duration averages to approximately $10,397 per day. Without specific deliverables or performance metrics, it is difficult to benchmark this against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not closely monitored, potentially impacting overall value for money. The lack of competitive bidding further complicates a direct value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This could be due to various reasons, such as the contractor possessing unique capabilities or intellectual property essential for the project, or a specific national security requirement. However, the absence of competition limits the government's ability to secure the best possible price through market forces.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to compete for government contracts.
Public Impact
The primary beneficiaries are likely the Department of Defense and its associated research initiatives, particularly in advanced missile and space systems. The contract supports the development of advanced technologies crucial for national security and defense capabilities. The geographic impact is primarily within California, where the contractor is located, potentially supporting local jobs and the aerospace industry. Workforce implications include employment for scientists, engineers, and technical staff at Boeing North American.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Cost Plus Fixed Fee structure may incentivize higher spending.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Focus on advanced technology development aligns with strategic defense goals.
- Long contract duration suggests a commitment to a critical R&D area.
- Contractor is a known entity in the aerospace and defense sector.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for missile and space systems. This is a highly specialized area characterized by significant government investment and long development cycles. The market is often dominated by a few large, established contractors due to the high barriers to entry, including technical expertise, security clearances, and capital investment. Comparable spending benchmarks would typically be found within other advanced R&D contracts for similar defense applications.
Small Business Impact
This contract does not appear to have a small business set-aside. As a sole-source award to a large prime contractor, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime. The absence of small business participation in this specific award may limit opportunities for smaller innovative firms in this specialized R&D area.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency, in this case, the Department of Defense, likely through the Defense Contract Management Agency (DCMA). Accountability measures would be defined by the contract terms, including reporting requirements and milestones. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of missile and space systems R&D.
Related Government Programs
- Missile Defense Systems
- Space Systems Development
- Advanced Technology Research
- Department of Defense R&D Programs
Risk Flags
- Sole-source award may indicate limited competition.
- Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
- Lack of detailed public information on deliverables hinders performance assessment.
Tags
defense, department-of-defense, missile-and-space-systems, research-and-development, advanced-technology, sole-source, cost-plus-fixed-fee, california, boeing-north-american, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.2 million to AEROJET ROCKETDYNE OF DE, INC. 200004!5700!000003!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461197C0062 !A!*!P00018 !19991129!20010630!057366924!009256819!009256819!N!5R411!BOEING NORTH AMERICAN, INC. !8900 DE SOTO AVENUE !CANOGA PARK !CA!91304!10788!037!06!CANOGA PARK !LOS ANGELES !CALIFORNIA!0001!+000001000000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!C!B!N!A!D !N!U!
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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.2 million.
What is the period of performance?
Start: 1999-11-29. End: 2003-05-26.
What specific advanced technologies were developed under this contract?
The provided data indicates the contract was for 'MISSILE AND SPACE SYSTEMS-ADV TECH DEV' and falls under the NAICS code 541710 (Research and Development in Physical, Engineering, and Life Sciences). However, the specific advanced technologies developed are not detailed in the extract. Such information is often classified or proprietary due to the nature of defense research. Further investigation would require accessing the contract's statement of work or related documentation, which may not be publicly available.
How does the daily cost of this contract compare to similar R&D efforts?
The contract value of $13,245,626 over 1274 days results in a daily expenditure of approximately $10,397. Benchmarking this against similar R&D contracts is challenging without more specific details on the scope of work, deliverables, and the specific technological domain. Contracts for advanced R&D, especially in defense, can vary widely in cost per day based on complexity, personnel involved, and required resources. The sole-source nature of this award also limits direct comparison to competitively bid projects where price discovery is more robust.
What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
Cost Plus Fixed Fee (CPFF) contracts are common for research and development where the scope of work is not fully defined at the outset. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which represents profit. If costs escalate beyond initial estimates, the government bears the burden. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), it can also lead to less aggressive cost management compared to fixed-price contracts. Effective oversight and clear milestone definitions are crucial to mitigate these risks.
What is the significance of this contract being awarded to Boeing North American?
Boeing North American, Inc. is a major aerospace and defense contractor with extensive experience in developing complex systems, including those for missile and space applications. Awarding this contract to them suggests the government recognized their specialized capabilities, existing infrastructure, and potentially proprietary technology necessary for this advanced R&D effort. Their track record in delivering large-scale defense projects likely played a role in the sole-source decision, indicating a reliance on their established expertise in this critical area.
What historical spending patterns exist for missile and space systems R&D by the Department of Defense?
The Department of Defense consistently allocates significant funding towards research and development for missile and space systems, reflecting ongoing strategic priorities and technological advancements. Historical spending patterns show a continuous investment in areas such as missile defense, satellite technology, hypersonics, and space-based intelligence, surveillance, and reconnaissance (ISR). While specific figures fluctuate annually based on budget allocations and evolving threats, R&D in these domains represents a substantial portion of the defense budget, often involving multi-year, high-value contracts with leading aerospace and defense firms.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)
Address: 8900 DESOTO AVE, CANOGA PARK, CA, 91304
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1999-11-29
Current End Date: 2003-05-26
Potential End Date: 2003-06-30 00:00:00
Last Modified: 2021-11-03
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