DoD awards $5.25M for Cape Canaveral launch support, with Netcentric Technology LLC as prime

Contract Overview

Contract Amount: $5,254,750 ($5.3M)

Contractor: Netcentric Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2028-05-31

Contract Duration: 1,521 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACEX

Place of Performance

Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to NETCENTRIC TECHNOLOGY, LLC for work described as: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACEX Key points: 1. Contract value appears moderate for specialized launch infrastructure support. 2. Competition dynamics indicate a potentially constrained market for these services. 3. Performance risk is moderate given the specialized nature of launch operations. 4. Contract duration extends over 5 years, suggesting a need for sustained support. 5. This contract falls within the facilities support services sector. 6. The award method suggests limited competition was considered necessary.

Value Assessment

Rating: fair

The contract value of $5.25 million for a 5-year period is relatively modest for complex launch operations support. Benchmarking against similar contracts for space launch infrastructure is difficult without more detailed scope of work. However, the Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to higher costs if not carefully managed, though it allows for flexibility in evolving requirements. The absence of a specific per-unit cost benchmark makes direct value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources,' which implies that while initial broad competition may have been considered, specific circumstances led to a limited pool of eligible bidders. The exact reasons for excluding sources are not detailed, but this approach often suggests a need for specialized capabilities or existing infrastructure knowledge. The limited competition may have impacted price discovery, potentially leading to higher costs than under full and open competition.

Taxpayer Impact: Taxpayers may have paid a premium due to the restricted competition, as fewer bidders typically results in less downward pressure on pricing.

Public Impact

The primary beneficiaries are the Department of the Air Force and SpaceX, receiving essential support for space launch operations at Cape Canaveral. Services delivered include facilities support, crucial for maintaining and operating launch infrastructure. The geographic impact is concentrated in Florida, specifically at the Cape Canaveral Space Force Station. Workforce implications include the potential for skilled labor in facilities management and specialized technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
CPFF contract type requires diligent oversight to control costs.
Exclusion of sources needs clear justification to ensure fairness.
Long contract duration may not adapt well to rapid technological changes.

Positive Signals

Contract supports critical national space launch infrastructure.
Long-term award provides stability for contractor and operations.
Focus on facilities support ensures operational readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS 561210), which encompasses establishments primarily engaged in operating and maintaining buildings and other facilities, for others. The space launch industry is a highly specialized niche within this sector, requiring unique expertise and infrastructure. Comparable spending benchmarks are difficult to establish due to the unique nature of launch operations, but this contract's value is moderate for supporting critical national assets.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific contract, as the 'sb' field is false. There is no indication of small business set-asides or subcontracting requirements mentioned. This suggests that the prime contractor, Netcentric Technology, LLC, is likely a larger entity, and the specialized nature of the work may not lend itself easily to subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, given it is a DoD contract. Accountability measures will be embedded within the Cost Plus Fixed Fee (CPFF) structure, requiring detailed reporting and justification of costs. Transparency may be limited due to the 'limited competition' award and the specialized nature of the services, but contract performance metrics should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Space Launch Operations Support
Facilities Management Services
Department of Defense Infrastructure Contracts
Cape Canaveral Space Force Station Operations

Risk Flags

Limited competition may impact price.
CPFF contract requires strong cost oversight.
Long duration may limit adoption of new tech.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to NETCENTRIC TECHNOLOGY, LLC. CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACEX

Who is the contractor on this award?

The obligated recipient is NETCENTRIC TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-04-01. End: 2028-05-31.

What is the track record of Netcentric Technology, LLC in supporting space launch operations?

Information regarding Netcentric Technology, LLC's specific track record in supporting space launch operations is not detailed in the provided data. As a Facilities Support Services provider, their experience may be broader, encompassing general building operations and maintenance. Further investigation into their past performance on similar government contracts, particularly those involving aerospace or defense infrastructure, would be necessary to fully assess their capabilities and reliability for this critical Cape Canaveral mission. Reviewing past performance evaluations and contract awards would provide more insight into their suitability for this role.

How does the $5.25 million contract value compare to similar launch support contracts?

Direct comparison of the $5.25 million contract value is challenging without specific details on the scope of work and duration of comparable contracts. However, for a 5-year support contract at a major launch facility like Cape Canaveral, this value appears moderate. Larger, more comprehensive support contracts for entire launch complexes can run into hundreds of millions or even billions of dollars over similar periods. Conversely, smaller, task-specific contracts might be in the lower millions. The 'limited competition' aspect also suggests that pricing might be higher than if it were fully competed, making a direct value-for-money assessment difficult without more context on market rates for these specialized services.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract revolve around cost control, performance reliability, and potential vendor lock-in. The Cost Plus Fixed Fee (CPFF) structure, while flexible, necessitates rigorous oversight to prevent cost overruns. Performance risk is present due to the critical nature of launch operations; any failure in facilities support could lead to launch delays or failures. Furthermore, the 'limited competition' award mechanism, while potentially necessary for specialized services, carries the risk of reduced price competition and a lack of alternative vendors if Netcentric Technology, LLC underperforms or faces issues. Ensuring robust performance metrics and contingency planning is crucial.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for ensuring value in specialized support services?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance the need for broad competition with the reality of specialized requirements. It allows agencies to solicit bids from all responsible sources but reserves the right to exclude specific sources based on defined criteria, often related to unique capabilities, security clearances, or existing infrastructure knowledge. While this can ensure that only qualified vendors participate, it inherently limits the competitive pool. The effectiveness in ensuring value depends heavily on the justification for exclusion and the number of remaining bidders. If the exclusions are well-founded and sufficient competition remains, value can be achieved. However, if exclusions are arbitrary or reduce competition too severely, it can lead to higher prices and reduced innovation.

What are the historical spending patterns for facilities support services at Cape Canaveral?

Historical spending patterns for facilities support services at Cape Canaveral are not detailed in the provided data. However, it is understood that the base has undergone significant modernization and expansion over the decades to accommodate various launch programs, including those managed by the Air Force and NASA, and now increasingly commercial entities. Spending in this category would likely fluctuate based on the number of active launch programs, infrastructure upgrades, and the specific support contracts in place. The shift towards increased commercial space activity may also influence future spending trends and contract types. Analyzing historical contract awards for facilities support at this location would provide a clearer picture of spending trends.

What are the implications of the 5-year contract duration on technological adaptation?

A 5-year contract duration for facilities support services at a dynamic location like Cape Canaveral presents both stability and potential challenges for technological adaptation. On one hand, it provides Netcentric Technology, LLC with the stability to invest in personnel and equipment, ensuring consistent support for ongoing operations. On the other hand, the pace of technological advancement in the aerospace sector is rapid. A fixed 5-year term might mean that the contract's scope or service level agreements do not fully incorporate the latest technologies or operational efficiencies that emerge during its term. Mechanisms for contract modification or future re-competition will be crucial to ensure the facilities remain state-of-the-art.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 3301 ROUTE 66 2ND FLOOR BLDG A, NEPTUNE, NJ, 07753

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,681,000

Exercised Options: $10,681,000

Current Obligation: $5,254,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252123D0004

IDV Type: IDC

Timeline