DoD's $35M Cape Canaveral Launch Support Contract Awarded to Netcentric Technology, LLC

Contract Overview

Contract Amount: $35,212,434 ($35.2M)

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: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACE LAUNCH DELTA 45

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.2 million to NETCENTRIC TECHNOLOGY, LLC for work described as: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACE LAUNCH DELTA 45 Key points: 1. Contract focuses on essential infrastructure and operational support for space launch activities. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration of over 4 years suggests a need for sustained support services. 4. Fixed-price contract type aims to control costs and provide budget predictability. 5. Geographic focus on Florida aligns with major U.S. space launch infrastructure. 6. Services are critical for maintaining readiness and efficiency of launch operations.

Value Assessment

Rating: good

The contract value of $35.2 million over approximately 4 years for facilities support services at Cape Canaveral appears reasonable given the critical nature of space launch operations. Benchmarking against similar large-scale infrastructure support contracts for military installations or major aerospace hubs would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but detailed cost breakdowns are not available to fully assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. This method generally fosters robust competition, leading to potentially better pricing and service offerings. The specific number of bidders is not provided, but the designation suggests a competitive environment was sought.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price and encourages innovation among potential contractors.

Public Impact

The primary beneficiaries are the U.S. Space Force and its associated personnel at Space Launch Delta 45. Services delivered include critical infrastructure maintenance, operational support, and facility management essential for space launch missions. The geographic impact is concentrated in Florida, specifically around the Cape Canaveral Space Force Station. Workforce implications include potential job creation or retention for skilled technicians, engineers, and support staff in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen infrastructure issues arise that are not fully captured in the fixed-price scope.
Dependence on a single contractor for critical launch infrastructure could pose a risk if performance falters.
Scope creep could become an issue if requirements evolve significantly beyond the initial contract terms without adequate adjustments.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long-term duration allows for stable planning and execution of support services.
Awarded through full and open competition, suggesting a competitive selection process.
Focus on essential infrastructure supports the core mission of space launch operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. Within the aerospace and defense industry, such contracts are vital for supporting complex operations like space launches. Comparable spending benchmarks would typically involve other large military installations or critical government facilities requiring extensive operational and maintenance support, often running into tens or hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Netcentric Technology, LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, under the umbrella of the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement (PWS), with defined metrics and reporting requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General of the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Space Launch Operations Support
Military Base Operations and Maintenance
Aerospace Infrastructure Services
Department of Defense Facilities Management
Air Force Launch Range Support

Risk Flags

Potential for performance issues impacting critical launch schedules.
Risk of cost escalation if contract scope is not tightly managed.
Dependence on contractor's cybersecurity measures for sensitive infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to NETCENTRIC TECHNOLOGY, LLC. CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT III SPACE LAUNCH DELTA 45

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 $35.2 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 similar large-scale federal contracts, particularly within the defense or aerospace sectors?

Assessing the track record of Netcentric Technology, LLC requires a review of their past performance on federal contracts. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Specifically, one would look for evidence of successful completion of contracts with similar scope, complexity, and value, especially those involving facilities support, infrastructure management, or operational support for defense or aerospace clients. Positive performance indicators would include meeting deadlines, staying within budget, adhering to quality standards, and receiving favorable past performance ratings. Conversely, any history of contract disputes, performance failures, or significant cost overruns would raise concerns about their capacity to execute this current $35.2 million contract effectively.

How does the awarded price compare to industry benchmarks for similar facilities support services at major launch complexes?

To benchmark the awarded price of $35.2 million for facilities support services at Cape Canaveral, one would need to compare it against data from similar contracts. This involves identifying contracts for base operations, infrastructure maintenance, and launch support services at comparable government facilities, such as other space launch sites or major military installations. Key metrics for comparison would include cost per square foot for facility maintenance, cost per service hour for operational support, and overall contract value relative to the scope of services provided. Without access to proprietary cost data or detailed market research reports specific to aerospace support services, a precise comparison is challenging. However, the duration of the contract (over 4 years) and the critical nature of the services suggest that a multi-million dollar award is expected for such a vital operational hub.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential cost overruns due to unforeseen infrastructure issues, contractor performance failures impacting critical launch schedules, and cybersecurity vulnerabilities within the supported systems. Mitigation strategies likely involve robust contract oversight by the Air Force, clearly defined performance metrics and penalties within the contract, and requirements for the contractor to maintain specific security protocols and operational continuity plans. The firm fixed-price nature of the contract also shifts some cost risk to the contractor. Regular performance reviews and clear communication channels between the government and Netcentric Technology, LLC are essential for proactive risk management.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money for this specific type of service?

The 'full and open competition after exclusion of sources' method is generally effective in ensuring value for money for complex services like launch operations support. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, driving competitive pricing and encouraging innovative solutions. The 'exclusion of sources' aspect might imply that certain pre-qualification criteria were established, ensuring that only capable firms participated, thereby reducing the risk of selecting an underqualified bidder. This approach balances broad competition with the need for specialized expertise, which is crucial for high-stakes operations like space launches. The effectiveness is further enhanced by a well-defined Statement of Work and rigorous evaluation criteria.

What is the historical spending trend for facilities support services at Space Launch Delta 45, and how does this award fit within that pattern?

Analyzing historical spending trends for facilities support services at Space Launch Delta 45 is key to contextualizing this $35.2 million award. This would involve examining contract data from previous years for similar services at the same location. Trends might reveal whether spending has been increasing, decreasing, or remaining relatively stable. A significant increase or decrease could indicate changes in operational tempo, infrastructure needs, or contracting strategies. This current award, spanning over four years, suggests a sustained level of support is anticipated, fitting within a pattern of ongoing investment in maintaining the operational readiness of the launch complex. Comparing the annual average cost of this contract to previous annual expenditures would provide insight into its place within the historical financial landscape.

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: FIRM FIXED PRICE (J)

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: $71,570,370

Exercised Options: $71,570,370

Current Obligation: $35,212,434

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $1,526,269

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