NRO L-129 Mission Contract Awarded to Orbital Sciences LLC for $45.6M
Contract Overview
Contract Amount: $45,674,550 ($45.7M)
Contractor: Orbital Sciences LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2020-09-28
Contract Duration: 1,012 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF NRO L-129 MISSION TO
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85286
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $45.7 million to ORBITAL SCIENCES LLC for work described as: IGF::CT::IGF NRO L-129 MISSION TO Key points: 1. Contract awarded to Orbital Sciences LLC for $45.6 million. 2. Full and open competition was utilized for this award. 3. The contract is for nonscheduled chartered freight air transportation. 4. This contract falls under the Department of the Air Force's purview.
Value Assessment
Rating: good
The contract value of $45.6 million appears reasonable for specialized air transportation services. Benchmarking against similar NRO or DoD contracts for freight air transport would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value and price.
Public Impact
Ensures critical NRO missions are supported by necessary transportation. Supports a private sector aerospace company, potentially creating jobs. Air transportation services can have environmental impacts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if mission requirements change.
- Dependence on a single contractor for critical transport.
Positive Signals
- Utilized full and open competition.
- Clear contract type (firm fixed price) limits cost risk.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to specialized transportation for intelligence, surveillance, and reconnaissance (ISR) missions. Spending in this area is critical for national security.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force contracting office and potentially the NRO's program management. Accountability is tied to contract performance and delivery.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is substantial (over 1000 days).
- Specific mission details are not publicly disclosed.
- Potential reliance on a single provider for critical logistics.
- Air transportation can be subject to geopolitical and weather disruptions.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to ORBITAL SCIENCES LLC. IGF::CT::IGF NRO L-129 MISSION TO
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES 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 $45.7 million.
What is the period of performance?
Start: 2017-12-21. End: 2020-09-28.
What is the specific nature of the 'NRO L-129 Mission' and why does it require chartered freight air transportation?
The 'NRO L-129 Mission' likely refers to a specific project or operational requirement of the National Reconnaissance Office, which manages U.S. intelligence satellites. The need for chartered freight air transportation suggests the movement of sensitive, oversized, or time-critical equipment or components essential for this mission, possibly related to satellite deployment, ground support, or specialized payload delivery.
How does the firm fixed price contract structure mitigate risks for the government in this specialized transportation service?
A firm fixed price (FFP) contract establishes a ceiling price that the contractor must adhere to, regardless of their actual costs. This structure significantly shifts cost overrun risk from the government to the contractor. For specialized air transportation, FFP provides budget certainty and incentivizes the contractor to manage their expenses efficiently to maximize profit.
What are the potential long-term implications of awarding such a significant contract to Orbital Sciences LLC for ongoing NRO missions?
Awarding this contract to Orbital Sciences LLC could foster a long-term strategic partnership, potentially leading to more efficient and cost-effective solutions for future NRO transportation needs. However, it also raises concerns about contractor lock-in and reduced future competition if not managed carefully. The government should monitor performance and explore competitive opportunities for subsequent contracts.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,674,550
Exercised Options: $45,674,550
Current Obligation: $45,674,550
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881813D0001
IDV Type: IDC
Timeline
Start Date: 2017-12-21
Current End Date: 2020-09-28
Potential End Date: 2020-09-28 00:00:00
Last Modified: 2022-05-24
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