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

Positive Signals

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

Risk Flags

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 WarehousingNonscheduled Air TransportationNonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATIONTRANSPORTATION 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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