DoD's $29.6M DACS contract with Aerojet Rocketdyne for R&D shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $29,637,655 ($29.6M)
Contractor: Aerojet Rocketdyne of DE, Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2012-09-30
Contract Duration: 1,461 days
Daily Burn Rate: $20.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DACS SYSTEM DEFINITION & DESIGN (BASIC)
Place of Performance
Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91303
Plain-Language Summary
Department of Defense obligated $29.6 million to AEROJET ROCKETDYNE OF DE, INC for work described as: DACS SYSTEM DEFINITION & DESIGN (BASIC) Key points: 1. The contract awarded to Aerojet Rocketdyne of DE, Inc. for $29.6 million focuses on research and development. 2. Competition was full and open, indicating a potentially competitive bidding process. 3. The contract duration of 1461 days (approx. 4 years) suggests a significant R&D effort. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences, excluding Biotechnology. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract value of $29.6 million for a 4-year R&D effort appears reasonable given the specialized nature of missile defense systems. Benchmarking against similar complex R&D contracts is difficult without more specific details on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders were allowed to participate. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the research and development services provided.
Public Impact
Missile defense technology advancements could enhance national security. Investment in R&D supports innovation within the defense sector. The contract's success could lead to future technological breakthroughs with broader applications. Transparency in the bidding process ensures public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractor to increase costs.
- Long contract duration may increase risk of scope creep or changing requirements.
- Lack of specific performance metrics makes it hard to assess effectiveness.
- Small business participation is not indicated.
Positive Signals
- Full and open competition promotes fairness and potentially better pricing.
- Awarded by a key agency (Missile Defense Agency) for critical R&D.
- Contract is for research and development, potentially leading to innovation.
Sector Analysis
This contract falls under the Research and Development sector, specifically within physical and engineering sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and evolving requirements. Benchmarks are difficult without specific project details.
Small Business Impact
There is no indication of small business participation in this contract. Larger, specialized R&D contracts often involve prime contractors with extensive capabilities, potentially limiting opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The Missile Defense Agency is responsible for this contract. Oversight would typically involve monitoring technical progress, cost expenditures, and adherence to contract terms to ensure accountability and effective use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases risk of scope changes and obsolescence.
- Lack of specific performance metrics makes effectiveness assessment challenging.
- No explicit mention of small business participation.
- Research and Development projects inherently carry technical and schedule risks.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to AEROJET ROCKETDYNE OF DE, INC. DACS SYSTEM DEFINITION & DESIGN (BASIC)
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $29.6 million.
What is the period of performance?
Start: 2008-09-30. End: 2012-09-30.
What specific technological advancements are expected from this DACS system definition and design contract, and how do they align with current and future missile defense needs?
The contract aims to define and design the DACS system, likely focusing on foundational elements for missile defense capabilities. Expected advancements would relate to improved tracking, interception, or command and control systems. Alignment with needs is crucial, as R&D investments must address evolving threats and strategic objectives to remain relevant and effective in safeguarding national security.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns during the contract's four-year duration?
Cost Plus Fixed Fee contracts require robust oversight. Mechanisms likely include detailed cost tracking, regular audits, and performance reviews by the contracting officer. The 'fixed fee' component provides some incentive for the contractor to manage costs efficiently, as their profit is fixed regardless of the final cost. However, the government bears the risk of cost overruns.
How will the effectiveness of the DACS system's definition and design be measured, particularly considering the long-term nature of R&D and the potential for evolving threats?
Effectiveness will likely be measured through a series of milestones and deliverables tied to the system's definition and design phases. This includes technical reviews, prototype demonstrations (if applicable), and validation of design specifications against requirements. Long-term effectiveness is harder to gauge during the R&D phase and will depend on successful integration into broader defense systems and its performance against actual threats over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $54,956,686
Exercised Options: $34,856,699
Current Obligation: $29,637,655
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2012-09-30
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2020-05-20
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