Naval Research Laboratory awards $20.7M contract for R&D services, with Orbital Sciences LLC as a potential successor

Contract Overview

Contract Amount: $20,720,722 ($20.7M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2000-05-09

End Date: 2009-09-30

Contract Duration: 3,431 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200009!1700!001233!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6011 !A!*!* !20000509!20010508!032516361!032516361!032516361!N!8V543!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!06400!033!24!BELTSVILLE !PRINCE GEORGE S !MARYLAND !0001!+000000050000!N!N!000000000000!AR91!RDTE/SPACE - OTHER - BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!2!002!B!* !Z!N!Z!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to ORBITAL SCIENCES LLC for work described as: 200009!1700!001233!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6011 !A!*!* !20000509!20010508!032516361!032516361!032516361!N!8V543!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!06400!033!24!BELTSVILLE !PRI… Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant contract value suggests a complex and critical research undertaking. 3. Potential for follow-on work or integration with future programs by Orbital Sciences LLC. 4. Contract duration of over 8 years indicates a long-term research objective. 5. The 'COST PLUS FIXED FEE' pricing structure may lead to cost overruns if not managed carefully. 6. The 'DEFINITIVE CONTRACT' type implies a broad scope of work over an extended period.

Value Assessment

Rating: fair

The contract value of $20.7 million over approximately 8 years for R&D services appears reasonable given the scope. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar R&D contracts in the physical and engineering sciences would provide a clearer picture of its competitiveness. The 'COST PLUS FIXED FEE' (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not rigorously managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that multiple bidders had the opportunity to submit proposals. The data does not specify the number of bidders, but this competitive approach is generally favorable for price discovery and innovation. The fact that it was competed suggests that the government sought the best value from the market for these specialized R&D services.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it encourages a wider range of companies to bid, potentially driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are likely the Naval Research Laboratory and the Department of Defense, gaining advancements in physical, engineering, and life sciences research. Services delivered include basic research and development, potentially leading to new technologies and improved defense capabilities. The geographic impact is primarily within Maryland, where the contractor Swales and Associates, Inc. is located. Workforce implications include employment for scientists, engineers, and support staff at Swales and Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS FIXED FEE' (CPFF) contract type can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The long contract duration (over 8 years) increases the risk of scope creep or misalignment with evolving research needs if not actively managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance objectively.
The potential for Orbital Sciences LLC to be a successor contractor introduces a transition risk and requires careful evaluation of the new entity's capabilities.

Positive Signals

Awarded through 'FULL AND OPEN COMPETITION,' suggesting a robust selection process and potential for competitive pricing.
The contract supports critical research and development for the Naval Research Laboratory, aligning with national defense objectives.
The contractor, Swales and Associates, Inc., has a defined location, indicating a tangible business entity involved in the work.
The contract is for R&D in specialized scientific fields, indicating a focus on innovation and technological advancement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services, particularly for defense applications, is substantial, with numerous firms specializing in scientific research and technological innovation. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by agencies like the DoD, NASA, and other federal research institutions for similar scientific disciplines.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated by the public nature of contract awards, though specific project details might be classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Laboratory Basic Research
Department of Defense Research and Development
Aerospace Research and Development
Engineering Services Contracts
Scientific Research Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to mitigate cost overrun risks.
Long contract duration increases the potential for scope creep and misalignment with evolving research needs.
Lack of specific performance metrics in the data hinders objective performance assessment.
Potential successor contractor introduces transition risks and requires careful evaluation.
The nature of basic research can make it challenging to define clear, measurable deliverables upfront.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to ORBITAL SCIENCES LLC. 200009!1700!001233!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6011 !A!*!* !20000509!20010508!032516361!032516361!032516361!N!8V543!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!06400!033!24!BELTSVILLE !PRINCE GEORGE S !MARYLAND !0001!+000000050000!N!N!000000000000!AR91!RDTE/SPACE - OTHER - BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is ORBITAL SCIENCES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2000-05-09. End: 2009-09-30.

What specific research objectives and deliverables were associated with this $20.7 million contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under the PSC code 'AR91' (RDTE/SPACE - OTHER - BASIC RESEARCH). However, the specific research objectives, detailed deliverables, milestones, and expected outcomes are not explicitly stated in this data snippet. Such details are typically found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included here. Understanding these specifics is crucial for evaluating the contract's alignment with the Naval Research Laboratory's strategic goals and for assessing the value derived from the $20.7 million investment.

How did Swales and Associates, Inc. perform on this contract, and what is their track record in similar R&D endeavors?

The provided data does not include performance metrics or ratings for Swales and Associates, Inc. on this specific contract (N0017300C6011). To assess their track record, one would need to consult performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS), historical contract data, and potentially industry reputation. Swales and Associates, Inc. is known for its work in aerospace engineering and research, suggesting a relevant background. However, a comprehensive evaluation would require access to more detailed performance history and potentially information on past-year spending and project success rates within the R&D domain.

How does the $20.7 million value compare to other R&D contracts awarded by the Naval Research Laboratory or the Department of Defense for similar services?

Benchmarking the $20.7 million contract value requires comparing it against similar R&D contracts awarded by the Naval Research Laboratory (NRL) or the broader Department of Defense (DoD) for services in physical, engineering, and space-related research. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, $20.7 million over an 8-year period (approximately $2.6 million per year) for specialized R&D suggests a significant, but not exceptionally large, investment for a government research entity. Larger, more complex R&D programs can easily reach hundreds of millions or billions of dollars. This contract appears to be for a focused area of basic research.

What are the potential risks associated with the 'COST PLUS FIXED FEE' (CPFF) pricing structure for this contract?

The 'COST PLUS FIXED FEE' (CPFF) pricing structure, while common for research and development where the scope can be uncertain, carries inherent risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as the fee remains constant regardless of the total cost. Effective management requires stringent cost monitoring, auditing, and control by the contracting officer and administrative contracting officer to ensure costs are reasonable, allocable, and allowable. Without robust oversight, there is a risk of cost overruns and reduced value for money.

What is the significance of Orbital Sciences LLC being listed as a potential successor contractor ('co')?

Orbital Sciences LLC being listed as a potential successor contractor ('co') suggests that the government may intend for Orbital Sciences to take over or continue the work performed under this contract, possibly through a modification, novation, or a new award. This could indicate a strategic decision to consolidate R&D efforts or leverage Orbital Sciences' expertise. It introduces potential risks related to contract transition, knowledge transfer, and ensuring continuity of research. It also implies that Orbital Sciences was likely involved in the competitive process or is a known entity with relevant capabilities, and their potential role warrants careful consideration in future planning and oversight.

What is the historical spending pattern for R&D services at the Naval Research Laboratory, and how does this contract fit within it?

The provided data snippet focuses on a single contract and does not offer historical spending patterns for the Naval Research Laboratory (NRL). To understand this contract's place within NRL's historical spending, one would need to analyze aggregate spending data for R&D contracts over several fiscal years. This would involve looking at the total R&D budget, the distribution of funds across different research areas (like physical sciences, engineering, space), and the typical contract values and durations awarded. This $20.7 million contract appears to be a significant, long-term investment in basic research, likely fitting within NRL's mission to advance science and technology for the Navy.

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 › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 7500 GREENWAY CENTER DR STE 1500, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,743,859

Exercised Options: $20,743,859

Current Obligation: $20,720,722

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline