Naval Research Laboratory contract for advanced technology development awarded to Swales and Associates, Inc. for $16.05M

Contract Overview

Contract Amount: $16,047,116 ($16.0M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2005-07-14

End Date: 2014-03-31

Contract Duration: 3,182 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200510!003763!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2039 !A!N! !N! ! !20050714!20060627!032516361!032516361!032516361!N!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000012160!N!N!000033686724!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!2!001!B! !Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N00173!0001! !

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to ORBITAL SCIENCES LLC for work described as: 200510!003763!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2039 !A!N! !N! ! !20050714!20060627!032516361!032516361!032516361!N!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. The contract was competed under full and open competition. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The period of performance spans over 9 years, suggesting a long-term project. 5. The contractor, Swales and Associates, Inc., is a small business. 6. The North American Industry Classification System (NAICS) code is 541710, indicating R&D in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract value of $16.05 million over nearly 9 years for advanced technology development in missile and space systems appears to be within a reasonable range for R&D projects of this nature. However, without specific benchmarks for comparable advanced technology development contracts within the defense sector, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can exceed initial estimates, potentially impacting the overall value if not managed effectively. Further analysis of the contractor's performance and final costs would be needed for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The fact that it was competed openly is a positive indicator for price discovery and potentially achieving a competitive price. However, the number of bids received is not specified in the provided data, which would offer further insight into the actual level of competition. A robust competition typically leads to better pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. military, through advancements in missile and space systems. The contract supports research and development in advanced technologies crucial for national security. The geographic impact is primarily within Maryland, where the contractor is located, potentially creating or sustaining jobs in the region. The contract supports the specialized workforce in the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Long contract duration (nearly 9 years) increases the risk of scope creep or changing technological requirements.
Limited information on specific deliverables and performance metrics makes it difficult to assess the success of the R&D.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contractor is a small business, potentially supporting small business initiatives within the defense sector.
Focus on advanced technology development aligns with strategic defense priorities.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technology development for missile and space systems. The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. The defense R&D market is characterized by significant government investment, long development cycles, and specialized expertise. Comparable spending benchmarks would typically be found within the Department of Defense's R&D budget allocations for similar advanced technology initiatives.

Small Business Impact

The contractor, Swales and Associates, Inc., is identified as a small business. This contract's award to a small business aligns with federal goals to support and foster small business participation in government contracting. While this specific contract does not appear to be a small business set-aside, its award to a small business contributes to the overall ecosystem of small businesses engaged in defense R&D. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, which could further benefit other small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Research Laboratory and the Defense Contract Management Agency (DCMA). As a Cost Plus Fixed Fee contract, rigorous oversight of costs incurred by the contractor is essential to ensure adherence to the fixed fee and prevent excessive spending. Transparency would be facilitated through regular reporting requirements from the contractor and potential audits. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Laboratory Contracts
Missile and Space Systems Development
Advanced Technology Research
Department of Defense R&D Spending
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long performance period increases potential for scope changes and evolving requirements.
Limited public information on specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to ORBITAL SCIENCES LLC. 200510!003763!1700!N00173!NAVAL RESEARCH LABORATORY !N0017305C2039 !A!N! !N! ! !20050714!20060627!032516361!032516361!032516361!N!SWALES AND ASSOCIATES, INC !5050 POWDER MILL RD !BELTSVILLE !MD!20705!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000012160!N!N!000033686724!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !202

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 $16.0 million.

What is the period of performance?

Start: 2005-07-14. End: 2014-03-31.

What was the specific technological advancement or capability this contract aimed to develop?

The provided data indicates the contract was for 'RDTE/ENGINEERING SCIENCES - ADV TECH DEV' with a focus on 'MISSILE AND SPACE SYSTEMS'. While the specific technological advancement is not detailed, it implies research and development into novel or improved technologies related to the design, performance, or deployment of missile and space systems. This could encompass areas such as propulsion, guidance, materials science, or advanced sensor technology. Further documentation, such as the Statement of Work (SOW) or contract modifications, would be necessary to ascertain the precise objectives and expected outcomes of the R&D effort.

How does the awarded amount of $16.05 million compare to similar R&D contracts for missile and space systems?

Benchmarking the $16.05 million award for advanced missile and space systems R&D requires access to a broader dataset of comparable contracts. However, R&D projects in this specialized and critical defense area can vary significantly in cost based on complexity, duration, and technological novelty. Contracts for foundational research might be smaller, while those for developing mature prototypes or advanced systems could be substantially larger. Given the nearly 9-year performance period, $16.05 million suggests a focused, albeit long-term, development effort rather than a large-scale production or system integration program. Without specific comparable contract data, it's difficult to definitively state if this represents high or low value.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced technology development?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for advanced technology development, is the potential for cost overruns. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost plus' element means the government bears the risk of actual allowable costs exceeding estimates. For R&D, where technical challenges and unforeseen issues are common, costs can escalate significantly. This necessitates robust government oversight to monitor expenditures, ensure efficiency, and validate the necessity of all costs. If costs rise substantially, the total contract value can increase beyond initial expectations, potentially impacting the overall value for money.

What was the contractor's track record prior to receiving this contract?

The provided data identifies Swales and Associates, Inc. as the contractor. To assess their track record, one would need to examine their past performance on government contracts, particularly those related to R&D, engineering sciences, and defense systems. Key indicators would include on-time delivery, adherence to budget (where applicable), quality of work, and any history of disputes or performance issues. As a small business, their experience might be more specialized. A thorough review of their contract history, including any performance evaluations or past performance questionnaires, would be essential for a comprehensive understanding of their capabilities and reliability.

How has spending on missile and space systems R&D by the Naval Research Laboratory evolved over time?

Analyzing the historical spending patterns of the Naval Research Laboratory (NRL) on missile and space systems R&D would require access to historical contract databases and budget allocations. This specific contract, awarded in 2005 with an end date in 2014, represents a snapshot of spending during that period. To understand the evolution, one would need to examine trends in contract awards, total obligated amounts, and the types of R&D pursued by NRL in this domain over several fiscal years. Factors such as shifting defense priorities, technological advancements, and budget cycles would influence these spending patterns.

What is the significance of the NAICS code 541710 in the context of this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' precisely categorizes the core activity of this contract. It signifies that the work performed by Swales and Associates, Inc. involves systematic study and investigation to discover or refine knowledge and understanding, applied to the development of new or improved products, processes, or services within the physical and engineering sciences. For missile and space systems, this code covers a wide range of R&D activities, from theoretical research to applied engineering and prototype development, aligning with the advanced technology development objective.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

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: $33,686,734

Exercised Options: $21,568,997

Current Obligation: $16,047,116

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline