DoD's $96.5M R&D contract for spacecraft systems research awarded to Orbital Sciences LLC

Contract Overview

Contract Amount: $96,479,156 ($96.5M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-27

End Date: 2016-07-25

Contract Duration: 2,281 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACECRAFT AND AIRBORNE SYSTEMS RESEARCH ANALYSIS AND PROTOTYPE DEVELOPMENT; 82-4035-09

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $96.5 million to ORBITAL SCIENCES LLC for work described as: SPACECRAFT AND AIRBORNE SYSTEMS RESEARCH ANALYSIS AND PROTOTYPE DEVELOPMENT; 82-4035-09 Key points: 1. Contract focused on advanced research and prototype development for space-based systems. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of over 6 years indicates a long-term need for these capabilities. 4. Cost-plus-fixed-fee structure allows for flexibility in research but requires careful cost oversight. 5. The specific NAICS code points to a highly specialized segment of the R&D sector. 6. Awarded by the Defense Contract Management Agency, indicating a focus on defense applications.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The cost-plus-fixed-fee (CPFF) structure, while common for research, can lead to cost overruns if not managed tightly. The total award amount of $96.5 million over approximately six years suggests a significant investment in technological advancement. Without more granular cost breakdowns or comparisons to similar research initiatives, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The presence of multiple bidders suggests a healthy market for spacecraft and airborne systems research and development services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value for its investment in advanced research.

Public Impact

The Department of Defense benefits from advancements in spacecraft and airborne systems research, potentially enhancing national security capabilities. The contract supports the development of prototypes and research that could lead to new technologies for military applications. The geographic impact is primarily within the United States, where the contractor's research and development activities are likely concentrated. The contract supports a specialized workforce in the aerospace and defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs to achieve a fixed profit, necessitating stringent oversight.
The long duration of the contract (over 6 years) increases the risk of scope creep or evolving technological requirements.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the research outcomes.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
The contract addresses a critical area of defense research and development, aligning with strategic national interests.
The contractor, Orbital Sciences LLC, has a history in the aerospace industry, implying relevant expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The aerospace and defense industry is a significant market for R&D, with substantial government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically involve other large-scale R&D contracts for advanced defense systems or space exploration technologies.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Given the specialized nature of spacecraft and airborne systems research and development, it is likely that the prime contractor is a large business. There is no information on subcontracting plans to small businesses, which could be a missed opportunity for small business participation in this high-value contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms, including reporting requirements and potential penalties for non-performance. Transparency is often limited for defense-related R&D contracts due to national security considerations, but contract awards and basic details are usually publicly available.

Related Government Programs

Space Systems Development
Advanced Technology Research
Defense Research and Development
Aerospace Engineering Services
Prototype Development Contracts

Risk Flags

Cost Overrun Risk (CPFF contract)
Long-term Project Management Complexity
Technological Obsolescence Risk
Difficulty in Measuring R&D Success

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.5 million to ORBITAL SCIENCES LLC. SPACECRAFT AND AIRBORNE SYSTEMS RESEARCH ANALYSIS AND PROTOTYPE DEVELOPMENT; 82-4035-09

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 $96.5 million.

What is the period of performance?

Start: 2010-04-27. End: 2016-07-25.

What is the track record of Orbital Sciences LLC in fulfilling similar large-scale defense R&D contracts?

Orbital Sciences LLC, prior to its merger with Alliant Techsystems to form Orbital ATK (and subsequent acquisition by Northrop Grumman), had a significant track record in aerospace and defense. They were known for developing and operating space systems, including launch vehicles and satellite technology. Their experience spanned both commercial and government contracts, often involving complex engineering and research. For defense R&D, they were involved in various projects related to satellite technology, missile defense, and advanced airborne systems. While specific details of past performance on contracts directly comparable to this $96.5M R&D award would require deeper investigation into contract databases and historical performance reviews, their established presence in the sector suggests a capacity to handle such complex undertakings. Their history indicates a focus on innovation and delivery within the demanding aerospace and defense landscape.

How does the $96.5 million award compare to typical spending on spacecraft and airborne systems R&D by the DoD?

The $96.5 million award for spacecraft and airborne systems research and prototype development represents a substantial, but not extraordinary, investment within the Department of Defense's broader R&D portfolio. The DoD consistently allocates billions of dollars annually to research and development across various domains, including space and aviation. Contracts of this magnitude are common for specialized, long-term research initiatives that aim to develop next-generation technologies. To provide a precise comparison, one would need to analyze historical DoD spending trends for contracts with similar NAICS codes (like 541712) and specific research areas. However, it is safe to say that this contract is a significant allocation for a specific R&D objective, reflecting the strategic importance the DoD places on advancing capabilities in space and airborne systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. The contractor is reimbursed for allowable costs and receives a predetermined fixed fee, which can incentivize them to incur higher costs if not managed carefully, as their profit margin is fixed regardless of the total cost. This can lead to the government paying more than initially anticipated. Mitigation strategies include robust cost monitoring and control by the contracting officer and their team, detailed review of incurred costs, clear definition of allowable and unallowable costs in the contract, and strong performance management to ensure the contractor is efficiently working towards the research objectives. Regular audits and progress reviews are crucial to identify and address potential cost escalations early in the contract lifecycle.

What does the duration of over 6 years (2281 days) imply about the nature of the research and its expected outcomes?

A contract duration exceeding six years for research and development strongly suggests that the project involves complex, long-term scientific inquiry and technological maturation. Such extended timelines are typical for foundational research, the development of novel concepts, and the creation of advanced prototypes that require iterative design, testing, and refinement. It implies that the expected outcomes are not short-term solutions but rather advancements that could lead to significant technological leaps or capabilities that will be relevant for future defense or operational needs. This duration also allows for adaptation to evolving technological landscapes and potential shifts in strategic requirements during the research period, though it also necessitates careful management to prevent scope creep and maintain focus on the core objectives.

How does the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)) define the scope of this contract?

The NAICS code 541712 precisely defines the scope of this contract as focusing on research and development activities within the physical sciences (e.g., physics, chemistry, materials science), engineering (e.g., mechanical, electrical, aerospace engineering), and life sciences, with the explicit exclusion of biotechnology. For this specific contract concerning spacecraft and airborne systems, it means the R&D efforts are centered on the scientific principles, engineering challenges, and physical processes underlying the design, development, and operation of such systems. This could encompass areas like advanced materials, propulsion systems, sensor technology, aerodynamic design, control systems, and the integration of various physical and engineering components into functional prototypes, all within the non-biotech realm.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017309RKS03

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 7500 GREENWAY CENTER DR STE 700, 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: $96,564,558

Exercised Options: $96,564,558

Current Obligation: $96,479,156

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline