NASA's $95.4M IGF Range Operations Contract Bridge (ROC-B) for launch and support services awarded to LJT & Associates, Inc

Contract Overview

Contract Amount: $95,400,701 ($95.4M)

Contractor: LJT & Associates, Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2016-09-22

End Date: 2019-08-09

Contract Duration: 1,051 days

Daily Burn Rate: $90.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF RANGE OPERATIONS CONTRACT BRIDGE (ROC-B) THIS CONTRACT PROVIDES SERVICES FOR DEPLOYMENT (LAUNCH) AND/OR SUPPORT OF OPERATIONAL AND TEST CARRIER VEHICLES INCLUDING ROCKETS, AIRCRAFT, EXPENDABLE LAUNCH VEHICLES (ELVS), SATELLITES, BALLOONS, UNINHABITED AERIAL VEHICLES (UAVS) AND OTHER SERVICES.

Place of Performance

Location: WALLOPS ISLAND, ACCOMACK County, VIRGINIA, 23337

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $95.4 million to LJT & ASSOCIATES, INC for work described as: IGF::OT::IGF RANGE OPERATIONS CONTRACT BRIDGE (ROC-B) THIS CONTRACT PROVIDES SERVICES FOR DEPLOYMENT (LAUNCH) AND/OR SUPPORT OF OPERATIONAL AND TEST CARRIER VEHICLES INCLUDING ROCKETS, AIRCRAFT, EXPENDABLE LAUNCH VEHICLES (ELVS), SATELLITES, BALLOONS, UNINHABITED AERIAL VEHICLES … Key points: 1. The contract's broad scope covers deployment and support for a wide array of vehicles, including rockets, aircraft, and satellites. 2. Awarded as a definitive contract, it signifies a commitment to a specific service provider for a defined period. 3. The 'Not Competed' status raises questions about the procurement process and potential missed opportunities for competitive pricing. 4. The contract's duration of over 1000 days suggests a long-term need for these specialized operational and test services. 5. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost overruns if not carefully managed. 6. The primary agency and servicing agency are both NASA, indicating an internal requirement for these launch and support capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar sole-source procurements. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for complex or uncertain scope work, carries inherent risks of cost escalation. Without competitive bidding, it's difficult to ascertain if the fixed fee adequately reflects the contractor's risk and effort, or if the overall cost represents a fair market value. Further analysis would require comparing the contractor's overhead rates, labor costs, and profit margins to industry standards for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source procurement, meaning it was not openly competed. This typically occurs when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of competition means that NASA did not benefit from the price discovery and innovation that typically arises from multiple bidders vying for a contract. This approach can sometimes be justified for highly specialized services or urgent needs, but it limits the government's ability to secure the best possible pricing and terms.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution. Without a bidding process, there is less pressure on the contractor to offer competitive pricing, potentially leading to higher overall expenditures.

Public Impact

The primary beneficiaries are NASA's space exploration and research programs, which rely on these services for vehicle deployment and operational support. Services delivered include launch, deployment, and ongoing support for various aerospace assets, crucial for mission success. The geographic impact is likely concentrated around NASA's launch and testing facilities, though the ultimate reach extends to the missions supported. The contract supports a specialized workforce skilled in aerospace operations, launch services, and vehicle support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts often involving specialized technologies and stringent performance requirements. NASA's spending in this area supports its core mission of space exploration, scientific research, and aeronautics development. Contracts like ROC-B are essential for maintaining the infrastructure and capabilities needed for successful space missions. Benchmarking this contract's value is difficult without specific cost data, but it falls within the typical range for specialized launch and support services within the federal government's aerospace procurement landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, LJT & Associates, Inc., is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is minimal. However, the potential for subcontracting opportunities with small businesses exists, depending on the prime contractor's subcontracting plan and the nature of the services required. Without further information on subcontracting goals or performance, the overall impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officers and program managers. As a definitive contract, there are established procedures for monitoring performance, costs, and compliance. The 'Cost Plus Fixed Fee' structure necessitates close scrutiny of incurred costs to ensure they align with the contract's objectives and the fixed fee. Transparency regarding performance metrics and cost reporting would be key to effective oversight. The absence of a specific Inspector General (IG) jurisdiction mentioned in the data means oversight might be handled internally by NASA's own audit and inspection functions.

Related Government Programs

Risk Flags

Tags

nasa, space-exploration, launch-services, aerospace, definitive-contract, sole-source, cost-plus-fixed-fee, virginia, operations-support, test-vehicles, national-aeronautics-and-space-administration

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $95.4 million to LJT & ASSOCIATES, INC. IGF::OT::IGF RANGE OPERATIONS CONTRACT BRIDGE (ROC-B) THIS CONTRACT PROVIDES SERVICES FOR DEPLOYMENT (LAUNCH) AND/OR SUPPORT OF OPERATIONAL AND TEST CARRIER VEHICLES INCLUDING ROCKETS, AIRCRAFT, EXPENDABLE LAUNCH VEHICLES (ELVS), SATELLITES, BALLOONS, UNINHABITED AERIAL VEHICLES (UAVS) AND OTHER SERVICES.

Who is the contractor on this award?

The obligated recipient is LJT & ASSOCIATES, INC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $95.4 million.

What is the period of performance?

Start: 2016-09-22. End: 2019-08-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which implies a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs where competition is impractical, or when a specific technology or capability is only available from a single entity. Without NASA's official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to definitively state the reason. This lack of transparency is a common concern with sole-source procurements, as it limits the public's ability to understand why competitive processes were bypassed.

How does the 'Cost Plus Fixed Fee' (CPFF) structure compare to other contract types for similar services?

The 'Cost Plus Fixed Fee' (CPFF) structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, as might be the case with novel launch or support operations. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. This differs from fixed-price contracts, where the price is set upfront, and cost-reimbursement contracts, where costs are reimbursed without a predetermined fee. For services like launch and support, which can be subject to unforeseen technical challenges or environmental factors, CPFF can provide flexibility. However, it also places a greater burden on the government to monitor costs to prevent overruns, as the contractor has less incentive to control expenses compared to a fixed-price arrangement. Competitive bidding on fixed-price contracts often yields better value for the government.

What are the potential risks associated with a sole-source award for critical launch and support services?

Sole-source awards for critical services like those provided under the IGF Range Operations Contract Bridge (ROC-B) carry several risks. Firstly, the absence of competition can lead to inflated pricing, as the contractor faces no pressure to offer the most cost-effective solution. Taxpayers may end up paying more than necessary. Secondly, without a competitive process, there's a reduced incentive for the contractor to innovate or improve efficiency beyond what is contractually required. Thirdly, it limits the government's ability to explore alternative solutions or providers that might offer superior capabilities or better value. Finally, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities for other qualified businesses.

What is the historical spending pattern for similar range operations and launch support services at NASA?

Analyzing historical spending patterns for similar services at NASA is crucial for context. While the specific data for 'IGF::OT::IGF RANGE OPERATIONS CONTRACT BRIDGE (ROC-B)' is provided, understanding its place within NASA's broader procurement history requires looking at prior contracts for range operations, launch vehicle support, and satellite deployment. Without access to NASA's historical contract database, it's difficult to provide precise figures. However, NASA consistently invests significant funds in launch services and associated operational support, often through large, multi-year contracts. The total amount of $95.4 million for this specific contract, spanning over 1000 days, suggests a substantial but not necessarily outlier expenditure for such critical, specialized services within the agency's budget. Trends might show shifts towards more integrated support contracts or increased reliance on specific providers over time.

What performance metrics are typically tracked for contracts involving launch and support services?

For contracts involving launch and support services, performance metrics are critical to ensure mission success and operational readiness. Key performance indicators (KPIs) often include: on-time launch performance (meeting scheduled launch windows), vehicle readiness rates (ensuring vehicles are prepared and functional), successful mission completion rates, adherence to safety protocols, and responsiveness to operational issues or anomalies. For support services, metrics might also cover response times for technical assistance, availability of personnel and equipment, and the quality of maintenance or integration work. Under a CPFF contract, performance is closely tied to cost control and adherence to the fixed fee, alongside the technical execution of the services. NASA would typically establish specific, measurable, achievable, relevant, and time-bound (SMART) goals within the contract's Performance Work Statement (PWS) to evaluate the contractor's performance.

What is the track record of LJT & Associates, Inc. with NASA or similar government contracts?

The provided data identifies LJT & Associates, Inc. as the contractor for the IGF Range Operations Contract Bridge (ROC-B). To assess their track record, one would need to examine their past performance on similar government contracts, particularly with NASA or other agencies involved in aerospace and defense. This would involve reviewing contract databases for previous awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. A strong track record typically includes successful delivery of services, adherence to schedule and budget, and positive performance reviews. Conversely, a history of performance issues, cost overruns, or contract terminations would raise concerns. Without access to this broader performance history, it's difficult to definitively assess LJT & Associates, Inc.'s suitability and reliability for this specific contract beyond the information provided.

Industry Classification

NAICS: InformationOther TelecommunicationsAll Other Telecommunications

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: NNG16592048R

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: LJT & Associates Inc

Address: 9881 BROKEN LAND PKWY STE 400, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $108,100,000

Exercised Options: $108,100,000

Current Obligation: $95,400,701

Actual Outlays: $8,769,313

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $7,969,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2016-09-22

Current End Date: 2019-08-09

Potential End Date: 2019-08-09 00:00:00

Last Modified: 2025-09-22

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