DoD Awards $42.9M for Rocket & Missile Technical Support, Boosting R&D in Physical Sciences
Contract Overview
Contract Amount: $42,888,687 ($42.9M)
Contractor: System Studies & Simulation, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-16
End Date: 2026-03-15
Contract Duration: 1,095 days
Daily Burn Rate: $39.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: STRATEGIC AND OPERATIONAL ROCKETS AND MISSILES PROJECT OFFICE TECHNICAL SUPPORT SERVICES.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $42.9 million to SYSTEM STUDIES & SIMULATION, INC. for work described as: STRATEGIC AND OPERATIONAL ROCKETS AND MISSILES PROJECT OFFICE TECHNICAL SUPPORT SERVICES. Key points: 1. The contract focuses on critical R&D for rockets and missiles, a key area for national defense. 2. System Studies & Simulation, Inc. secured the award, indicating potential consolidation or specialization in this niche. 3. The "Research and Development in the Physical, Engineering, and Life Sciences" NAICS code suggests a high-skill, high-cost service. 4. The "Full and Open Competition" method is a positive sign for market efficiency and price discovery.
Value Assessment
Rating: good
The contract value of $42.9M over three years appears reasonable for specialized technical support in R&D. Benchmarking against similar complex engineering and simulation contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple vendors vie for the contract.
Taxpayer Impact: The competitive nature of the award is expected to yield fair market value, minimizing unnecessary taxpayer expenditure for these critical defense services.
Public Impact
Enhances national security through advanced rocket and missile technology development. Supports high-tech jobs in research and engineering within Alabama. Drives innovation in the physical and engineering sciences sector. Ensures the U.S. maintains a technological edge in defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Dependence on a single contractor for critical technical expertise.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense objectives.
- Long-term contract provides stability for R&D efforts.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically supporting the Department of Defense's rocket and missile programs. Spending in this area is often characterized by high complexity, specialized expertise, and significant investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is not listed as a small business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large R&D effort.
Oversight & Accountability
The Department of the Army's award through the Department of Defense suggests established oversight mechanisms. However, the complexity of R&D projects necessitates continuous monitoring to ensure progress aligns with objectives and budget.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High R&D complexity.
- Long contract duration.
- Potential for cost escalation.
- Reliance on specialized contractor.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.9 million to SYSTEM STUDIES & SIMULATION, INC.. STRATEGIC AND OPERATIONAL ROCKETS AND MISSILES PROJECT OFFICE TECHNICAL SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is SYSTEM STUDIES & SIMULATION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.9 million.
What is the period of performance?
Start: 2023-03-16. End: 2026-03-15.
What specific technical capabilities does System Studies & Simulation, Inc. bring to this rocket and missile R&D effort?
System Studies & Simulation, Inc. likely possesses specialized expertise in areas such as advanced modeling, simulation, systems engineering, and potentially propulsion or guidance systems for rockets and missiles. Their focus on "Research and Development in the Physical, Engineering, and Life Sciences" suggests a strong foundation in theoretical and applied scientific principles relevant to aerospace and defense technologies.
What are the primary risks associated with this long-term R&D contract for rocket and missile systems?
Key risks include technological obsolescence, where advancements may outpace the project's development timeline. Cost overruns are also a significant concern due to the inherent uncertainties in R&D, potential for scope creep, and the need for specialized, often expensive, resources. Furthermore, reliance on a single contractor could pose a risk if their performance falters or if key personnel depart.
How does this contract contribute to the overall effectiveness of the DoD's strategic and operational missile capabilities?
This contract is crucial for enhancing the effectiveness of DoD's missile capabilities by providing essential technical support for research and development. It ensures that the U.S. military stays at the forefront of missile technology, developing more advanced, reliable, and potent systems. The R&D focus allows for innovation in areas like speed, accuracy, payload capacity, and countermeasures, directly impacting mission success and national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 615 DISCOVERY DR NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $90,365,991
Exercised Options: $42,888,687
Current Obligation: $42,888,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA19D005Y
IDV Type: FSS
Timeline
Start Date: 2023-03-16
Current End Date: 2026-03-15
Potential End Date: 2028-09-15 00:00:00
Last Modified: 2025-12-18
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