DoD's $12.4M contract for distributed sensing experiments awarded to SpaceDev, Inc

Contract Overview

Contract Amount: $12,417,266 ($12.4M)

Contractor: Spacedev, Inc

Awarding Agency: Department of Defense

Start Date: 2006-07-01

End Date: 2008-07-31

Contract Duration: 761 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MICRO SAT DISTRIBUTED SENSING EXPERIMENT

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to SPACEDEV, INC for work described as: MICRO SAT DISTRIBUTED SENSING EXPERIMENT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 2 years (761 days) is relatively standard for this type of project. 3. The 'Other Scientific and Technical Consulting Services' NAICS code indicates a focus on specialized expertise. 4. Awarded by the Missile Defense Agency, aligning with defense-focused research and development. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can carry cost overrun risks. 6. The contract was awarded in 2006, indicating historical spending patterns. 7. The small business set-aside flag is false, meaning it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sensing experiment contracts. The Cost Plus Fixed Fee (CPFF) contract type means that the government pays the costs incurred by the contractor plus a fixed fee, which can sometimes lead to higher overall costs if not managed carefully. The awarded amount of $12.4 million for a two-year project focused on distributed sensing experiments appears within a reasonable range for specialized R&D, but a direct comparison to market rates for similar services is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all eligible responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The Missile Defense Agency likely sought proposals from a wide range of companies capable of performing advanced sensing experiments.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best value through a broad selection of potential contractors, potentially driving down costs through competitive pressures.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which gains insights into distributed sensing technologies. The services delivered involve scientific and technical consulting related to advanced sensing experiments. The geographic impact is likely concentrated in California, where the contractor is based. The contract supports specialized scientific and technical workforce development within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited public information on the specific technical outcomes and performance metrics of the experiment.
The contract was awarded over 15 years ago, making direct comparisons to current market conditions difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract addresses a specialized area of scientific and technical development relevant to missile defense.
The contractor, SpaceDev, Inc., was involved in advanced aerospace and defense projects.

Sector Analysis

This contract falls within the broader scientific and technical consulting services sector, specifically supporting defense-related research and development. The market for specialized sensing technologies is driven by government and defense needs, with significant investment in areas like missile defense, surveillance, and intelligence. Comparable spending benchmarks would typically be found within R&D budgets of defense agencies for advanced technology development projects.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data does not indicate any subcontracting requirements for small businesses. Therefore, this specific award did not directly contribute to the small business ecosystem through set-aside provisions. The impact on small businesses would be indirect, potentially through opportunities if SpaceDev, Inc. subcontracted, which is not specified.

Oversight & Accountability

Oversight for this contract would have been managed by the Missile Defense Agency. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight and performance monitoring would be expected to ensure that costs remain reasonable and that the fixed fee is earned through satisfactory performance. Transparency would depend on the agency's reporting practices for R&D contracts, with potential for Inspector General review if performance or cost issues arose.

Related Government Programs

Missile Defense Systems
Advanced Sensor Technology Development
Department of Defense Research and Development Contracts
Scientific and Technical Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Limited public information on specific performance metrics and outcomes.
Contract awarded over 15 years ago, limiting direct comparison to current market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to SPACEDEV, INC. MICRO SAT DISTRIBUTED SENSING EXPERIMENT

Who is the contractor on this award?

The obligated recipient is SPACEDEV, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2006-07-01. End: 2008-07-31.

What was the specific technical objective of the "MICRO SAT DISTRIBUTED SENSING EXPERIMENT"?

The "MICRO SAT DISTRIBUTED SENSING EXPERIMENT" aimed to explore and develop technologies for distributed sensing capabilities using micro-satellite platforms. This likely involved research into how multiple small satellites could collectively gather and process data, potentially for enhanced surveillance, tracking, or early warning systems relevant to missile defense. The experiment would have focused on the feasibility, integration, and performance of such a distributed network in a space environment. Specific objectives would have included testing communication protocols between satellites, data fusion techniques, and the overall effectiveness of a networked sensing approach compared to traditional single-platform solutions.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value for this type of project?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development (R&D) or complex projects where the scope and final costs are not precisely definable at the outset. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed, and the profit (fixed fee) is predetermined. However, it provides flexibility for the contractor to adapt to evolving technical requirements. For taxpayers, this means potential for higher costs than fixed-price contracts if cost overruns occur. The value proposition hinges on the successful development of innovative technology that might not be achievable under more restrictive fixed-price agreements. Effective government oversight is crucial to mitigate the cost risks associated with CPFF contracts.

What is the significance of the Missile Defense Agency awarding this contract?

The Missile Defense Agency (MDA) awarding this contract signifies its commitment to advancing cutting-edge technologies for national security, specifically in the realm of missile defense. Distributed sensing, particularly using micro-satellites, offers potential advantages in terms of persistent surveillance, wider area coverage, and resilience against countermeasures. By funding projects like the "MICRO SAT DISTRIBUTED SENSING EXPERIMENT," the MDA seeks to explore novel approaches to detect, track, and intercept threats. This investment reflects a strategic focus on leveraging advanced space-based capabilities to enhance the effectiveness and survivability of missile defense systems.

What does the NAICS code '541690 - Other Scientific and Technical Consulting Services' imply about the nature of the work performed?

The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' indicates that the primary service provided under this contract was specialized expertise and advice related to scientific and technical challenges, falling outside more specific categories like engineering, environmental, or management consulting. For the "MICRO SAT DISTRIBUTED SENSING EXPERIMENT," this suggests that SpaceDev, Inc. was engaged in providing high-level scientific analysis, research guidance, experimental design, and technical problem-solving related to advanced sensing technologies and satellite systems. It implies a focus on intellectual contributions and expert consultation rather than the direct manufacturing or construction of hardware, although technical development and testing would likely be involved.

Given the contract was awarded in 2006, how might its findings or technologies be relevant today?

Technologies and findings from a 2006 distributed sensing experiment could still hold relevance today, albeit needing updates for current technological standards. The fundamental principles of distributed sensing and micro-satellite constellations explored then likely laid groundwork for current advancements. Today's space domain is characterized by proliferated low-Earth orbit (LEO) constellations, advanced sensor miniaturization, and sophisticated data analytics – areas that may have been nascent in 2006. The experiment's results could inform the design of modern LEO constellations, highlight challenges in inter-satellite communication and data processing that persist, or validate foundational concepts that have since been built upon. Understanding the historical context of such experiments provides insight into the evolutionary path of current space-based sensing capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense 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)

Contractor Details

Parent Company: Sierra Nevada Company, LLC (UEI: 094373495)

Address: 13855 STOWE DR, POWAY, CA, 48

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,463,558

Exercised Options: $12,463,558

Current Obligation: $12,417,266

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ000604D0002

IDV Type: IDC

Timeline