DoD Awards $23.6M for Missile Systems R&D to Meggitt Defense Systems

Contract Overview

Contract Amount: $23,613,095 ($23.6M)

Contractor: Meggitt Defense Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2003-05-05

End Date: 2008-04-30

Contract Duration: 1,822 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200308!003205!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0132 !A!N! !N! !20030505!20080430!109343470!230387284!216242784!N!MEGGITT DEFENSE SYSTEMS, INC !655 W VALENCIA DR !FULLERTON !CA!92832!28000!059!06!FULLERTON !ORANGE !CALIFORNIA!+000000488800!N!N!000000000000!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !336414!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: FULLERTON, ORANGE County, CALIFORNIA, 92832

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to MEGGITT DEFENSE SYSTEMS, INC for work described as: 200308!003205!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0132 !A!N! !N! !20030505!20080430!109343470!230387284!216242784!N!MEGGITT DEFENSE SYSTEMS, INC !655 W VALENCIA DR !FULLERTON !CA!92832!28000!059!06!FULLERTON !ORANG… Key points: 1. Contract awarded for missile and space systems research and development. 2. Meggitt Defense Systems, Inc. is the sole awardee. 3. High risk due to sole-source nature and long duration. 4. Spending falls within the Defense sector, specifically R&D.

Value Assessment

Rating: questionable

The contract value of $23.6M over 5 years for R&D is difficult to benchmark without specific project details. However, the lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a substantial R&D contract raises concerns about the efficient use of taxpayer funds.

Public Impact

Missile and space systems R&D is critical for national security. Sole-source awards can limit innovation and drive up costs. Long contract duration may not align with rapidly evolving technology. Transparency in R&D spending is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of clear competition

Positive Signals

Supports critical missile R&D

Sector Analysis

This contract falls under the Defense sector, specifically Research, Development, Test, and Evaluation (RDTE) for missile and space systems. Spending in this area is vital for national security but requires careful oversight due to its specialized nature and potential for high costs.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded directly to a single, larger entity. Further analysis would be needed to determine if subcontracting opportunities were explored.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective execution of the R&D objectives. Accountability for deliverables and milestones is paramount.

Related Government Programs

Guided Missile and Space Vehicle Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and price discovery.
Long contract duration (5 years) may not be agile enough for R&D.
Lack of transparency regarding specific R&D objectives and deliverables.
Potential for cost overruns due to lack of competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to MEGGITT DEFENSE SYSTEMS, INC. 200308!003205!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0103C0132 !A!N! !N! !20030505!20080430!109343470!230387284!216242784!N!MEGGITT DEFENSE SYSTEMS, INC !655 W VALENCIA DR !FULLERTON !CA!92832!28000!059!06!FULLERTON !ORANGE !CALIFORNIA!+000000488800!N!N!000000000000!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !336414!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is MEGGITT DEFENSE SYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2003-05-05. End: 2008-04-30.

What specific R&D objectives does this contract aim to achieve, and how will their successful completion be measured?

The contract specifies 'MISSILE AND SPACE SYSTEMS-BASIC RESEARCH' as the objective. Success measurement would typically involve technical reviews, prototype demonstrations, and milestone achievements outlined in the contract's statement of work. Without access to these details, the effectiveness and value are difficult to ascertain, but the focus on basic research suggests foundational advancements rather than immediate product development.

Given the sole-source award, what mechanisms are in place to mitigate the risk of inflated pricing and ensure fair market value?

Sole-source contracts often rely on pre-negotiated rates, historical pricing data, or certified cost and pricing data from the contractor. The government likely conducted some form of price analysis, potentially comparing to similar R&D efforts or using independent cost estimates. However, the absence of competitive bidding inherently reduces the pressure to offer the lowest possible price.

How does this $23.6M investment in missile R&D align with current and future strategic defense priorities?

This investment supports the Department of Defense's ongoing efforts in advanced missile and space systems, crucial for maintaining technological superiority and national security. The 'basic research' designation suggests a focus on long-term capabilities. Alignment with strategic priorities would depend on the specific research areas funded and their contribution to evolving threats and defense doctrines.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 655 W VALENCIA DR, FULLERTON, CA, 92832

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline