DoD's $13.8M contract for missile defense systems awarded to Thermotrex Corporation

Contract Overview

Contract Amount: $13,863,350 ($13.9M)

Contractor: Thermotrex Corporation

Awarding Agency: Department of Defense

Start Date: 2000-07-31

End Date: 2023-12-27

Contract Duration: 8,549 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200012!2100!001429!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0087 !A!*!0 !20000731!20010730!095895827!095895827!001408673!N!0UD49!THERMOTREX CORPORATION !10455 PACIFIC CENTER COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000001322842!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!B!*!A !N!U!2!002!B!* !Z!Y!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to THERMOTREX CORPORATION for work described as: 200012!2100!001429!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0087 !A!*!0 !20000731!20010730!095895827!095895827!001408673!N!0UD49!THERMOTREX CORPORATION !10455 PACIFIC CENTER COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Focus on ballistic missile defense systems indicates a strategic national security priority. 3. The contract duration of over 8,500 days suggests a long-term, complex project. 4. Awarded by the Department of Defense, highlighting significant federal investment in defense R&D. 5. The cost-plus-fixed-fee structure may incentivize cost management by the contractor. 6. Thermotrex Corporation, the sole awardee, has a specific niche in this technological area.

Value Assessment

Rating: fair

The total award amount of $13.8 million for a definitive contract spanning over 23 years appears to be a significant investment. Benchmarking this specific type of advanced technology development is challenging due to its specialized nature. However, the cost-plus-fixed-fee (CPFF) contract type suggests that the government is willing to cover costs plus a negotiated profit, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if not managed carefully. Further analysis would be needed to compare the per-unit cost or milestone achievements against similar R&D efforts in ballistic missile defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but the 'full-and-open' designation suggests a competitive process was initiated. This approach is generally favored to ensure the government receives the best value by leveraging market competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it aims to drive down costs through competitive bidding and allows for a wider range of innovative solutions to be considered.

Public Impact

The primary beneficiaries are the U.S. military and national security apparatus, receiving advanced missile defense capabilities. The contract supports the development of cutting-edge technologies crucial for national defense. Geographic impact is likely concentrated around Thermotrex Corporation's facilities in San Diego, California, and potentially at defense installations where the technology is tested or deployed. The contract implies a need for specialized engineering and scientific workforce within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of the contract (over 23 years) raises concerns about potential cost overruns and the need for continuous oversight to ensure project relevance and efficiency.
The cost-plus-fixed-fee (CPFF) contract type, while common for R&D, can sometimes lead to less stringent cost control by the contractor if not closely monitored.
Lack of specific details on the number of bidders in the 'full and open' competition makes it difficult to fully assess the competitive pressure on pricing.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract focuses on a critical area of national security: ballistic missile defense.
The definitive contract type provides a framework for a long-term, strategic development effort.
Thermotrex Corporation's specialization in this niche area may indicate unique capabilities.

Sector Analysis

This contract falls within the Research, Development, Testing, and Evaluation (R&D) sector, specifically focusing on advanced technology development for missile and space systems. The market for ballistic missile defense is highly specialized and dominated by a few key defense contractors. Spending in this area is driven by national security imperatives and technological advancements. Comparable spending benchmarks would typically involve other large-scale R&D contracts for advanced weapon systems or defense technologies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large definitive contract for advanced R&D, the primary focus is likely on specialized capabilities that may not be readily available from small businesses. Further investigation into subcontracting plans would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense's contracting and program management offices, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the milestones and deliverables outlined in the cost-plus-fixed-fee agreement. Transparency is generally maintained through contract databases and reporting requirements, though specific project details might be classified due to national security implications.

Related Government Programs

Missile Defense Systems
Advanced Technology Development
Space Systems R&D
Ballistic Missile Defense Program
Department of Defense Research Contracts

Risk Flags

Long contract duration may increase risk of cost overruns.
Cost-plus-fixed-fee structure requires diligent oversight to ensure cost efficiency.
Specialized technology development can be prone to unforeseen technical challenges.
Potential for scope creep in advanced technology development projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to THERMOTREX CORPORATION. 200012!2100!001429!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0087 !A!*!0 !20000731!20010730!095895827!095895827!001408673!N!0UD49!THERMOTREX CORPORATION !10455 PACIFIC CENTER COURT!SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000001322842!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!B!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is THERMOTREX CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2000-07-31. End: 2023-12-27.

What is Thermotrex Corporation's track record with similar government contracts, particularly in missile defense R&D?

Information on Thermotrex Corporation's specific track record with similar government contracts, especially in the highly specialized field of missile defense R&D, is not detailed in the provided data snippet. While the contract award itself indicates a level of qualification, a deeper dive into their past performance, including successful delivery of comparable technologies, adherence to budget, and timeliness on previous projects, would be necessary for a comprehensive assessment. Government contract databases and performance reports (if publicly available) would be the primary sources for this information. Without this, it's difficult to gauge their established expertise and reliability beyond this single award.

How does the $13.8 million award compare to the typical cost of developing advanced ballistic missile defense technologies?

Benchmarking the $13.8 million award for advanced ballistic missile defense technology development against typical costs is challenging due to the highly specialized and often classified nature of such projects. The duration of this contract (over 23 years) suggests a long-term, complex development effort rather than a single product acquisition. Costs for R&D in this domain can vary dramatically based on technological complexity, required innovation, testing protocols, and the specific threat environment being addressed. While $13.8 million might seem substantial, it could represent a fraction of the total program cost over its lifecycle or be relatively modest for cutting-edge, multi-year R&D in a field where individual component costs and extensive testing can be extremely high. Comparative data from similar, publicly disclosed R&D initiatives would be needed for a more precise assessment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D in missile defense?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D in missile defense revolve around cost control and contractor efficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. The main risk for the government is that the contractor may have less incentive to control costs rigorously, as their profit is fixed regardless of the final cost. This can lead to potential cost overruns if not managed with strict oversight. Additionally, defining the scope of 'allowable costs' and ensuring the 'fixed fee' is fair and reflects the risk and effort involved requires careful negotiation and ongoing monitoring. For advanced R&D, where the path to success is often uncertain, CPFF is common but necessitates robust government oversight to ensure value for taxpayer money.

What is the expected program effectiveness or outcome of this contract, given its focus on 'Advanced Tech Dev'?

The expected program effectiveness of this contract, focused on 'Advanced Tech Dev' for missile and space systems, is to push the boundaries of current capabilities in ballistic missile defense. As an 'Advanced Tech Dev' contract, its primary outcome is not necessarily a deployable system but rather the maturation of technologies, proof-of-concept demonstrations, and the development of foundational knowledge that can be incorporated into future defense systems. The effectiveness will be measured by the successful development and validation of these advanced technologies, their potential to enhance threat detection, interception, or system resilience, and their readiness for transition into engineering and manufacturing development phases. The long duration suggests a phased approach to achieving these technological advancements.

How has federal spending in the 'Missile and Space Systems - Advanced Tech Dev' category trended over the past decade?

Analyzing the trend of federal spending in the 'Missile and Space Systems - Advanced Tech Dev' category over the past decade requires access to historical budget data and contract awards across various agencies, primarily the Department of Defense. Generally, spending in this area is influenced by geopolitical threats, strategic defense reviews, and technological advancements. Periods of heightened international tension or the emergence of new missile threats often correlate with increased investment in R&D for defense systems. While specific figures for this sub-category are not provided, the overall defense R&D budget has seen fluctuations, with significant investments consistently allocated to maintaining technological superiority in areas like missile defense, space surveillance, and advanced weaponry. Trends would likely show a sustained, albeit variable, level of funding reflecting the ongoing strategic importance of these capabilities.

What does the 'definitive contract' designation imply about the nature and duration of this agreement?

A 'definitive contract' is a standard, legally binding agreement that outlines the specific terms, conditions, scope of work, price, and delivery schedule for goods or services. Unlike basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract typically represents a complete agreement for a specific project or requirement. In this case, the designation, coupled with the long duration (over 23 years) and the award amount, suggests a comprehensive, long-term commitment by the Department of Defense to Thermotrex Corporation for the development of advanced missile and space systems. It implies that the scope, objectives, and expected outcomes have been clearly defined, and the contract serves as the primary instrument governing this substantial R&D effort.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10455 PACIFIC CENTER COURT, SAN DIEGO, CA, 92121

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline