DoD's $87.3M R&D contract for missile systems awarded to CSD Aerojet Pratt & Whitney, with 3 bidders

Contract Overview

Contract Amount: $18,730,056 ($18.7M)

Contractor: CSD Aerojet Pratt & Whitney United Technology

Awarding Agency: Department of Defense

Start Date: 2000-12-29

End Date: 2012-05-15

Contract Duration: 4,155 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200103!000032!5700!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461101C0005 !A!N!*!N! !20001229!20050615!872903864!872903864!872903864!N!CSD-AEROJET ASSOCIATES (A JOIN!600 METCALF ROAD !SAN JOSE !CA!95138!68000!085!06!SAN JOSE !SANTA CLARA !CALIFORNIA!+000002355000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!B! !A !N!U!2!003!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: CORINNE, BOX ELDER County, UTAH, 84307

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to CSD AEROJET PRATT & WHITNEY UNITED TECHNOLOGY for work described as: 200103!000032!5700!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461101C0005 !A!N!*!N! !20001229!20050615!872903864!872903864!872903864!N!CSD-AEROJET ASSOCIATES (A JOIN!600 METCALF ROAD !SAN JOSE !CA!95138!68000!085!06!SAN JOSE !SANTA… Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract's duration of over 11 years suggests a long-term need for the R&D services. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to advanced technological development. 4. The contract was awarded by the Department of the Air Force, a major component of the DoD. 5. The contractor is a joint venture, potentially indicating a consolidation of expertise for complex projects. 6. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility.

Value Assessment

Rating: fair

The total award amount of $87.3 million over an 11-year period averages to approximately $7.9 million per year. Without specific deliverables or performance metrics, it is difficult to benchmark this value against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in R&D, can sometimes lead to higher costs if not managed tightly. The fixed fee component needs to be assessed for reasonableness in relation to the anticipated effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple capable contractors had the opportunity to bid. The presence of three bidders indicates a degree of market interest and potential for price discovery. However, the specific details of the solicitation and evaluation process would be needed to fully assess the effectiveness of the competition.

Taxpayer Impact: A competitive process with multiple bidders generally benefits taxpayers by encouraging lower prices and better value. The existence of three bidders suggests that the government likely received a range of proposals, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. Air Force, receiving advanced research and development for missile and space systems. The services delivered are focused on research and development in advanced technologies related to missile and space systems. The geographic impact is likely concentrated around the contractor's facilities in San Jose, California, and potentially at Air Force research installations. The contract supports a specialized workforce in R&D, including engineers and scientists, within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract (over 11 years) necessitates ongoing oversight to ensure continued relevance and performance.
Assessing the true value for money is challenging without detailed performance metrics and comparison data.
The joint venture nature of the contractor might introduce complexities in accountability and performance management.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contractor is a joint venture, potentially bringing together significant expertise.
The contract is for Research and Development, indicating investment in future technological capabilities.
The fixed fee component in the CPFF contract provides some level of cost certainty for the government.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development for missile and space systems. The market for such specialized R&D is often dominated by a few large, experienced contractors. The NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) encompasses a broad range of scientific and technical services. Comparable spending benchmarks would require detailed analysis of other DoD R&D contracts in this specific sub-sector.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, CSD Aerojet Pratt & Whitney, is a joint venture of established entities, suggesting it is not a small business. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's terms, including reporting requirements, milestones, and performance standards. Transparency is facilitated by the contract's public award data, but detailed programmatic information may be limited due to the nature of R&D and defense contracts. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems R&D
Advanced Technology Development Contracts
Aerospace Research and Development
Department of Defense Research Contracts
Air Force Weapon Systems Development

Risk Flags

Long contract duration requires sustained oversight.
CPFF contract type necessitates careful cost management.
R&D nature may involve inherent technical uncertainties.
Joint venture structure could complicate accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to CSD AEROJET PRATT & WHITNEY UNITED TECHNOLOGY. 200103!000032!5700!GP03 !AFFTC/PKRA R&D CONTRACTS FTC !F0461101C0005 !A!N!*!N! !20001229!20050615!872903864!872903864!872903864!N!CSD-AEROJET ASSOCIATES (A JOIN!600 METCALF ROAD !SAN JOSE !CA!95138!68000!085!06!SAN JOSE !SANTA CLARA !CALIFORNIA!+000002355000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!B!

Who is the contractor on this award?

The obligated recipient is CSD AEROJET PRATT & WHITNEY UNITED TECHNOLOGY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2000-12-29. End: 2012-05-15.

What is the specific nature of the 'missile and space systems' being researched and developed under this contract?

The provided data does not specify the exact nature of the missile and space systems under research. The NAICS code 541710 covers broad R&D in physical, engineering, and life sciences. Given the contractor and the awarding agency (Department of the Air Force), it is highly probable that this contract relates to advanced propulsion, guidance, control, or warhead technologies for strategic or tactical missile systems, as well as potentially space-based platforms or related technologies. Further details would likely be found in classified or restricted contract documents.

How does the $87.3 million total award compare to other R&D contracts for similar missile and space systems?

Benchmarking this $87.3 million contract requires comparing it to other R&D contracts for missile and space systems of similar scope, duration, and technological complexity. Without access to a comprehensive database of classified or proprietary R&D efforts, a direct comparison is difficult. However, $87.3 million over an 11-year period represents an average annual spend of approximately $7.9 million. This figure is substantial but not extraordinary for advanced defense R&D, which often involves high costs for specialized personnel, materials, and testing. Larger, more complex programs could easily exceed hundreds of millions or billions of dollars.

What are the key performance indicators (KPIs) or milestones associated with this contract?

The provided data does not list specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) R&D contracts, milestones often relate to the completion of specific research phases, delivery of prototypes, successful testing outcomes, or the development of technical reports and documentation. The fixed fee is typically earned upon the achievement of these defined objectives. The contracting officer and program managers at the Department of the Air Force would be responsible for monitoring progress against these unstated milestones.

What is the track record of CSD Aerojet Pratt & Whitney in delivering on similar R&D contracts?

CSD Aerojet Pratt & Whitney is a joint venture, implying a collaboration between established entities. Aerojet Rocketdyne (part of Aerojet Rocketdyne Holdings, Inc., which has since been acquired by L3Harris Technologies) and Pratt & Whitney (a Raytheon Technologies company) are major defense contractors with extensive experience in aerospace and propulsion systems. Their collective track record in delivering complex R&D projects for the DoD is extensive. However, the specific performance of this particular joint venture on this contract would depend on the management and execution specific to this award.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover all allowable costs plus a negotiated fixed fee. While the fixed fee provides some cost certainty, if the scope of work expands significantly or unforeseen technical challenges arise, the total cost to the government could increase substantially. Effective oversight by the government is crucial to manage costs, ensure that expenditures are reasonable and allocable, and prevent scope creep without proper adjustments.

How has historical spending on missile and space systems R&D by the Department of the Air Force trended?

Historical spending trends for missile and space systems R&D by the Department of the Air Force are generally substantial and fluctuate based on strategic priorities, technological advancements, and geopolitical factors. The DoD consistently invests heavily in maintaining and advancing its capabilities in these areas. Specific trends would require analysis of historical budget appropriations and contract awards over several fiscal years. This contract, awarded in late 2000, reflects a period of significant investment in defense modernization.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 600 METCALF ROAD, SAN JOSE, CA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,730,056

Exercised Options: $18,730,056

Current Obligation: $18,730,056

Contract Characteristics

Cost or Pricing Data: NO

Timeline