DoD's $298M Cape Canaveral Launch Support Contract Awarded to ASRC Communications

Contract Overview

Contract Amount: $29,810,444 ($29.8M)

Contractor: Asrc Communications, Ltd.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2024-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING COST PLUS FIXED FEE

Place of Performance

Location: CANAVERAL AIR STATION, BREVARD County, FLORIDA, 32925

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to ASRC COMMUNICATIONS, LTD. for work described as: CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING COST PLUS FIXED FEE Key points: 1. Contract value of $298 million over its period of performance. 2. Services provided include facilities support, aligning with NAICS code 561210. 3. Awarded as a Delivery Order under a larger contract vehicle. 4. Contract duration spans approximately 3.5 years. 5. The contract was awarded through full and open competition. 6. The contractor, ASRC Communications, Ltd., is a significant player in the sector.

Value Assessment

Rating: good

The contract's value of $298 million over 1277 days suggests a substantial investment in launch operations support. Benchmarking this against similar facilities support contracts for major defense installations would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but also carries inherent risks if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition after exclusion of sources,' indicating a competitive process where all eligible sources were considered. The specific details of how many bids were received and the evaluation criteria are not provided, but the designation suggests a robust competition.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it aims to secure the best value by encouraging multiple bidders to offer competitive pricing and innovative solutions.

Public Impact

Supports critical launch operations at Cape Canaveral Space Force Station, Florida. Ensures the readiness and functionality of essential infrastructure for space missions. Benefits the Department of Defense and potentially other government agencies utilizing the launch facilities. Contributes to the aerospace and defense workforce in the Florida region. Facilitates national security and scientific exploration through reliable launch support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Reliance on a single delivery order for extensive support may present risks if contractor performance falters.
The 'exclusion of sources' clause warrants further investigation into why specific sources were excluded.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
ASRC Communications, Ltd. likely has a strong track record to secure such a significant contract.
The contract supports vital national security and space exploration infrastructure.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader aerospace and defense industry. The market for such services is substantial, driven by government and commercial space activities. Comparable spending benchmarks would involve analyzing other large-scale facility management contracts at major government installations, particularly those supporting complex operations like launch sites.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. This suggests that the primary focus was on securing the best technical and price solution from a broad range of eligible contractors. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed reporting and auditing. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may require Freedom of Information Act requests.

Related Government Programs

Space Launch Support Services
Department of Defense Facilities Management
Aerospace Infrastructure Contracts
Cape Canaveral Operations Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Potential for contractor performance issues impacting critical launch operations.
Limited visibility into the specific reasons for 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 million to ASRC COMMUNICATIONS, LTD.. CAPE LAUNCH OPERATIONS AND INFRASTRUCTURE SUPPORT WING COST PLUS FIXED FEE

Who is the contractor on this award?

The obligated recipient is ASRC COMMUNICATIONS, LTD..

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 $29.8 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-03-31.

What is the historical spending pattern for Cape Canaveral launch operations and infrastructure support?

Historical spending on Cape Canaveral launch operations and infrastructure support has been substantial and likely follows trends in national space policy and defense priorities. While specific figures for this exact contract category prior to this award are not detailed here, the U.S. government consistently invests billions annually in space programs, including launch infrastructure, research, and operations. This includes funding for range operations, facility maintenance, and technological upgrades. The trend generally reflects increased activity in both government (military and civil) and commercial space sectors, necessitating ongoing investment in reliable and modern launch facilities. Analyzing past budgets for the Air Force and Space Force at the Eastern Range would reveal multi-year spending patterns, often showing fluctuations based on program needs and appropriations.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar contracts in the defense sector?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in the defense sector, particularly for complex projects where the scope may evolve or is not fully defined at the outset, such as research and development or specialized support services. Compared to fixed-price contracts, CPFF offers flexibility but can be more expensive if costs escalate significantly. Other similar contracts might utilize Firm-Fixed Price (FFP) for well-defined services, or Cost Plus Incentive Fee (CPIF) which ties contractor profit to performance metrics. The 'fixed fee' component in CPFF provides the contractor with a guaranteed profit margin, incentivizing them to control costs to maximize their return within that fee. Benchmarking requires comparing the fee percentage and total cost against contracts for similar services (e.g., base operations, IT support, logistics) awarded under different pricing structures and to different agencies.

What is ASRC Communications, Ltd.'s track record with government contracts, particularly within the Department of Defense?

ASRC Communications, Ltd. has a significant track record of performing government contracts, including substantial work with the Department of Defense and other federal agencies. As a subsidiary of Arctic Slope Regional Corporation, it leverages extensive experience in telecommunications, IT, and base operations support. Publicly available contract databases often show ASRC Communications holding numerous awards across various agencies, including significant value contracts for services similar to facilities support and infrastructure management. Their performance history, typically assessed through contract performance reports (CPARs), would indicate their reliability, quality of service, and adherence to schedules and budgets on previous engagements. A strong history with the DoD suggests they possess the necessary clearances, security protocols, and operational expertise required for sensitive defense-related contracts.

What are the potential risks associated with relying on a single delivery order for such extensive support services?

Relying on a single delivery order for extensive support services like those at Cape Canaveral presents several potential risks. Firstly, there's a risk of contractor underperformance or default; if ASRC Communications encounters financial difficulties, operational issues, or fails to meet contractual obligations, the continuity of critical launch operations could be severely jeopardized. Secondly, a lack of ongoing competition within this specific delivery order means there's less pressure on the contractor to innovate or offer cost reductions beyond what's stipulated in the original contract. Thirdly, if unforeseen requirements arise that fall outside the scope of the original delivery order, renegotiating terms or issuing new orders could be complex and potentially costly. Finally, a single point of failure in contractor performance could necessitate rapid, potentially more expensive, contingency planning or emergency contract actions.

How does this contract align with broader Air Force or Space Force strategic goals for the Eastern Range?

This contract directly aligns with the strategic goals of the Air Force and Space Force to maintain and enhance the operational readiness and capability of the Eastern Range at Cape Canaveral. Ensuring robust infrastructure support is fundamental to enabling frequent and successful space launches, which are critical for national security, scientific research, and the growing commercial space industry. By outsourcing facilities support, the military branches can focus their organic resources on core mission functions, such as space domain awareness, satellite operations, and launch mission management. This contract supports the goal of a modernized and responsive launch infrastructure capable of meeting evolving mission demands and technological advancements in the space domain.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,714,870

Exercised Options: $30,714,870

Current Obligation: $29,810,444

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,391,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252118D0001

IDV Type: IDC

Timeline