DoD's $12.8M Spaceport Contract Awarded to OES-POND JV II LLC for Engineering Services

Contract Overview

Contract Amount: $12,792,644 ($12.8M)

Contractor: Oes-Pond JV II LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE ADVANCEMENT OF THE NEXT-GENERATION OPERATIONAL SPACEPORTS CONTRACT

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to OES-POND JV II LLC for work described as: THE ADVANCEMENT OF THE NEXT-GENERATION OPERATIONAL SPACEPORTS CONTRACT Key points: 1. Contract awarded for engineering services related to next-generation operational spaceports. 2. The contract has a duration of 1095 days, spanning three years. 3. The award was made under a 'Not Available for Competition' designation. 4. The contract type is Firm Fixed Price, indicating a set cost for services. 5. The primary location for performance is Florida. 6. This contract supports the Department of the Air Force's infrastructure development goals.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The $12.8 million award over three years suggests a moderate investment in specialized engineering services. However, the lack of competition and detailed performance metrics makes a definitive value-for-money assessment difficult. Further analysis would require understanding the scope of 'next-generation operational spaceports' and the specific engineering tasks involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' (sole-source) basis. This means that only one contractor, OES-POND JV II LLC, was solicited or considered for the award. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and potentially reduce competitive pressure that could drive down costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process, potentially leading to higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Air Force, who will receive engineering services for spaceport development. The services delivered will contribute to the advancement and operational readiness of future space launch facilities. The geographic impact is concentrated in Florida, where the contract performance will take place. This contract may have implications for the specialized engineering workforce in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Limited transparency in the sole-source justification could obscure the necessity of awarding to a single vendor.
The specific technical requirements and performance metrics are not detailed, making it hard to assess the contractor's ability to meet them.

Positive Signals

The contract is awarded to a joint venture (OES-POND JV II LLC), potentially indicating a specialized team with relevant expertise.
The Firm Fixed Price contract type provides cost certainty for the government, assuming the scope is well-defined.
The contract duration of three years allows for sustained effort and development in a complex area like spaceport operations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the burgeoning field of spaceport development. The market for spaceport infrastructure and related services is growing, driven by increased commercial and governmental space activities. While specific benchmarks for 'next-generation operational spaceports' are nascent, engineering services for large-scale infrastructure projects typically involve significant investment. This contract represents a portion of the Department of Defense's broader investment in space capabilities and infrastructure.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have specific provisions for small business participation unless mandated by the contracting agency for specific reasons not detailed here. Further investigation into the joint venture's structure and its own subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; however, contract award details are typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Force Infrastructure Development
Military Construction Projects
Aerospace Engineering Services Contracts
Department of Defense Research and Development

Risk Flags

Sole-source award lacks competitive justification.
Potential for cost overruns due to lack of competition.
Scope of 'next-generation spaceports' is not clearly defined.
Contractor's specific experience with 'next-generation' technology is unverified publicly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to OES-POND JV II LLC. THE ADVANCEMENT OF THE NEXT-GENERATION OPERATIONAL SPACEPORTS CONTRACT

Who is the contractor on this award?

The obligated recipient is OES-POND JV II LLC.

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 $12.8 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What specific engineering services are encompassed by 'advancement of the next-generation operational spaceports'?

The term 'advancement of the next-generation operational spaceports' is broad and likely includes a range of specialized engineering disciplines. This could encompass preliminary design, systems engineering, structural analysis, environmental impact assessments, launch pad design, ground support equipment integration, and potentially cybersecurity considerations for new spaceport facilities. Without a detailed Statement of Work (SOW), the precise nature of the services remains undefined. However, given the context of 'next-generation,' it suggests a focus on innovative technologies, advanced materials, and potentially new launch methodologies that differentiate these spaceports from existing ones. The $12.8 million award over three years suggests a significant, but not massive, scope, possibly focusing on specific phases of development or particular technological advancements rather than the complete design and construction of multiple facilities.

How does the $12.8 million contract value compare to similar spaceport development engineering contracts?

Direct comparisons for 'next-generation operational spaceports' engineering contracts are difficult due to the novelty of the field and the proprietary nature of much of this work. However, large-scale infrastructure projects, including traditional military construction or commercial airport development, can involve engineering service costs ranging from a few percent to over ten percent of the total project cost. If this $12.8 million represents a significant portion of a larger spaceport development initiative, it might be considered reasonable. Conversely, if it is for a standalone, smaller-scale project or a specific component, it could be high. The lack of competition further complicates benchmarking, as competitive bids often drive prices down. Without more context on the specific deliverables and the overall project scale, it's hard to definitively state if $12.8 million is high or low relative to market rates for comparable, competitively bid projects.

What are the primary risks associated with a sole-source award for critical spaceport infrastructure?

The primary risks associated with a sole-source award for critical spaceport infrastructure are multifaceted. Firstly, there's the risk of inflated pricing due to the absence of competitive pressure, meaning taxpayers may pay more than necessary. Secondly, there's a reduced incentive for the contractor to innovate or optimize solutions, as they are guaranteed the contract regardless of alternative offerings. Thirdly, there's a potential lack of transparency in the justification for the sole-source award, which could mask underlying issues or a failure to adequately explore competitive options. Finally, if the selected contractor lacks the necessary expertise or resources, the project's success is jeopardized without readily available alternatives to pivot to, potentially leading to delays, cost overruns, or substandard infrastructure.

What is the track record of OES-POND JV II LLC in delivering complex engineering services for defense projects?

Assessing the specific track record of 'OES-POND JV II LLC' requires detailed examination of their past performance on defense contracts. As a joint venture, its capabilities are derived from its constituent members. Publicly available data may not fully detail the JV's independent history, especially if it's a newer entity. However, the Department of Defense's decision to award a sole-source contract implies that they have either pre-existing knowledge of the JV's capabilities, or the capabilities of its parent companies, that meet the specific, unique requirements of this spaceport advancement project. Further due diligence would involve reviewing past performance evaluations (e.g., CPARS), contract awards, and any reported issues or successes related to similar engineering services within the defense sector for the JV and its principals.

How does this contract align with the Department of the Air Force's broader strategy for space operations and infrastructure?

This contract aligns with the Department of the Air Force's (and by extension, the U.S. Space Force's) strategic imperative to enhance and expand its capabilities in space. The development of 'next-generation operational spaceports' is crucial for supporting increased launch cadence, diverse mission requirements (including national security payloads), and potentially reducing reliance on foreign launch infrastructure. Investing in advanced spaceport engineering signifies a commitment to modernizing space launch facilities to accommodate future technologies and operational concepts. It supports objectives related to space domain awareness, rapid global mobility, and maintaining a technological advantage in the space domain. The focus on Florida also aligns with existing aerospace industry hubs and infrastructure in the region.

What are the potential long-term implications of investing in 'next-generation operational spaceports' for national security?

Investing in 'next-generation operational spaceports' has significant long-term implications for national security. Firstly, it enhances the ability to rapidly deploy and sustain space-based assets critical for intelligence, surveillance, reconnaissance, and communication. Secondly, it provides greater flexibility and resilience in launch operations, reducing vulnerability to single points of failure or adversary actions against existing infrastructure. Thirdly, it supports the development and deployment of advanced space technologies and capabilities, ensuring the U.S. maintains a strategic advantage in the space domain. Furthermore, developing domestic, next-generation capabilities can reduce reliance on international partners or commercial providers for critical national security space launches, bolstering sovereignty and control over essential space access.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD STE 200, MILWAUKEE, WI, 53226

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,180,868

Exercised Options: $15,705,747

Current Obligation: $12,792,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA252123D0012

IDV Type: IDC

Timeline