DoD's $46M R&D Contract with ATK Launch Systems: A 6-Year Deal for Advanced Technology Demonstration
Contract Overview
Contract Amount: $46,073,936 ($46.1M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-05
End Date: 2015-12-31
Contract Duration: 2,400 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT (R&D) - STAGE 1 LARGE CLASS TECH DEMO
Place of Performance
Location: CORINNE, BOX ELDER County, UTAH, 84307
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to ATK LAUNCH SYSTEMS LLC for work described as: RESEARCH AND DEVELOPMENT (R&D) - STAGE 1 LARGE CLASS TECH DEMO Key points: 1. The contract value is substantial at $46 million, indicating a significant investment in R&D. 2. ATK Launch Systems LLC, a known entity in the aerospace sector, is the sole awardee. 3. The contract duration is long (2400 days), suggesting a complex, multi-phase project. 4. The R&D focus is on physical and engineering sciences, excluding biotechnology.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value is high for a single award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided, making it difficult to assess if the final price was optimal.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D, which has the potential for long-term technological benefits but carries inherent risks of project failure or cost escalation.
Public Impact
Investment in cutting-edge defense technology could enhance national security capabilities. The long-term nature of the contract may provide stable employment for specialized engineers and scientists. Successful R&D outcomes could lead to future technological advancements with broader civilian applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration increases risk of scope creep and cost escalation.
- Lack of specific performance metrics makes it hard to gauge R&D effectiveness.
- No mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Focus on critical R&D for defense.
- Experienced contractor in ATK Launch Systems.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. The $46 million value is significant for a single R&D project, especially one with a long duration, suggesting a high-stakes technological endeavor.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award, as the awardee is ATK Launch Systems LLC. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. However, the specific oversight mechanisms and reporting requirements for this long-term R&D project are not detailed.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration increases risk of obsolescence or changing requirements.
- Lack of detailed performance metrics for R&D success.
- No explicit mention of small business subcontracting goals.
- Limited insight into the specific technological outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to ATK LAUNCH SYSTEMS LLC. RESEARCH AND DEVELOPMENT (R&D) - STAGE 1 LARGE CLASS TECH DEMO
Who is the contractor on this award?
The obligated recipient is ATK LAUNCH SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.1 million.
What is the period of performance?
Start: 2009-06-05. End: 2015-12-31.
What specific technological advancements are expected from this $46 million R&D investment, and how will their success be measured?
The contract focuses on 'STAGE 1 LARGE CLASS TECH DEMO' within physical and engineering sciences. Specific advancements are not detailed, but likely pertain to next-generation launch systems or related defense technologies. Success measurement would typically involve predefined technical milestones, performance demonstrations, and adherence to budget and schedule, though these specifics are absent in the provided data.
Given the Cost Plus Fixed Fee structure and long duration, what are the primary financial risks to taxpayers, and how are they mitigated?
The primary financial risk is cost overrun, as CPFF contracts can incentivize spending. The long duration amplifies this risk. Mitigation relies on the fixed fee providing a ceiling on profit and the DCMA's oversight to ensure costs are reasonable and allocable. However, without detailed performance metrics and cost controls, significant overruns remain a possibility.
How does this contract contribute to the Department of Defense's overall technological superiority and long-term strategic goals?
This contract represents a significant investment in developing potentially groundbreaking technologies for the DoD. By funding ATK Launch Systems, the department aims to stay ahead of adversaries in critical areas like space launch or advanced propulsion. The success of this R&D could lead to enhanced operational capabilities, improved system performance, and a stronger defense posture.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 9160 N HWY 83, CORINNE, UT, 84307
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $53,286,550
Exercised Options: $53,286,550
Current Obligation: $46,073,936
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-06-05
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2017-07-13
More Contracts from ATK Launch Systems LLC
- Space Shuttle Reusable Solid Rocket Motors — $4.1B (National Aeronautics and Space Administration)
- Award of Luu-2d/B Illumination Flares and Luu-19b/B Infrared Flares — $110.1M (Department of Defense)
- THE Purpose of This Contract IS to Provide Engineering Services for the Propulsion System of the Minuteman III Missile — $66.8M (Department of Defense)
- M212 Flares W/Decal — $53.2M (Department of Defense)
- 200412!000323!5700!GE45 !oo-Alc/Pkw/Wmk !FA821304C0026 !A!N! !N! ! !20040303!20060731!002241164!002241164!001339472!n!atk Thiokol Inc !9160 North Highway 83 !corinne !ut!84307!15830!003!49!corinne !BOX Elder !utah !+000023742987!n!n!000000000000!1370!pyrotechnics !A6 !ammunition !000 !* !325998!E! !1! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1a!a!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $49.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)