DoD's $26.4M R&D contract with ATK Launch Systems shows long-term investment in large class tech demonstration
Contract Overview
Contract Amount: $26,429,903 ($26.4M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2009-05-06
End Date: 2017-09-30
Contract Duration: 3,069 days
Daily Burn Rate: $8.6K/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 2 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 $26.4 million to ATK LAUNCH SYSTEMS LLC for work described as: RESEARCH AND DEVELOPMENT (R&D) - STAGE 2 LARGE CLASS TECH DEMO Key points: 1. Contract value represents a significant, multi-year investment in advanced technology development. 2. Full and open competition suggests a robust market for this type of specialized R&D. 3. Long contract duration (over 8 years) indicates a complex, phased development process. 4. Cost Plus Fixed Fee pricing structure may incentivize contractor efficiency while managing risk. 5. Focus on large class tech demonstration points to strategic alignment with national defense objectives. 6. The contract's completion in 2017 provides historical data for future benchmarking. 7. Specific R&D area (NAICS 541712) is critical for innovation in physical sciences.
Value Assessment
Rating: good
The contract value of approximately $26.4 million over more than 8 years suggests a substantial investment in research and development. Benchmarking this against similar large-scale technology demonstration contracts is challenging without more specific project details. However, the duration and scope imply a significant undertaking. The Cost Plus Fixed Fee (CPFF) award type indicates that costs were reimbursed, plus a fixed fee for profit, which is common for R&D where exact costs are uncertain. This structure aims to balance contractor incentive with cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a healthy competitive environment for this specific type of large class technology demonstration. The number of bidders is not specified, but the open competition mechanism generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. It ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.
Public Impact
The primary beneficiaries are the Department of Defense and the broader national security apparatus, which gain access to advanced technological capabilities. The contract supports the development and demonstration of large class technologies crucial for future defense applications. Geographic impact is concentrated in Utah, where ATK Launch Systems is based, potentially supporting local high-tech employment. The contract likely involves highly skilled engineers, scientists, and technicians, contributing to the specialized workforce in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 8 years) can sometimes lead to scope creep or cost overruns if not managed meticulously.
- Cost Plus Fixed Fee contracts, while common for R&D, require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
- The specific nature of 'large class tech demo' could involve inherent technical risks that may impact successful development.
- Reliance on a single contractor (ATK Launch Systems) for this specific technology demonstration carries some level of program risk.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded a strong value proposition.
- The contract's completion indicates that the R&D phase has concluded, providing a defined outcome.
- ATK Launch Systems is a known entity in the aerospace and defense sector, implying a level of established capability.
- The substantial duration suggests a commitment to a thorough and potentially groundbreaking technological advancement.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The market for large class technology demonstrations is highly specialized, often dominated by large aerospace and defense contractors. Spending in this area is critical for maintaining technological superiority and developing next-generation capabilities. Comparable spending benchmarks would typically be found within the DoD's R&D budget allocations for advanced concepts and technology maturation.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Given the nature of large class technology demonstrations, it is likely that ATK Launch Systems, as the prime contractor, would engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation, but typically, such large-scale R&D projects involve significant work packages that could be suitable for specialized small businesses.
Oversight & Accountability
Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases and reporting requirements, though specific technical details of R&D may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Advanced Technology Demonstration Contracts
- Aerospace Research and Development
- Department of Defense Research Funding
- Large Scale Systems Development
- Cost Plus Fixed Fee Contracts
Risk Flags
- Long contract duration may increase risk of cost escalation or scope creep.
- CPFF contract type requires diligent oversight to ensure cost reasonableness.
- Technical risks inherent in 'large class tech demo' projects.
Tags
research-and-development, department-of-defense, atk-launch-systems, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-class-technology-demonstration, aerospace, utah, defense-contract-management-agency, completed-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to ATK LAUNCH SYSTEMS LLC. RESEARCH AND DEVELOPMENT (R&D) - STAGE 2 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 $26.4 million.
What is the period of performance?
Start: 2009-05-06. End: 2017-09-30.
What was the specific technological advancement ATK Launch Systems aimed to demonstrate under this contract?
The provided data indicates the contract was for 'RESEARCH AND DEVELOPMENT (R&D) - STAGE 2 LARGE CLASS TECH DEMO' with NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While the exact technology is not specified, 'large class tech demo' suggests a focus on significant, potentially system-level advancements in areas like propulsion, materials, or complex integrated systems relevant to aerospace or defense applications. Stage 2 implies a progression from earlier conceptual or feasibility studies towards a more advanced demonstration phase, likely involving hardware prototypes or integrated system testing.
How does the $26.4 million contract value compare to other large class tech demonstrations within the DoD?
The $26.4 million value over an 8-year period represents a moderate investment for a large class technology demonstration within the Department of Defense. DoD R&D budgets are vast, encompassing numerous projects ranging from millions to billions of dollars. Contracts for 'large class' demonstrations, especially those involving complex systems like launch vehicles or advanced aerospace platforms, can easily exceed this amount. However, $26.4M is substantial enough to indicate a significant technological undertaking, likely involving substantial engineering effort and potentially prototype development or testing.
What were the key performance indicators (KPIs) or milestones for this contract?
Specific Key Performance Indicators (KPIs) and milestones are not detailed in the provided data. However, for a 'Stage 2 Large Class Tech Demo' contract, typical milestones would likely include design reviews, component testing, subsystem integration, system-level testing, and a final demonstration of capability. Performance would be measured against technical objectives, schedule adherence, and cost targets within the Cost Plus Fixed Fee framework. The Defense Contract Management Agency (DCMA) would have overseen progress against these defined milestones.
What is the significance of the 'Cost Plus Fixed Fee' (CPFF) contract type for this R&D project?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work and final costs are inherently uncertain. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it requires robust government oversight to ensure costs are reasonable and allocable to the contract. For a 'large class tech demo,' CPFF helps manage the risks associated with exploring novel technologies.
What is the historical spending trend for similar 'large class tech demo' contracts by the DoD?
Historical spending on 'large class tech demo' contracts by the DoD is substantial and varies significantly based on technological focus and program scale. While this specific $26.4 million contract concluded in 2017, the DoD consistently invests billions annually in R&D, including advanced technology demonstrations. Trends show a continuous push towards next-generation capabilities in areas like hypersonics, artificial intelligence, space systems, and advanced materials. The 'large class' designation implies projects with significant system integration and potential for high impact, often involving multi-year efforts and substantial funding, making this contract a representative example of such investments.
What is the track record of ATK Launch Systems in fulfilling large R&D contracts for the DoD?
ATK Launch Systems (now part of Northrop Grumman) has a long and established track record in the aerospace and defense industry, particularly in areas related to launch vehicles, propulsion systems, and solid rocket motors. They have historically been a key contractor for various DoD programs, including missile defense and space launch initiatives. While specific performance metrics for this particular $26.4 million R&D contract are not detailed here, the company's extensive experience suggests a strong capability to undertake complex research and development projects. Their involvement in numerous high-stakes programs indicates a capacity to manage technical challenges and deliver on demanding requirements.
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: $67,693,346
Exercised Options: $67,693,346
Current Obligation: $26,429,903
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-05-06
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-07-24
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