DoD awards $41.8M for PL MK-82 (BLU-129/B) to Aerojet Rocketdyne Inc. under a sole-source contract
Contract Overview
Contract Amount: $41,778,857 ($41.8M)
Contractor: Aerojet Rocketdyne Inc
Awarding Agency: Department of Defense
Start Date: 2010-09-21
End Date: 2012-06-30
Contract Duration: 648 days
Daily Burn Rate: $64.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PL MK-82 (BLU-129/B)
Place of Performance
Location: RANCHO CORDOVA, SACRAMENTO County, CALIFORNIA, 95742
Plain-Language Summary
Department of Defense obligated $41.8 million to AEROJET ROCKETDYNE INC for work described as: PL MK-82 (BLU-129/B) Key points: 1. Contract awarded for guided missile and space vehicle manufacturing. 2. Aerojet Rocketdyne Inc. is the sole contractor for this award. 3. The contract has a duration of 648 days. 4. This award falls under the 'Guided Missile and Space Vehicle Manufacturing' industry. 5. The contract type is Firm Fixed Price. 6. The award was made by the Department of the Air Force.
Value Assessment
Rating: questionable
Benchmarking the value for this specific contract is challenging due to the lack of publicly available comparable data for the PL MK-82 (BLU-129/B) system. The total award amount of $41.8 million over approximately two years suggests a significant investment. Without competitive bidding, it's difficult to ascertain if the pricing reflects fair market value or if there are opportunities for cost savings. Further analysis would require access to detailed cost breakdowns and historical pricing for similar components or systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the government's requirements. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust oversight to ensure the awarded price is reasonable.
Public Impact
The Department of Defense benefits from the acquisition of the PL MK-82 (BLU-129/B) system, likely for strategic defense or offensive capabilities. This contract supports the manufacturing of guided missiles and space vehicles, contributing to national security infrastructure. The primary geographic impact is likely within California, where Aerojet Rocketdyne Inc. is located. The contract supports jobs within the aerospace and defense manufacturing sector, specifically in areas related to missile technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for contractor lock-in if alternative solutions are not explored.
- Limited visibility into the specific technological advancements or unique capabilities justifying the sole-source award.
Positive Signals
- Aerojet Rocketdyne Inc. is a known entity in the aerospace and defense industry, suggesting established capabilities.
- Firm Fixed Price contract type provides cost certainty for the government once the price is set.
- The contract is for a specific, likely critical, defense system (PL MK-82 / BLU-129/B).
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and often involves specialized technologies. Contracts for guided missile and space vehicle manufacturing are a critical component of this sector, supporting national security. Spending in this area can fluctuate based on geopolitical factors and technological advancements. Comparable spending benchmarks are difficult to establish without knowing the specific system's role and technological sophistication.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Aerojet Rocketdyne Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary economic benefit will flow to the large prime contractor, with limited direct opportunities for small businesses unless they are part of Aerojet Rocketdyne's supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force and the Department of Defense's contracting and program management offices. Accountability measures would be tied to the terms of the Firm Fixed Price contract, focusing on delivery schedules and specifications. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Guided Missile Manufacturing
- Space Vehicle Manufacturing
- Department of Defense Procurement
- Air Force Weapon Systems
Risk Flags
- Sole-source award raises concerns about potential lack of competition and price reasonableness.
- Limited public information available regarding the specific system and justification for sole-sourcing.
- Contract duration and value warrant close monitoring of performance and delivery.
Tags
defense, department-of-defense, department-of-the-air-force, aerojet-rocketdyne-inc, guided-missile-and-space-vehicle-manufacturing, sole-source, firm-fixed-price, california, large-business, missile-technology, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.8 million to AEROJET ROCKETDYNE INC. PL MK-82 (BLU-129/B)
Who is the contractor on this award?
The obligated recipient is AEROJET ROCKETDYNE INC.
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 $41.8 million.
What is the period of performance?
Start: 2010-09-21. End: 2012-06-30.
What is the specific function and strategic importance of the PL MK-82 (BLU-129/B) system?
The PL MK-82 (BLU-129/B) is a component within the broader category of guided munitions. While specific details about its exact function and strategic importance are often classified or proprietary, systems like these are typically designed for precision targeting and enhanced effectiveness in various combat scenarios. The BLU-129/B designation often refers to a specific type of warhead or a modification of an existing munition. Its acquisition by the Department of Defense suggests it plays a role in fulfilling current or future operational requirements, potentially offering advantages in terms of range, accuracy, or payload compared to older systems. The sole-source award to Aerojet Rocketdyne Inc. implies that this system may involve unique technology or specialized manufacturing processes that are not readily available from other sources.
What is the historical spending pattern for PL MK-82 (BLU-129/B) or similar systems by the Department of Defense?
Analyzing historical spending patterns for the PL MK-82 (BLU-129/B) specifically is challenging without access to detailed procurement databases or classified information. However, the Department of Defense consistently allocates substantial budgets towards the research, development, and procurement of guided munitions and missile systems. Annual spending in this category often runs into billions of dollars, reflecting the ongoing need for advanced weaponry. Trends in this area are influenced by evolving threats, technological advancements, and strategic priorities. For instance, there's a continuous push towards more precise, longer-range, and networked munitions. While this specific contract is for approximately $41.8 million, it represents a single award within a much larger, ongoing investment in missile technology by the DoD.
What are the specific capabilities or technologies that necessitate a sole-source award to Aerojet Rocketdyne Inc. for this contract?
The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or the absence of viable alternatives. For Aerojet Rocketdyne Inc. and the PL MK-82 (BLU-129/B), this could stem from several factors. Aerojet Rocketdyne is a recognized leader in rocket propulsion and missile systems, possessing specialized expertise and intellectual property. The BLU-129/B designation might indicate a specific warhead design or a unique integration with a guidance system that Aerojet Rocketdyne exclusively developed or holds manufacturing rights for. Alternatively, the system might be a critical component of a larger, existing platform where interoperability and specific performance characteristics are paramount, and only Aerojet Rocketdyne can provide the necessary integration or modification. Without specific documentation from the contracting agency justifying the sole-source award, these remain informed assumptions based on industry norms.
How does the Firm Fixed Price (FFP) contract type impact risk and cost certainty for this specific award?
A Firm Fixed Price (FFP) contract type, as used in this award, offers significant cost certainty for the government. Under an FFP agreement, the contractor, Aerojet Rocketdyne Inc., is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the majority of the cost risk from the government to the contractor. For the government, this means the total expenditure for the PL MK-82 (BLU-129/B) system is fixed, making budgeting more predictable. However, it also means that if the contractor is highly efficient and incurs lower costs than anticipated, they retain the profit. Conversely, if costs escalate beyond expectations, the contractor absorbs the loss. This contract structure incentivizes the contractor to manage their costs efficiently to maximize profit.
What is the track record of Aerojet Rocketdyne Inc. in delivering similar defense contracts, particularly those involving missile systems?
Aerojet Rocketdyne Inc. has a long and established track record in the aerospace and defense industry, with extensive experience in developing and manufacturing rocket propulsion systems, missiles, and related technologies. They have been a key supplier to the Department of Defense and NASA for decades, involved in numerous high-profile programs. Their portfolio includes work on strategic missiles, tactical missiles, and space launch systems. While specific performance metrics for every contract are not publicly disclosed, the company's continued success in securing significant government contracts suggests a generally positive performance history. However, like any large defense contractor, they may have faced challenges or scrutiny on specific programs. For this particular contract involving the PL MK-82 (BLU-129/B), the sole-source nature implies a level of trust or unique capability that the DoD believes Aerojet Rocketdyne possesses.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)
Address: HWY 50 & AEROJET RD, RANCHO CORDOVA, CA, 95742
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,778,857
Exercised Options: $41,778,857
Current Obligation: $41,778,857
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-21
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2016-04-26
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