Orbital Sciences LLC awarded $24.1M for air transportation services, a definitive contract under full and open competition

Contract Overview

Contract Amount: $24,104,675 ($24.1M)

Contractor: Orbital Sciences LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-01

End Date: 2017-08-25

Contract Duration: 786 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::CT::IGF ORS-5 LAUNCH SERVICE

Place of Performance

Location: CHANDLER, MARICOPA County, ARIZONA, 85248

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to ORBITAL SCIENCES LLC for work described as: IGF::CT::IGF ORS-5 LAUNCH SERVICE Key points: 1. The contract's firm fixed price structure aims to control costs and provide predictable spending. 2. Competition dynamics suggest potential for competitive pricing, though specific bid data is not provided. 3. The duration of 786 days indicates a medium-term service requirement. 4. Performance context is limited without specific delivery metrics or milestones. 5. The contract falls within the air transportation sector, supporting broader defense logistics. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this $24.1 million contract for air transportation is challenging without specific service details or comparable contract data. The firm fixed-price nature is a positive indicator for cost control. However, without knowing the exact nature of the 'Nonscheduled Chartered Freight Air Transportation' or the specific routes and frequencies, it's difficult to assess if the price is competitive against market rates or similar government contracts. The contract's duration of 786 days suggests a sustained need, but the overall value proposition depends heavily on the efficiency and effectiveness of the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, which limits a detailed analysis of the competitive landscape. However, the designation suggests that the agency sought to maximize competition to achieve the best value. The level of competition is a positive sign for price discovery, as multiple offers typically drive down prices.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective service acquisition.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential air transportation services. Services delivered include nonscheduled chartered freight air transportation, crucial for logistical support. The contract's geographic impact is primarily within Arizona (ST: AZ, SN: ARIZONA), suggesting a regional focus for operations. Workforce implications are likely related to the operational and support staff required for air cargo logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
Limited transparency on the number of bidders in the full and open competition.
No indication of small business participation or subcontracting plans.

Positive Signals

Firm fixed-price contract type helps in cost control and budget predictability.
Awarded under full and open competition, suggesting an effort to maximize market participation.
Contract awarded to Orbital Sciences LLC, a known entity in the aerospace and defense sector.

Sector Analysis

The contract falls under the 'Nonscheduled Chartered Freight Air Transportation' category (NAICS 481212), which is part of the broader air transportation industry. This sector is critical for government logistics, particularly for defense agencies requiring flexible and rapid movement of goods. The market size for government air charter services is substantial, driven by the need for specialized transport capabilities that scheduled carriers may not provide. This contract represents a specific instance of federal spending within this niche, supporting the Defense Department's operational requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SB: false). There is no explicit information regarding subcontracting plans. This suggests that opportunities for small businesses may be limited unless they are prime contractors on other related efforts or are engaged by Orbital Sciences LLC as subcontractors. Further investigation into subcontracting goals or actual performance would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor performance, compliance with contract terms, and timely delivery of goods and services. Transparency is generally maintained through contract databases like FPDS, which provide basic award information. Specific accountability measures would be detailed within the contract itself, including performance standards and remedies for non-compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Air Transportation Services
General Services Administration (GSA) Aviation Services
Department of the Air Force - Air Mobility Command Contracts

Risk Flags

Potential for cost overruns if fuel prices escalate significantly beyond projections.
Risk of service disruption due to unforeseen operational or environmental factors.
Limited visibility into the number of competing bids received.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to ORBITAL SCIENCES LLC. IGF::CT::IGF ORS-5 LAUNCH SERVICE

Who is the contractor on this award?

The obligated recipient is ORBITAL SCIENCES 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 $24.1 million.

What is the period of performance?

Start: 2015-07-01. End: 2017-08-25.

What is the track record of Orbital Sciences LLC in fulfilling government air transportation contracts?

Orbital Sciences LLC, now part of Northrop Grumman, has a significant history in aerospace and defense, including launch services and satellite development. While this specific contract focuses on air transportation, the company's broader experience suggests a capacity for complex logistical operations. Assessing their track record specifically for air charter services would require examining past performance evaluations and any documented issues on similar government contracts. Their established presence in the defense sector implies a familiarity with government procurement processes and compliance requirements, which is generally a positive indicator for contract execution.

How does the $24.1 million value compare to similar government air transportation contracts?

Comparing the $24.1 million value requires context on the scope and duration of services. Contracts for nonscheduled chartered freight air transportation can vary widely based on aircraft type, routes, frequency, and duration. A 786-day contract at this value suggests a substantial, ongoing service requirement. To benchmark effectively, one would need to analyze contracts awarded by agencies like the Defense Logistics Agency or the GSA for similar air charter services over comparable periods. Without such comparative data, it's difficult to definitively state whether this represents a high, low, or average value.

What are the primary risks associated with this type of air transportation contract?

Key risks include operational disruptions due to weather, mechanical issues, or air traffic control delays, which can impact delivery schedules. Pricing volatility for fuel and operational costs, even under a fixed-price contract, can pose risks if not adequately factored into the initial bid. Contractor performance risk is also present, relating to the reliability and safety of the chartered flights and the handling of freight. Furthermore, geopolitical instability or changes in regulatory environments could affect flight operations. The government's risk is mitigated by the firm fixed-price structure and oversight from agencies like DCMA.

How effective is 'full and open competition' in ensuring value for money in air charter services?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering price competition. For air charter services, this means potentially lower prices and better service options. However, the effectiveness is contingent on the clarity of the solicitation requirements and the number and capability of the bidders. If the market for specialized air charter is limited, even full and open competition might result in fewer bids than desired. Robust evaluation criteria are also crucial to ensure the lowest price doesn't compromise essential quality or safety standards.

What is the historical spending trend for nonscheduled chartered freight air transportation by the Department of Defense?

Historical spending data for nonscheduled chartered freight air transportation by the Department of Defense shows a consistent need for these services, particularly for rapid deployment and specialized cargo. Spending levels can fluctuate based on global operational tempo, specific mission requirements, and the availability of organic military airlift assets. While specific annual figures require detailed database queries, the DoD consistently allocates significant resources to chartering aircraft to supplement its organic capabilities, especially for time-sensitive or unique cargo requirements. This contract represents a portion of that ongoing expenditure.

Are there specific performance metrics tied to this contract that indicate success?

The provided data does not include specific performance metrics or key performance indicators (KPIs) associated with this contract. Typically, government contracts for services like air transportation would include metrics related to on-time delivery, cargo condition upon arrival, flight safety records, and adherence to flight plans. Without these details, assessing the contract's effectiveness relies on general assumptions about the firm fixed-price structure and the oversight provided by the contracting agency. A thorough review of the contract document itself would be necessary to identify any explicit performance standards and associated remedies.

Industry Classification

NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 3380 S PRICE RD, CHANDLER, AZ, 85248

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,104,675

Exercised Options: $24,104,675

Current Obligation: $24,104,675

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,318,580

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline