DoD Awards $35M for Space Exploration Technologies' Air Transportation Services
Contract Overview
Contract Amount: $34,969,731 ($35.0M)
Contractor: Space Exploration Technologies Corp.
Awarding Agency: Department of Defense
Start Date: 2018-01-19
End Date: 2019-06-28
Contract Duration: 525 days
Daily Burn Rate: $66.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IGF::OT::IGF VERTICAL INTEGRATION CAPABILITY (VIC) DESIGN STUDY
Place of Performance
Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250
Plain-Language Summary
Department of Defense obligated $35.0 million to SPACE EXPLORATION TECHNOLOGIES CORP. for work described as: IGF::OT::IGF VERTICAL INTEGRATION CAPABILITY (VIC) DESIGN STUDY Key points: 1. Significant contract value of $34.97M awarded to a single provider. 2. Competition method was 'Full and Open', suggesting broad market access. 3. Risk appears moderate given the fixed-price contract and established provider. 4. Sector is Air Transportation, crucial for logistical support.
Value Assessment
Rating: good
The contract value of $34.97M for 525 days of service appears reasonable for specialized air transportation. Benchmarking against similar contracts for nonscheduled freight air transport would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: Taxpayer funds are utilized for essential logistical support, with the competitive award process aiming to optimize cost-effectiveness.
Public Impact
Ensures critical logistical capabilities for the Department of the Air Force. Supports national security objectives through reliable transportation services. Potential for economic impact within the aerospace and transportation sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single award for a significant duration.
- Potential for cost overruns if unforeseen operational challenges arise.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Provider is a well-known entity in the space and aerospace industry.
Sector Analysis
This contract falls within the Nonscheduled Chartered Freight Air Transportation sector, supporting the Department of Defense's logistical needs. Spending benchmarks for this niche service can vary significantly based on aircraft type, route, and duration.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award was made by the Department of the Air Force, implying internal oversight mechanisms are in place. The contract's delivery order structure suggests ongoing monitoring of performance and adherence to terms.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for sole-source dependency if follow-on contracts are awarded.
- Limited transparency on specific 'VIC' study objectives.
- Geographic concentration of the awardee (California).
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.0 million to SPACE EXPLORATION TECHNOLOGIES CORP.. IGF::OT::IGF VERTICAL INTEGRATION CAPABILITY (VIC) DESIGN STUDY
Who is the contractor on this award?
The obligated recipient is SPACE EXPLORATION TECHNOLOGIES CORP..
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 $35.0 million.
What is the period of performance?
Start: 2018-01-19. End: 2019-06-28.
What is the specific nature of the 'vertical integration capability' being studied or supported by this air transportation service?
The data provided does not detail the specific 'vertical integration capability' (VIC) being studied. This likely refers to a strategic initiative within the Department of the Air Force or Space Force aimed at enhancing self-sufficiency or control over critical space-related operations. The air transportation service would be a supporting element, potentially for moving personnel, equipment, or components related to this study.
How does the benchmarked cost per flight hour or per ton-mile compare to industry standards for similar nonscheduled chartered freight air transportation?
Without specific details on the aircraft used, payload, and flight routes, a precise per-unit cost benchmark is difficult to establish. However, the total award of $34.97M over approximately 1.5 years for nonscheduled freight suggests a significant operational tempo or specialized requirements. A detailed cost-benefit analysis comparing this to publicly available rates for similar charter services would be necessary for a definitive assessment.
What are the key performance indicators (KPIs) used to measure the effectiveness of this air transportation service in supporting the VIC design study?
The provided data does not specify the KPIs for this contract. Typically, for air transportation services, KPIs would include on-time performance, cargo integrity, safety compliance, and responsiveness to scheduling requests. For a design study, effectiveness might also be measured by the timeliness and reliability of support provided to the research and development teams, ensuring no delays to the study's progress.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 ROCKET RD, HAWTHORNE, CA, 90250
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: $34,969,731
Exercised Options: $34,969,731
Current Obligation: $34,969,731
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881813D0003
IDV Type: IDC
Timeline
Start Date: 2018-01-19
Current End Date: 2019-06-28
Potential End Date: 2019-06-28 00:00:00
Last Modified: 2019-05-02
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