DoD's $176M R&D contract for rocket engine analysis shows long-term investment in aerospace technology
Contract Overview
Contract Amount: $175,923,987 ($175.9M)
Contractor: Aerojet Rocketdyne Inc
Awarding Agency: Department of Defense
Start Date: 2007-01-18
End Date: 2020-01-27
Contract Duration: 4,757 days
Daily Burn Rate: $37.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL EFFORT - ANALYSIS AND DESIGN ENGINE ASSEMBLY (ADEA) - HYDROCARBON BOOST TO PROVIDE HIGH OPERABILITY AND FLIGHT RELIABILITY AS RELATED TO REUSABLE LIQUID ROCKET ENGINE (LRE)
Place of Performance
Location: RANCHO CORDOVA, SACRAMENTO County, CALIFORNIA, 95742
Plain-Language Summary
Department of Defense obligated $175.9 million to AEROJET ROCKETDYNE INC for work described as: TECHNICAL EFFORT - ANALYSIS AND DESIGN ENGINE ASSEMBLY (ADEA) - HYDROCARBON BOOST TO PROVIDE HIGH OPERABILITY AND FLIGHT RELIABILITY AS RELATED TO REUSABLE LIQUID ROCKET ENGINE (LRE) Key points: 1. Significant investment in advanced rocket engine technology, focusing on reliability and operability. 2. Long contract duration (over 13 years) suggests a complex, multi-phase research and development effort. 3. Cost-plus-fixed-fee structure indicates potential for cost overruns, requiring close oversight. 4. Sole contractor suggests a highly specialized area of research or limited market availability. 5. Contract awarded by the Air Force points to strategic defense applications for advanced propulsion. 6. Research and Development focus aligns with national priorities for space exploration and defense capabilities.
Value Assessment
Rating: fair
The contract's total value of approximately $176 million over 13 years represents a substantial investment in specialized R&D. Benchmarking value for such unique research and development efforts is challenging without comparable contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, inherently carries a higher risk of cost escalation compared to fixed-price contracts. The final cost relative to the initial scope and achieved technical milestones would be a key indicator of value for money.
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. However, with only three bidders and a single awardee, it suggests a highly specialized field where only a few entities possess the requisite expertise and technology. This level of competition, while present, may not have driven the most aggressive pricing due to the niche nature of the requirement.
Taxpayer Impact: While competition was present, the limited number of bidders in this specialized R&D area means taxpayers may not have benefited from the full price discovery that broader competition could offer.
Public Impact
Benefits the aerospace and defense sectors through advancements in rocket engine technology. Delivers enhanced capabilities for reusable liquid rocket engines, crucial for space missions and defense. Geographic impact is primarily within California, where the contractor is located. Workforce implications include highly skilled engineers and technicians in specialized fields of aerospace R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type increases risk of cost overruns.
- Long contract duration (over 13 years) can lead to scope creep and evolving requirements.
- Limited number of bidders in a full and open competition suggests a niche market with potentially less price pressure.
Positive Signals
- Focus on improving reliability and operability of critical rocket engine technology.
- Awarded under full and open competition, ensuring a baseline level of market engagement.
- Significant investment in R&D signals commitment to technological advancement in a strategic sector.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to aerospace propulsion. The market for specialized rocket engine development is concentrated among a few key players, often with deep ties to government contracts. The $176 million expenditure over more than a decade reflects the high cost and long timelines associated with cutting-edge aerospace R&D, where innovation cycles are lengthy and capital intensive.
Small Business Impact
The data indicates that small business participation was not a primary focus for this contract, as the awardee is a large corporation and the contract was not set aside for small businesses. There is no explicit mention of subcontracting plans for small businesses. This suggests that the specialized nature of the R&D likely required the prime contractor's direct expertise, potentially limiting opportunities for smaller firms in this specific project.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Given the CPFF structure and long duration, rigorous oversight of cost, schedule, and technical performance would be essential. Transparency is facilitated through contract reporting mechanisms, though specific details on public access to progress reports are not provided. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- Space Launch System (SLS) Engine Development
- Advanced Rocket Propulsion Research
- Reusable Launch Vehicle Technology Development
- National Security Space Launch (NSSL) Program
Risk Flags
- Cost-plus-fixed-fee contract type
- Long contract duration
- Limited number of bidders in specialized R&D field
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, aerospace, rocket-engines, california, large-business, long-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $175.9 million to AEROJET ROCKETDYNE INC. TECHNICAL EFFORT - ANALYSIS AND DESIGN ENGINE ASSEMBLY (ADEA) - HYDROCARBON BOOST TO PROVIDE HIGH OPERABILITY AND FLIGHT RELIABILITY AS RELATED TO REUSABLE LIQUID ROCKET ENGINE (LRE)
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 $175.9 million.
What is the period of performance?
Start: 2007-01-18. End: 2020-01-27.
What is the track record of Aerojet Rocketdyne Inc. in similar large-scale R&D contracts with the Department of Defense?
Aerojet Rocketdyne Inc. has a long and established history of developing and producing rocket propulsion systems for various government and commercial applications. They have been a key contractor for numerous high-profile programs, including stages for NASA's Space Launch System (SLS) and engines for the nation's missile defense systems. Their experience with complex R&D, including cost-plus contracts, is extensive. However, like many large defense contractors, they have also faced scrutiny regarding cost performance and program execution on certain projects. A detailed review of their past performance on contracts with similar scope, duration, and contract type (CPFF) would be necessary to fully assess their suitability and historical value delivery for this specific ADEA contract.
How does the cost performance of this contract compare to other R&D efforts in advanced propulsion systems?
Direct comparison of cost performance for this specific contract is difficult without access to detailed cost-plus data and final expenditure reports relative to initial estimates and achieved milestones. However, R&D contracts, particularly those involving novel technologies like advanced rocket engines, are inherently prone to cost growth due to unforeseen technical challenges, evolving requirements, and the inherent uncertainties in research. The CPFF structure allows for cost reimbursement plus a fixed fee, which can lead to higher total costs than fixed-price contracts if not managed tightly. Benchmarking would require analyzing the 'as-spent' costs against the technical progress and comparing the cost growth rate to industry averages for similar complex R&D endeavors, which often see significant fluctuations.
What are the primary technical risks associated with the 'HYDROCARBON BOOST TO PROVIDE HIGH OPERABILITY AND FLIGHT RELIABILITY' for reusable liquid rocket engines?
The primary technical risks associated with developing a hydrocarbon-boosted, highly operable, and reliable reusable liquid rocket engine (LRE) are multifaceted. Key risks include achieving consistent and efficient combustion of hydrocarbon fuels under demanding flight conditions, managing the thermal stresses and material degradation associated with repeated high-performance operations, and ensuring the long-term durability and maintainability required for reusability. Specific challenges might involve developing advanced materials capable of withstanding extreme temperatures and pressures, designing robust turbomachinery, ensuring precise fuel injection and control systems, and creating effective methods for inspection, refurbishment, and rapid turnaround between flights. The 'high operability' aspect also implies risks related to simplified ground operations and quick launch readiness, which can be technically demanding.
What is the expected impact of this R&D on the future of reusable launch vehicle technology?
This R&D contract is expected to significantly impact the future of reusable launch vehicle (RLV) technology by enhancing the core propulsion systems that enable such capabilities. Improvements in operability and reliability directly address key challenges in making RLVs more cost-effective and operationally flexible. A more reliable engine reduces the risk of mission failure and lowers maintenance costs, while higher operability streamlines launch preparations, potentially reducing turnaround times and ground support requirements. Advancements in hydrocarbon-fueled engines could also offer performance benefits or cost advantages over traditional propellants. Ultimately, this research contributes to the maturation of technologies essential for frequent, lower-cost access to space, supporting both commercial and national security space objectives.
How has spending on rocket engine R&D by the Department of Defense evolved over the past decade, and where does this contract fit?
Spending on rocket engine R&D by the Department of Defense (DoD) has seen fluctuations over the past decade, influenced by evolving national security priorities, advancements in space technology, and the rise of commercial space capabilities. There has been a sustained focus on developing more efficient, reliable, and cost-effective propulsion systems, particularly for national security space launches and advanced missile programs. This contract, initiated in 2007 and ending in 2020 with a substantial value of $176 million, represents a significant, long-term investment in a specific area of R&D – reusable liquid rocket engines with enhanced operability. It fits within a broader trend of DoD investment aimed at maintaining technological superiority in space and ensuring reliable access to space, often in collaboration with or in response to developments in the commercial space sector.
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc.
Address: HWY 50 & AEROJET RD., RANCHO CORDOVA, CA, 95670
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $176,786,407
Exercised Options: $176,786,407
Current Obligation: $175,923,987
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-01-18
Current End Date: 2020-01-27
Potential End Date: 2020-01-27 00:00:00
Last Modified: 2023-08-02
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