DoD awards $12.1M contract for storable rocket engine, highlighting R&D in hypersonic applications
Contract Overview
Contract Amount: $12,088,187 ($12.1M)
Contractor: Ursa Major Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-09-16
Contract Duration: 503 days
Daily Burn Rate: $24.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: STORABLE ROCKET ENGINE FOR HYPERSONIC APPLICATIONS
Place of Performance
Location: BERTHOUD, WELD County, COLORADO, 80513
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $12.1 million to URSA MAJOR TECHNOLOGIES, INC. for work described as: STORABLE ROCKET ENGINE FOR HYPERSONIC APPLICATIONS Key points: 1. Contract focuses on critical research and development for advanced propulsion systems. 2. The award signifies investment in next-generation defense capabilities. 3. Competition dynamics suggest a potentially robust market for specialized aerospace technologies. 4. Performance risk is moderate, given the R&D nature of the project. 5. This contract aligns with broader DoD efforts to advance hypersonic technologies. 6. The fixed-price structure aims to control costs for this developmental effort.
Value Assessment
Rating: good
The contract value of $12.1 million for a storable rocket engine for hypersonic applications appears reasonable given the specialized nature of research and development in this advanced field. Benchmarking against similar R&D contracts for propulsion systems is challenging due to the unique requirements of hypersonic technology. However, the firm fixed-price structure suggests an effort to establish clear cost expectations upfront. The duration of 503 days also provides a reasonable timeframe for developmental milestones.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of a single award suggests that Ursa Major Technologies, Inc. presented the most advantageous offer based on the evaluation criteria. The level of competition, while not explicitly detailed in terms of bidder count, is generally positive for price discovery in specialized R&D areas.
Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can drive down costs and encourage innovation.
Public Impact
The primary beneficiaries are the Department of Defense, which will receive advanced rocket engine technology. The contract supports the development of critical components for future hypersonic weapon systems. Geographic impact is centered in Colorado, where the contractor is located. Workforce implications include potential job creation and skill development within the aerospace R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- R&D projects inherently carry technical risks that could impact project timelines and outcomes.
- Dependence on a single contractor for a critical component could pose supply chain risks if not managed proactively.
Positive Signals
- The use of a firm fixed-price contract provides cost certainty for the government.
- Awarding under full and open competition suggests a thorough evaluation process and potential for competitive pricing.
- The contract supports a strategically important defense capability (hypersonics).
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for advanced propulsion systems. The market for hypersonic technologies is rapidly evolving, with significant government investment globally. Comparable spending benchmarks are difficult to establish precisely due to the novelty and strategic importance of this technology, but it represents a key area of focus for national security R&D.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside consideration for this award (ss: false, sb: false). While Ursa Major Technologies, Inc. may engage small businesses as subcontractors, the primary award does not appear to be structured to directly benefit the small business ecosystem. Further analysis would be needed to determine subcontracting plans.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, with specific program managers responsible for monitoring progress and adherence to contract terms. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Hypersonic Weapons Development Programs
- Advanced Propulsion Research Contracts
- Aerospace Research and Development
- Department of Defense Research Contracts
Risk Flags
- Technical Risk
- Program Schedule Risk
- Supply Chain Dependency
Tags
defense, department-of-defense, department-of-the-air-force, research-and-development, hypersonic-applications, rocket-engine, firm-fixed-price, full-and-open-competition, advanced-technology, colorado, nasa-naics-541715
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to URSA MAJOR TECHNOLOGIES, INC.. STORABLE ROCKET ENGINE FOR HYPERSONIC APPLICATIONS
Who is the contractor on this award?
The obligated recipient is URSA MAJOR TECHNOLOGIES, 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 $12.1 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-09-16.
What is Ursa Major Technologies, Inc.'s track record with Department of Defense contracts, particularly in R&D?
Ursa Major Technologies, Inc. has a developing track record with the Department of Defense, primarily focused on advanced propulsion systems. While specific details on past R&D performance are not provided in this data snippet, their specialization in rocket engines suggests a targeted expertise. A deeper dive into their contract history, including past performance evaluations and any prior awards related to hypersonic or advanced propulsion research, would be necessary to fully assess their capabilities and reliability for this specific project. Their ability to successfully deliver on this $12.1 million contract will be a key indicator of their future potential within the DoD.
How does the $12.1 million value compare to similar R&D contracts for advanced rocket engines?
Benchmarking the $12.1 million value against similar R&D contracts for advanced rocket engines is challenging due to the specialized and often classified nature of hypersonic propulsion research. However, for developmental contracts of this scope, the value appears within a reasonable range, reflecting the high costs associated with cutting-edge engineering, materials science, and testing required for such advanced technologies. The firm fixed-price nature of this contract suggests a defined scope, which aids in cost control compared to cost-plus contracts often seen in early-stage R&D. Further comparison would require access to proprietary data or detailed public contract databases focusing on niche aerospace R&D.
What are the primary technical and performance risks associated with developing a storable rocket engine for hypersonic applications?
Developing a storable rocket engine for hypersonic applications presents significant technical and performance risks. Key challenges include achieving the extreme temperature and pressure resistance required for hypersonic flight, ensuring engine reliability and longevity under these harsh conditions, and managing the complex combustion processes. 'Storable' implies the fuel and oxidizer can be kept ready for immediate use, which adds constraints on propellant chemistry and system design. Risks also include integration challenges with the hypersonic airframe, achieving desired thrust-to-weight ratios, and ensuring safe and predictable operation across a wide flight envelope. The R&D nature of the contract means that unforeseen technical hurdles are likely, potentially impacting timelines and final performance specifications.
How does this contract align with the Department of Defense's broader strategy for hypersonic capabilities?
This contract directly aligns with the Department of Defense's stated strategic priority to develop and field advanced hypersonic capabilities. Hypersonic weapons, capable of traveling at speeds greater than Mach 5 and maneuvering in flight, are seen as a critical component of future military power, offering advantages in speed, range, and survivability. Investments in advanced propulsion systems, such as this storable rocket engine, are foundational to realizing these capabilities. By funding research into novel engine designs, the DoD aims to overcome technological barriers and accelerate the development of next-generation hypersonic systems across various military branches.
What is the historical spending trend for research and development in advanced propulsion systems within the Department of the Air Force?
Historical spending trends for research and development in advanced propulsion systems within the Department of the Air Force have generally shown consistent investment, reflecting the continuous need for technological superiority. While specific figures fluctuate year-to-year based on program priorities and budget allocations, the Air Force has historically allocated significant resources to areas like jet propulsion, rocket engines, and emerging technologies such as those required for hypersonic flight. This $12.1 million award represents a component of that ongoing investment. Analyzing multi-year budget data and specific R&D program portfolios would reveal trends in funding levels and focus areas within advanced propulsion.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ursa Major Technologies Inc.
Address: 19750 COUNTY ROAD 7, BERTHOUD, CO, 80513
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,215,568
Exercised Options: $20,328,435
Current Obligation: $12,088,187
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-05-01
Current End Date: 2026-09-16
Potential End Date: 2027-04-21 00:00:00
Last Modified: 2025-12-31
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