DoD Awards $30.4M for Advanced Rocket Propulsion, Boosting R&D Sector

Contract Overview

Contract Amount: $30,444,179 ($30.4M)

Contractor: Sparc Research LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2027-09-30

Contract Duration: 730 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED ROCKET PROPULSION TECHNOLOGY

Place of Performance

Location: WARRENTON, FAUQUIER County, VIRGINIA, 20187

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to SPARC RESEARCH LLC for work described as: ADVANCED ROCKET PROPULSION TECHNOLOGY Key points: 1. Significant investment in advanced rocket propulsion technology. 2. Competition method is 'Full and Open', suggesting broad market engagement. 3. Contract type 'Cost Plus Fixed Fee' carries inherent cost escalation risk. 4. Sector focus is R&D, aligning with technological advancement goals.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the technology.

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, but the specialized nature of advanced rocket propulsion may limit the number of truly capable bidders.

Taxpayer Impact: Taxpayer funds are being directed towards cutting-edge research with potential long-term benefits, but the cost-plus nature requires diligent oversight to ensure value for money.

Public Impact

Advancement in space exploration and defense capabilities. Potential for technological spin-offs benefiting commercial sectors. Job creation in specialized R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overrun risk due to Cost Plus Fixed Fee structure.
  • Limited number of specialized vendors may impact long-term competition.
  • Technology obsolescence risk in a rapidly evolving field.

Positive Signals

  • Investment in critical national security technology.
  • Full and open competition promotes innovation.
  • Potential for significant technological breakthroughs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences. Spending in this area is crucial for maintaining technological superiority but often involves higher risk and less predictable outcomes compared to established service contracts.

Small Business Impact

The contract was awarded to SPARC RESEARCH LLC. Analysis of whether this is a small business and the extent of small business subcontracting is not provided in the data.

Oversight & Accountability

The 'Cost Plus Fixed Fee' contract type necessitates robust oversight from the Department of the Air Force to monitor costs, ensure progress, and prevent unnecessary expenditures. Performance metrics and regular reviews are critical for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost overrun potential
  • Technological obsolescence
  • Limited vendor pool
  • Long development timeline

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to SPARC RESEARCH LLC. ADVANCED ROCKET PROPULSION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is SPARC RESEARCH LLC.

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 $30.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2027-09-30.

What is the projected return on investment for this advanced rocket propulsion technology?

The return on investment for advanced R&D projects like this is typically long-term and multifaceted. It can include enhanced national security, breakthroughs in space exploration capabilities, and potential commercial applications. Quantifying a precise ROI is challenging at this stage, as it depends on the successful development and future deployment of the technology.

What are the specific risks associated with the Cost Plus Fixed Fee contract structure for this project?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government pays the actual costs incurred by the contractor, plus a predetermined fixed fee. This can lead to cost overruns if the contractor's costs are higher than anticipated. Effective government oversight is crucial to scrutinize costs and ensure efficiency, mitigating the risk of inflated expenditures.

How will the effectiveness of the advanced rocket propulsion technology be measured and validated?

Effectiveness will likely be measured through a series of rigorous testing and validation protocols defined in the contract's statement of work. This would include performance benchmarks, endurance tests, and potentially simulated operational environments. Milestones tied to successful demonstration of key propulsion capabilities will be critical indicators of progress and ultimate effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5310 EDMORE CT, WARRENTON, VA, 20187

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,900,979

Exercised Options: $30,444,179

Current Obligation: $30,444,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2025-09-30

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2025-09-24

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