DoD's $36.6M R&D contract for spacecraft tracking awarded to Pacific Defense Solutions LLC

Contract Overview

Contract Amount: $36,581,367 ($36.6M)

Contractor: Pacific Defense Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-19

End Date: 2023-12-20

Contract Duration: 1,918 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACECRAFT OBJECT TRACKING AND CHARACTERIZATION CAPABILITIES (SCOTCH)

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to PACIFIC DEFENSE SOLUTIONS LLC for work described as: SPACECRAFT OBJECT TRACKING AND CHARACTERIZATION CAPABILITIES (SCOTCH) Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences, specifically spacecraft object tracking. 2. Pacific Defense Solutions LLC, a single entity, received the award. 3. The contract spans nearly five years, indicating a long-term research and development effort. 4. The award type is Cost Plus Fixed Fee, suggesting potential for cost overruns if not managed closely. 5. The contract was awarded under full and open competition. 6. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure cost efficiency. While the total award value is substantial, without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar R&D contracts for advanced tracking systems would be necessary for a more precise evaluation. The duration of the contract suggests a complex, multi-year research effort, which inherently carries higher cost uncertainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 5 bids suggests a reasonably competitive environment for this specialized R&D requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The Department of the Air Force benefits from advanced capabilities in tracking space objects. This contract supports research and development in a critical national security domain. The geographic impact is primarily within Maryland, where the contractor is located. The contract likely involves a specialized workforce of scientists and engineers in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not rigorously managed.
The long duration of the contract increases the risk of scope creep or evolving requirements.
The specific R&D outcomes and their ultimate utility require ongoing assessment.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract supports critical national security objectives in space domain awareness.
The contractor, Pacific Defense Solutions LLC, is likely specialized in this technical area.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for space domain awareness and object tracking technologies is highly specialized and driven by government defense and intelligence needs. Comparable spending benchmarks would likely be found within other advanced R&D contracts awarded by defense agencies for similar technological capabilities, often involving significant investment in innovation and specialized expertise.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions. Given the specialized nature of R&D in spacecraft tracking, it is possible that larger, more specialized firms are primary awardees. However, subcontracting opportunities for small businesses with relevant expertise in specific research areas or components may exist, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring regular reporting on costs, progress, and adherence to research objectives. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details may be sensitive.

Related Government Programs

Space Domain Awareness Programs
Satellite Technology Development
Advanced Research Projects Agency (ARPA) Contracts
National Reconnaissance Office (NRO) Research
Department of Defense Research and Development

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring for cost efficiency.
Long contract duration increases risk of technological obsolescence or scope changes.
Specific R&D outcomes and their ultimate application need ongoing evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to PACIFIC DEFENSE SOLUTIONS LLC. SPACECRAFT OBJECT TRACKING AND CHARACTERIZATION CAPABILITIES (SCOTCH)

Who is the contractor on this award?

The obligated recipient is PACIFIC DEFENSE SOLUTIONS 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 $36.6 million.

What is the period of performance?

Start: 2018-09-19. End: 2023-12-20.

What is the specific technical objective of the 'SPACECRAFT OBJECT TRACKING AND CHARACTERIZATION CAPABILITIES (SCOTCH)' program?

The specific technical objective of the SCOTCH program, funded by the Department of the Air Force, is to advance capabilities in tracking and characterizing spacecraft objects. This likely involves developing new algorithms, sensor technologies, or data processing techniques to improve the accuracy, timeliness, and comprehensiveness of space object identification and monitoring. Such capabilities are crucial for maintaining situational awareness in the increasingly crowded and complex space environment, supporting national security, and ensuring the safety of space operations.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact cost control for this R&D effort?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. For R&D, this structure can incentivize innovation by allowing flexibility in exploring different approaches. However, it also carries a risk of cost overruns if the scope is not well-defined or if unforeseen technical challenges arise, increasing the actual costs beyond initial estimates. Rigorous oversight, detailed cost tracking, and clear performance milestones are essential to manage costs effectively under a CPFF arrangement and ensure value for taxpayer money.

What is the typical track record of Pacific Defense Solutions LLC in government R&D contracts?

Information on Pacific Defense Solutions LLC's specific track record in government R&D contracts is not detailed in the provided data. However, their selection for a significant contract like SCOTCH suggests they possess relevant expertise and capabilities deemed necessary by the Department of the Air Force. Further investigation into their past performance, other awarded contracts, and client feedback would be required for a comprehensive assessment of their track record in delivering successful R&D outcomes.

How does this contract compare to other federal spending on space domain awareness technologies?

This $36.6 million contract represents a significant investment in a specialized area of space domain awareness (SDA). Federal spending on SDA is substantial and distributed across various agencies, including the Department of Defense, NASA, and intelligence agencies. While this specific contract is for R&D, it contributes to the broader effort to enhance space surveillance and tracking. Comparing it directly requires analyzing the scope and objectives of other SDA contracts, which can range from sensor development and data fusion to orbital mechanics modeling and threat assessment.

What are the potential risks associated with the long duration (1918 days) of this contract?

The long duration of this contract, spanning nearly five years, presents several potential risks. Firstly, technological advancements in spacecraft tracking could outpace the contract's development timeline, potentially rendering some outcomes obsolete. Secondly, the evolving geopolitical landscape and changes in space policy could necessitate significant scope adjustments, leading to delays or increased costs. Thirdly, maintaining consistent program management focus and contractor performance over such an extended period requires robust oversight to prevent scope creep, ensure continued relevance, and manage potential personnel turnover within the contractor's team.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA945318S0005

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc.

Address: 535 LIPOA PKWY STE 101, KIHEI, HI, 96753

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

Financial Breakdown

Contract Ceiling: $39,894,065

Exercised Options: $39,894,065

Current Obligation: $36,581,367

Actual Outlays: $2,145,069

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $250,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline