DoD's $1.6B LCKV Program DACS Contract Awarded to AMPAC ISP Corporation
Contract Overview
Contract Amount: $16,157,272 ($16.2M)
Contractor: Ampac ISP Corporation
Awarding Agency: Department of Defense
Start Date: 2007-09-30
End Date: 2013-09-30
Contract Duration: 2,192 days
Daily Burn Rate: $7.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DACS FOR THE LCKV PROGRAM
Place of Performance
Location: NIAGARA FALLS, NIAGARA County, NEW YORK, 14304
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to AMPAC ISP CORPORATION for work described as: DACS FOR THE LCKV PROGRAM Key points: 1. Significant investment of $1.6 billion in research and development for missile defense. 2. AMPAC ISP Corporation secured the contract under full and open competition. 3. Contract duration spans over 6 years, indicating a long-term project. 4. The contract falls under R&D for Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. The benchmark for similar R&D contracts is difficult to establish without more specific performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure may still allow for costs to exceed initial estimates.
Taxpayer Impact: Taxpayer funds are committed to a long-term R&D project with potential for cost escalation due to the contract type.
Public Impact
Development of critical defense technology for the LCKV program. Potential for technological advancements in missile defense systems. Long-term commitment of federal funds for research and development.
Waste & Efficiency Indicators
Waste Risk Score: 73 / 10
Warning Flags
- Cost Plus Fixed Fee contract type risk
- Long contract duration (6 years)
- Lack of specific performance metrics for value assessment
Positive Signals
- Full and open competition
- Awarded to a single entity, potentially allowing for focused expertise
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is crucial for national security but requires careful oversight due to inherent uncertainties and potential for cost growth.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and CPFF structure necessitate strong oversight from the Missile Defense Agency to ensure cost control and adherence to research objectives. Regular performance reviews are critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of detailed performance metrics
- Potential for cost overruns
- Limited insight into specific R&D outcomes
Tags
research-and-development-in-the-physical, department-of-defense, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.2 million to AMPAC ISP CORPORATION. DACS FOR THE LCKV PROGRAM
Who is the contractor on this award?
The obligated recipient is AMPAC ISP CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $16.2 million.
What is the period of performance?
Start: 2007-09-30. End: 2013-09-30.
What was the final cost of the contract and how did it compare to the initial estimates?
The provided data shows the award amount of $1,615,727,200. However, it does not detail the final expenditure or compare it to initial estimates. CPFF contracts are known for their potential to exceed initial projections, making this information crucial for assessing value for money and taxpayer impact.
What specific deliverables or milestones were associated with this contract, and were they met on time and within budget?
The data lacks specific details on deliverables and milestones for the DACS for the LCKV Program. Understanding these would be essential to evaluate the contractor's performance, the effectiveness of the research, and whether the significant investment yielded the intended technological advancements for missile defense.
How did the competition process ensure the best possible price and technical solution for the government?
The contract was awarded under 'full and open competition,' which theoretically allows all responsible sources to submit offers. This process is designed to foster price competition. However, the CPFF structure means the government bears the risk of cost overruns, so the effectiveness of price discovery is contingent on robust negotiation and oversight.
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: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Pacific Corporation (UEI: 077585024)
Address: 6686 WALMORE RD, NIAGARA FALLS, NY, 26
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,157,272
Exercised Options: $16,157,272
Current Obligation: $16,157,272
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-08-15
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