DoD's $23.4M DACS System Design Contract Awarded to Aerojet Rocketdyne Inc. in 2008
Contract Overview
Contract Amount: $23,419,274 ($23.4M)
Contractor: Aerojet Rocketdyne Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-29
End Date: 2011-12-30
Contract Duration: 1,187 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DACS SYSTEM DEFINITION & DESIGN (BASIC)
Place of Performance
Location: RANCHO CORDOVA, SACRAMENTO County, CALIFORNIA, 95742
Plain-Language Summary
Department of Defense obligated $23.4 million to AEROJET ROCKETDYNE INC for work described as: DACS SYSTEM DEFINITION & DESIGN (BASIC) Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences. 2. Aerojet Rocketdyne Inc. secured the contract through full and open competition. 3. The contract type is Cost Plus Fixed Fee, indicating potential cost overruns. 4. This contract falls under the Research and Development sector.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the price discovery benefits of competition.
Taxpayer Impact: Taxpayer funds are utilized for research and development, with the final cost influenced by the contractor's efficiency and the contract's fee structure.
Public Impact
Supports advanced research and development within the Department of Defense. Aerojet Rocketdyne Inc., a significant defense contractor, benefits from this award. The contract duration of nearly 4 years suggests a substantial R&D effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Lack of specific performance metrics makes value assessment challenging.
- Contract duration is lengthy, increasing exposure to changing requirements.
Positive Signals
- Awarded through full and open competition.
- Contractor is a well-established entity in the defense sector.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this sector is critical for technological advancement but can be subject to cost volatility.
Small Business Impact
The contract was awarded to Aerojet Rocketdyne Inc., a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee nature necessitates close monitoring of costs and contractor performance to ensure value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration (1187 days).
- Lack of specific performance metrics in provided data.
- Potential for cost overruns inherent in CPFF.
- Uncertainty of R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to AEROJET ROCKETDYNE INC. DACS SYSTEM DEFINITION & DESIGN (BASIC)
Who is the contractor on this award?
The obligated recipient is AEROJET ROCKETDYNE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2008-09-29. End: 2011-12-30.
What specific R&D objectives were defined for this contract, and how do they align with current DoD priorities?
The contract is for the 'DACS SYSTEM DEFINITION & DESIGN (BASIC)'. Without further details on the DACS system, it's challenging to assess its alignment with current DoD priorities. Basic research and design contracts are foundational, but their immediate applicability and strategic importance can vary significantly over time.
How did the competitive bidding process ensure the best possible price for this Cost Plus Fixed Fee contract?
While full and open competition was utilized, the Cost Plus Fixed Fee (CPFF) structure inherently limits price certainty. The competition likely focused on the contractor's proposed fee and their technical approach. Effective price discovery under CPFF relies heavily on robust cost estimation and negotiation, followed by diligent oversight to control actual expenditures.
What is the projected return on investment or long-term benefit expected from this R&D spending?
The long-term benefit of R&D contracts like this is often realized through technological advancements that enhance national security or create new capabilities. However, the 'definition and design' phase is early-stage, meaning the ultimate return on investment is highly uncertain and dependent on successful development and subsequent program execution.
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: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)
Address: HWY 50 & AEROJET RD., RANCHO CORDOVA, CA, 95670
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,873,852
Exercised Options: $23,935,448
Current Obligation: $23,419,274
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-29
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2019-05-02
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