DoD's $14.6M CASTOR IVB MOTOR contract awarded to ATK Launch Systems LLC for R&D in Utah

Contract Overview

Contract Amount: $14,681,139 ($14.7M)

Contractor: ATK Launch Systems LLC

Awarding Agency: Department of Defense

Start Date: 2007-07-19

End Date: 2014-10-30

Contract Duration: 2,660 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: CASTOR IVB MOTOR

Place of Performance

Location: BRIGHAM CITY, BOX ELDER County, UTAH, 84302

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to ATK LAUNCH SYSTEMS LLC for work described as: CASTOR IVB MOTOR Key points: 1. Contract awarded for research and development, indicating investment in future capabilities. 2. Sole-source award suggests limited market options or specific contractor expertise required. 3. Long duration of 2660 days points to a complex, multi-year research effort. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. Awarded by the Missile Defense Agency, aligning with national security objectives. 6. Contractor ATK Launch Systems LLC has a history of performance in aerospace and defense. 7. Geographic location in Utah may indicate specialized facilities or workforce concentration.

Value Assessment

Rating: questionable

Benchmarking the value of this specific R&D contract is challenging without detailed technical specifications and comparable research outcomes. The firm fixed price structure is generally favorable for cost control, but the lack of competition raises concerns about whether the government secured the best possible price. The total value of $14.6 million over nearly seven years suggests a significant investment, but its ultimate value depends on the success of the research and development outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when there is a compelling justification for not seeking competition, such as unique capabilities or urgent needs. The lack of competition means that the government did not benefit from the price discovery mechanisms that open competition provides, potentially leading to higher costs than if multiple bidders had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, it's difficult to ascertain if the price reflects true market value.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, who will receive advanced motor technology. The contract supports research and development activities, potentially leading to advancements in missile defense systems. The geographic impact is concentrated in Utah, where the contractor ATK Launch Systems LLC is located. Workforce implications include employment for specialized engineers, scientists, and technicians involved in R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Sole-source awards can limit innovation by not exploring solutions from a broader range of contractors.
The long duration of the contract could introduce risks related to changing technological landscapes or program priorities.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to a known entity like ATK Launch Systems LLC may leverage existing expertise and infrastructure.
The contract supports critical research and development for national defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to defense applications. The Missile Defense Agency's mission involves developing technologies to protect against ballistic missiles. Spending in this area is crucial for maintaining a technological edge in national security. Comparable spending benchmarks would typically involve other R&D contracts for propulsion systems or advanced materials within the defense industry.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' field is also false, suggesting it was not a small business prime award. Therefore, the direct impact on small businesses as prime contractors is likely minimal. However, ATK Launch Systems LLC may engage small businesses as subcontractors for specialized services or materials, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The Missile Defense Agency would be responsible for monitoring performance and ensuring compliance. Given the R&D nature and sole-source award, oversight would focus on technical progress, adherence to the fixed-price budget, and milestone achievement. Transparency might be limited due to the non-competitive nature, but contract modifications and performance reports would be subject to internal review and potentially Inspector General audits if concerns arise.

Related Government Programs

Missile Defense Systems
Advanced Propulsion Research
Aerospace Engineering Services
Department of Defense Research Contracts
Fixed-Price R&D Awards

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may increase risk of obsolescence or changing needs.
R&D outcomes are inherently uncertain, posing a risk to program success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to ATK LAUNCH SYSTEMS LLC. CASTOR IVB MOTOR

Who is the contractor on this award?

The obligated recipient is ATK LAUNCH SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2007-07-19. End: 2014-10-30.

What specific technological advancements were sought through the CASTOR IVB MOTOR contract?

The provided data does not detail the specific technological advancements sought. However, the contract's designation as 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) and its award by the Missile Defense Agency (MDA) strongly suggest the research was aimed at improving solid rocket motor technology for missile defense applications. This could include enhancements in thrust vectoring, burn rate control, material science for casings and propellants, or overall motor efficiency and reliability. The 'CASTOR IVB MOTOR' name itself implies a specific lineage or type of motor system the MDA intended to develop or refine.

How does the $14.6 million cost compare to similar R&D contracts for missile propulsion systems?

Directly comparing the $14.6 million cost is difficult without access to a comprehensive database of similar, contemporaneous R&D contracts for missile propulsion systems, especially those awarded on a sole-source basis. However, R&D efforts for advanced defense systems can be highly variable in cost depending on complexity, duration, and the specific technologies involved. Given the nearly seven-year duration (2660 days) and the specialized nature of missile defense technology, $14.6 million might be considered within a reasonable range for a focused research effort. The lack of competition, however, prevents a definitive value-for-money assessment against potential alternatives.

What are the primary risks associated with a sole-source, firm-fixed-price R&D contract of this duration?

The primary risks associated with this contract type and duration are twofold. Firstly, the sole-source nature means the government may not have achieved the lowest possible price due to the absence of competitive bidding, potentially leading to reduced value for taxpayer money. Secondly, a firm-fixed-price contract shifts cost overruns to the contractor, which can incentivize them to cut corners on quality or scope if unforeseen technical challenges arise, potentially impacting the research outcomes. The long duration (nearly 7 years) increases the risk of technological obsolescence, shifts in program priorities, or contractor performance degradation over time.

What is ATK Launch Systems LLC's track record with the Department of Defense, particularly in missile technology?

ATK Launch Systems LLC, now part of Northrop Grumman, has a significant and long-standing track record with the Department of Defense and other government agencies in developing and manufacturing propulsion systems for various applications, including missiles and space launch vehicles. They have been involved in numerous programs, often serving as a key supplier for solid rocket motors. Their experience spans decades, encompassing both military and commercial space sectors. While specific performance details for the CASTOR IVB MOTOR contract are not provided, ATK's general history suggests a high level of technical expertise and established manufacturing capabilities relevant to this type of R&D effort.

How has federal spending on missile defense R&D evolved, and where does this contract fit in?

Federal spending on missile defense R&D has fluctuated over the years, often driven by perceived threats and technological advancements. Following the end of the Cold War, funding saw shifts, but the early 21st century, particularly after 9/11 and with concerns about rogue states, saw increased investment. This $14.6 million contract, awarded in 2007 and ending in 2014, falls within a period of significant focus on enhancing missile defense capabilities. It represents a specific investment in a particular component (the CASTOR IVB MOTOR) within the broader MDA portfolio, contributing to the overall technological base required for layered missile defense systems.

What are the potential implications of awarding R&D contracts solely to large, established firms like ATK Launch Systems LLC?

Awarding R&D contracts solely to large, established firms like ATK Launch Systems LLC can have several implications. On the positive side, these firms often possess the extensive resources, specialized facilities, experienced personnel, and established processes necessary to undertake complex, high-risk research projects. They may also have a proven track record and existing infrastructure that reduces initial setup time and costs. However, a potential downside is the stifling of innovation from smaller, more agile companies that might offer novel approaches or more cost-effective solutions. Sole-source awards, in particular, limit the government's ability to explore a wider range of innovative ideas and can lead to higher costs due to the lack of competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ014707R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 9160 N HWY 83, CORINNE, UT, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,453,554

Exercised Options: $15,453,554

Current Obligation: $14,681,139

Contract Characteristics

Cost or Pricing Data: NO

Timeline