MDA to Acquire Next Generation Interceptor for $483.7M, Fielding by 2020
Contract Overview
Contract Amount: $48,365,208 ($48.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2011-04-07
End Date: 2015-03-31
Contract Duration: 1,454 days
Daily Burn Rate: $33.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE MISSILE DEFENSE AGENCY (MDA) WILL ACQUIRE THE NEXT GENERATION INTERCEPTOR FOR FIELDING IN 2020 AS AN ELEMENT OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS). THE NEXT GENERATION AEGIS MISSILE (NGAM) WILL BE DESIGNED TO PROVIDE EARLY INTERCEPT CAPABILITY AGAINST SOME SHORT RANGE BALLISTIC MISSILES (SRBM), ALL MEDIUM RANGE BALLISTIC MISSILES (MRBM), ALL INTERMEDIATE RANGE BALLISTIC MISSILES (IRBM) AND NON-ADVANCED INTERCONTINENTAL BALLISTIC MISSILES (ICBM) LAUNCHED FROM THE REGION WHERE AEGIS WEAPON SYSTEMS (AWS) (INCLUDING THE AEGIS BMD 5.1 AND MK 41 VERTICAL LAUNCHING SYSTEM (VLS)) ARE LOCATED. THE FIRST PHASE OF THIS ACQUISITION IS THE CONCEPT DEFINITION AND PROGRAM PLANNING PHASE BEGINNING IN 2011, TO BE FOLLOWED BY COMPETITIVE PRODUCT DEVELOPMENT PHASE IN FY13. THE PURPOSE OF THE CONCEPT DEFINITION AND PROGRAM PLANNING CONTRACTS ARE TO: 1) DEFINE DESIGN OBJECTIVES, 2) PRESENT TRADES TO MEET THAT CAPABILITY, AND 3) OPTIMIZE TRADES TO MINIMIZE COST, SCHEDULE, AND TECHNICAL RISKS. THE GOVERNMENT CONTEMPLATES THE COMPETITIVE AWARD OF UP TO THREE COST-PLUS FIXED-FEE (CPFF) CONTRACTS RESULTING FROM THIS SOLICITATION, BUT RESERVES THE RIGHT TO MAKE FEWER THAN THREE AWARDS, MORE THAN THREE AWARDS, OR NO AWARD AT ALL.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $48.4 million to THE BOEING COMPANY for work described as: THE MISSILE DEFENSE AGENCY (MDA) WILL ACQUIRE THE NEXT GENERATION INTERCEPTOR FOR FIELDING IN 2020 AS AN ELEMENT OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS). THE NEXT GENERATION AEGIS MISSILE (NGAM) WILL BE DESIGNED TO PROVIDE EARLY INTERCEPT CAPABILITY AGAINST SOME SHORT RANG… Key points: 1. The Next Generation Interceptor (NGI) aims to enhance ballistic missile defense capabilities against various missile ranges. 2. The program is in its early Concept Definition phase, with competitive development planned for FY13. 3. Key risks include technological complexity and the long development timeline for a critical defense system. 4. This acquisition falls under the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The contract value of $483.7M is for the initial Concept Definition and Program Planning phase. As a developmental program, current pricing is difficult to benchmark against fielded systems. Future phases will require significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The acquisition strategy outlines a full and open competition for the competitive product development phase. This approach is intended to foster innovation and competitive pricing, though the initial phase is focused on planning.
Taxpayer Impact: The ultimate taxpayer impact will depend on the total program cost and the effectiveness of the NGI in providing missile defense.
Public Impact
Enhances national security by improving missile defense capabilities. Represents a significant investment in advanced defense technology. Potential for technological advancements with broad applications. Long-term commitment required for development and fielding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Technological complexity of next-generation interceptor.
- Long development and fielding timeline.
- Potential for cost overruns in R&D phases.
- Uncertainty in threat evolution impacting system requirements.
Positive Signals
- Full and open competition planned for development.
- Aims to address critical gaps in current missile defense.
- Potential for significant technological advancements.
Sector Analysis
This acquisition falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Defense R&D spending is a significant portion of the federal budget, with complex systems like missile defense representing substantial investments.
Small Business Impact
While the prime contractor is The Boeing Company, the contract details do not specify subcontracting plans for small businesses. Future phases may offer opportunities for SMB participation.
Oversight & Accountability
The Missile Defense Agency is responsible for this acquisition. Oversight will be critical throughout the program's lifecycle, particularly during the competitive development and production phases, to ensure cost, schedule, and performance objectives are met.
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
- High technological complexity.
- Long development and fielding timeline.
- Potential for significant cost growth.
- Evolving threat landscape.
- Integration challenges with existing BMDS.
- Dependence on future funding appropriations.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.4 million to THE BOEING COMPANY. THE MISSILE DEFENSE AGENCY (MDA) WILL ACQUIRE THE NEXT GENERATION INTERCEPTOR FOR FIELDING IN 2020 AS AN ELEMENT OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS). THE NEXT GENERATION AEGIS MISSILE (NGAM) WILL BE DESIGNED TO PROVIDE EARLY INTERCEPT CAPABILITY AGAINST SOME SHORT RANGE BALLISTIC MISSILES (SRBM), ALL MEDIUM RANGE BALLISTIC MISSILES (MRBM), ALL INTERMEDIATE RANGE BALLISTIC MISSILES (IRBM) AND NON-ADVANCED INTERCONTINENTAL BALLISTIC MISSILES (ICBM) LAUNCHED FROM THE REGION WHERE AEGIS W
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $48.4 million.
What is the period of performance?
Start: 2011-04-07. End: 2015-03-31.
What is the projected total lifecycle cost for the Next Generation Interceptor program, and how does it compare to previous interceptor programs?
The current contract value of $483.7M is for the initial concept and planning phase. The total lifecycle cost for the NGI program is not yet defined but is expected to be substantial, given the complexity and scope of developing a next-generation missile defense system. Historical data from similar advanced weapon system development programs suggests potential for multi-billion dollar investments over the program's duration.
What are the primary technical risks associated with developing a missile interceptor capable of countering advanced ICBMs and other threats?
Primary technical risks include achieving the required intercept speeds and accuracy against highly advanced and potentially maneuvering ballistic missiles. Developing reliable guidance, control, and warhead systems that function under extreme conditions and at long ranges presents significant challenges. Ensuring system integration with the broader Ballistic Missile Defense System (BMDS) and maintaining operational readiness are also critical risk areas.
How will the effectiveness of the Next Generation Interceptor be measured and validated to ensure it meets its intended mission objectives?
Effectiveness will be measured through a rigorous testing and evaluation process, including ground tests, simulations, and flight tests. Validation will involve demonstrating the interceptor's ability to successfully engage a range of threat ballistic missiles under realistic operational scenarios. Independent assessments and operational readiness reviews will also contribute to validating its effectiveness against evolving threats.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014710R0027
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 499 BOEING BLVD SW, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,397,207
Exercised Options: $48,397,207
Current Obligation: $48,365,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-07
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2024-06-18
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