DoD's $29M Rocket Motor Services Contract Awarded to ATK Launch Systems LLC
Contract Overview
Contract Amount: $29,109,245 ($29.1M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-29
End Date: 2022-04-30
Contract Duration: 1,858 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ROCKET MOTOR TECHNICAL SERVICES. IGF::CT::IGF
Place of Performance
Location: MAGNA, SALT LAKE County, UTAH, 84044
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $29.1 million to ATK LAUNCH SYSTEMS LLC for work described as: ROCKET MOTOR TECHNICAL SERVICES. IGF::CT::IGF Key points: 1. Significant contract value of $29.1 million for specialized rocket motor technical services. 2. ATK Launch Systems LLC, a key player in aerospace, secured this contract. 3. The contract falls under the Missile Defense Agency's purview, indicating a focus on strategic defense capabilities. 4. Engineering services (NAICS 541330) are critical for complex defense systems.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar specialized engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized engineering services.
Public Impact
Supports critical missile defense technology development and sustainment. Ensures the operational readiness of advanced rocket motor systems. Contributes to the U.S. strategic defense posture.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus-fixed-fee pricing structure
Positive Signals
- Award to established aerospace contractor
- Supports critical defense mission
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related aerospace and missile systems. Spending in this niche area is driven by national security priorities and technological advancements.
Small Business Impact
The contract was awarded to ATK Launch Systems LLC, a large business. There is no indication of small business participation in this specific award, missing an opportunity to support smaller enterprises.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and effective performance. The Missile Defense Agency should monitor costs and deliverables diligently.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- No small business participation
Tags
engineering-services, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to ATK LAUNCH SYSTEMS LLC. ROCKET MOTOR TECHNICAL SERVICES. IGF::CT::IGF
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 $29.1 million.
What is the period of performance?
Start: 2017-03-29. End: 2022-04-30.
What specific technical expertise does ATK Launch Systems LLC possess that justified a sole-source award for these rocket motor services?
ATK Launch Systems LLC likely possesses highly specialized, proprietary knowledge and manufacturing capabilities for specific rocket motor technologies critical to the Missile Defense Agency's mission. This could include unique intellectual property, established production lines, or extensive testing facilities that are not readily available from other sources, thus justifying the sole-source determination based on technical necessity and program continuity.
How will the Missile Defense Agency ensure cost-effectiveness and prevent potential overruns with a cost-plus-fixed-fee contract awarded without competition?
The Missile Defense Agency must implement robust cost-control measures, including detailed performance metrics, regular audits of expenditures, and stringent review processes for any proposed cost increases. Establishing clear milestones and linking fee payments to the achievement of these milestones can incentivize efficiency. Continuous dialogue and negotiation with ATK Launch Systems LLC regarding cost drivers will be crucial.
What is the long-term strategic value of this contract for the U.S. missile defense capabilities?
This contract ensures the continued technical support and potential enhancement of critical rocket motor systems essential for missile defense. By maintaining a relationship with a specialized provider like ATK Launch Systems LLC, the MDA can ensure the reliability and performance of its assets, adapt to evolving threats, and sustain the technological edge necessary for national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: HQ014716R0048
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 5000 S 8400 W, MAGNA, UT, 84044
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: $48,247,397
Exercised Options: $47,991,430
Current Obligation: $29,109,245
Actual Outlays: $1,919,486
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-03-29
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2023-02-14
More Contracts from ATK Launch Systems LLC
- Space Shuttle Reusable Solid Rocket Motors — $4.1B (National Aeronautics and Space Administration)
- Award of Luu-2d/B Illumination Flares and Luu-19b/B Infrared Flares — $110.1M (Department of Defense)
- THE Purpose of This Contract IS to Provide Engineering Services for the Propulsion System of the Minuteman III Missile — $66.8M (Department of Defense)
- M212 Flares W/Decal — $53.2M (Department of Defense)
- 200412!000323!5700!GE45 !oo-Alc/Pkw/Wmk !FA821304C0026 !A!N! !N! ! !20040303!20060731!002241164!002241164!001339472!n!atk Thiokol Inc !9160 North Highway 83 !corinne !ut!84307!15830!003!49!corinne !BOX Elder !utah !+000023742987!n!n!000000000000!1370!pyrotechnics !A6 !ammunition !000 !* !325998!E! !1! ! ! ! ! !99990909!B! ! !A! !d!n!j!1!001!n!1a!a!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $49.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)