DoD's $22M R&D contract for missile defense subsystem awarded to Coherent Aerospace & Defense, Inc

Contract Overview

Contract Amount: $21,970,903 ($22.0M)

Contractor: Coherent Aerospace & Defense, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-28

End Date: 2025-11-14

Contract Duration: 687 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE OBJECTIVE OF THE SABER PROGRAM IS TO DEVELOP A DESIGN FOR A 400 KW SUBSYSTEM CAPABLE OF SURFACE COMBATANT INTEGRATION TO SUPPORT FLEET DEFENSE TO DEFEAT ANTI SHIP CRUISE MISSILES INCLUDING MANEUVERING SUBSONIC, SUPERSONIC AND HYPERSONIC MISSILE T

Place of Performance

Location: MURRIETA, RIVERSIDE County, CALIFORNIA, 92563

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to COHERENT AEROSPACE & DEFENSE, INC. for work described as: THE OBJECTIVE OF THE SABER PROGRAM IS TO DEVELOP A DESIGN FOR A 400 KW SUBSYSTEM CAPABLE OF SURFACE COMBATANT INTEGRATION TO SUPPORT FLEET DEFENSE TO DEFEAT ANTI SHIP CRUISE MISSILES INCLUDING MANEUVERING SUBSONIC, SUPERSONIC AND HYPERSONIC MISSILE T Key points: 1. Contract focuses on developing a 400 KW subsystem for surface combatants to counter advanced missile threats. 2. Significant investment in research and development for critical fleet defense capabilities. 3. Awarded under full and open competition, suggesting a robust market for this technology. 4. Contract duration of 687 days indicates a substantial development timeline. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in R&D but requires careful cost oversight. 6. This initiative aligns with broader defense modernization efforts to counter evolving missile technologies.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and focus on future capabilities. The $21.97 million award is for research and development, not a production run, making direct comparisons to similar procurements difficult. The Cost Plus Fixed Fee (CPFF) structure means the final cost could fluctuate, necessitating close monitoring of expenditures against the fixed fee to ensure value for money. Without more data on the specific technical milestones and deliverables, a definitive value assessment is pending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This competitive process is expected to foster price discovery and encourage the most capable and cost-effective solution to emerge. The presence of multiple bidders suggests a healthy market for advanced defense technology development.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a more competitive bidding environment, which can lead to better pricing and innovation.

Public Impact

The U.S. Navy benefits from advancements in missile defense technology, enhancing fleet survivability. Development of a critical subsystem to counter anti-ship cruise missiles, including hypersonic threats. Potential for technological advancements that could be leveraged across other naval platforms. Supports the defense industrial base by funding specialized R&D efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a risk with CPFF contracts if not managed diligently.
Technological feasibility and successful integration of the subsystem present inherent R&D risks.
The evolving nature of missile threats may require continuous adaptation and further investment.

Positive Signals

Awarded through full and open competition, suggesting a strong pool of qualified bidders.
Focus on a critical defense capability addresses a high-priority national security need.
The contractor, Coherent Aerospace & Defense, Inc., is likely selected based on demonstrated expertise in relevant fields.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering for defense applications. The market for such specialized defense R&D is characterized by high barriers to entry, significant government investment, and a focus on innovation to counter emerging threats. Comparable spending benchmarks are difficult to establish due to the unique nature of missile defense subsystem development, but it represents a segment of the broader defense technology market.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is Coherent Aerospace & Defense, Inc., there is potential for subcontracting opportunities for small businesses within their supply chain. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of specialized small businesses capable of contributing to this advanced R&D effort.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring technical progress and financial expenditures. The Cost Plus Fixed Fee contract structure necessitates rigorous financial oversight to ensure costs remain within agreed-upon parameters and that the fixed fee is justified by performance. Transparency will be maintained through regular reporting requirements from the contractor and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General.

Related Government Programs

Missile Defense Systems
Naval Surface Warfare
Advanced Weapon Systems Research
Department of Defense Research and Development

Risk Flags

Cost Management Risk (CPFF)
Technological Feasibility Risk
Integration Complexity Risk
Evolving Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to COHERENT AEROSPACE & DEFENSE, INC.. THE OBJECTIVE OF THE SABER PROGRAM IS TO DEVELOP A DESIGN FOR A 400 KW SUBSYSTEM CAPABLE OF SURFACE COMBATANT INTEGRATION TO SUPPORT FLEET DEFENSE TO DEFEAT ANTI SHIP CRUISE MISSILES INCLUDING MANEUVERING SUBSONIC, SUPERSONIC AND HYPERSONIC MISSILE T

Who is the contractor on this award?

The obligated recipient is COHERENT AEROSPACE & DEFENSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2023-12-28. End: 2025-11-14.

What is the specific technical objective of the 400 KW subsystem?

The primary technical objective of the 400 KW subsystem is to provide a directed energy capability for surface combatants designed to defeat advanced anti-ship cruise missiles. This includes countering threats that are maneuvering, subsonic, supersonic, and potentially hypersonic. The subsystem aims to integrate into existing fleet defense architectures, offering a new layer of protection against increasingly sophisticated missile technologies. The development focuses on the power generation and delivery aspects necessary for such a system.

How does this contract compare to other R&D spending in missile defense?

Comparing this $21.97 million contract to other R&D spending in missile defense requires a broader analysis of the DoD's overall budget allocation for research, development, testing, and evaluation (RDT&E) in this area. While this specific award is substantial for a single subsystem development, it represents a fraction of the total investment in missile defense programs, which often span multiple technologies, platforms, and phases from basic research to advanced prototyping and testing. The value is in its specific focus on a directed energy capability for surface combatants, a growing area of interest.

What are the key risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs if the contractor encounters unforeseen technical challenges or inefficiencies during the R&D process. Effective oversight is crucial to monitor the contractor's spending, ensure that costs are reasonable and allocable, and that the fixed fee remains appropriate for the work performed. Scope creep, if not managed through contract modifications, can also inflate costs.

What is the expected impact on fleet defense capabilities upon successful completion?

Upon successful completion, this contract is expected to yield a functional 400 KW subsystem prototype or design that can be integrated into U.S. Navy surface combatants. This would significantly enhance the fleet's ability to defend against advanced anti-ship cruise missiles, including high-speed and maneuvering threats that may be difficult to intercept with current kinetic interceptors. The development of directed energy capabilities is seen as a critical future component of naval warfare, offering advantages in terms of engagement speed, magazine depth, and potentially lower cost per engagement.

Has Coherent Aerospace & Defense, Inc. previously worked on similar missile defense technologies?

Assessing Coherent Aerospace & Defense, Inc.'s track record requires a review of their past performance on government contracts, particularly those related to directed energy, power systems, and defense applications. Without specific contract history data readily available in this context, it's presumed the Department of the Navy conducted due diligence to ensure the contractor possesses the necessary expertise and experience for this specialized R&D. Their ability to successfully deliver on this contract will depend on their demonstrated capabilities in advanced engineering and defense system development.

What is the historical spending trend for similar R&D efforts within the Department of the Navy?

Historical spending trends for similar R&D efforts within the Department of the Navy show a consistent and often increasing investment in advanced technologies aimed at maintaining naval superiority. This includes significant allocations towards research in areas like directed energy, hypersonics, electronic warfare, and advanced materials. While specific figures for 'missile defense subsystem R&D' vary year to year based on program priorities, the overall trend indicates a sustained commitment to developing next-generation defensive and offensive capabilities to counter 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 Nanotechnology and 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

Solicitation ID: N0001423SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 36570 BRIGGS RD, MURRIETA, CA, 92563

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

Financial Breakdown

Contract Ceiling: $21,970,903

Exercised Options: $21,970,903

Current Obligation: $21,970,903

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline