DoD's $20.3M missile systems R&D contract awarded to Aero Thermo Technology for 1028 days

Contract Overview

Contract Amount: $20,309,462 ($20.3M)

Contractor: Aero Thermo Technology

Awarding Agency: Department of Defense

Start Date: 2005-03-08

End Date: 2007-12-31

Contract Duration: 1,028 days

Daily Burn Rate: $19.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200506!00A135!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0035 !A!N! !N! ! !20050308!20071231!023358851!023358851!786272674!N!AERO THERMO TECHNOLOGY !4184 CENTER PARK DR !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000005409940!N!N!000000000000!AC27!RDTE/MISSILE AND SPACE SYSTEMS-OP SYSTEM DEVELOP !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1A!Z!Y!Z! ! !N!B!Y!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N00030!0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to AERO THERMO TECHNOLOGY for work described as: 200506!00A135!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0035 !A!N! !N! ! !20050308!20071231!023358851!023358851!786272674!N!AERO THERMO TECHNOLOGY !4184 CENTER PARK DR !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL P… Key points: 1. Contract awarded for missile and space systems R&D, focusing on operational systems development. 2. Significant duration of 1028 days suggests a complex, long-term research and development effort. 3. The contract's value of over $20 million indicates a substantial investment in advanced defense technology. 4. Awarded by the Department of the Navy, highlighting a specific focus within the DoD's strategic priorities. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to a high-tech, specialized service. 6. Firm Fixed Price contract type implies defined scope and cost certainty for the government. 7. The contract was not competed, raising questions about potential cost efficiencies and market exploration.

Value Assessment

Rating: questionable

The contract value of $20.3 million for a 1028-day R&D effort on missile systems appears substantial. Without comparable contract data for similar specialized R&D services, it's difficult to definitively benchmark value. However, the lack of competition suggests potential for higher costs than if multiple vendors had vied for the contract. The fixed-price nature provides some cost control, but the absence of competitive pressure warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific reasons for this designation are not provided in the data. A sole-source award means only one vendor was considered, potentially due to unique capabilities, proprietary technology, or urgent needs. This limits the government's ability to explore a broader market and potentially secure better pricing through competition.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiary is the Department of the Navy, which receives advanced missile and space systems development services. The contract supports the development of operational systems for the Trident II missile program. The geographic impact is primarily centered around Colorado Springs, Colorado, where Aero Thermo Technology is located. The contract likely supports a specialized workforce in aerospace engineering and research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for innovation from other firms.
The sole-source nature limits transparency into the selection process and justification for awarding to a single entity.
Long contract duration without clear performance metrics in the provided data could indicate potential for scope creep or cost overruns if not managed tightly.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government, assuming the scope is well-defined.
Award to a single contractor for a specialized R&D effort may indicate unique capabilities essential for the program's success.
The contract supports a critical defense program (Trident II missile), aligning with national security objectives.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on missile and space systems. The NAICS code 541710 covers R&D in physical, engineering, and life sciences. The aerospace and defense industry is characterized by high technological complexity and significant government investment. Comparable spending benchmarks for specialized R&D in missile technology are often proprietary or difficult to ascertain due to the niche nature of the work.

Small Business Impact

The data indicates this contract was not competed and does not appear to have a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus on specialized R&D for a major defense system suggests the prime contractor likely possesses unique capabilities that may not be readily available from small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is limited due to the sole-source nature and the proprietary aspects of R&D, but contract awards are generally reported in federal procurement databases.

Related Government Programs

Trident II Missile Program
Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Research and Development Spending
Aerospace Engineering Services Contracts
Strategic Systems Programs Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited public data on specific R&D deliverables and outcomes.
Potential for cost inefficiencies due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to AERO THERMO TECHNOLOGY. 200506!00A135!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0035 !A!N! !N! ! !20050308!20071231!023358851!023358851!786272674!N!AERO THERMO TECHNOLOGY !4184 CENTER PARK DR !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000005409940!N!N!000000000000!AC27!RDTE/MISSILE AND SPACE SYSTEMS-OP SYSTEM DEVELOP !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541710!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is AERO THERMO TECHNOLOGY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2005-03-08. End: 2007-12-31.

What specific technological advancements or system developments did Aero Thermo Technology deliver under this contract?

The provided data indicates the contract was for 'STRATEGIC SYSTEMS PROGRAMS' and 'RDTE/MISSILE AND SPACE SYSTEMS-OP SYSTEM DEVELOP' related to the 'TRIDENT II MISSILE'. While the specific deliverables are not detailed, it implies work on the operational systems development for the Trident II missile, likely involving research, design, testing, and integration of advanced technologies. This could include improvements to guidance, propulsion, or warhead systems, or the development of new operational protocols and software. The exact nature of these advancements would typically be found in more detailed contract statements of work or program reports, which are not publicly available in this dataset.

How does the $20.3 million contract value compare to other R&D contracts for similar missile systems?

Benchmarking this $20.3 million contract is challenging without access to specific, comparable R&D contracts for the Trident II missile system or similar advanced missile programs. R&D contracts vary significantly based on the scope, duration, technological complexity, and the specific phase of development (e.g., basic research vs. advanced engineering). Given the strategic importance and complexity of the Trident II program, a contract of this magnitude over nearly three years (1028 days) is plausible for specialized R&D. However, the lack of competition makes a direct value-for-money comparison difficult. Publicly available data often lacks the granularity to make precise comparisons for highly specialized defense R&D.

What is Aero Thermo Technology's track record with the Department of Defense, particularly in missile systems R&D?

Aero Thermo Technology was awarded this specific $20.3 million contract by the Department of the Navy for missile and space systems R&D. The data provided does not include a comprehensive history of their performance or other contracts with the DoD. To assess their track record, one would need to examine their contract history across various agencies, including contract performance reviews, past performance evaluations, and any documented issues or successes. Without this broader context, it's difficult to fully evaluate their expertise and reliability specifically in missile systems R&D beyond this single award.

What were the specific justifications for awarding this contract on a sole-source basis?

The provided data simply states the contract was 'NOT COMPETED' (CT = 'N'). Specific justifications for sole-source awards typically include factors such as the urgency of the requirement, the unavailability of the service or supply from any other source, or the existence of unique capabilities or proprietary technology held by the contractor. For defense R&D, it could also relate to national security concerns or the need to leverage specific intellectual property. These justifications are usually documented in a Justification and Approval (J&A) document, which is not included in this dataset. Without the J&A, the precise reasons remain unknown.

What is the historical spending trend for missile systems R&D within the Department of the Navy?

The provided data focuses on a single contract award from 2005-2007. To understand historical spending trends for missile systems R&D within the Department of the Navy, a broader analysis of federal procurement data over multiple fiscal years would be necessary. This would involve aggregating spending data for relevant NAICS codes (like 541710) and product/service codes associated with missile systems R&D across various Navy programs and commands. Such an analysis would reveal patterns of investment, identify major programs, and potentially highlight shifts in R&D priorities over time.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4184 CENTER PARK DR, COLORADO SPRIN, CO

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline