DoD's $75.5M Missile Contract with MILTEC Corporation: A Decade of Space Research and Technology
Contract Overview
Contract Amount: $75,514,866 ($75.5M)
Contractor: Miltec Corporation
Awarding Agency: Department of Defense
Start Date: 2007-09-07
End Date: 2017-03-23
Contract Duration: 3,485 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MISSILE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $75.5 million to MILTEC CORPORATION for work described as: MISSILE Key points: 1. Significant investment in missile technology over a 10-year period. 2. MILTEC Corporation secured a substantial contract for specialized space research. 3. The contract's long duration and cost-plus structure warrant scrutiny for efficiency. 4. Spending aligns with the Department of Defense's focus on advanced defense capabilities.
Value Assessment
Rating: fair
The contract's cost-plus fixed fee structure, while allowing flexibility, can lead to cost overruns if not managed tightly. Benchmarking against similar missile development contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and specific nature of the work might have limited the pool of truly competitive bidders over time.
Taxpayer Impact: Taxpayer funds were used for a decade-long defense contract, the ultimate value and efficiency of which are subject to ongoing oversight.
Public Impact
Long-term investment in critical defense technology. Potential for technological advancements in missile systems. Economic impact on the contractor and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) increases risk of cost escalation and scope creep.
- Cost-plus fixed fee contract type can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on missile systems and space research. Spending benchmarks for such specialized R&D are highly variable, but $75.5 million over 10 years for a definitive contract suggests a significant, long-term project.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the contractor is MILTEC CORPORATION. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The long duration of this definitive contract necessitates robust oversight from the Department of the Army to ensure adherence to scope, budget, and performance requirements. Regular reviews and audits are crucial for accountability.
Related Government Programs
- Space Research and Technology
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Cost-plus contract type.
- Lack of specific performance metrics.
- Potential for cost escalation.
- Limited transparency on subcontractor involvement.
Tags
space-research-and-technology, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.5 million to MILTEC CORPORATION. MISSILE
Who is the contractor on this award?
The obligated recipient is MILTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $75.5 million.
What is the period of performance?
Start: 2007-09-07. End: 2017-03-23.
What specific technological advancements or capabilities were achieved through this $75.5 million investment over 10 years?
Without detailed technical reports or program reviews, it's difficult to quantify the specific advancements. The contract's focus on 'Space Research and Technology' for missiles suggests potential progress in areas like guidance systems, propulsion, or payload integration. However, the cost-plus nature means the primary driver was fulfilling the contract's objectives rather than a fixed-price innovation target.
How did the full and open competition ensure the best value was obtained for this long-term missile development contract?
Full and open competition theoretically allows all qualified vendors to bid, fostering a competitive environment that should drive down prices and improve quality. However, for highly specialized R&D like missile technology, the initial pool of capable bidders might be small. The long duration also means that initial price discovery might not reflect the full lifecycle costs or evolving market conditions.
What are the primary risks associated with a 10-year cost-plus fixed fee contract for missile development?
The primary risks include cost overruns, as the contractor is reimbursed for incurred costs plus a fixed fee, potentially reducing the incentive for cost efficiency. Scope creep is another significant risk, where contract requirements expand over time, increasing costs and duration. Furthermore, technological obsolescence or shifts in strategic priorities could render the developed capabilities less relevant by the contract's end.
Industry Classification
NAICS: Public Administration › Space Research and Technology › Space Research and Technology
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Atomics
Address: 678 DISCOVERY DR, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $80,000,000
Exercised Options: $75,514,866
Current Obligation: $75,514,866
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-07
Current End Date: 2017-03-23
Potential End Date: 2017-03-23 00:00:00
Last Modified: 2025-12-31
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