DoD Awards $9M for Low-Cost Missile Tech Development to National Center for Defense Manufacturing
Contract Overview
Contract Amount: $9,000,000 ($9.0M)
Contractor: National Center for Defense Manufacturing and Machining
Awarding Agency: Department of Defense
Start Date: 2024-01-08
End Date: 2027-01-07
Contract Duration: 1,095 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOW-COST MISSILE TECHNOLOGY DEVELOPMENT
Place of Performance
Location: BLAIRSVILLE, INDIANA County, PENNSYLVANIA, 15717
Plain-Language Summary
Department of Defense obligated $9.0 million to NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING for work described as: LOW-COST MISSILE TECHNOLOGY DEVELOPMENT Key points: 1. Significant investment in advanced missile technology. 2. Competition method suggests potential for price discovery challenges. 3. Risk of cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on manufacturing and engineering services within the Defense sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts. Benchmarking against similar R&D contracts for missile technology is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may not have achieved the most competitive pricing possible.
Taxpayer Impact: Taxpayer funds are being used for advanced defense research. The limited competition raises questions about whether the best possible price was secured for this development effort.
Public Impact
Advancement in U.S. missile defense capabilities. Potential for job creation in specialized manufacturing and engineering. Impact on future defense procurement strategies for similar technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- CPFF contract type carries inherent cost overrun risk.
- Lack of specific performance metrics in provided data.
Positive Signals
- Focus on critical defense technology development.
- Potential for innovation in low-cost missile solutions.
- Award to a specialized national center.
Sector Analysis
This contract falls within the Engineering Services sector, specifically for defense manufacturing. Spending benchmarks for R&D in advanced missile technology can vary widely based on complexity and innovation required.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The awardee, National Center for Defense Manufacturing and Machining, is likely a larger entity, suggesting limited direct impact on small businesses through this prime contract.
Oversight & Accountability
The Department of the Army is the awarding agency, with the Department of Defense overseeing. Standard oversight mechanisms for R&D contracts would apply, but specific details on accountability for this project are not provided.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Fixed Fee contract increases risk of cost overruns.
- Potential for scope creep in R&D projects.
- Dependence on contractor's innovation and cost management.
Tags
engineering-services, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING. LOW-COST MISSILE TECHNOLOGY DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is NATIONAL CENTER FOR DEFENSE MANUFACTURING AND MACHINING.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.0 million.
What is the period of performance?
Start: 2024-01-08. End: 2027-01-07.
What is the projected return on investment for this low-cost missile technology development?
The return on investment is difficult to quantify at this early development stage. Success will be measured by the successful creation of a viable low-cost missile technology that can be fielded, potentially reducing future procurement costs and enhancing defense capabilities. The ultimate ROI depends on the technology's effectiveness, scalability, and adoption rate by the military.
What are the specific risks associated with the 'Cost Plus Fixed Fee' contract structure for this project?
The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections, the government bears the burden. This structure can disincentivize cost control by the contractor, potentially leading to higher overall expenditures than anticipated for the development of the low-cost missile technology.
How will the effectiveness of the developed low-cost missile technology be measured and validated?
Effectiveness will likely be measured through a series of rigorous testing and evaluation phases, including performance trials, environmental testing, and operational assessments. The contract's success criteria should clearly define metrics for range, accuracy, payload delivery, reliability, and cost-effectiveness compared to existing systems. Validation will involve independent verification by the Department of the Army.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 486 CORNELL RD, BLAIRSVILLE, PA, 15717
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $9,000,000
Exercised Options: $9,000,000
Current Obligation: $9,000,000
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,569,050
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q21D0026
IDV Type: IDC
Timeline
Start Date: 2024-01-08
Current End Date: 2027-01-07
Potential End Date: 2027-01-07 12:01:00
Last Modified: 2025-12-18
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