The Air Force's Evolved Expendable Launch Vehicle Competitive Procurement PDF Download
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ISBN:
Category : Defense contracts
Languages : en
Pages : 46
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Book Description
While the previous two-contract structure of the Evolved Expendable Launch Vehicle (EELV) program met Department of Defense (DOD) needs for unprecedented mission success and an at-the-ready launch capability, the scope of its capability contract limited DOD's ability to identify the cost of an individual launch, as direct launch costs were not separated from other costs. Minimal insight into contractor cost or pricing data meant DOD may have lacked sufficient knowledge to negotiate fair and reasonable launch prices. Through DOD's development of a new acquisition strategy in 2011, and in preparation for contract negotiations with United Launch Alliance (ULA), DOD undertook significant efforts to obtain better contractor and subcontractor cost or pricing data. The December 2013 contract modification with ULA includes line items for both the fixed-price and cost-reimbursement portions funded under the previous two-contract structure, and DOD officials say the administrative burden of renegotiating new contracts every year will be substantially lessened due to the new contract's simplified structure. The new contract is also expected to provide DOD with a better understanding of individual launch costs than it had under previous contracts, as some costs are now directly attributable to specific launches. ULA periodically sells launch services to customers outside of the EELV program. Because DOD pays for ULA's fixed costs, DOD receives compensation for the use of ULA facilities on a per-launch basis for launches ULA sells to non-DOD customers. Under the new contract, compensation is based on some actual costs, and is approximately three times the dollar amount per-launch of reimbursements under previous contracts. If DOD requires all offers to contain both fixed-price and cost-reimbursement features for launch services and capability, respectively, similar to the way it currently contracts with ULA, there could be benefits to DOD and ULA, but potential burdens to new entrants. Alternatively, if DOD implements a fixed-price commercial approach to launch proposals, DOD could lose insight into contractor cost or pricing. DOD could also require a combination of elements from each of these approaches, or develop new contract requirements for this competition.
Author:
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 46
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Book Description
While the previous two-contract structure of the Evolved Expendable Launch Vehicle (EELV) program met Department of Defense (DOD) needs for unprecedented mission success and an at-the-ready launch capability, the scope of its capability contract limited DOD's ability to identify the cost of an individual launch, as direct launch costs were not separated from other costs. Minimal insight into contractor cost or pricing data meant DOD may have lacked sufficient knowledge to negotiate fair and reasonable launch prices. Through DOD's development of a new acquisition strategy in 2011, and in preparation for contract negotiations with United Launch Alliance (ULA), DOD undertook significant efforts to obtain better contractor and subcontractor cost or pricing data. The December 2013 contract modification with ULA includes line items for both the fixed-price and cost-reimbursement portions funded under the previous two-contract structure, and DOD officials say the administrative burden of renegotiating new contracts every year will be substantially lessened due to the new contract's simplified structure. The new contract is also expected to provide DOD with a better understanding of individual launch costs than it had under previous contracts, as some costs are now directly attributable to specific launches. ULA periodically sells launch services to customers outside of the EELV program. Because DOD pays for ULA's fixed costs, DOD receives compensation for the use of ULA facilities on a per-launch basis for launches ULA sells to non-DOD customers. Under the new contract, compensation is based on some actual costs, and is approximately three times the dollar amount per-launch of reimbursements under previous contracts. If DOD requires all offers to contain both fixed-price and cost-reimbursement features for launch services and capability, respectively, similar to the way it currently contracts with ULA, there could be benefits to DOD and ULA, but potential burdens to new entrants. Alternatively, if DOD implements a fixed-price commercial approach to launch proposals, DOD could lose insight into contractor cost or pricing. DOD could also require a combination of elements from each of these approaches, or develop new contract requirements for this competition.
Author: Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781973976554
Category :
Languages : en
Pages : 46
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Book Description
" accounting for costs contracting officials, compared the conte determine how DO other customers, w reimbursements, w calculated and the reimbursement amo reimbursements rep implications of poss new launch provide proposed EELV co ULA and new entra Regulation (FAR) re type contracts. We accordance with ge that we plan and pe reasonable basis fo that the evidence o on our audit objecti In summary, while t mission success an contract limited DO direct launch costs through a firm-fixed through a cost-plus- not transparent acc funded under this c meant DOD may ha prices. Coupled wit EELV program cost "
Author: United States Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781982025892
Category :
Languages : en
Pages : 46
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Book Description
the Air Forces's Evolved Expendable Launch Vehicle Competitive Procurement
Author: U. S Government U.S Government Accountability Office
Publisher: CreateSpace
ISBN: 9781502959225
Category :
Languages : en
Pages : 46
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Book Description
In summary, while the previous two-contract structure met DOD's needs for unprecedented mission success and an at-the-ready launch capability, the scope of its cost-reimbursement contract limited DOD's ability to identify the cost of an individual launch, as, according to DOD, direct launch costs were not separated from other costs. For example, DOD paid for hardware through a firm-fixed-price contract (ELS), but funded infrastructure and engineering support through a cost-plus-incentive-fee contract (ELC). The ELC cost-reimbursement contract was not transparent according to DOD officials, who had limited understanding of the activities funded under this contract.
Author: United States Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781977953933
Category :
Languages : en
Pages : 34
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Book Description
The Air Force's EELV program is the primary provider launches for military and intelligence satellites. The Air Force is working to introduce competition into the program, which for almost 10 years had one company capable of providing launches. In working to introduce competition into launch contracts, the Air Force is changing its acquisition approach for launch services, including the amount of cost and performance data that it plans to obtain under future launch contracts. Given these expected changes, the National Defense Authorization Act for Fiscal Year 2015 included a provision for GAO to examine this new approach. This report examines the (1) Air Force's new approach for competing launches, the resulting changes on the types of cost or performance data required and commensurate business systems needed compared to what is currently required of the incumbent contractor, and the benefits and drawbacks of this approach; and (2) risks the Air Force faces when planning for future launch acquisitions. To address these questions, GAO reviewed acquisition documents and the contract request for proposals, and interviewed DOD and contractor officials.
Author: United States. Government Accountability Office
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 28
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Book Description
The Air Force's EELV program is the primary provider launches for military and intelligence satellites. The Air Force is working to introduce competition into the program, which for almost 10 years had one company capable of providing launches. In working to introduce competition into launch contracts, the Air Force is changing its acquisition approach for launch services, including the amount of cost and performance data that it plans to obtain under future launch contracts. Given these expected changes, the National Defense Authorization Act for Fiscal Year 2015 included a provision for GAO to examine this new approach. This report examines the (1) Air Force's new approach for competing launches, the resulting changes on the types of cost or performance data required and commensurate business systems needed compared to what is currently required of the incumbent contractor, and the benefits and drawbacks of this approach; and (2) risks the Air Force faces when planning for future launch acquisitions. GAO recommends that, when planning for the next phase of competition for launches, the Air Force use an incremental approach to the next acquisition strategy to ensure that it does not commit itself to a strategy until data is available to make an informed decision. DOD concurred with the recommendation.
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Artificial satellites
Languages : en
Pages : 36
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Book Description
Author: United States. Congress. Senate. Committee on Armed Services. Subcommittee on Strategic Forces
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 88
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Book Description
Author:
Publisher: DIANE Publishing
ISBN: 1428977287
Category :
Languages : en
Pages : 37
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Book Description
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 131
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Book Description
The findings and recommendations of this study fall into two groups: Department of Defense (DoD) space launch procurement and DoD steps to strengthen U.S. launch competitiveness. Our analytic results support the choices that the Air Force and the Navy have made since 1985 in the methods of procuring launch services and in the degree of government oversight stipulated in these launch contracts. We further found that the Air Force's upcoming Medium Launch Vehicle- 3 (MLV-3) procurement is DoD's most suitable major program to be procured with commercial practices over the next ten years. We recommend that the MLV-3 Request For Proposal (RFP) include commercial launches as an option and that the Air Force consider this option. To help strengthen launch competitiveness, we recommend that DoD concentrate its new launcher development on the most commercially relevant (MCR) range, which is the capability to lift 10,000 to 50, 000 lb of payload into low earth orbits (LEOs).
