08 September 2008

Missile Defense Agency continues contract with AADC; plans year-end launch

Article published on Monday, Sep 08th, 2008
Mirror Writer

Alaska Aerospace Development Corp. has been awarded a nearly $50 million contract to provide launch services and logistical support at the Kodiak Launch Complex for Missile Defense Agency flight tests.

Dale Nash, CEO of AADC, called the three-year contract announced Aug. 28 a continuation of the previous five-year agreement with MDA.

“It is a big deal in that it is a continuation of what we believe is a very successful relationship between KLC and MDA,” Nash said. “It’s sort of more of the same, but it’s a very good thing and we’re very pleased to continue to do business with MDA.”

The indefinite-delivery, indefinite-quantity, sole-source contract has the potential to reach $50 million, depending on AADC bid amounts to conduct launches at the Kodiak site.

“It does not mean that this total amount is guaranteed,” Nash said. “This is what is expected. Each year, we have to put in proposals and negotiate the contract for that year.”

Nash said the contract is similar in numbers to past MDA contracts, and “it’s not as if we’ve gotten a windfall.”

“But it’s still real dollars,” he said. “It is a new contract on top of what we have done in the past. Yes, it’s big, and we’re very encouraged to continue the relationship with MDA, and I honestly believe, with the borough of Kodiak. We and MDA are pleased to be part and piece of the island of Kodiak.”

Under the contract, AADC bids on each launch.

“Based on history, (we conduct) somewhere between one and three launches per year,” he said. “This year, we only had one launch. The prior year, we had two, and on occasion they will schedule for three.”

Nash said AADC completed seven successful launches with MDA since December 2004 on the previous contract, the last this past July. He said there is a launch scheduled for the end of this year.

“I think they want to get it off before the end of the year,” he said.

The contract is expected to be complete by August 2011. The contract funds do not expire at the end of the fiscal year.

Mirror writer Erik Wander can be reached via e-mail at ewander@kodiakdailymirror.com.

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