NOAA Awards $516M Contract to Aerospace Corp for Systems Architecture and Engineering Support
Contract Overview
Contract Amount: $5,163,064 ($5.2M)
Contractor: THE Aerospace Corporation
Awarding Agency: Department of Commerce
Start Date: 2025-05-08
End Date: 2027-05-07
Contract Duration: 729 days
Daily Burn Rate: $7.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SSES TO SYSTEMS ARCHITECTURE AND ENGINEERING (SAE)(TO 11)
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $5.2 million to THE AEROSPACE CORPORATION for work described as: SSES TO SYSTEMS ARCHITECTURE AND ENGINEERING (SAE)(TO 11) Key points: 1. Significant award to a single contractor for R&D services. 2. Sole-source nature raises questions about competition and potential cost efficiencies. 3. Long-term contract (729 days) suggests critical, ongoing needs. 4. Focus on systems architecture and engineering points to complex technical requirements.
Value Assessment
Rating: questionable
The contract value of $516M for 729 days is substantial. Without comparable sole-source contracts for similar R&D services, it's difficult to assess if this pricing is competitive. The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from obtaining the best possible price through competitive bidding. The justification for sole-source is critical for understanding the necessity.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed contract. Effective oversight is needed to mitigate potential overspending.
Public Impact
Impacts NOAA's ability to advance critical research and development in physical, engineering, and life sciences. Ensures continuity of essential systems architecture and engineering expertise. Potential for innovation and technological advancement within the agency. Raises concerns about taxpayer value due to the sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee can incentivize higher costs.
- Long duration may not reflect current market conditions.
Positive Signals
- Addresses critical R&D needs.
- Ensures continuity of specialized expertise.
- Potential for significant technological advancements.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Federal spending in this area is crucial for innovation but requires careful management to ensure value. Benchmarks for similar sole-source R&D contracts are often difficult to establish.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss=false, sb=false). This suggests the scope or nature of the work requires specialized capabilities typically held by larger, established firms.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Commerce and NOAA to ensure the contractor is performing effectively and that costs are reasonable and allocable. Transparency in the justification for sole-source is paramount.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Significant contract value
Tags
research-and-development-in-the-physical, department-of-commerce, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $5.2 million to THE AEROSPACE CORPORATION. SSES TO SYSTEMS ARCHITECTURE AND ENGINEERING (SAE)(TO 11)
Who is the contractor on this award?
The obligated recipient is THE AEROSPACE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $5.2 million.
What is the period of performance?
Start: 2025-05-08. End: 2027-05-07.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government should conduct thorough cost analyses, benchmark against similar (if available) sole-source contracts, and implement stringent monitoring of the Cost Plus Fixed Fee elements throughout the contract's life.
How will NOAA ensure the long-term effectiveness and value of this systems architecture and engineering support, given the lack of competitive pressure?
NOAA can ensure effectiveness and value through strong contract management, including detailed performance metrics, regular progress reviews, and clear deliverables. Establishing independent cost estimates and actively managing the fixed fee component will be crucial. Furthermore, periodic market research should be conducted to assess if competition might be feasible for future contract actions.
What is the potential impact on future R&D capabilities if similar contracts continue to be awarded sole-source without exploring competitive alternatives?
A continued pattern of sole-source awards in critical R&D areas could stifle innovation by limiting the pool of contractors and potentially leading to complacency among incumbent providers. It may also result in higher long-term costs for the government and taxpayers, as competitive pressures that drive efficiency and cost-effectiveness are absent.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1332KP25R0011
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2310 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,163,064
Exercised Options: $5,163,064
Current Obligation: $5,163,064
Actual Outlays: $1,371,432
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 1332KP22DNEEG0002
IDV Type: IDC
Timeline
Start Date: 2025-05-08
Current End Date: 2027-05-07
Potential End Date: 2027-05-07 00:00:00
Last Modified: 2026-03-27
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