NASA awards $7.8M for advanced research and technology development of the DISKSAT system concept

Contract Overview

Contract Amount: $7,838,679 ($7.8M)

Contractor: THE Aerospace Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2022-04-28

End Date: 2026-02-27

Contract Duration: 1,401 days

Daily Burn Rate: $5.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE CONTRACTOR SHALL PROVIDE ENGINEERING/SCIENTIFIC SERVICES FOR ADVANCED RESEARCH AND TECHNOLOGY DEVELOPMENT TO DEFINE AND PROVE THE NEW DISKSAT SYSTEM CONCEPT.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $7.8 million to THE AEROSPACE CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE ENGINEERING/SCIENTIFIC SERVICES FOR ADVANCED RESEARCH AND TECHNOLOGY DEVELOPMENT TO DEFINE AND PROVE THE NEW DISKSAT SYSTEM CONCEPT. Key points: 1. Contract focuses on early-stage research and development, indicating a high degree of technical uncertainty. 2. The contractor, The Aerospace Corporation, has a history of performing similar advanced research. 3. The contract type (Cost Plus Fixed Fee) is common for R&D but can carry cost overrun risks. 4. The specific system, DISKSAT, is not widely known, suggesting a novel or niche application. 5. The duration of the contract (1401 days) is substantial for an R&D effort, implying complex development.

Value Assessment

Rating: fair

The contract value of $7.8 million for advanced R&D over approximately 3.8 years appears reasonable given the nature of the work. However, without specific benchmarks for the DISKSAT system or comparable advanced research projects, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee structure means costs are reimbursed, plus a fixed fee, which can lead to cost growth if not managed carefully. Benchmarking against similar NASA R&D contracts for novel system development would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for sole-sourcing is not provided in the data, which raises questions about whether full and open competition was explored. Sole-source awards can sometimes lead to higher prices and reduced innovation compared to competitive procurements, especially if there isn't a clear justification for the lack of competition.

Taxpayer Impact: Taxpayers may not have received the best possible price or innovative solutions due to the absence of a competitive bidding process.

Public Impact

The primary beneficiaries are likely NASA's research and development initiatives, aiming to advance space technology. The services delivered involve engineering and scientific expertise for defining and proving a new system concept. The geographic impact is centered in California, where the contractor is located. Workforce implications include employment for specialized engineers and scientists involved in advanced research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced aerospace R&D is characterized by specialized firms, government labs, and academic institutions. NASA is a major spender in this area, often funding high-risk, high-reward projects. Comparable spending benchmarks would involve looking at other NASA contracts for novel system concept development or advanced technology maturation.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is not a small business set-aside and the contractor is a large entity. There is no explicit mention of subcontracting plans for small businesses. This suggests that the direct impact on the small business ecosystem for this specific award may be limited, unless The Aerospace Corporation voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officers and program managers. Given it's a Cost Plus Fixed Fee R&D contract, rigorous oversight of expenditures, progress, and adherence to the Statement of Work is crucial. Transparency is facilitated through contract reporting mechanisms, though specific details on public access to progress reports are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

research-and-development, nasa, aerospace-corporation, california, cost-plus-fixed-fee, sole-source, delivery-order, advanced-technology, space-systems, engineering-services

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $7.8 million to THE AEROSPACE CORPORATION. THE CONTRACTOR SHALL PROVIDE ENGINEERING/SCIENTIFIC SERVICES FOR ADVANCED RESEARCH AND TECHNOLOGY DEVELOPMENT TO DEFINE AND PROVE THE NEW DISKSAT SYSTEM CONCEPT.

Who is the contractor on this award?

The obligated recipient is THE AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2022-04-28. End: 2026-02-27.

What is the specific nature and purpose of the DISKSAT system?

The provided data does not detail the specific nature or purpose of the DISKSAT system. It is described only as a 'new DISKSAT system concept' for which 'engineering/scientific services for advanced research and technology development' are being procured. Without further information from NASA or The Aerospace Corporation, the exact function, application, or intended outcome of DISKSAT remains unknown. This lack of transparency regarding the system itself makes it difficult to fully assess the contract's objectives or potential impact.

How does the $7.8 million contract value compare to similar R&D efforts for novel space systems?

Benchmarking the $7.8 million contract value against similar R&D efforts for novel space systems is challenging without access to a comprehensive database of comparable contracts. However, for advanced research and technology development of a new system concept, this value appears within a reasonable range, especially considering the potential complexity and specialized expertise required. NASA often invests millions in early-stage R&D for future space missions. The Cost Plus Fixed Fee structure, while common, necessitates careful monitoring to ensure costs remain aligned with the project's progress and objectives. A more precise comparison would require identifying contracts with similar technical scope, risk profiles, and development phases.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with this CPFF contract for R&D revolve around cost control and performance. For the government, the main risk is that the contractor may incur costs exceeding initial estimates, although the fixed fee provides some predictability for the contractor's profit. The CPFF structure can incentivize cost incurrence, as the contractor is reimbursed for allowable costs. Effective oversight is critical to ensure costs are reasonable and allocable to the contract. For the contractor, the risk lies in accurately estimating the effort required and managing technical challenges within the defined scope to achieve the fixed fee. Given this is for 'advanced research and technology development,' the inherent technical risks of achieving the DISKSAT system concept are also significant.

What is The Aerospace Corporation's track record in performing advanced research and technology development for NASA?

The Aerospace Corporation is a federally funded research and development center (FFRDC) that provides objective technical advice and analysis to the government, particularly in space systems. They have a long-standing relationship with NASA and the Department of Defense, specializing in advanced research, engineering, and technology development. Their track record in performing complex R&D, especially related to space systems and mission assurance, is generally strong. While specific project details are not provided here, their designation as an FFRDC implies a capability and history of handling sensitive and advanced technological endeavors for government agencies like NASA.

Given the sole-source nature, what is the justification for not competing this contract?

The provided data indicates the contract was 'NOT COMPETED,' classifying it as sole-source. However, the specific justification for this sole-source award is not included. Typically, sole-source procurements require a formal justification, such as the existence of only one responsible source capable of providing the required services, or in certain R&D scenarios, the need for continuity with prior research or unique expertise. Without this justification, it is impossible to assess whether the government adequately explored competitive options or if there were valid reasons for direct negotiation with The Aerospace Corporation. This lack of transparency regarding the justification is a common concern with sole-source awards.

What are the potential long-term implications of the DISKSAT system development for NASA's future capabilities?

The long-term implications of the DISKSAT system development depend entirely on the nature and success of the system itself, which is not detailed in the provided data. If DISKSAT represents a breakthrough in a critical area like satellite technology, data processing, or a new mission capability, its successful development could significantly enhance NASA's future operational capacity, scientific research potential, or technological leadership. Conversely, if the R&D proves unsuccessful or the system has limited applicability, the long-term impact might be minimal beyond the knowledge gained. The substantial investment and duration suggest NASA anticipates a potentially significant contribution to its long-term strategic goals.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 80ARC022F0002-RFP

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2310 EAST 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: $7,838,679

Exercised Options: $7,838,679

Current Obligation: $7,838,679

Actual Outlays: $7,686,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 80GSFC19D0011

IDV Type: IDC

Timeline

Start Date: 2022-04-28

Current End Date: 2026-02-27

Potential End Date: 2026-02-27 00:00:00

Last Modified: 2025-12-22

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