NASA awards $17.6M contract for navigational systems, with Kinetx Inc. as the sole awardee
Contract Overview
Contract Amount: $17,588,120 ($17.6M)
Contractor: Kinetx Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2018-05-01
End Date: 2033-06-16
Contract Duration: 5,525 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LUCY FLIGHT DYNAMICS SYSTEMS NAVIGATIONAL PHASE B/C/D/E
Place of Performance
Location: TEMPE, MARICOPA County, ARIZONA, 85284
State: Arizona Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $17.6 million to KINETX INC for work described as: LUCY FLIGHT DYNAMICS SYSTEMS NAVIGATIONAL PHASE B/C/D/E Key points: 1. Contract value appears reasonable given the long performance period and complex nature of aerospace navigation. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns. 4. Performance is spread over 15 years, indicating a long-term strategic investment by NASA. 5. This contract falls within the Engineering Services sector, supporting critical mission functions. 6. The awardee, Kinetx Inc., has a history of providing specialized aerospace services.
Value Assessment
Rating: good
The $17.6 million award for navigational systems over a 15-year period represents a significant investment. While direct comparisons are difficult without more specific contract details, the phased approach (Phase B/C/D/E) suggests a structured development process. The Cost Plus Fixed Fee structure, common in R&D and complex projects, allows for flexibility but requires diligent oversight to manage costs effectively. Benchmarking against similar long-term, multi-phase aerospace navigation contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that NASA sought proposals from all responsible sources. The presence of 5 bids suggests a healthy level of interest and competition for this specialized service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and technical solution for essential navigational system development.
Public Impact
The primary beneficiary is NASA, which will receive advanced navigational capabilities for its missions. Services delivered include the development and sustainment of navigational systems across multiple project phases. The contract is geographically focused on Arizona, where Kinetx Inc. is located. This contract supports specialized engineering and technical jobs within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to higher final costs if not managed closely.
- Long contract durations increase the risk of scope creep or evolving technological requirements.
- Sole awardee for a significant portion of the work could limit future competitive opportunities if not managed proactively.
Positive Signals
- Full and open competition suggests a robust initial bidding process.
- The phased approach (B/C/D/E) indicates a structured and well-planned project lifecycle.
- The long duration allows for sustained development and integration of complex systems.
Sector Analysis
This contract operates within the aerospace engineering services sector, a highly specialized and technologically advanced field. The market is characterized by a limited number of highly capable firms due to stringent technical requirements and security clearances. NASA's spending in this area is critical for maintaining its technological edge and mission success. Comparable spending benchmarks would likely be found in other large-scale aerospace development programs, often involving multi-year, multi-phase contracts.
Small Business Impact
There is no indication of a small business set-aside for this contract, and the prime contractor, Kinetx Inc., is not typically classified as a small business. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The focus appears to be on securing specialized capabilities from established firms.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program management teams. Given the Cost Plus Fixed Fee structure, rigorous financial and performance monitoring is expected to ensure adherence to budget and technical milestones. Transparency is facilitated through NASA's public contract awards database, though detailed performance reports are typically internal.
Related Government Programs
- NASA Navigation Systems Development
- Aerospace Engineering Services Contracts
- Cost Plus Fixed Fee Contracts
- Long-Term Technology Development Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration (15 years) increases exposure to changing requirements and technological obsolescence.
- Sole awardee for a significant portion of the work could indicate limited competition or specialized nature of services.
Tags
nasa, engineering-services, navigational-systems, kinetx-inc, cost-plus-fixed-fee, full-and-open-competition, definitive-contract, arizona, research-and-development, aerospace, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $17.6 million to KINETX INC. LUCY FLIGHT DYNAMICS SYSTEMS NAVIGATIONAL PHASE B/C/D/E
Who is the contractor on this award?
The obligated recipient is KINETX INC.
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 $17.6 million.
What is the period of performance?
Start: 2018-05-01. End: 2033-06-16.
What is Kinetx Inc.'s track record with NASA and similar government contracts?
Kinetx Inc. has a demonstrated history of working with NASA and other government agencies on complex aerospace projects, particularly in the areas of navigation, guidance, and control systems. Their expertise is often sought for missions requiring high precision and reliability. Reviewing past performance evaluations and contract history with NASA would reveal their success rate, adherence to schedule and budget, and overall quality of deliverables on previous engagements. This specific contract builds upon their established capabilities, suggesting a level of trust and proven performance in delivering specialized engineering services critical to space exploration and operations.
How does the $17.6 million cost compare to similar navigational system development contracts?
Benchmarking the $17.6 million cost requires comparing it against contracts for similar scope, complexity, and duration within the aerospace sector. Given that this contract spans 15 years and covers multiple development phases (B/C/D/E) for advanced navigational systems, the total value appears to be spread over a significant period. Contracts for developing foundational technologies or mission-critical systems often involve substantial investment. Without access to proprietary data or a detailed breakdown of the work packages, a precise value-for-money assessment is challenging. However, the full and open competition with multiple bidders suggests that the pricing was considered competitive at the time of award.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, while the contractor's fee remains fixed. This structure incentivizes the contractor to control costs to some extent, but it shifts the financial risk of unforeseen expenses to the government. Effective oversight, detailed cost tracking, and robust change management processes are crucial to mitigate these risks and ensure the project stays within budgetary expectations.
How effective is the phased approach (B/C/D/E) in managing the development of these navigational systems?
The phased approach (Phases B/C/D/E) is a standard and effective methodology for managing complex, long-term development projects like advanced navigational systems. Phase B typically involves preliminary design and technology development, Phase C focuses on detailed design, Phase D encompasses full system development and testing, and Phase E often involves operations and sustainment. This incremental structure allows NASA to evaluate progress, make necessary adjustments, and control funding at key milestones before committing to subsequent, more expensive phases. It provides opportunities for risk reduction and ensures that the technology matures appropriately, aligning with mission requirements and technological advancements over the extended contract duration.
What are historical spending patterns for NASA's navigational system procurements?
NASA's historical spending on navigational systems reflects a consistent investment in cutting-edge technology to support its diverse missions, from Earth observation to deep space exploration. Procurement patterns often involve multi-year, high-value contracts awarded through competitive processes to specialized aerospace firms. Spending can fluctuate based on the agency's strategic priorities, upcoming missions, and technological advancements. Contracts like this one, spanning multiple development phases and long durations, are typical for foundational system development. Analyzing past budgets allocated to similar R&D and engineering services procurements can provide context for the scale and nature of NASA's ongoing investment in navigation technology.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: NNH14ZDA014O
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 950 W ELLIOT RD, TEMPE, AZ, 85284
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,880,288
Exercised Options: $33,880,288
Current Obligation: $17,588,120
Actual Outlays: $15,205,384
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-05-01
Current End Date: 2033-06-16
Potential End Date: 2033-06-16 00:00:00
Last Modified: 2025-09-26
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