NASA awards $20.4M contract to West Virginia University for IV&V operations and maintenance
Contract Overview
Contract Amount: $20,390,397 ($20.4M)
Contractor: West Virginia University Research Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2025-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $10.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: WVU O&M 2 CONTRACT FOR OPERATION AND MAINTENANCE AT IV&V
Place of Performance
Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554
Plain-Language Summary
National Aeronautics and Space Administration obligated $20.4 million to WEST VIRGINIA UNIVERSITY RESEARCH CORPORATION for work described as: WVU O&M 2 CONTRACT FOR OPERATION AND MAINTENANCE AT IV&V Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Long-standing relationship with the contractor, raising questions about competitive pressure. 3. No small business set-aside, potentially limiting opportunities for smaller firms. 4. Services are critical for NASA's Independent Verification and Validation facility. 5. Contract duration extends over multiple years, suggesting a stable but potentially inflexible arrangement. 6. Geographic concentration of services in West Virginia.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for costs to exceed initial estimates, with the fee remaining fixed. Benchmarking against similar facilities support contracts is challenging without more detailed cost breakdowns. However, the duration and the nature of the services suggest a significant investment. The total award value of $20.4 million over its period of performance needs careful scrutiny to ensure it aligns with industry standards for similar O&M services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach bypasses the standard competitive bidding process, which typically drives down prices and fosters innovation. Without competition, there is a reduced incentive for the contractor to offer the most cost-effective solutions. The lack of competitive proposals means NASA did not benefit from a range of pricing and service options.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government loses the opportunity to secure potentially better value through a competitive process.
Public Impact
The primary beneficiary is NASA, which receives essential operational and maintenance support for its IV&V program. Services ensure the continued functioning of a critical facility for software verification and validation. The contract supports the IV&V facility located in West Virginia. Employment opportunities are likely sustained or created within the West Virginia region for facility operations and maintenance staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs than a competed contract.
- Cost-plus-fixed-fee structure can incentivize spending to reach the fee threshold.
- Long-term sole-source awards can reduce contractor urgency to innovate or optimize costs.
- Absence of small business participation could limit broader economic impact.
Positive Signals
- Contractor has a long history with NASA's IV&V program, suggesting established expertise and reliability.
- Services are critical for NASA's mission assurance, providing essential support.
- The contract ensures continuity of operations for a vital facility.
Sector Analysis
Facilities Support Services (NAICS 561210) is a broad sector encompassing a wide range of services for the operation and maintenance of buildings and other facilities. This contract falls within this sector, specifically focusing on the operational needs of a specialized government facility. The market for these services is generally competitive, but specialized government facilities often have unique requirements that can lead to less conventional contracting approaches.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses based on the provided data. This means that opportunities for small businesses to participate in this specific contract are limited. The absence of a small business focus could mean that the prime contractor retains all the work, potentially missing out on the innovation and cost efficiencies that small businesses can bring.
Oversight & Accountability
Oversight for this contract would typically fall under NASA's contracting officer and program management. The Inspector General's office may conduct audits or investigations if concerns arise regarding cost, performance, or compliance. Transparency is moderate, as contract awards are publicly reported, but detailed cost justifications for sole-source awards are often not readily available to the public.
Related Government Programs
- NASA IV&V Program
- Federal Facilities Operations and Maintenance Contracts
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Cost-plus-fixed-fee structure can lead to cost overruns.
- Long-term contract may reduce incentive for innovation.
- No small business participation noted.
Tags
nasa, facilities-support-services, west-virginia, definitive-contract, cost-plus-fixed-fee, sole-source, operations-and-maintenance, iv-and-v, research-and-development-support, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $20.4 million to WEST VIRGINIA UNIVERSITY RESEARCH CORPORATION. WVU O&M 2 CONTRACT FOR OPERATION AND MAINTENANCE AT IV&V
Who is the contractor on this award?
The obligated recipient is WEST VIRGINIA UNIVERSITY RESEARCH 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 $20.4 million.
What is the period of performance?
Start: 2019-10-01. End: 2025-03-31.
What is the historical spending trend for this specific contract or similar services at the IV&V facility?
The provided data indicates this is the second contract for WVU O&M at the IV&V facility, with the first contract (ID 10155) having a duration of 2008 years, suggesting a long-standing relationship. While the exact historical spending for the first contract isn't detailed, the current award of $20.4 million for a period ending March 31, 2025, implies a significant and consistent investment in these services. Further analysis would require accessing historical contract data to track year-over-year spending, identify any cost escalations, and understand the cumulative investment in maintaining the IV&V facility over time. This historical context is crucial for assessing the long-term value and financial commitment.
How does the pricing structure (Cost Plus Fixed Fee) compare to industry benchmarks for similar facilities support services?
Cost Plus Fixed Fee (CPFF) contracts are common in government contracting, especially for services where the scope may evolve or is difficult to define precisely upfront. However, CPFF contracts carry inherent risks of cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Benchmarking this specific contract's pricing requires detailed cost data, which is not provided. Generally, industry benchmarks suggest that competitive bidding often yields lower overall costs than sole-source CPFF contracts. Without comparative bids or detailed cost breakdowns, it's difficult to definitively state if this contract's pricing is optimal. NASA's internal cost estimation and should-cost analyses would be key to assessing value.
What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate the contractor's success?
The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for Facilities Support Services, KPIs might include response times for maintenance requests, uptime of critical systems, energy efficiency targets, safety incident rates, and customer satisfaction scores. NASA's contract management team would be responsible for monitoring these metrics and ensuring the contractor meets the established standards. The effectiveness of the contract is directly tied to how rigorously these performance standards are defined, measured, and enforced. Without this information, assessing the contractor's performance and the overall success of the contract is challenging.
What is the rationale behind the sole-source award, and why was competition deemed unnecessary or impractical?
The rationale for a sole-source award is typically documented by the procuring agency, often citing reasons such as urgency, unique capabilities of a single source, or that the cost of competition would outweigh the benefits. For this NASA contract, the long-standing relationship with West Virginia University Research Corporation for IV&V operations and maintenance might suggest a unique institutional knowledge or specialized infrastructure that is difficult to replicate. However, without the agency's formal justification (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it remains speculative. The absence of competition means taxpayers do not benefit from the price discovery and potential cost savings that a competitive process could provide.
What are the potential risks associated with the long duration and sole-source nature of this contract?
The primary risks associated with a long-duration, sole-source contract include potential cost inefficiencies, reduced incentive for innovation, and a lack of market discipline. Since the contractor is the only option, there's less pressure to optimize costs or adopt new technologies. Over time, the fixed fee might not adequately reflect the actual effort required, or conversely, the contractor might not be motivated to perform beyond the minimum requirements. Furthermore, a sole-source award prevents NASA from benefiting from potentially better solutions or pricing that could emerge from a competitive bidding process. This can lead to a higher overall cost to the government and taxpayers over the life of the contract.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 80GSFC18R0033
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 886 CHESTNUT RIDGE, MORGANTOWN, WV, 26506
Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,947,957
Exercised Options: $24,947,957
Current Obligation: $20,390,397
Actual Outlays: $20,359,882
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-10-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2026-02-11
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