NASA's $141M engineering services contract awarded to The Aerospace Corporation, primarily for R&D
Contract Overview
Contract Amount: $140,976,530 ($141.0M)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2025-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $64.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NASA-WIDE SPECIALIZED ENGINEERING, EVALUATION AND TEST SERVICES (NSEETS)
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $141.0 million to THE AEROSPACE CORPORATION for work described as: NASA-WIDE SPECIALIZED ENGINEERING, EVALUATION AND TEST SERVICES (NSEETS) Key points: 1. Contract focuses on specialized engineering, evaluation, and testing, crucial for NASA's complex missions. 2. Awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 3. The contract duration of nearly six years suggests a long-term need for these specialized services. 4. Performance is situated within the Research and Development sector, specifically physical, engineering, and life sciences. 5. The single awardee, The Aerospace Corporation, likely possesses unique capabilities essential for NASA's requirements. 6. Cost-plus-fixed-fee contract type indicates that costs are reimbursed, plus a fixed fee for profit, which can incentivize cost control.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without comparable bids. The cost-plus-fixed-fee structure means NASA reimburses costs plus a negotiated profit. While this can be appropriate for R&D where costs are uncertain, it requires diligent oversight to ensure costs remain reasonable. Without competition, it's difficult to definitively assess if the pricing represents the best value for taxpayers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning NASA did not conduct a competitive bidding process. This typically occurs when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition limits price discovery and may result in higher costs than if multiple vendors had vied for the contract.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding environment.
Public Impact
The primary beneficiaries are NASA's various research and engineering divisions, which receive critical support for their projects. Services delivered include specialized engineering, evaluation, and testing, essential for the development and validation of space technologies and missions. The contract's impact is national, supporting NASA's overarching goals in space exploration and scientific discovery. Workforce implications include the employment of highly skilled engineers and technical specialists at The Aerospace Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee structure requires robust cost monitoring to prevent overruns.
- Lack of transparency in the sole-source justification process.
Positive Signals
- The Aerospace Corporation is a well-established entity with a strong track record in aerospace research and development.
- Specialized nature of services suggests a critical need that only a few entities can fulfill.
- Long-term contract indicates a stable and ongoing requirement for these vital support functions.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation, high technical expertise, and often long development cycles. NASA's spending in this area is critical for maintaining its technological edge in space exploration and scientific advancement. Comparable spending benchmarks are difficult to establish due to the specialized nature of the services and the sole-source award.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, The Aerospace Corporation, is a large entity. There is no explicit information provided regarding subcontracting plans with small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program managers. Given the cost-plus-fixed-fee structure, rigorous monitoring of incurred costs and adherence to the fixed fee is crucial. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Space Technology Development
- Scientific and Technical Consulting Services
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competitive benchmarking
Tags
nasa, research-and-development, engineering-services, specialized-services, sole-source, cost-plus-fixed-fee, aerospace-corporation, maryland, federal-contract, r&d, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $141.0 million to THE AEROSPACE CORPORATION. NASA-WIDE SPECIALIZED ENGINEERING, EVALUATION AND TEST SERVICES (NSEETS)
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 $141.0 million.
What is the period of performance?
Start: 2019-10-01. End: 2025-09-30.
What is the specific expertise of The Aerospace Corporation that led to this sole-source award?
The Aerospace Corporation is a non-profit organization that operates a federally funded research and development center (FFRDC) for the U.S. Department of Defense and the intelligence community, with a significant focus on space systems. Its expertise spans a wide range of aerospace disciplines, including space systems engineering, space science, satellite technology, and advanced research. For NASA, this likely translates to highly specialized knowledge in areas such as mission design, systems integration, advanced propulsion, space environment effects, and rigorous testing and evaluation protocols that are critical for complex space missions. The sole-source justification would typically detail how these unique capabilities, often developed through prior government support or specific institutional knowledge, are essential and not readily available from other sources.
How does the cost-plus-fixed-fee (CPFF) structure typically influence contractor behavior and cost management in R&D contracts?
The Cost-Plus-Fixed-Fee (CPFF) contract type is common in R&D where the scope of work and associated costs can be uncertain. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee does not increase with costs. However, it also places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. Without strong oversight, there's a risk of cost escalation. For NASA, this means diligent tracking of labor hours, materials, and other direct/indirect costs associated with the specialized engineering, evaluation, and testing services.
What are the potential risks associated with a sole-source award for specialized engineering services?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for innovation or efficiency. Taxpayers may end up paying more than they would in a competitive scenario. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility or access to alternative solutions. Furthermore, without the vetting process inherent in competition, there's a slightly elevated risk of selecting a contractor whose capabilities might not be as robust as initially perceived, although this is mitigated by The Aerospace Corporation's established reputation. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations.
How does this contract align with NASA's broader strategic objectives in space exploration and R&D?
This contract directly supports NASA's strategic objectives by providing essential specialized engineering, evaluation, and testing services. These services are fundamental to the design, development, and validation of technologies required for NASA's ambitious missions, whether they involve human spaceflight, robotic exploration, Earth science, or astrophysics. By ensuring that critical systems and components undergo rigorous testing and evaluation, NASA can mitigate risks, enhance mission success rates, and push the boundaries of scientific discovery. The R&D focus ensures that NASA remains at the forefront of technological innovation, which is a core tenet of its mission.
What historical spending patterns exist for similar specialized engineering and testing services at NASA?
Analyzing historical spending patterns for highly specialized, sole-source engineering and testing services at NASA is complex due to the unique nature of such contracts. Generally, NASA consistently invests significant resources in R&D and specialized technical support to maintain its leadership in space exploration. Contracts for services like those provided by The Aerospace Corporation are often long-term and awarded to entities with established FFRDC or similar unique relationships. While specific dollar amounts fluctuate based on mission needs and program lifecycles, there is a clear and continuous requirement for these high-level technical capabilities. Trends might show an increasing emphasis on advanced materials, AI/ML in engineering, and complex systems integration, reflecting evolving technological landscapes.
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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $305,000,000
Exercised Options: $305,000,000
Current Obligation: $140,976,530
Actual Outlays: $140,958,276
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $11,964,923
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: 2019-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-03-24
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