NASA awards $8.7M contract for DRAMS electronics modules to University of Michigan

Contract Overview

Contract Amount: $8,669,990 ($8.7M)

Contractor: Regents of the University of Michigan

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-03-25

End Date: 2026-04-30

Contract Duration: 1,862 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Official Description: DRAGONFLY MASS SPECTROMETER (DRAMS), ELECTRONICS MODULES (EM)

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48109

State: Michigan Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $8.7 million to REGENTS OF THE UNIVERSITY OF MICHIGAN for work described as: DRAGONFLY MASS SPECTROMETER (DRAMS), ELECTRONICS MODULES (EM) Key points: 1. Contract awarded for specialized electronics modules, indicating a need for advanced components in space exploration. 2. The award to a university suggests a focus on research and development capabilities. 3. The contract duration of over 5 years points to a long-term project requirement. 4. The specific nature of the 'DRAGONFLY MASS SPECTROMETER' implies a niche application. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $8.7 million for specialized electronics modules appears reasonable given the niche nature of the equipment and the long performance period. Benchmarking against similar R&D contracts for space-grade components is difficult without more specific cost breakdowns. However, the 'COST NO FEE' contract type suggests that the government will reimburse the contractor for allowable costs, which can sometimes lead to higher overall spending if not carefully managed. Further analysis of the contractor's historical performance and cost proposals would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows two bids were received. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the low number of bids (two) might suggest limitations in the market for such specialized components or potential barriers to entry for other qualified contractors. This could warrant a review of the solicitation process to ensure it was accessible to all capable firms.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions compared to sole-source awards.

Public Impact

The primary beneficiary is NASA, which will receive the DRAMS electronics modules for its space exploration missions. The services delivered include the manufacturing and provision of critical electronic components for scientific instruments. The geographic impact is concentrated in Michigan, where the University of Michigan is located. Workforce implications may include specialized engineering and manufacturing jobs at the university or its affiliated research centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of specialized electronic components for scientific instruments. The market for such high-precision, space-qualified electronics is typically niche, dominated by a few key players or research institutions with specific expertise. Spending in this area is driven by the demands of government space agencies for advanced research and exploration missions. Comparable spending benchmarks would likely involve other contracts for scientific payload components or specialized sensor systems.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). Given the specialized nature of the DRAMS electronics modules, it's possible that the primary contractor, a university, may not have extensive subcontracting relationships with small businesses for this specific type of work. Further investigation into the contractor's subcontracting plan would be necessary to understand the impact on the small business ecosystem and to identify any missed opportunities for small business involvement.

Oversight & Accountability

Oversight for this contract will primarily be conducted by the National Aeronautics and Space Administration (NASA). As a 'COST NO FEE' contract, NASA will be responsible for monitoring the contractor's allowable costs to ensure they are reasonable and allocable to the contract. Transparency will depend on NASA's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

nasa, space-exploration, electronics-manufacturing, research-and-development, university-contractor, cost-plus, full-and-open-competition, michigan, scientific-instrumentation, aerospace

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $8.7 million to REGENTS OF THE UNIVERSITY OF MICHIGAN. DRAGONFLY MASS SPECTROMETER (DRAMS), ELECTRONICS MODULES (EM)

Who is the contractor on this award?

The obligated recipient is REGENTS OF THE UNIVERSITY OF MICHIGAN.

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 $8.7 million.

What is the period of performance?

Start: 2021-03-25. End: 2026-04-30.

What is the specific function of the DRAGONFLY MASS SPECTROMETER (DRAMS) electronics modules, and how do they contribute to NASA's mission objectives?

The DRAGONFLY MASS SPECTROMETER (DRAMS) is a scientific instrument designed to analyze the composition of matter. The electronics modules (EM) are critical components that control the instrument's operation, process data, and interface with other spacecraft systems. These modules are essential for enabling detailed chemical analysis of extraterrestrial environments, such as those explored by NASA's planetary science missions. Their contribution to mission objectives lies in providing the scientific data necessary to understand planetary formation, search for signs of life, and assess habitability. The specific mission for which these DRAMS modules are intended would provide further context on their precise role and importance.

How does the 'COST NO FEE' contract type impact the government's financial risk and oversight requirements compared to other contract types?

The 'COST NO FEE' (CNF) contract type is a variation of a cost-reimbursement contract where the contractor is reimbursed for all allowable costs but receives no fee or profit. This contract type is typically used when the scope of work is uncertain or when the contractor is a non-profit organization, such as a university, that does not typically operate for profit. From a financial risk perspective for the government, CNF contracts can be advantageous as they eliminate the contractor's profit motive, potentially leading to lower overall costs. However, they place a significant burden on the government for oversight. NASA must rigorously monitor and audit the contractor's incurred costs to ensure they are reasonable, allocable, and allowable under the contract terms. This requires robust accounting systems and diligent auditing processes to prevent cost overruns and ensure value for taxpayer money.

What are the implications of awarding this contract to a university (Regents of the University of Michigan) versus a traditional defense contractor?

Awarding this contract to a university like the University of Michigan suggests a focus on specialized research and development capabilities rather than large-scale production. Universities often possess cutting-edge expertise in specific scientific or engineering fields and may be more agile in adapting to evolving research requirements. This can be particularly beneficial for developing novel technologies or complex scientific instruments like the DRAMS. However, universities may have less experience with the stringent manufacturing, quality control, and supply chain management processes typically required for aerospace components compared to established defense contractors. NASA's oversight would need to ensure that the university meets all necessary technical and quality standards throughout the contract performance period.

Given the 'FULL AND OPEN COMPETITION' and only two bids, what factors might explain the limited number of competitors for this specialized component?

Several factors could explain the limited number of competitors (two bids) for this specialized component, despite full and open competition. Firstly, the market for highly specialized electronics modules for mass spectrometers, particularly those intended for space applications, is inherently niche. Only a few organizations worldwide may possess the requisite technical expertise, facilities, and experience to develop and manufacture such components to NASA's exacting standards. Secondly, the solicitation requirements themselves might have been highly specific, inadvertently limiting the pool of eligible bidders. Finally, the cost and effort involved in preparing a competitive bid for such a complex project could deter potential offerors if they perceive their chances of success as low or if the potential profit margin is insufficient.

What is the historical spending pattern for similar 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' contracts by NASA?

Analyzing NASA's historical spending patterns for 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' (NAICS code 336419) would reveal trends in procurement for specialized components. This specific contract for DRAMS electronics modules represents a small fraction of NASA's overall budget. Historically, NASA procures a wide array of parts and auxiliary equipment, ranging from structural components to complex sensor systems. Spending in this category can fluctuate based on the number and scale of active space missions, research initiatives, and technology development programs. A detailed analysis would require examining contract databases over several fiscal years to identify average contract values, common types of equipment procured, and the primary contractors or research institutions involved in this sector.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 503 THOMPSON ST, ANN ARBOR, MI, 48109

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $8,669,990

Exercised Options: $8,669,990

Current Obligation: $8,669,990

Actual Outlays: $8,351,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-03-25

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 00:00:00

Last Modified: 2026-03-11

More Contracts from Regents of the University of Michigan

View all Regents of the University of Michigan federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending