NASA's $48.2M NSEETS Contract Awarded to The Aerospace Corporation, Lacking Competition
Contract Overview
Contract Amount: $48,220,358 ($48.2M)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-10-01
End Date: 2028-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $33.0K/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: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $48.2 million to THE AEROSPACE CORPORATION for work described as: NASA-WIDE SPECIALIZED ENGINEERING, EVALUATION AND TEST SERVICES (NSEETS). Key points: 1. The contract is for specialized engineering, evaluation, and test services. 2. Awarded to The Aerospace Corporation, a single source. 3. Significant taxpayer investment of $48.2 million over nearly 5 years. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The total award value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a nearly $50 million contract raises concerns about the efficient use of taxpayer funds.
Public Impact
NASA relies on these specialized services for critical engineering and testing. The lack of competition could impact the pace of innovation if better solutions exist elsewhere. Taxpayers may be overpaying for services due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Essential services for NASA's mission
- Long-term contract provides stability
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which is a missed opportunity for economic inclusion.
Oversight & Accountability
The sole-source nature of this award warrants close scrutiny from oversight bodies to ensure the pricing and performance are justified and that future procurements are competed where possible.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Cost-plus contract type can lead to cost overruns.
- Lack of small business participation.
- Limited transparency on pricing justification.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $48.2 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 $48.2 million.
What is the period of performance?
Start: 2024-10-01. End: 2028-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. Without further details on the justification, it's difficult to assess the fairness of the pricing. NASA should provide documentation demonstrating why competition was not feasible and how the fixed fee was determined to be reasonable.
What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized R&D services?
Cost Plus Fixed Fee contracts carry risks of cost overruns if the contractor's costs exceed projections, although the fixed fee provides some predictability. For specialized R&D, defining the scope and estimating costs accurately can be challenging, potentially leading to scope creep or inefficiencies. Robust oversight is crucial to manage these risks effectively.
How does this contract contribute to NASA's overall mission effectiveness and technological advancement?
Specialized engineering, evaluation, and test services are fundamental to NASA's mission success, ensuring the reliability and safety of complex systems and technologies. While the specific contributions depend on the projects undertaken, these services are vital for validating designs, troubleshooting issues, and advancing scientific and engineering frontiers.
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 › Space R&D Services
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: $60,000,000
Exercised Options: $60,000,000
Current Obligation: $48,220,358
Actual Outlays: $35,774,401
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $751,798
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: 2024-10-01
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-04-10
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