NASA awards $7.7M contract to Southwest Research Institute for space vehicle ground support and operations

Contract Overview

Contract Amount: $7,745,500 ($7.7M)

Contractor: Southwest Research Institute

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2025-01-22

End Date: 2034-01-31

Contract Duration: 3,296 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, VERIFY, EVALUATE, SUPPORT LAUNCH, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT MISSION OPERATIONS AT NOSF.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78238

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $7.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, VERIFY, EVALUATE, SUPPORT LAUNCH, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT MISSION OPERATIONS AT NOSF. Key points: 1. Contract focuses on critical ground support equipment and mission operations for space vehicles. 2. Long-term contract duration of nearly 9 years suggests a need for sustained support. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 4. Competition was full and open, indicating a potentially competitive bidding process. 5. The awardee, Southwest Research Institute, has a history of supporting complex aerospace projects. 6. Geographic concentration in Texas for contract performance.

Value Assessment

Rating: good

The contract value of $7.7 million over nearly 9 years appears reasonable for specialized aerospace support services. Benchmarking against similar NASA contracts for ground support equipment (GSE) and mission operations is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure suggests that costs will be reimbursed, plus a fixed fee for profit, which is common for development and integration efforts where final costs are uncertain. The fixed fee component provides some cost control for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 3 bids received. This indicates a healthy level of interest and a competitive process for this specialized service. The presence of multiple bidders suggests that NASA sought a broad range of capabilities and likely received competitive proposals, which should contribute to fair pricing and optimal selection of a contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors, ensuring the government receives the best value.

Public Impact

The primary beneficiaries are NASA and its space exploration missions, which will receive essential ground support and operational services. Services include the design, analysis, development, fabrication, integration, testing, and maintenance of instrument ground support equipment. The contract also covers support for mission operations at the NASA Oceanographic and Space Science Facility (NOSF). Performance is concentrated in Texas, potentially creating or sustaining jobs in the state's aerospace sector. The long duration of the contract provides stability for the contractor and ensures continuity of critical support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of the aerospace industry. This sector is characterized by high technical requirements, significant R&D investment, and stringent quality control. Spending in this area is often project-driven and tied to specific government programs. Comparable spending benchmarks would typically involve other NASA or Department of Defense contracts for similar GSE development, integration, and mission support services, which often run into millions of dollars due to the complexity and criticality involved.

Small Business Impact

The contract data indicates that small business participation (ss: false) and set-asides (sb: false) were not applicable to this award. This suggests the contract was not specifically targeted towards small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract appears limited, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will primarily be managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Fixed Fee contract, NASA will need to closely monitor all incurred costs to ensure they are reasonable and allocable to the contract scope. Performance metrics and milestones outlined in the contract will be crucial for assessing progress and ensuring timely delivery of services. Transparency is expected through regular reporting requirements from the contractor and potential reviews by NASA's program management and potentially its Office of Inspector General if significant issues arise.

Related Government Programs

Risk Flags

Tags

nasa, aerospace, ground-support-equipment, mission-operations, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, southwest-research-institute, texas, space-vehicle-manufacturing, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $7.7 million to SOUTHWEST RESEARCH INSTITUTE. DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, VERIFY, EVALUATE, SUPPORT LAUNCH, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT MISSION OPERATIONS AT NOSF.

Who is the contractor on this award?

The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.

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 $7.7 million.

What is the period of performance?

Start: 2025-01-22. End: 2034-01-31.

What is Southwest Research Institute's track record with NASA and similar government contracts?

Southwest Research Institute (SwRI) has a well-established track record of supporting NASA and other government agencies on complex technical projects. They are known for their expertise in various engineering disciplines, including aerospace, mechanical, and electrical engineering. SwRI has previously been involved in developing and testing spacecraft components, scientific instruments, and ground support systems for numerous space missions. Their experience often spans research and development, fabrication, integration, and testing, aligning well with the scope of this contract. While specific contract values and performance details for all past projects are not publicly itemized here, SwRI's consistent engagement with agencies like NASA suggests a history of successful performance and reliability in delivering technical solutions for demanding programs.

How does the $7.7 million value compare to similar NASA ground support contracts?

The $7.7 million value for this nearly 9-year contract appears to be on the lower end for comprehensive ground support equipment (GSE) and mission operations support, especially considering the long duration. However, the exact scope of 'instrument ground support equipment' and the specific mission operations being supported are critical factors. NASA contracts for GSE can range from a few million dollars for specific component support to hundreds of millions for large-scale, multi-year programs involving complex launch infrastructure. Given the description, this contract likely focuses on specialized instrumentation rather than entire launch systems. Without more granular details on the complexity and number of instruments supported, a precise comparison is difficult, but the value suggests a focused scope of work.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one awarded to Southwest Research Institute, revolve around cost control and contractor efficiency. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' portion means the government reimburses actual costs incurred. If the contractor's costs are higher than anticipated due to inefficiencies, scope creep, or unforeseen technical challenges, the total contract value can increase significantly. NASA must implement robust oversight to scrutinize all claimed costs, ensure they are reasonable, allocable, and allowable, and prevent unnecessary expenditures. There's also a risk that the contractor might prioritize completing tasks to earn their fee over optimizing for the most cost-effective solutions, although the long-term nature of this contract may incentivize sustained performance.

How effective is full and open competition in ensuring value for taxpayer money in specialized aerospace contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, even in specialized fields like aerospace. By allowing all responsible sources to submit bids, it maximizes the pool of potential contractors, fostering a competitive environment that drives down prices and encourages innovation. For specialized contracts, this means NASA can identify the most capable and cost-effective providers. The fact that 3 bids were received for this contract indicates sufficient competition existed. While specialized knowledge is required, competition ensures that multiple entities are vying to provide those services, preventing a single source from dictating terms and prices, thereby safeguarding taxpayer funds.

What are the implications of the contract's long duration (nearly 9 years) for NASA and the contractor?

The long duration of this contract (ending January 31, 2034) has several implications. For NASA, it ensures continuity of essential ground support and mission operations services, reducing the administrative burden and potential disruption associated with frequent re-competitions. It allows for a deeper integration of the contractor's expertise into ongoing mission phases. For Southwest Research Institute, the long-term commitment provides significant program stability and revenue predictability, enabling them to invest in specialized personnel and equipment. However, it also places a greater emphasis on NASA's long-term oversight capabilities to manage performance, costs, and evolving requirements over an extended period, ensuring the agency continues to receive value throughout the contract's life.

How does the geographic concentration in Texas impact the contract's execution and oversight?

The geographic concentration of performance in Texas (st: TX, sn: TEXAS) means that NASA's oversight activities, such as site visits, inspections, and performance reviews, will likely be focused on facilities within that state. This can streamline some aspects of oversight by consolidating monitoring efforts. It also suggests potential economic benefits for the Texas aerospace sector through job creation and local spending by the contractor. However, it also means that if any issues arise that require immediate on-site intervention, the distance from NASA centers in other states could introduce minor delays. The primary impact is likely logistical for oversight and economic for the local region.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 80GSFC23R0037

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238

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: $26,162,610

Exercised Options: $26,162,610

Current Obligation: $7,745,500

Actual Outlays: $3,475,458

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $270,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2025-01-22

Current End Date: 2034-01-31

Potential End Date: 2034-01-31 00:00:00

Last Modified: 2026-04-02

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