NASA awards $46.1M letter contract to Dynetics for laser air monitoring systems

Contract Overview

Contract Amount: $46,130,740 ($46.1M)

Contractor: Dynetics, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-02-04

End Date: 2025-12-31

Contract Duration: 1,791 days

Daily Burn Rate: $25.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LETTER CONTRACT FOR LASER AIR MONITORING SYSTEM

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $46.1 million to DYNETICS, INC. for work described as: LETTER CONTRACT FOR LASER AIR MONITORING SYSTEM Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract is for a laser air monitoring system, a specialized technology. 3. Performance period extends over 4 years, indicating a long-term need. 4. The contract is a definitive contract, suggesting a firm commitment. 5. The contract is firm fixed price, providing cost certainty for the government. 6. The contractor, Dynetics, Inc., is based in Alabama.

Value Assessment

Rating: fair

The contract value of $46.1 million for a laser air monitoring system is difficult to benchmark without specific technical details and comparable systems. As a letter contract, it signifies an initial commitment, and the final value could change. The firm fixed price structure offers some cost control, but the lack of competition raises concerns about achieving the best possible value. Further analysis would require understanding the system's capabilities and market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of competition means that NASA did not receive multiple proposals, which could have led to a lower price through competitive bidding.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. The government's ability to negotiate the best possible price is diminished without alternative offers.

Public Impact

The primary beneficiary is NASA, which will receive a laser air monitoring system. The system is intended for use in space vehicle parts and auxiliary equipment manufacturing. The geographic impact is primarily within Alabama, where Dynetics, Inc. is located. The contract supports specialized manufacturing and technology development within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. This is a highly specialized area within the broader aerospace industry, often characterized by complex technologies and a limited number of qualified contractors. Spending in this sector is driven by government research, development, and procurement needs for space exploration and defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award is unlikely to have a direct positive impact on the small business ecosystem. The focus appears to be on a specialized capability likely requiring a larger, established prime contractor.

Oversight & Accountability

As a definitive contract, it is subject to standard government oversight mechanisms. However, the sole-source nature of the award means that oversight will focus more on performance, quality, and adherence to the contract terms rather than the competitive process itself. Transparency is limited due to the lack of a competitive solicitation process. Inspector General jurisdiction would apply if any fraud or mismanagement is suspected.

Related Government Programs

Risk Flags

Tags

nasa, space-exploration, aerospace, manufacturing, laser-monitoring, sole-source, definitive-contract, firm-fixed-price, alabama, dynetics-inc, advanced-technology, parts-and-auxiliary-equipment

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $46.1 million to DYNETICS, INC.. LETTER CONTRACT FOR LASER AIR MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is DYNETICS, INC..

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 $46.1 million.

What is the period of performance?

Start: 2021-02-04. End: 2025-12-31.

What is the specific function and technical capability of the laser air monitoring system being procured?

The provided data indicates the contract is for a 'LETTER CONTRACT FOR LASER AIR MONITORING SYSTEM' under NAICS code 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing'. While the exact technical specifications are not detailed, a laser air monitoring system typically uses laser technology to detect and measure airborne particles or gases. This could be for environmental monitoring, safety systems within spacecraft or launch facilities, or for quality control in manufacturing processes related to space vehicles. The system's specific application within NASA's operations would determine its precise function, such as detecting hazardous materials, monitoring atmospheric conditions, or ensuring the cleanliness of sensitive manufacturing environments.

How does the $46.1 million contract value compare to similar procurements for laser air monitoring systems?

Benchmarking the $46.1 million contract value for a laser air monitoring system is challenging without more specific details on the system's capabilities, intended use, and the number of units or scope of service. Laser air monitoring systems can vary significantly in complexity and cost, from portable detectors to large-scale industrial installations. Given this is a sole-source definitive contract with a firm fixed price, and awarded by NASA for space vehicle-related manufacturing, it suggests a highly specialized and potentially advanced system. Without access to a database of comparable sole-source procurements for similar specialized laser monitoring technology within the aerospace sector, a direct value comparison is difficult. However, the extended performance period (over 4 years) indicates a substantial and long-term requirement.

What are the primary risks associated with a sole-source award for this type of technology?

The primary risk associated with a sole-source award for this laser air monitoring system is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the contractor may not have the same incentive to offer the lowest possible price. Another risk is a potential limitation in innovation or technological advancement, as there is no external market pressure to improve the system beyond the contracted scope. Furthermore, the government's leverage in negotiating terms and conditions is reduced. Ensuring the contractor's performance meets all requirements and that the price is fair and reasonable becomes paramount, requiring robust government oversight and cost analysis.

What is Dynetics, Inc.'s track record with NASA and in providing similar monitoring systems?

Dynetics, Inc. is a known defense contractor that has historically worked with NASA and other government agencies on various advanced technology projects. While specific details on their past performance related to laser air monitoring systems are not provided in the summary data, their involvement in 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' suggests relevant experience. A thorough assessment of Dynetics' track record would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contracts with NASA, and their demonstrated capabilities in developing and delivering complex technological solutions. Their ability to secure this sole-source contract implies a level of trust and perceived capability by NASA.

How does this contract align with NASA's broader strategic goals in space exploration and manufacturing?

This contract for a laser air monitoring system likely aligns with NASA's strategic goals by supporting the safety, quality, and efficiency of its space exploration and manufacturing initiatives. Advanced monitoring systems are crucial for ensuring the integrity of spacecraft components, maintaining cleanroom environments for sensitive manufacturing, and potentially for in-situ environmental monitoring during space missions or ground operations. By procuring such a system, NASA demonstrates its commitment to leveraging cutting-edge technology to enhance operational reliability, reduce risks, and maintain high standards in the production and maintenance of space-bound hardware. The investment supports the broader objective of advancing space technology and capabilities.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 80JSC020R0022P00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,000,000

Exercised Options: $46,130,740

Current Obligation: $46,130,740

Actual Outlays: $33,902,211

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $4,622,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-02-04

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2025-12-18

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