NASA awards $3.8M R&D contract for specialized engineering and test services to Aerospace Corporation
Contract Overview
Contract Amount: $3,815,650 ($3.8M)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-10-01
End Date: 2026-05-31
Contract Duration: 1,338 days
Daily Burn Rate: $2.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR FY23.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $3.8 million to THE AEROSPACE CORPORATION for work described as: NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR FY23. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can incentivize cost overruns. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Services are categorized under R&D in Physical, Engineering, and Life Sciences. 4. The contract duration extends over three fiscal years, indicating a long-term need. 5. The awardee, The Aerospace Corporation, is a federally funded research and development center (FFRDC). 6. This contract represents a small portion of NASA's overall R&D spending.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized nature and the FFRDC awardee. Cost-plus-fixed-fee contracts, while allowing for flexibility in R&D, can sometimes lead to higher costs compared to fixed-price arrangements if not managed closely. Without comparable contract data for similar specialized engineering and test services, a definitive value-for-money assessment is difficult. However, the fixed fee component provides some cost control.
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 among multiple vendors. This approach is often used for specialized services where a single entity possesses unique capabilities or is designated as an FFRDC. While efficient for specific needs, it limits the potential for price discovery through competition and may result in higher costs for taxpayers.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from competitive bidding, potentially leading to higher prices than if multiple firms had vied for the contract.
Public Impact
The primary beneficiary is NASA, which receives specialized engineering, evaluation, and test services crucial for its missions. The services delivered are essential for ensuring the reliability and performance of aerospace systems. The contract's geographic impact is focused on Florida, where the services are being performed. The contract supports specialized technical expertise within The Aerospace Corporation, contributing to the national aerospace workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee structure can lead to cost escalations if not tightly managed.
- Lack of competition may reduce innovation incentives for the contractor.
Positive Signals
- Awardee is an FFRDC with deep expertise in aerospace, ensuring specialized capabilities.
- Long-term contract duration suggests a stable and ongoing need for these critical services.
- Fixed fee component provides some level of cost predictability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The aerospace industry, a significant part of this sector, relies heavily on specialized engineering, testing, and evaluation services to ensure the safety and efficacy of complex systems. NASA's spending in this area is critical for maintaining its technological edge and mission success. Comparable spending benchmarks are difficult to establish due to the highly specialized nature of the services and the FFRDC status of the awardee.
Small Business Impact
This contract does not appear to have a small business set-aside. As a sole-source award to an FFRDC, there are no subcontracting implications for small businesses directly tied to this specific contract's structure. The absence of a set-aside means that opportunities for small businesses to compete for these specialized services are not being actively pursued through this procurement vehicle.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's internal contracting and program management offices. As a sole-source award, the emphasis would be on ensuring the contractor meets the defined scope of work and adheres to the cost-plus-fixed-fee terms. Transparency is facilitated through NASA's public contract databases, but detailed performance metrics and cost breakdowns may be less accessible due to the nature of R&D and FFRDC operations.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Specialized Testing and Evaluation
- Federally Funded Research and Development Centers (FFRDCs)
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
Tags
nasa, research-and-development, engineering-services, test-services, aerospace-corporation, sole-source, cost-plus-fixed-fee, florida, fy23, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $3.8 million to THE AEROSPACE CORPORATION. NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR FY23.
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 $3.8 million.
What is the period of performance?
Start: 2022-10-01. End: 2026-05-31.
What is the track record of The Aerospace Corporation in performing similar specialized engineering and test services for NASA or other federal agencies?
The Aerospace Corporation is a well-established FFRDC with a long history of supporting NASA and the U.S. Department of Defense in advanced research, development, and systems engineering. They are known for their expertise in space systems, launch vehicles, and related technologies. Their track record typically involves complex, high-stakes projects requiring deep technical knowledge and objective analysis. While specific performance metrics for individual contracts are often not publicly detailed, their designation as an FFRDC implies a consistent ability to deliver specialized technical support and independent assessments critical to national security and space exploration.
How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar R&D services, and what are the implications for value?
Cost-plus-fixed-fee (CPFF) contracts are common in R&D where the scope of work can be uncertain or evolve. They reimburse the contractor for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can lead to higher costs if not managed diligently, as the government bears the risk of cost overruns. For highly innovative or exploratory R&D, CPFF can be advantageous by encouraging the contractor to pursue the best technical solution without being overly constrained by a predetermined price. However, for more defined R&D tasks, fixed-price or cost-plus-incentive-fee structures might offer better value and cost control for the government.
What are the primary risks associated with a sole-source award for specialized engineering services, and how are they mitigated?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and potentially less efficient service delivery. Without competing bids, the government may not achieve the best possible value. Mitigation strategies include rigorous negotiation of the contract terms, detailed cost analysis to ensure reasonableness, and strong government oversight to ensure the contractor meets all performance requirements. For FFRDCs like The Aerospace Corporation, the inherent mission is to provide objective, specialized support, which can partially offset the risks associated with non-competition, as their primary goal is mission success rather than profit maximization through competitive advantage.
What is the historical spending pattern for NASA's specialized engineering, evaluation, and test services, and how does this award fit in?
NASA consistently invests in specialized engineering, evaluation, and test services to support its complex missions. Historical spending in this category is substantial, reflecting the critical nature of ensuring the reliability and performance of spacecraft, launch systems, and scientific instruments. This $3.8 million award for FY23 represents a specific task order under a broader contract vehicle, likely for ongoing or new requirements. While the exact historical trend for this specific task order is not detailed, NASA's overall R&D and engineering support expenditures are typically in the billions annually, making this award a focused investment within a larger portfolio of essential services.
What are the performance expectations and key performance indicators (KPIs) for this contract, and how is performance monitored?
Performance expectations for this contract revolve around the successful execution of specialized engineering, evaluation, and test services as defined in the task order. Key Performance Indicators (KPIs) would likely include adherence to technical specifications, timely delivery of reports and analyses, accuracy of test results, and overall contribution to NASA's program objectives. Monitoring is typically conducted by NASA's Contracting Officer's Representative (COR) and technical points of contact, who review progress reports, conduct regular meetings, and assess deliverables against the contract requirements. For CPFF contracts, performance monitoring is crucial to ensure that costs remain reasonable and aligned with the progress made.
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: $3,853,017
Exercised Options: $3,853,017
Current Obligation: $3,815,650
Actual Outlays: $3,259,020
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: 2022-10-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-03-30
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