NASA Awards $740M for Space Launch System Support, Raising Oversight Questions
Contract Overview
Contract Amount: $7,399,340 ($7.4M)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-09-20
End Date: 2027-09-30
Contract Duration: 1,105 days
Daily Burn Rate: $6.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NEW TASK ORDER FOR SUPPORT OF THE SPACE LAUNCH SYSTEM (SLS) SPACECRAFT/PAYLOAD INTEGRATION AND EVOLUTION OFFICE (SPIE)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $7.4 million to THE AEROSPACE CORPORATION for work described as: NEW TASK ORDER FOR SUPPORT OF THE SPACE LAUNCH SYSTEM (SLS) SPACECRAFT/PAYLOAD INTEGRATION AND EVOLUTION OFFICE (SPIE) Key points: 1. Significant investment in critical space exploration technology. 2. Sole-source award raises concerns about price discovery and competition. 3. Long-term contract duration (over 3 years) requires sustained scrutiny. 4. Research and Development focus aligns with national strategic goals.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure.
Taxpayer Impact: The lack of competition for a substantial contract value may result in inefficient use of taxpayer funds.
Public Impact
Supports the advancement of the Space Launch System, a key component of NASA's deep space exploration. Potential for technological advancements and scientific discoveries stemming from SLS missions. Impacts the aerospace sector through continued investment and potential job creation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical national space program
- Long-term commitment to technological development
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. The aerospace sector, particularly R&D for large-scale projects like SLS, often involves significant, long-term investments.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants increased oversight to ensure cost reasonableness and effective performance. NASA's internal review processes will be crucial.
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
- Lack of competitive bidding
- Potential for cost overruns due to contract type
- Limited transparency in pricing
- Risk of vendor lock-in
- Insufficient small business participation
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $7.4 million to THE AEROSPACE CORPORATION. NEW TASK ORDER FOR SUPPORT OF THE SPACE LAUNCH SYSTEM (SLS) SPACECRAFT/PAYLOAD INTEGRATION AND EVOLUTION OFFICE (SPIE)
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 $7.4 million.
What is the period of performance?
Start: 2024-09-20. End: 2027-09-30.
What specific factors justified the sole-source award for this critical SLS support?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources within the required timeframe. NASA would need to provide detailed documentation outlining these specific circumstances for this contract.
How will NASA ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded non-competitively?
NASA will likely implement rigorous oversight mechanisms, including detailed cost tracking, performance metrics, and regular audits. The fixed fee component provides some incentive for the contractor to manage costs efficiently, but the 'cost plus' element still carries inherent risk of overruns.
What are the long-term implications for competition in the SLS program if key support functions are consistently awarded non-competitively?
Consistent sole-source awards could stifle innovation and competition within the aerospace industry supporting SLS. It may discourage new entrants and limit the government's ability to secure more competitive pricing in the future, potentially increasing long-term program costs.
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: $12,505,353
Exercised Options: $12,505,353
Current Obligation: $7,399,340
Actual Outlays: $5,748,650
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: 2024-09-20
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-08
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