NASA awards $43.7M for IDEAS Renewal, a sole-source contract for custom computer programming
Contract Overview
Contract Amount: $43,688 ($43.7K)
Contractor: Hottinger Bruel & Kjaer Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2026-04-01
End Date: 2027-03-31
Contract Duration: 364 days
Daily Burn Rate: $120/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY26 IDEAS RENEWAL
Place of Performance
Location: MARLBOROUGH, MIDDLESEX County, MASSACHUSETTS, 01752
Plain-Language Summary
National Aeronautics and Space Administration obligated $43,687.9 to HOTTINGER BRUEL & KJAER INC. for work described as: FY26 IDEAS RENEWAL Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration is 364 days, suggesting a focused scope of work. 3. Awarded to HOTTINGER BRUEL & KJAER INC., a single vendor, raising questions about competition. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. This contract is categorized as a Purchase Order, a common instrument for smaller value procurements. 6. The contract is not competed under the Simplified Acquisition Procedures (SAP), implying a non-standard procurement path.
Value Assessment
Rating: questionable
The contract's value of $43.7 million for a one-year period for custom computer programming services appears substantial. Without comparable contract data for similar 'IDEAS Renewal' projects or specific service benchmarks, it is difficult to definitively assess value for money. The sole-source nature of the award limits the ability to benchmark pricing against competitive offers, raising concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as 'NOT COMPETED UNDER SAP' and is listed as a sole-source award. This indicates that the agency did not conduct a competitive bidding process. The lack of competition means that potential alternative vendors were not considered, and the pricing was not subjected to market forces that typically drive down costs in a competitive environment.
Taxpayer Impact: The absence of competition for this $43.7 million contract means taxpayers may not have received the best possible price. Without a competitive process, there is a risk that the awarded price is higher than it would have been if multiple vendors had vied for the contract.
Public Impact
The primary beneficiary is likely NASA, which will receive custom computer programming services essential for its 'IDEAS Renewal' initiative. The services delivered are expected to support and enhance NASA's operational capabilities through advanced software solutions. The geographic impact is primarily centered around NASA's facilities, though the exact locations are not specified. Workforce implications may include the utilization of specialized IT professionals, potentially both within the contractor's organization and indirectly supporting NASA's technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of competition raises concerns about whether the most innovative or cost-effective solutions were explored.
- The 'NOT COMPETED UNDER SAP' designation suggests a non-standard procurement that warrants further scrutiny.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Awarded to a specific vendor, HOTTINGER BRUEL & KJAER INC., suggesting a potentially established relationship or specialized capability.
Sector Analysis
The Information Technology sector, specifically custom computer programming services (NAICS 541511), is a critical area for government operations. This contract falls within a market segment characterized by rapid technological advancements and a high demand for specialized software development. Comparable spending benchmarks for custom programming services vary widely based on complexity, duration, and vendor expertise. However, a $43.7 million award for a one-year project indicates a significant scope of work, likely involving complex system development or enhancement.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false) and the contractor is not identified as a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of a small business set-aside means that opportunities for small businesses to participate in this particular contract are limited.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA). As a Purchase Order, it is likely managed through NASA's internal procurement and financial management systems. Transparency regarding the specific details of the 'IDEAS Renewal' project and the justification for the sole-source award would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA IT Services Contracts
- Custom Software Development Contracts
- Federal IT Procurement
- Sole-Source IT Awards
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in procurement justification
Tags
nasa, it-services, custom-software-development, sole-source, purchase-order, firm-fixed-price, fy26, naics-541511, hottinger-bruel-kjaer-inc, massachusetts, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $43,687.9 to HOTTINGER BRUEL & KJAER INC.. FY26 IDEAS RENEWAL
Who is the contractor on this award?
The obligated recipient is HOTTINGER BRUEL & KJAER 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 $43,687.9.
What is the period of performance?
Start: 2026-04-01. End: 2027-03-31.
What is the specific nature of the 'IDEAS Renewal' project and why was it deemed suitable for a sole-source award?
The 'IDEAS Renewal' project, funded at $43.7 million for FY26, is a sole-source contract awarded to HOTTINGER BRUEL & KJAER INC. for custom computer programming services. The specific details of the 'IDEAS Renewal' project are not publicly elaborated upon in the provided data. However, sole-source awards are typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. For NASA to justify this sole-source award, they would need to document why HOTTINGER BRUEL & KJAER INC. is the only entity capable of fulfilling the 'IDEAS Renewal' requirements, potentially related to existing systems, specialized expertise, or critical integration needs that cannot be met by other vendors within the required timeframe or technical specifications. Further investigation into NASA's justification documentation would be necessary to understand the precise rationale.
How does the $43.7 million value for a one-year custom programming contract compare to similar NASA IT procurements?
The $43.7 million value for a one-year custom computer programming contract is substantial, especially for a single vendor award. To benchmark this effectively, one would need to compare it against other NASA procurements for similar custom software development services, particularly those with comparable complexity and scope. Federal procurement databases and reports from agencies like the Government Accountability Office (GAO) or NASA's own Inspector General could provide data on average costs for custom programming projects of this magnitude. Given that this is a sole-source award, it is crucial to ascertain if this price is competitive relative to what might have been achieved through a full and open competition. Without direct comparable data points for 'IDEAS Renewal' or similar sole-source custom programming efforts at NASA, assessing value for money remains challenging, but the figure suggests a significant investment in IT infrastructure or capability.
What are the potential risks associated with awarding a contract of this value on a sole-source basis?
Awarding a contract of $43.7 million on a sole-source basis carries several inherent risks. Primarily, there is a significant risk of paying a premium price, as the absence of competition prevents market forces from driving down costs. This can lead to reduced value for taxpayer money. Secondly, the government may not benefit from the most innovative solutions or technological advancements that could have been offered by a wider pool of vendors. There's also a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, potentially limiting future flexibility and increasing switching costs. Furthermore, sole-source awards can sometimes be perceived as lacking transparency and fairness, potentially impacting the broader contractor ecosystem and discouraging new entrants. Robust internal oversight and justification are critical to mitigate these risks.
What is the track record of HOTTINGER BRUEL & KJAER INC. with NASA or other federal agencies for similar services?
Information regarding the specific track record of HOTTINGER BRUEL & KJAER INC. with NASA or other federal agencies for custom computer programming services is not detailed in the provided data. To assess their performance and reliability, a review of their past federal contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or issues would be necessary. Understanding their experience with projects of similar scale and complexity, particularly within the aerospace or scientific research domains relevant to NASA, would provide crucial context for this $43.7 million award. A lack of extensive relevant federal contracting history could increase the perceived risk associated with this sole-source award.
How does the 'NOT COMPETED UNDER SAP' designation influence the understanding of this contract's procurement process?
The designation 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) indicates that this contract was not procured through the streamlined processes typically used for acquisitions below the simplified acquisition threshold (currently $250,000 for most agencies). This implies that the contract value of $43.7 million significantly exceeds the SAP threshold. Consequently, the procurement likely followed more formal, detailed procedures, which could include justifications for other than full and open competition (as indicated by the sole-source nature) or specific agency-level competitive processes that are not part of the standard SAP. This designation suggests a deliberate choice by NASA to use a procurement path outside the most common, expedited methods for smaller purchases, potentially due to the contract's value, complexity, or the specific circumstances leading to a sole-source decision.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 80NSSC26929205Q
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 19 BARTLETT ST, MARLBOROUGH, MA, 01752
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: $43,688
Exercised Options: $43,688
Current Obligation: $43,688
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-04-02
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