NASA Awards $20.8M for Nextel Material, Lacking Competition

Contract Overview

Contract Amount: $20,857 ($20.9K)

Contractor: Newtex Industries, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2026-04-08

End Date: 2026-05-07

Contract Duration: 29 days

Daily Burn Rate: $719/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: NEXTEL MATERIAL FOR MLI AND HYPERVELOCITY IMPACT TESTING

Place of Performance

Location: VICTOR, ONTARIO County, NEW YORK, 14564

State: New York Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $20,857.36 to NEWTEX INDUSTRIES, INC. for work described as: NEXTEL MATERIAL FOR MLI AND HYPERVELOCITY IMPACT TESTING Key points: 1. Significant award for specialized material testing. 2. Sole source award raises questions about price discovery. 3. Limited competition may lead to higher costs. 4. Focus on advanced materials for aerospace applications.

Value Assessment

Rating: questionable

The award of $20.86 million for specialized material testing lacks a clear benchmark for comparison due to its limited competition. Without competitive bids, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a potential limitation in the competitive process. The lack of open competition may have impacted price discovery.

Taxpayer Impact: The absence of robust competition could result in taxpayers paying more than necessary for this specialized material.

Public Impact

Supports advanced aerospace research and development. Ensures availability of critical materials for NASA missions. Potential for future technological advancements stemming from material testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This award falls within the aerospace and defense sector, specifically focusing on advanced materials. Spending in this area is often characterized by high R&D costs and specialized manufacturing requirements.

Small Business Impact

No information is available regarding small business participation in this contract. The award to Newtex Industries, Inc. does not specify if they are a small business.

Oversight & Accountability

The award process, particularly the lack of competition, warrants further oversight to ensure fair pricing and efficient use of taxpayer funds.

Related Government Programs

Risk Flags

Tags

broadwoven-fabric-mills, national-aeronautics-and-space-administr, ny, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $20,857.36 to NEWTEX INDUSTRIES, INC.. NEXTEL MATERIAL FOR MLI AND HYPERVELOCITY IMPACT TESTING

Who is the contractor on this award?

The obligated recipient is NEWTEX INDUSTRIES, 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 $20,857.36.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-07.

What specific factors justified not competing this contract under SAP, and what was the process for determining fair and reasonable pricing without competitive quotes?

The justification for not competing under SAP and the process for determining fair and reasonable pricing without competitive quotes are not detailed in the provided data. Further investigation into NASA's procurement records would be necessary to understand the specific rationale and pricing methodologies employed for this sole-source award.

What are the potential risks associated with relying on a single source for critical materials like Nextel, especially concerning supply chain disruptions or future price escalations?

Relying on a single source for critical materials like Nextel poses risks of supply chain disruptions if the sole provider faces production issues or goes out of business. Additionally, without competition, there's a risk of future price escalations as the contractor may have less incentive to offer competitive pricing over time.

How will the effectiveness of this material testing be measured, and what are the expected outcomes for NASA's hypervelocity impact research?

The effectiveness of the material testing will likely be measured by the quality and comprehensiveness of the data generated, its adherence to NASA's testing protocols, and its contribution to understanding Nextel material performance under extreme conditions. Expected outcomes include improved material selection for spacecraft, enhanced safety, and advancements in hypervelocity impact mitigation strategies.

Industry Classification

NAICS: ManufacturingFabric MillsBroadwoven Fabric Mills

Product/Service Code: NONMETALLIC FABRICATED MATERIALS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8050 VICTOR MENDON RD, VICTOR, NY, 14564

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,857

Exercised Options: $20,857

Current Obligation: $20,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-08

Current End Date: 2026-05-07

Potential End Date: 2026-05-07 00:00:00

Last Modified: 2026-04-08

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