Department of Energy awards $13.6M contract for nuclear nonproliferation SE&I support to The Aerospace Corporation
Contract Overview
Contract Amount: $13,665,800 ($13.7M)
Contractor: THE Aerospace Corporation
Awarding Agency: Department of Energy
Start Date: 2025-06-01
End Date: 2026-05-31
Contract Duration: 364 days
Daily Burn Rate: $37.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SYSTEM ENGINEERING AND INTEGRATION (SE&I) SUPPORT AND INDEPENDENT TECHNICAL AND PROGRAMMATIC ANALYSIS FOR THE OFFICES OF DEFENSE NUCLEAR NONPROLIFERATION (DNN - NA-20)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Energy obligated $13.7 million to THE AEROSPACE CORPORATION for work described as: SYSTEM ENGINEERING AND INTEGRATION (SE&I) SUPPORT AND INDEPENDENT TECHNICAL AND PROGRAMMATIC ANALYSIS FOR THE OFFICES OF DEFENSE NUCLEAR NONPROLIFERATION (DNN - NA-20) Key points: 1. Contract focuses on critical system engineering and integration for nuclear nonproliferation. 2. Independent technical and programmatic analysis will support key Defense Nuclear Nonproliferation offices. 3. The contract duration is approximately one year, ending May 31, 2026. 4. The award type is a delivery order under an existing contract. 5. The contractor, The Aerospace Corporation, has a significant history supporting government R&D. 6. The contract is not competed, raising questions about price discovery and potential cost efficiencies. 7. The primary service area is California, indicating a localized impact for this specific award.
Value Assessment
Rating: fair
The contract value of $13.6 million for one year of SE&I support appears within a reasonable range for specialized technical services. However, without direct comparable contract data for similar SE&I support specifically for the Defense Nuclear Nonproliferation offices, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure means that while the fee is fixed, the government bears the risk of cost overruns, which warrants careful monitoring of expenditures.
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 offerors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for federal dollars and can potentially lead to higher costs for taxpayers compared to a competitively bid contract.
Public Impact
The primary beneficiaries are the Department of Energy's Defense Nuclear Nonproliferation offices, receiving essential technical and programmatic analysis. Services delivered include system engineering and integration, crucial for maintaining and enhancing nonproliferation capabilities. The geographic impact is concentrated in California, where the contractor is located and services are likely performed. The contract supports specialized technical expertise, potentially impacting a niche workforce within the engineering and analysis sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- Cost-plus-fixed-fee structure shifts cost overrun risk to the government.
- Limited transparency into the justification for sole-source award.
Positive Signals
- The Aerospace Corporation is a well-established entity with extensive experience in aerospace and defense.
- Contract supports critical national security functions related to nuclear nonproliferation.
- Clear contract end date provides a defined period for service delivery.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for System Engineering and Integration (SE&I) support, particularly for highly specialized areas like nuclear nonproliferation, is often dominated by a few key contractors with the requisite expertise and security clearances. Government spending in this niche R&D area is driven by national security imperatives and the need for advanced technical analysis.
Small Business Impact
This contract does not appear to have a small business set-aside. As a sole-source award to a large, established organization, there are no direct subcontracting implications for small businesses stemming from this specific award mechanism. The focus is on specialized expertise rather than broad service delivery where small business participation is typically encouraged.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers responsible for the Defense Nuclear Nonproliferation offices. Given the nature of the work, there may be additional oversight from internal DOE audit functions or potentially the Government Accountability Office (GAO) if specific concerns arise. Transparency is limited by the sole-source nature of the award, but contract performance metrics and financial reporting should be available to relevant oversight bodies.
Related Government Programs
- Department of Energy - Defense Nuclear Nonproliferation Programs
- System Engineering and Integration (SE&I) Services
- Technical and Programmatic Analysis Contracts
- National Security Research and Development
Risk Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee structure shifts cost risk to government.
- Potential for higher costs without competitive bidding.
Tags
department-of-energy, defense-nuclear-nonproliferation, system-engineering, integration-support, technical-analysis, programmatic-analysis, research-and-development, sole-source, cost-plus-fixed-fee, california, aerospace-corporation, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $13.7 million to THE AEROSPACE CORPORATION. SYSTEM ENGINEERING AND INTEGRATION (SE&I) SUPPORT AND INDEPENDENT TECHNICAL AND PROGRAMMATIC ANALYSIS FOR THE OFFICES OF DEFENSE NUCLEAR NONPROLIFERATION (DNN - NA-20)
Who is the contractor on this award?
The obligated recipient is THE AEROSPACE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $13.7 million.
What is the period of performance?
Start: 2025-06-01. End: 2026-05-31.
What is The Aerospace Corporation's track record with the Department of Energy and similar defense-related contracts?
The Aerospace Corporation has a long-standing relationship with the U.S. government, particularly in defense and space systems. They are a federally funded research and development center (FFRDC) primarily supporting the U.S. Space Force and the National Reconnaissance Office. Their work often involves complex systems engineering, integration, and analysis for high-stakes national security programs. While specific contract details with DOE's Defense Nuclear Nonproliferation offices are not publicly detailed in this data, their general profile suggests a strong capability in the required technical domains. Their history indicates a pattern of supporting critical government missions requiring deep technical expertise and independent analysis.
How does the $13.6 million value compare to similar SE&I support contracts within the nuclear nonproliferation sector?
Benchmarking the $13.6 million value for one year of SE&I support is challenging without access to detailed contract databases for the nuclear nonproliferation sector. However, for specialized technical and programmatic analysis supporting critical national security functions, this value appears to be within a plausible range. Contracts for similar high-level engineering and analytical support for complex government programs can range from several million to tens of millions of dollars annually, depending on the scope, duration, and criticality. The sole-source nature of this award, however, prevents a direct comparison to what a competitive bidding process might have yielded.
What are the primary risks associated with a sole-source award for critical SE&I support?
The primary risks associated with a sole-source award for critical SE&I support include potential overpricing due to the lack of competitive pressure, reduced incentive for innovation from the contractor, and a lack of transparency in the procurement process. Taxpayers may not receive the best possible value for their money. Furthermore, relying on a single source can create dependency and limit the government's flexibility if the contractor's performance falters or if strategic needs change. Ensuring robust oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.
How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of R&D support?
The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. For SE&I support in a field like nuclear nonproliferation, where technical challenges can be unpredictable, CPFF can provide flexibility. The 'cost plus' aspect allows the contractor to incur necessary costs, while the 'fixed fee' provides a predetermined profit margin. However, this structure places the risk of cost overruns on the government, necessitating strong financial oversight and contractor accountability to manage expenditures effectively and ensure the fixed fee remains appropriate for the effort.
What are the historical spending patterns for SE&I support within the Department of Energy's nuclear nonproliferation programs?
Historical spending patterns for SE&I support within the Department of Energy's nuclear nonproliferation programs are not detailed in the provided data. However, it is reasonable to infer that such programs require consistent, long-term technical support due to the enduring nature of nuclear nonproliferation challenges. Spending in this area is typically driven by national security priorities and budget allocations for defense and energy security. Awards for SE&I services often involve significant dollar values, reflecting the complexity and criticality of the work. Understanding past spending levels would require a deeper dive into DOE's historical contract awards and budget justifications for NA-20.
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
Solicitation ID: 89233125RNA000265
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2310 E 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: $83,765,283
Exercised Options: $83,765,283
Current Obligation: $13,665,800
Actual Outlays: $5,569,921
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 89233125DNA000062
IDV Type: IDC
Timeline
Start Date: 2025-06-01
Current End Date: 2026-05-31
Potential End Date: 2030-05-31 00:00:00
Last Modified: 2025-12-18
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