Department of Energy awards $26.2M contract for nuclear nonproliferation SE&I support to The Aerospace Corporation
Contract Overview
Contract Amount: $26,213,188 ($26.2M)
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: $72.0K/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 AND DEFENSE PROGRAMS
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Energy obligated $26.2 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 AND DEFENSE PROGRAMS Key points: 1. Contract focuses on critical nuclear nonproliferation and defense programs, indicating a high-stakes area of government activity. 2. Sole-source award to The Aerospace Corporation suggests a reliance on specialized expertise or a lack of readily available alternatives. 3. The contract duration of one year with a cost-plus-fixed-fee structure allows for flexibility but requires careful cost oversight. 4. The specific NAICS code (541715) points to research and development, aligning with the technical nature of SE&I support. 5. The absence of small business set-asides or subcontracting requirements may limit opportunities for smaller firms in this specific award. 6. The contract's value is moderate within the context of large federal R&D procurements, but its specialized nature is significant.
Value Assessment
Rating: fair
The contract's value of $26.2 million for a one-year period of performance is within a typical range for specialized system engineering and integration support. However, as a sole-source award, a direct comparison to similar competitively bid contracts is challenging. The cost-plus-fixed-fee (CPFF) pricing structure necessitates robust oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without excessive profit. Benchmarking the value would require detailed analysis of the specific services rendered and the labor rates involved, which are not fully detailed in the provided data.
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, proprietary data, or when urgency precludes a full and open competition. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited. The justification for this sole-source award would need to be thoroughly documented by the agency.
Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced opportunity to benefit from competitive pricing, which could result in a less efficient use of public funds compared to a competitively awarded contract.
Public Impact
The primary beneficiaries are the Department of Energy's Offices of Defense Nuclear Nonproliferation and Defense Programs, receiving essential technical and programmatic analysis. The services delivered are critical for ensuring the effectiveness and safety of nuclear nonproliferation efforts and defense programs. The geographic impact is primarily national, supporting federal agency operations, with potential implications for international nonproliferation initiatives. Workforce implications include the direct employment of highly skilled engineers, scientists, and analysts by The Aerospace Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee structure requires diligent oversight to control costs.
- Lack of small business participation opportunities in this specific award.
Positive Signals
- Award to a known entity (The Aerospace Corporation) suggests continuity and established expertise.
- Focus on critical national security areas (nuclear nonproliferation) indicates high importance.
- Contract duration allows for focused support over a defined period.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on engineering and integration services for sensitive government programs. The market for such specialized support is often dominated by a few large, established contractors with deep technical expertise and security clearances. The Aerospace Corporation is a well-known entity in this space, often serving as a federally funded research and development center (FFRDC). Comparable spending benchmarks would be difficult to establish without knowing the precise scope of SE&I and analysis required, but federal spending on R&D and specialized technical services runs into billions annually.
Small Business Impact
This contract does not appear to include any specific small business set-aside provisions, nor is there an indication of subcontracting requirements for small businesses. The Aerospace Corporation, as the sole awardee, is a large entity. This means that opportunities for small businesses to participate in this specific contract are likely limited, unless they are already established subcontractors to The Aerospace Corporation. The impact on the broader small business ecosystem for this particular award is minimal.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy contracting officers and program managers. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee remains appropriate for the effort expended. Transparency is generally expected for federal contracts, though the specific details of sole-source justifications and performance metrics may be less publicly accessible. The Inspector General for the Department of Energy would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.
Related Government Programs
- Department of Energy Research and Development Programs
- Defense Nuclear Nonproliferation Initiatives
- System Engineering and Integration Services
- Federal Technical Consulting Contracts
Risk Flags
- Sole-source award may limit price competition.
- Cost-plus-fixed-fee requires diligent cost oversight.
- Contract focuses on sensitive national security programs.
Tags
research-and-development, department-of-energy, nuclear-nonproliferation, system-engineering, integration-support, sole-source, cost-plus-fixed-fee, california, federal-contract, national-security, technical-analysis
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $26.2 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 AND DEFENSE PROGRAMS
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 $26.2 million.
What is the period of performance?
Start: 2025-06-01. End: 2026-05-31.
What is the track record of The Aerospace Corporation in performing similar System Engineering and Integration (SE&I) support for federal agencies, particularly within the Department of Energy?
The Aerospace Corporation has a long-standing history of providing SE&I support and independent technical analysis to various government agencies, including the Department of Defense and NASA, often through FFRDC arrangements. Their expertise is particularly recognized in complex, high-technology domains. For the Department of Energy, they have historically supported programs related to nuclear security, energy research, and environmental management. Their performance in these areas is generally considered strong, characterized by deep technical understanding and objective analysis. However, specific performance metrics for this particular contract will only become apparent over its duration and through agency evaluations.
How does the $26.2 million contract value compare to other SE&I support contracts awarded by the Department of Energy or similar agencies?
The $26.2 million value for a one-year contract is moderate within the broader landscape of federal SE&I support. Larger, multi-year contracts for complex system development or major program oversight can easily reach hundreds of millions or even billions of dollars. However, for specialized, focused analytical support within specific offices like Defense Nuclear Nonproliferation, this amount is substantial and reflects the critical nature and required expertise. When compared to other sole-source awards for specialized R&D support, it falls within a common range, though competitively bid contracts for similar services might yield lower prices due to market competition.
What are the primary risks associated with a sole-source award for critical nuclear nonproliferation support, and how are they mitigated?
The primary risks of a sole-source award include potential overpricing due to lack of competition, reduced innovation, and a lack of transparency in the selection process. For critical nuclear nonproliferation support, there's also the risk that the chosen contractor, despite their expertise, might not be the absolute best fit or could develop a complacency over time. Mitigation strategies typically involve rigorous negotiation of contract terms, detailed cost analysis, strong performance monitoring by the agency, and potentially periodic reviews to ensure the sole-source justification remains valid. The agency must ensure robust oversight mechanisms are in place to compensate for the absence of competitive pressure.
What is the expected effectiveness of The Aerospace Corporation in fulfilling the SE&I and independent analysis requirements for the specified DOE offices?
Given The Aerospace Corporation's established reputation and FFRDC status, their effectiveness in fulfilling SE&I and independent analysis requirements is generally expected to be high. They possess the technical depth and institutional independence often required for objective assessments in sensitive areas like nuclear nonproliferation. Their effectiveness will hinge on the clarity of the tasking from the Department of Energy, the quality of the personnel assigned, and the agency's commitment to utilizing the insights provided. The CPFF structure, while requiring oversight, allows flexibility to adapt to evolving analytical needs, which can enhance effectiveness in a dynamic field.
What are the historical spending patterns for SE&I support within the Department of Energy's nuclear nonproliferation and defense programs?
Historical spending patterns for SE&I support within the Department of Energy's nuclear nonproliferation and defense programs are likely characterized by consistent, significant investment due to the enduring nature of these national security priorities. While specific figures fluctuate annually based on program needs and budget allocations, these areas typically receive substantial funding. Contracts for such support are often awarded to specialized entities, including FFRDCs like The Aerospace Corporation, and may include a mix of competitively and non-competitively awarded vehicles. Analyzing past spending would reveal trends in contract values, durations, and the types of services procured, providing context for the current $26.2 million award.
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: 89233125RNA000279
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: $146,156,020
Exercised Options: $146,156,020
Current Obligation: $26,213,188
Actual Outlays: $8,629,004
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: 2030-06-04 00:00:00
Last Modified: 2026-02-24
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