Commerce Awards $18M Cost-Plus Contract for Space Research to The Aerospace Corporation

Contract Overview

Contract Amount: $18,000,000 ($18.0M)

Contractor: THE Aerospace Corporation

Awarding Agency: Department of Commerce

Start Date: 2009-11-19

End Date: 2010-11-30

Contract Duration: 376 days

Daily Burn Rate: $47.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROFESSIONAL AND SCIENTIFC SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $18.0 million to THE AEROSPACE CORPORATION for work described as: PROFESSIONAL AND SCIENTIFC SERVICES Key points: 1. Contract awarded to a single, established entity, raising questions about competition. 2. Significant value ($18M) for a one-year duration, requiring careful cost oversight. 3. The 'Cost Plus Fixed Fee' structure can incentivize cost overruns. 4. Focus on space research and technology aligns with NOAA's mission.

Value Assessment

Rating: questionable

The contract's 'Cost Plus Fixed Fee' structure, while common for R&D, can lead to higher costs if not tightly managed. Benchmarking against similar space research contracts is difficult without more detailed cost breakdowns.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services.

Public Impact

Taxpayers may not have received the best value due to the absence of a competitive bidding process. The contract supports critical space research, potentially leading to advancements in weather forecasting and climate monitoring. The sole-source nature raises concerns about transparency and accountability in federal contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Supports critical NOAA mission
Awarded to established entity

Sector Analysis

The contract falls under Professional and Scientific Services, specifically Space Research and Technology. The $18M award for a single year is substantial, and spending in this sector often involves specialized expertise and high R&D costs.

Small Business Impact

The contract was awarded to The Aerospace Corporation, a non-profit entity, and there is no indication of small business subcontracting. This award does not appear to benefit small businesses.

Oversight & Accountability

The 'Cost Plus Fixed Fee' structure necessitates robust oversight to ensure costs remain reasonable and the fixed fee is justified. The lack of competition warrants scrutiny to ensure the government received fair value.

Related Government Programs

Space Research and Technology
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Sole-source award lacks competition.
Cost-plus contract type increases cost risk.
Potential for cost overruns.
Lack of small business participation.
Limited transparency in pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $18.0 million to THE AEROSPACE CORPORATION. PROFESSIONAL AND SCIENTIFC SERVICES

Who is the contractor on this award?

The obligated recipient is THE AEROSPACE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2009-11-19. End: 2010-11-30.

What was the justification for awarding this contract sole-source, and how was the fixed fee determined?

Sole-source awards are typically justified when only one responsible source can provide the required services. The fixed fee is negotiated based on estimated costs and a reasonable profit margin. Without the specific justification documentation, it's difficult to assess the fairness of the fee determination and whether alternatives were adequately explored.

How does the cost-plus fixed fee structure compare to other contract types for similar space research services in terms of overall cost-effectiveness?

Cost-plus contracts, while offering flexibility for R&D, generally carry higher cost risk for the government than fixed-price contracts. The 'fixed fee' component aims to cap profit, but the underlying costs can still escalate. For well-defined R&D, fixed-price incentive contracts might offer better cost control, but for exploratory research, cost-plus can be necessary.

What specific outcomes or deliverables were expected from this $18 million contract, and how was performance measured?

The contract likely involved specific research objectives, technical reports, and potentially prototypes or analyses related to space and atmospheric science. Performance would typically be measured against technical milestones, quality of deliverables, and adherence to research plans. Detailed metrics are crucial for assessing the effectiveness of the investment.

Industry Classification

NAICS: Public Administration › Space Research and Technology › Space Research and Technology

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2350 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 36

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $43,830,630

Exercised Options: $43,830,630

Current Obligation: $18,000,000

Parent Contract

Parent Award PIID: DOCDG133E07CQ0005

IDV Type: IDC

Timeline