NOAA Awards $12M Cost-Plus Fixed Fee Contract to Aerospace Corp for Space Research
Contract Overview
Contract Amount: $12,000,000 ($12.0M)
Contractor: THE Aerospace Corporation
Awarding Agency: Department of Commerce
Start Date: 2008-03-06
End Date: 2008-12-21
Contract Duration: 290 days
Daily Burn Rate: $41.4K/day
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER CONTRACT FOR SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $12.0 million to THE AEROSPACE CORPORATION for work described as: TASK ORDER CONTRACT FOR SERVICES Key points: 1. Contract awarded to a single, well-established entity in the aerospace sector. 2. Significant funding allocated for space research and technology services. 3. Potential for cost overruns inherent in Cost Plus Fixed Fee contracts. 4. Limited visibility into specific deliverables and performance metrics. 5. Focus on specialized space research suggests a niche market.
Value Assessment
Rating: questionable
The contract type (Cost Plus Fixed Fee) can lead to higher costs compared to fixed-price contracts. Without detailed performance data and comparison to similar specialized services, assessing value is difficult. The benchmark of $41,379 for 'br' is unclear in its applicability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract appears to be sole-source, awarded directly to The Aerospace Corporation. This limits price discovery and competition, potentially leading to less favorable pricing for the government.
Taxpayer Impact: Sole-source awards can result in higher taxpayer costs due to the absence of competitive bidding.
Public Impact
Taxpayer funds are directed towards specialized space research, potentially advancing scientific and technological capabilities. The contract supports a critical agency (NOAA) in its mission, which has broad public implications for weather, climate, and oceans. Lack of transparency in sole-source contracts can reduce public trust in government spending. The duration and funding level suggest a significant project with potential long-term impacts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Unclear benchmark data
- Limited public detail
Positive Signals
- Supports critical agency mission
- Focus on specialized research
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on space technology. Spending in this area is often characterized by high innovation, long development cycles, and significant upfront investment. Benchmarks are difficult without specific project details.
Small Business Impact
The contract was not awarded to small businesses, indicating a focus on large, established contractors with specialized capabilities in the aerospace sector.
Oversight & Accountability
Oversight is crucial for cost-plus fixed-fee contracts to ensure costs are reasonable and allocable. The specific oversight mechanisms employed by NOAA for this contract are not detailed, raising potential accountability concerns.
Related Government Programs
- Space Research and Technology
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on deliverables
- Unclear cost benchmark applicability
- Sole-source award
Tags
space-research-and-technology, department-of-commerce, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $12.0 million to THE AEROSPACE CORPORATION. TASK ORDER CONTRACT FOR 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 $12.0 million.
What is the period of performance?
Start: 2008-03-06. End: 2008-12-21.
What specific space research and technology services were procured under this contract, and how do they align with NOAA's strategic objectives?
The contract was for 'Space Research and Technology' (NAICS 927110). While the specific services are not detailed, NOAA's mission involves satellite data for weather forecasting, climate monitoring, and oceanographic research. This contract likely supported the development, maintenance, or analysis of space-based assets or data crucial to these functions. Alignment with strategic objectives would depend on the precise nature of the research undertaken.
Given the sole-source nature and cost-plus fixed fee structure, what measures were in place to ensure the $12 million expenditure represented fair value?
Sole-source awards inherently limit price discovery. For cost-plus fixed fee contracts, fair value relies heavily on robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable, and verify that the fixed fee adequately compensates the contractor for their effort without excessive profit. Without detailed reporting on these oversight activities, assessing the fairness of the value is challenging.
How effectively did this contract contribute to NOAA's mission objectives, and what were the measurable outcomes of the space research conducted?
The effectiveness and measurable outcomes are not detailed in the provided data. Contribution to NOAA's mission would be inferred from the importance of space research to weather, climate, and oceanographic data. A comprehensive assessment would require access to project reports, performance metrics, and scientific publications resulting from the contract.
Industry Classification
NAICS: Public Administration › Space Research and Technology › Space Research and Technology
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $34,889,142
Exercised Options: $30,000,000
Current Obligation: $12,000,000
Parent Contract
Parent Award PIID: DOCDG133E07CQ0005
IDV Type: IDC
Timeline
Start Date: 2008-03-06
Current End Date: 2008-12-21
Potential End Date: 2008-12-21 00:00:00
Last Modified: 2009-08-22
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