NASA's $597M Mechanical Engineering Support Contract to ATK Space Systems Shows Long-Term Engagement
Contract Overview
Contract Amount: $596,800,894 ($596.8M)
Contractor: ATK Space Systems LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-01-15
End Date: 2008-06-30
Contract Duration: 2,723 days
Daily Burn Rate: $219.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: MECHANICAL ENGINEERING SUPPORT SERVICES
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $596.8 million to ATK SPACE SYSTEMS LLC for work described as: MECHANICAL ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded for extensive mechanical engineering support, indicating a significant need for specialized expertise. 2. The contract's duration of over 2700 days suggests a stable, long-term relationship between NASA and ATK Space Systems. 3. Awarded under full and open competition, this contract implies a robust vetting process for contractor selection. 4. The use of a Cost Plus Award Fee (CPA) pricing structure suggests performance incentives were a key component. 5. The contract's focus on R&D in physical, engineering, and life sciences aligns with NASA's core mission objectives. 6. The significant dollar value points to a substantial scope of work and critical support provided to NASA projects.
Value Assessment
Rating: good
This contract, valued at approximately $597 million over its lifespan, represents a substantial investment in mechanical engineering support. While direct comparisons are difficult without knowing the specific services rendered, the long duration and the Cost Plus Award Fee structure suggest a focus on achieving specific performance milestones. The total value, spread over nearly 7.5 years, indicates a consistent level of support rather than a single large expenditure. Benchmarking this against similar long-term, high-value R&D support contracts for NASA would provide further context on its value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific exclusions were made, possibly due to prior work or specialized capabilities. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation criteria would offer a clearer picture of the competition's intensity. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by driving down costs and ensuring that the selected contractor offers the best value proposition.
Public Impact
This contract directly benefits NASA by providing essential mechanical engineering expertise for its research and development initiatives. The services delivered likely support critical space exploration, aeronautics research, and technology development programs. The geographic impact is primarily centered around NASA facilities where these engineering services are performed, likely impacting the Maryland region given the 'MD' state code. The contract supports a specialized workforce of mechanical engineers and related technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Exclusion of Sources' clause warrants further investigation to understand the rationale and potential impact on competition.
- The Cost Plus Award Fee structure can lead to cost overruns if not managed rigorously, requiring close oversight.
- The long duration of the contract might indicate a lack of flexibility to adapt to rapidly changing technological needs.
Positive Signals
- Awarded through full and open competition, suggesting a thorough evaluation of multiple potential providers.
- The significant investment indicates NASA's commitment to critical engineering support, potentially leading to groundbreaking R&D outcomes.
- The long-term nature of the contract provides stability for both the agency and the contractor, fostering expertise development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment, particularly in areas like aerospace. NASA is a major player in this sector, driving advancements in space exploration and aeronautics. Comparable spending benchmarks would involve looking at other large, long-term R&D support contracts awarded by government agencies to specialized engineering firms.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the substantial dollar value and specialized nature of mechanical engineering support for NASA's R&D, it is unlikely that small businesses would be the primary awardees unless through subcontracting. Further analysis would be needed to determine if ATK Space Systems has a subcontracting plan that includes small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee contract, NASA would be responsible for monitoring performance, determining award fees based on achieved milestones, and ensuring adherence to contract terms. Transparency would be facilitated through NASA's contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Mechanical Systems Support
- Space Exploration Technology Development
Risk Flags
- Long contract duration
- Cost Plus Award Fee structure
- Exclusion of Sources in competition
Tags
nasa, r&d, mechanical-engineering, space-systems, atk-space-systems, definitive-contract, cost-plus-award-fee, full-and-open-competition, maryland, research-and-development, engineering-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $596.8 million to ATK SPACE SYSTEMS LLC. MECHANICAL ENGINEERING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ATK SPACE SYSTEMS LLC.
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 $596.8 million.
What is the period of performance?
Start: 2001-01-15. End: 2008-06-30.
What specific types of mechanical engineering support were provided under this contract?
While the contract ID and award details are available, the specific nature of the 'Mechanical Engineering Support Services' is not detailed in the provided data. Typically, such services for NASA could encompass a wide range of activities including design, analysis, testing, integration, and sustainment of mechanical systems for spacecraft, launch vehicles, scientific instruments, and ground support equipment. This could involve areas like structural mechanics, thermal control, propulsion systems, mechanisms, and robotics. The 'Research and Development' classification suggests a focus on innovation and development of new technologies rather than routine maintenance.
How did the performance of ATK Space Systems compare to the award fee criteria?
The provided data indicates the contract type was 'COST PLUS AWARD FEE' (pt: 'COST PLUS AWARD FEE'), suggesting that ATK Space Systems' performance was evaluated against specific criteria, and they could earn award fees based on exceeding expectations. However, the data does not include details on the specific award fee criteria, the awarded amounts, or ATK Space Systems' performance ratings. To assess this, one would need to access NASA's internal performance reviews and award fee determinations for this contract over its duration.
What was the total value of award fees paid to ATK Space Systems under this contract?
The provided data summarizes the total contract value at $596,800,894.22 (a). It does not break down this total into base cost reimbursement and any award fees paid. Cost Plus Award Fee contracts allow for additional fees beyond costs incurred, contingent on performance. Without access to NASA's payment records or contract modifications, it's impossible to determine the specific amount of award fees disbursed to ATK Space Systems.
Were there any significant cost overruns or underruns compared to the initial estimates?
The data shows the total obligated amount (a) as $596,800,894.22. As this is a definitive contract awarded in 2001 and ending in 2008, this figure likely represents the final value. Without knowing the initial estimated cost or target cost established at the contract's outset, it's impossible to definitively state whether there were significant overruns or underruns. The 'COST PLUS AWARD FEE' structure implies that costs are reimbursed, and additional fees are awarded for performance, making a direct comparison to a fixed estimate challenging without more detailed financial data.
What is the significance of the 'Exclusion of Sources' in the competition type?
The competition type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (ct) indicates that while the solicitation was broadly advertised, certain potential sources were intentionally excluded from bidding. This exclusion must be justified by the procuring agency, often due to reasons such as the need for specialized knowledge, prior experience on related projects, or to leverage existing infrastructure. For this NASA contract, it suggests that ATK Space Systems (co) may have had unique qualifications or prior involvement that NASA deemed essential, and other potential bidders were deemed unsuitable or unnecessary for this specific requirement.
How does the $597 million contract value compare to NASA's typical spending on mechanical engineering R&D support?
The $596.8 million contract value for mechanical engineering support services over approximately 7.5 years is substantial. NASA's R&D spending is vast, encompassing numerous large-scale projects. To benchmark this specific contract, one would need to analyze NASA's historical spending data for similar engineering support services across different centers and programs. Contracts of this magnitude are typically associated with major space missions, aeronautics research programs, or foundational technology development efforts, suggesting this contract played a critical role in significant NASA endeavors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 11310 FREDERICK AVE, BELTSVILLE, MD, 20705
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $645,500,000
Exercised Options: $645,500,000
Current Obligation: $596,800,894
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2001-01-15
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2021-11-03
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