NASA's Balloon Flight Program Operations Contract Awarded to New Mexico State University for $266M Over 12 Years
Contract Overview
Contract Amount: $265,928,539 ($265.9M)
Contractor: NEW Mexico State University
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-04-15
End Date: 2015-01-31
Contract Duration: 4,309 days
Daily Burn Rate: $61.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IMPLEMENTATION OF NASA BALLOON FLIGHT PROGRAM OPERATIONS
Place of Performance
Location: LAS CRUCES, DONA ANA County, NEW MEXICO, 88003
Plain-Language Summary
National Aeronautics and Space Administration obligated $265.9 million to NEW MEXICO STATE UNIVERSITY for work described as: IMPLEMENTATION OF NASA BALLOON FLIGHT PROGRAM OPERATIONS Key points: 1. Significant long-term investment in engineering services for NASA's balloon flight program. 2. Competition method was 'Full and Open', suggesting a potentially competitive bidding process. 3. Contract type is 'Cost Plus Award Fee', which can incentivize performance but may lead to higher costs. 4. The contract duration is substantial, spanning over 12 years, indicating a stable but potentially inflexible arrangement.
Value Assessment
Rating: fair
The contract value of $266 million over 12 years averages to approximately $22 million annually. Benchmarking this against similar large-scale engineering service contracts for government agencies is difficult without more specific data on scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' indicates that all responsible sources were permitted to submit a bid. This method is generally expected to yield competitive pricing, but the 'Cost Plus Award Fee' structure means the final price could vary based on performance incentives.
Taxpayer Impact: The substantial contract value suggests a significant taxpayer investment. While competition aims for efficiency, the cost-plus nature requires careful oversight to ensure value for money.
Public Impact
Supports NASA's scientific research and exploration missions through balloon-based operations. Potential for technological advancements and scientific discoveries enabled by the program. Economic impact in New Mexico through contract employment and related activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns if not managed tightly.
- Long contract duration may limit flexibility to adopt newer technologies or approaches.
- Lack of small business participation noted.
Positive Signals
- Full and open competition suggests a robust initial bidding process.
- Contract supports critical NASA scientific operations.
- Award fee mechanism can drive high performance.
Sector Analysis
This contract falls under Engineering Services, a broad category. The specific application to NASA's Balloon Flight Program suggests specialized technical expertise is required. Benchmarking against other government engineering service contracts would depend on the precise nature of the services provided.
Small Business Impact
The data indicates that small business participation was not a factor in this contract ('sb': false). This suggests the prime contractor is likely a large entity, and opportunities for small businesses may be limited to subcontracting roles, if any.
Oversight & Accountability
The 'Cost Plus Award Fee' contract type necessitates robust oversight from NASA to ensure that costs are reasonable and that award fees are justified based on performance metrics. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Risk of technological obsolescence over the 12-year contract duration.
- Lack of explicit small business participation.
- Contract value is substantial, requiring diligent oversight.
Tags
engineering-services, national-aeronautics-and-space-administr, nm, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $265.9 million to NEW MEXICO STATE UNIVERSITY. IMPLEMENTATION OF NASA BALLOON FLIGHT PROGRAM OPERATIONS
Who is the contractor on this award?
The obligated recipient is NEW MEXICO STATE UNIVERSITY.
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 $265.9 million.
What is the period of performance?
Start: 2003-04-15. End: 2015-01-31.
What specific engineering services are included under the balloon flight program operations, and how do they align with NASA's strategic goals?
The contract likely encompasses a range of services essential for the operation of NASA's balloon fleet, including design, fabrication, launch, flight tracking, data acquisition, and recovery of scientific payloads. These services directly support NASA's strategic goals in areas like atmospheric research, astrophysics, and planetary science by providing a cost-effective platform for scientific observation.
How effectively did the 'Full and Open Competition' process ensure competitive pricing given the 'Cost Plus Award Fee' structure?
While 'Full and Open Competition' is designed to foster competitive pricing, the 'Cost Plus Award Fee' (CPAF) structure introduces variability. The initial bid may have been competitive, but the final cost is influenced by performance incentives. NASA's oversight is critical to ensure that award fees are earned through genuine value addition and not simply cost escalation.
What is the long-term risk associated with a 12-year contract for balloon flight operations in terms of technological obsolescence or changing scientific needs?
A 12-year contract duration carries a significant risk of technological obsolescence, especially in rapidly evolving fields like aerospace and scientific instrumentation. Furthermore, scientific priorities can shift over such a long period. NASA would need strong contract management and potential modification clauses to adapt to new technologies or pivot the program's focus if required.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: STEWART ESPIAN ST, LAS CRUCES, NM, 88003
Business Categories: Category Business, Educational Institution, Government, Higher Education, Higher Education (Minority Serving), U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $303,508,929
Exercised Options: $299,901,578
Current Obligation: $265,928,539
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-04-15
Current End Date: 2015-01-31
Potential End Date: 2015-01-31 00:00:00
Last Modified: 2021-09-10
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