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

State: New Mexico Government Spending

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

Positive Signals

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

Risk Flags

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 ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE 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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