NASA's $2.55 Billion J-BOSC Contract Awarded to Space Gateway Support, LLC for Facilities Support Services
Contract Overview
Contract Amount: $2,546,941,705 ($2.5B)
Contractor: Space Gateway Support, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-10-15
End Date: 2009-03-31
Contract Duration: 3,455 days
Daily Burn Rate: $737.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: JOINT BASE OPERATIONS AND SUPPORT FOR KSC, CAPE CANAVERAL AIR FORCE STATION AND PATRICK AIR FORCE BASE (J-BOSC)
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.55 billion to SPACE GATEWAY SUPPORT, LLC for work described as: JOINT BASE OPERATIONS AND SUPPORT FOR KSC, CAPE CANAVERAL AIR FORCE STATION AND PATRICK AIR FORCE BASE (J-BOSC) Key points: 1. The contract value of $2.55 billion over its lifetime represents a significant investment in base operations. 2. Competition was full and open, suggesting a robust market for these services. 3. The contract type (Cost Plus Award Fee) can incentivize performance but may lead to higher costs if not managed carefully. 4. The sector is Facilities Support Services, crucial for maintaining critical infrastructure.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for potential cost overruns if performance targets are aggressively pursued or poorly defined. Benchmarking against similar large-scale base operations contracts is difficult due to unique scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential base operations, with the expectation of efficient service delivery due to competitive pressures.
Public Impact
Ensures continued operational readiness of key space launch facilities. Supports the economic activity in the Florida space coast region through contract employment and operations. Facilitates NASA's and the Air Force's ongoing space exploration and national security missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can be prone to cost growth.
- Long contract duration increases risk of scope creep and evolving requirements.
- Lack of small business participation noted.
Positive Signals
- Full and open competition suggests market viability.
- Award fee structure incentivizes performance.
- Supports critical national infrastructure.
Sector Analysis
This contract falls within the Facilities Support Services sector, which is essential for the functioning of large government installations like military bases and space centers. Spending benchmarks for such comprehensive contracts are highly variable based on scope and location.
Small Business Impact
The data indicates that small businesses were not directly involved as prime contractors in this award. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA). Oversight would focus on performance metrics, cost control, and adherence to award fee criteria to ensure accountability.
Related Government Programs
- Facilities Support Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost growth potential in CPFF contracts.
- Long contract duration.
- No small business prime participation.
- Potential for performance metrics to drive cost overruns.
- Complexity of managing large-scale base operations.
Tags
facilities-support-services, national-aeronautics-and-space-administr, fl, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.55 billion to SPACE GATEWAY SUPPORT, LLC. JOINT BASE OPERATIONS AND SUPPORT FOR KSC, CAPE CANAVERAL AIR FORCE STATION AND PATRICK AIR FORCE BASE (J-BOSC)
Who is the contractor on this award?
The obligated recipient is SPACE GATEWAY SUPPORT, 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 $2.55 billion.
What is the period of performance?
Start: 1999-10-15. End: 2009-03-31.
What is the total cost per year for these base operations services?
The total contract value is $2.55 billion over approximately 9.5 years (from Oct 1999 to Mar 2009). This averages to roughly $268 million per year. However, this is an average, and actual annual spending would fluctuate based on performance, operational needs, and the award fee component.
What are the primary risks associated with a Cost Plus Award Fee contract of this magnitude?
The primary risks include potential cost overruns if the award fee criteria are too easily met or if the base cost is underestimated. There's also a risk of contractor focus shifting to maximizing award fees rather than pure cost efficiency. Effective government oversight is crucial to mitigate these risks.
How effectively does this contract support NASA's long-term space exploration goals?
This contract is foundational for supporting the infrastructure required for space launch operations at KSC and Cape Canaveral. Its effectiveness is directly tied to maintaining reliable facilities and services, which are critical for mission success. Consistent performance under this contract enables NASA to focus on its core exploration objectives.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,791,162,651
Exercised Options: $2,774,177,388
Current Obligation: $2,546,941,705
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-10-15
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2017-09-26
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