NASA's $28.8M expendable launch vehicle services contract awarded to Orbital Sciences LLC shows fair value
Contract Overview
Contract Amount: $28,830,313 ($28.8M)
Contractor: Orbital Sciences LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-02-20
End Date: 2011-04-30
Contract Duration: 1,165 days
Daily Burn Rate: $24.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SMALL EXPENDABLE LAUNCH VEHICLE SERVICES
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $28.8 million to ORBITAL SCIENCES LLC for work described as: SMALL EXPENDABLE LAUNCH VEHICLE SERVICES Key points: 1. Contract value appears reasonable given the scope of space vehicle manufacturing services. 2. Limited competition dynamics may have influenced final pricing. 3. Performance history and contractor's track record warrant close monitoring. 4. Contract duration of over three years provides a stable operational window. 5. This contract falls within the broader guided missile and space vehicle manufacturing sector. 6. Small business participation was not a stated requirement for this award.
Value Assessment
Rating: good
The contract's total value of approximately $28.8 million for expendable launch vehicle services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for space vehicle manufacturing and launch services is challenging without more granular data on specific services rendered. However, the firm-fixed-price structure suggests that the contractor assumed a significant portion of the cost risk, which can be a positive indicator of value if performance targets are met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Orbital Sciences LLC, was deemed capable of fulfilling the requirement. The justification for sole-source procurement typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. The lack of competition means that price discovery through a bidding process was absent, potentially leading to a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, it is difficult to ascertain if the government secured the best possible price for these specialized services.
Public Impact
The primary beneficiaries are NASA and its scientific or operational missions requiring expendable launch vehicle services. Services delivered include the manufacturing and preparation of space vehicles for launch. The geographic impact is primarily within the United States, supporting aerospace manufacturing and launch capabilities. Workforce implications include employment for engineers, technicians, and support staff in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Lack of detailed performance metrics in the provided data makes assessing contractor efficiency difficult.
- Contract duration could lead to complacency if not actively managed.
- Reliance on a single contractor for critical launch vehicle services poses a supply chain risk.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor, incentivizing cost control.
- Orbital Sciences LLC is an established player in the aerospace industry, suggesting technical capability.
- Contract award supports critical NASA missions, contributing to scientific and technological advancement.
- Longer contract duration provides stability for planning and execution of launch services.
Sector Analysis
The Guided Missile and Space Vehicle Manufacturing sector is a highly specialized and capital-intensive industry. This contract with Orbital Sciences LLC fits within this sector, focusing on the production of expendable launch vehicles. The market is characterized by a few large, established players and significant barriers to entry due to technological complexity and regulatory requirements. NASA's spending in this area is crucial for its space exploration and satellite deployment objectives.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the specialized services from a capable large business, with limited direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers. Accountability measures would be embedded in the contract's performance clauses and reporting requirements. Transparency is generally maintained through contract databases like FPDS, although detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Space Launch Services
- Satellite Deployment
- Guided Missile Manufacturing
- Aerospace Vehicle Production
- NASA Launch Programs
Risk Flags
- Sole-source award
- Potential for higher cost due to lack of competition
- Contractor performance history requires monitoring
- Reliance on a single provider for critical services
Tags
nasa, orbital-sciences-llc, expendable-launch-vehicle-services, guided-missile-and-space-vehicle-manufacturing, firm-fixed-price, sole-source, virginia, space-transportation, defense-industrial-base, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $28.8 million to ORBITAL SCIENCES LLC. SMALL EXPENDABLE LAUNCH VEHICLE SERVICES
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES 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 $28.8 million.
What is the period of performance?
Start: 2008-02-20. End: 2011-04-30.
What is the track record of Orbital Sciences LLC with NASA on similar contracts?
Orbital Sciences LLC (now part of Northrop Grumman) has a significant history of working with NASA and other government agencies on launch services and satellite programs. Prior to its acquisition, the company was a key provider of commercial resupply services to the International Space Station (ISS) under NASA's Commercial Resupply Services (CRS) program. They also developed and operated the Minotaur family of rockets, which utilized repurposed Minuteman missile stages, often used for smaller payloads. Their track record includes both successful launches and some notable failures, such as the Antares rocket failure in 2014. NASA's engagement with Orbital Sciences on this specific contract would have been informed by their overall performance, technical capabilities, and past delivery success rates within the broader context of space launch and vehicle manufacturing.
How does the pricing of this contract compare to other similar expendable launch vehicle services?
Directly comparing the pricing of this $28.8 million contract for 'SMALL EXPENDABLE LAUNCH VEHICLE SERVICES' is difficult without detailed breakdowns of the services provided and the specific performance metrics achieved. Expendable launch vehicle services can vary significantly in cost based on payload size, launch destination, mission complexity, and the specific vehicle used. Given that this was a sole-source award, it is plausible that the price might be higher than if it had been competitively procured. However, if Orbital Sciences possessed unique capabilities or efficiencies that justified the price, and if the firm-fixed-price structure effectively managed risk, the value could still be considered fair. Benchmarking would ideally involve comparing cost-per-kilogram to orbit for similar payload classes and launch providers.
What are the primary risks associated with this sole-source contract?
The primary risks associated with this sole-source contract are related to the lack of competitive pressure and potential overpricing. Without competing bids, NASA may not have secured the most cost-effective solution available in the market. There's also a risk of reduced innovation and efficiency, as the contractor may face less incentive to optimize processes or offer cost savings compared to a competitive environment. Furthermore, reliance on a single provider for critical services can create vulnerabilities in the supply chain or operational continuity if the contractor faces financial, technical, or management issues. NASA's oversight would need to be particularly rigorous to mitigate these risks.
How effective has NASA been in managing contracts with Orbital Sciences LLC historically?
NASA's management of contracts with Orbital Sciences LLC has had mixed results, reflecting the inherent complexities and risks of the aerospace industry. The company was a vital partner in NASA's Commercial Orbital Transportation Services (COTS) and Commercial Resupply Services (CRS) programs, successfully delivering cargo to the ISS. However, the aforementioned Antares rocket failure in 2014, while attributed to an engine issue from a third-party supplier, highlighted the risks associated with complex aerospace projects and the importance of robust supplier management and risk mitigation strategies. NASA's effectiveness in managing these contracts is demonstrated by the overall success of its commercial spaceflight initiatives, but also underscored by the need for stringent oversight, contingency planning, and performance monitoring, especially in sole-source situations.
What are the historical spending patterns for expendable launch vehicle services at NASA?
NASA's historical spending on expendable launch vehicle (ELV) services has been substantial and has evolved over time. Initially, NASA relied heavily on its own launch capabilities and later on contracts with large aerospace companies for ELV services. The agency has consistently funded programs requiring launches for scientific missions (e.g., space telescopes, planetary probes), Earth observation, and human spaceflight support. In recent decades, NASA has also fostered the growth of the commercial launch market, including services for small satellites, through programs like Small Business Innovation Research (SBIR) and by contracting with a variety of providers. Spending patterns reflect shifts towards more cost-effective solutions, increased use of commercial providers, and the development of new launch capabilities, including those for smaller payloads, as seen in this contract.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 21700 ATLANTIC BLVD, STERLING, VA, 10
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Timeline
Start Date: 2008-02-20
Current End Date: 2011-04-30
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2013-12-19
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