NASA's $279M Expendable Launch Vehicle contract awarded to Analex Corporation for R&D services
Contract Overview
Contract Amount: $279,218,951 ($279.2M)
Contractor: Analex Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-06-05
End Date: 2012-03-31
Contract Duration: 3,587 days
Daily Burn Rate: $77.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: EXPENDABLE LAUNCH VEHICLE INTEGRATED SUP
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $279.2 million to ANALEX CORPORATION for work described as: EXPENDABLE LAUNCH VEHICLE INTEGRATED SUP Key points: 1. The contract's value of $279 million over its lifespan indicates significant investment in launch vehicle technology. 2. Analex Corporation, as the sole awardee, suggests a focused relationship or a highly specialized service requirement. 3. The 'Research and Development' classification points to innovation and future capabilities rather than immediate operational deployment. 4. The contract duration of nearly 10 years highlights a long-term commitment to the services provided. 5. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 6. The absence of small business set-asides suggests the primary contractor is likely a large entity, with potential subcontracting opportunities.
Value Assessment
Rating: fair
Benchmarking this contract's value is challenging without specific performance metrics or comparable R&D projects. The Cost Plus Award Fee (CPAF) structure, while common for R&D, can lead to cost overruns if not managed diligently. The total award amount of $279 million over approximately 10 years suggests a substantial but potentially variable annual spend, dependent on performance incentives and research outcomes. Without detailed cost breakdowns or comparisons to similar R&D efforts in the aerospace sector, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. However, with only two bids received, the level of competition was limited. This suggests that the market for such specialized launch vehicle R&D services may be concentrated among a few key players, or that the specific requirements of the solicitation may have naturally narrowed the field of potential bidders.
Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers if the few bidders face less pressure to offer the most competitive rates. However, if the bidders were highly qualified, the focus may have been on technical merit and innovation, potentially yielding better long-term value.
Public Impact
The primary beneficiaries are NASA and the broader U.S. space exploration and defense sectors, which rely on advanced launch vehicle capabilities. The services delivered likely involve research, design, testing, and integration related to expendable launch vehicles, crucial for satellite deployment and space missions. The geographic impact is primarily centered in Florida (ST), where the contractor is located, potentially creating or sustaining high-skilled jobs in the region. The contract supports a specialized workforce of engineers, scientists, and technicians involved in aerospace R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep under the Cost Plus Award Fee (CPAF) structure requires rigorous oversight.
- Limited competition (2 bids) may indicate a concentrated market, potentially impacting future pricing.
- The long contract duration could lead to vendor lock-in if not managed proactively.
Positive Signals
- Awarded under full and open competition, ensuring a broad initial solicitation.
- The CPAF structure incentivizes high performance and successful research outcomes.
- Long-term contract provides stability for critical R&D efforts in launch vehicle technology.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development for expendable launch vehicles. This is a critical area for national security, scientific exploration, and commercial satellite deployment. The market is characterized by high barriers to entry due to specialized knowledge, significant capital investment, and stringent regulatory requirements. Comparable spending benchmarks would typically involve other large-scale R&D contracts for aerospace systems, often awarded by agencies like NASA, the Department of Defense, and intelligence agencies.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement ('sb': false). This suggests that the primary focus was on securing the best technical solution from the broader market. While the prime contractor may engage small businesses as subcontractors, there is no explicit mandate within this award to do so. The impact on the small business ecosystem is therefore indirect, depending on the prime contractor's subcontracting strategy.
Oversight & Accountability
Oversight for this Cost Plus Award Fee (CPAF) contract would primarily fall under NASA's contracting officer and administrative team. They are responsible for monitoring performance, approving costs, and determining award fees based on established criteria. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA Launch Services Program
- Space Technology Mission Directorate
- Expendable Launch Vehicle (ELV) programs
- Aerospace Research and Development Contracts
- Cost Plus Award Fee Contracts
Risk Flags
- Cost Overrun Risk (CPAF)
- Limited Competition Concerns
- Long-Term Contract Dependency
Tags
nasa, expendable-launch-vehicle, research-and-development, analex-corporation, cost-plus-award-fee, full-and-open-competition, florida, aerospace, defense, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $279.2 million to ANALEX CORPORATION. EXPENDABLE LAUNCH VEHICLE INTEGRATED SUP
Who is the contractor on this award?
The obligated recipient is ANALEX CORPORATION.
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 $279.2 million.
What is the period of performance?
Start: 2002-06-05. End: 2012-03-31.
What was the specific nature of the R&D performed under this contract?
The contract, 'EXPENDABLE LAUNCH VEHICLE INTEGRATED SUP' (likely a support services contract), awarded to Analex Corporation by NASA, focused on research and development related to expendable launch vehicles. While the specific details of the R&D are not provided in the summary data, such contracts typically involve activities like improving engine efficiency, developing new materials for lighter and stronger structures, enhancing guidance and control systems, refining launch procedures, and ensuring overall mission reliability and safety. The goal is to advance the capabilities and reduce the costs associated with launching payloads into space using non-reusable rocket systems.
How does the $279 million total award compare to similar R&D contracts for launch vehicles?
Comparing the $279 million total award requires context regarding the contract's duration and scope. This contract spanned nearly 10 years (June 2002 - March 2012), averaging approximately $28 million per year. This annual figure is substantial but falls within the range of major R&D programs for complex aerospace systems. For instance, significant investments are made in developing new rocket engines, advanced propulsion systems, or next-generation launch platforms, which can easily run into tens or hundreds of millions of dollars annually over several years. Without knowing the specific technical objectives and deliverables, a precise comparison is difficult, but the funding level suggests a significant, long-term R&D effort.
What are the key risks associated with a Cost Plus Award Fee (CPAF) contract structure for R&D?
The primary risk with CPAF contracts, especially for R&D, is the potential for cost escalation. While the 'cost plus' component covers allowable expenses, the 'award fee' is contingent on meeting or exceeding performance targets. This can incentivize contractors to pursue ambitious goals, potentially leading to unforeseen costs. Effective oversight is crucial to ensure that costs remain reasonable and that award fees are justified by demonstrable performance improvements. There's also a risk that the contractor might focus excessively on achieving award fee criteria at the expense of other critical, but less incentivized, aspects of the R&D effort. Rigorous monitoring of technical progress and cost performance is essential to mitigate these risks.
What does the limited competition (2 bids) suggest about the market for expendable launch vehicle R&D?
The fact that only two bids were received for this 'Full and Open Competition' contract suggests a highly specialized and potentially concentrated market for expendable launch vehicle R&D services. This could indicate that only a few companies possess the necessary technical expertise, facilities, and security clearances required for such advanced work. It might also imply that the specific requirements outlined in the solicitation were very precise, naturally limiting the pool of potential bidders. While limited competition can sometimes lead to higher prices, it can also result in the selection of highly qualified contractors best suited for complex, mission-critical R&D.
How has NASA's spending on expendable launch vehicle R&D evolved over time, and does this contract fit historical patterns?
NASA's spending on expendable launch vehicles (ELVs) has historically been significant, driven by the need for reliable and cost-effective access to space for scientific missions, satellite deployment, and cargo resupply. While the agency has increasingly explored reusable launch systems (like SpaceX's Falcon 9), ELVs remain crucial for certain mission profiles and payloads. This $279 million contract, awarded in 2002 and running until 2012, represents a substantial investment during a period when ELVs were the primary means of launch. Historical patterns show consistent, multi-year funding for launch vehicle development and support, often in the hundreds of millions of dollars, making this contract's scale and duration consistent with NASA's long-term R&D commitments in this domain.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Qinetiq Group PLC (UEI: 733131788)
Address: 2677 PROSPERITY AVE STE 400, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $286,371,351
Exercised Options: $286,371,351
Current Obligation: $279,218,951
Timeline
Start Date: 2002-06-05
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2014-10-02
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