NASA's $894M Boeing contract for payload processing services saw 3803 days of performance
Contract Overview
Contract Amount: $894,254,777 ($894.3M)
Contractor: Boeing Company, the
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-10-01
End Date: 2013-02-28
Contract Duration: 3,803 days
Daily Burn Rate: $235.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: CAPPS - CHECKOUT ASSEMBLY PAYLOAD PROCESSING SERVICES
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $894.3 million to BOEING COMPANY, THE for work described as: CAPPS - CHECKOUT ASSEMBLY PAYLOAD PROCESSING SERVICES Key points: 1. Contract value of $894.2M over 10 years suggests significant investment in payload processing capabilities. 2. Sole contractor, Boeing, implies a lack of direct competition for this specific service during the contract period. 3. Performance duration of over 10 years indicates a long-term need and potential for contractor entrenchment. 4. The contract type (Cost Plus Award Fee) suggests performance incentives were tied to achieving specific award criteria. 5. Research and Development (NAICS 541710) classification points to innovation and advanced technical services. 6. Geographic location in Florida (ST, SN) may indicate a concentration of aerospace and launch-related infrastructure.
Value Assessment
Rating: fair
Benchmarking the value of this $894.2M contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Award Fee structure indicates NASA aimed to incentivize performance, but the long duration and sole-source nature (for this specific award) might limit direct price comparisons. The sheer scale of the investment over a decade suggests a critical need, but the value-for-money is contingent on the successful delivery of complex payload processing services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the award itself was a definitive contract, the initial competition was 'full and open.' However, the data indicates only one award was made to The Boeing Company, suggesting that either Boeing was the sole bidder or the most advantageous offer received. The long performance period could imply that subsequent modifications or renewals might have had different competitive landscapes, but this specific award was subject to initial broad competition.
Taxpayer Impact: A full and open competition, even if resulting in a single award, generally provides taxpayers with assurance that the government sought the best possible offer. The long-term nature of the contract means taxpayers are committed to this provider for an extended period.
Public Impact
The primary beneficiaries are NASA and its various space exploration and scientific missions, which rely on the secure and efficient processing of payloads. Services delivered include the critical assembly and preparation of payloads for launch, ensuring mission readiness. The geographic impact is concentrated in Florida, a hub for aerospace and launch activities, potentially supporting the local economy and workforce. Workforce implications include specialized technical jobs in engineering, logistics, and assembly within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration without clear performance benchmarks makes assessing sustained value difficult.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not tightly managed.
- Reliance on a single contractor for over a decade may reduce future competitive pressure and innovation.
Positive Signals
- Successful completion of a decade-long, complex payload processing contract indicates strong execution capabilities.
- The 'full and open' initial competition suggests a structured procurement process was followed.
- The contract's focus on Research and Development aligns with NASA's mission of scientific advancement.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting NASA's launch and mission operations. The market for specialized payload processing services is relatively niche, dominated by large aerospace contractors with the necessary infrastructure and expertise. Comparable spending benchmarks would likely involve other large-scale NASA contracts or similar government procurements for complex logistical and technical support services related to space missions.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the scale and specialized nature of payload processing services, it is common for such contracts to be awarded to large prime contractors like Boeing. Subcontracting opportunities for small businesses may exist within the supply chain, but direct set-aside analysis is not applicable here.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program management. The Cost Plus Award Fee structure implies performance monitoring against defined criteria. Transparency is generally facilitated through contract award databases, but detailed operational oversight specifics are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA Launch Services Program
- Space Launch System (SLS) Program
- Commercial Crew Program
- Payload Integration Services
- Aerospace Logistics Support
Risk Flags
- Long-term sole-source performance potential
- Cost-plus contract type risks
- Lack of public performance metrics
Tags
nasa, boeing, payload-processing, aerospace, research-and-development, cost-plus-award-fee, definitive-contract, full-and-open-competition, florida, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $894.3 million to BOEING COMPANY, THE. CAPPS - CHECKOUT ASSEMBLY PAYLOAD PROCESSING SERVICES
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY, THE.
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 $894.3 million.
What is the period of performance?
Start: 2002-10-01. End: 2013-02-28.
What specific payload processing services were included under this contract?
The contract, "CAPPS - CHECKOUT ASSEMBLY PAYLOAD PROCESSING SERVICES," primarily encompassed the critical activities required to prepare payloads for integration onto launch vehicles. This typically includes receiving, inspecting, testing, assembling, integrating, and verifying payloads before they are transported to the launch pad. These services are essential for ensuring the safety, functionality, and mission success of scientific instruments, satellites, and other components destined for space. The 'Research and Development' classification suggests that the services may have also involved developing new or improved methods for payload processing, handling unique or experimental payloads, and ensuring compatibility with various launch systems.
How does the $894.2 million contract value compare to similar NASA payload processing contracts?
Directly comparing the $894.2 million value of this decade-long contract requires access to detailed historical data on similar NASA payload processing contracts, which is not publicly available in a readily comparable format. However, the magnitude of the award suggests it was a significant undertaking, likely covering a substantial portion of NASA's payload processing needs during its performance period (2002-2013). Contracts of this scale are typically awarded to major aerospace prime contractors capable of managing complex logistics, technical integration, and large workforces. The value reflects the criticality of payload preparation to mission success and the specialized facilities and expertise required.
What were the key performance indicators or award criteria for the Cost Plus Award Fee (CPAF) structure?
While the specific award criteria for this CPAF contract are not detailed in the provided data, CPAF contracts generally tie a portion of the contractor's fee to achieving specific performance objectives. For payload processing services, these objectives could include factors such as on-time delivery of processed payloads, adherence to quality standards, successful integration with launch vehicles, cost control within allocated budgets, safety performance, and innovation in processing techniques. NASA would have established a set of measurable criteria, and Boeing's performance against these would determine the 'award fee' earned above the base cost reimbursement. The long duration suggests these criteria were likely reviewed and potentially updated over the contract's life.
What risks are associated with a single contractor performing such critical services for over ten years?
A significant risk associated with a single contractor performing critical services for an extended period is the potential for reduced competitive pressure, which can impact innovation and cost efficiency over time. If Boeing was the sole provider for this specific service scope throughout the contract, NASA might have had limited leverage to negotiate better terms or explore alternative solutions in later years. There's also a risk of knowledge or capability loss within the agency if institutional expertise diminishes due to reliance on the contractor. Furthermore, contractor performance degradation or financial instability, though less likely with a major firm like Boeing, poses a substantial risk given the contract's duration and the criticality of the services.
How did the 'full and open competition' process work if only one award was made?
A 'full and open competition' means that the government solicited offers from all responsible sources and conducted the procurement without restrictions on the number or types of potential offerors. Even in a full and open competition, it is possible to receive only one acceptable offer, or for only one offeror to submit a proposal. In this case, The Boeing Company was awarded the contract. This could mean that Boeing was the only company that submitted a proposal, or it was the only one deemed technically acceptable and offering the best value to the government after evaluation. The initial solicitation aimed for broad participation, but the outcome resulted in a single awardee.
What is the significance of the NAICS code 541710 (Research and Development in Physical, Engineering, and Life Sciences)?
The classification under NAICS code 541710 indicates that the services procured under this contract extended beyond routine logistical support. It suggests that the contract involved elements of research and development related to the physical, engineering, and life sciences. For payload processing, this could translate to developing novel techniques for handling sensitive scientific instruments, engineering solutions for integrating new types of payloads, or conducting research to improve the efficiency, safety, or reliability of the processing procedures. This R&D component implies a focus on innovation and advancing the state-of-the-art in preparing complex payloads for space missions, aligning with NASA's broader research and exploration objectives.
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: THE Boeing Company
Address: 100 BOEING WAY, TITUSVILLE, FL, 32780
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $901,824,736
Exercised Options: $901,824,736
Current Obligation: $894,254,777
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-10-01
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2024-09-06
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