NASA's $1.04B contract for ALT TURBO PUMP with RTX CORPORATION shows long-term commitment
Contract Overview
Contract Amount: $1,035,298,414 ($1.0B)
Contractor: RTX Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1986-12-18
End Date: 2012-09-26
Contract Duration: 9,414 days
Daily Burn Rate: $110.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ALT TURBO PUMP (VALUES ROLLED UP THRU MOD 271, PR 83680100271)
Place of Performance
Location: EAST HARTFORD, HARTFORD County, CONNECTICUT, 06108
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.04 billion to RTX CORPORATION for work described as: ALT TURBO PUMP (VALUES ROLLED UP THRU MOD 271, PR 83680100271) Key points: 1. Contract duration of over 25 years suggests a critical, long-standing need for the turbo pump system. 2. The cost-plus award fee structure incentivizes performance while allowing for cost flexibility. 3. A single award indicates a potentially specialized or high-barrier-to-entry technology. 4. The contract's significant value points to a substantial role in NASA's operations. 5. RTX CORPORATION's long tenure as the sole awardee suggests a strong incumbent advantage and established relationship. 6. The definitive contract type implies a stable, ongoing requirement for the goods or services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its long duration and specialized nature. The cost-plus award fee (CPAF) structure means the final cost is variable and dependent on performance. Without specific details on the award fee criteria and achieved performance, a precise value-for-money assessment is difficult. However, the sustained commitment over two decades suggests the technology is deemed essential and the pricing, while not directly comparable to market rates for similar, shorter-term procurements, has been acceptable to NASA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the fact that it is a single award definitive contract suggests that only one vendor, RTX CORPORATION, was ultimately selected. This could be due to highly specialized requirements, technical expertise, or a strong incumbent advantage that made it the most qualified bidder.
Taxpayer Impact: Full and open competition, even with a single award, suggests that NASA sought the best possible solution and price, which is beneficial for taxpayers by ensuring a competitive process was initiated.
Public Impact
This contract directly supports NASA's space exploration and research missions by providing essential turbo pump technology. The services delivered are critical for the operational integrity of specific spacecraft or launch systems. The geographic impact is primarily national, supporting NASA's facilities and mission control centers across the United States. Workforce implications include specialized engineering, manufacturing, and maintenance roles within RTX CORPORATION and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to complacency or reduced incentive for innovation if not managed closely.
- Cost-plus award fee contracts can sometimes lead to cost overruns if performance metrics are not tightly defined and monitored.
- Sole reliance on one contractor for such a critical component could pose supply chain risks if the contractor faces disruptions.
Positive Signals
- The sustained award to RTX CORPORATION indicates a high level of trust and proven performance over a significant period.
- The definitive contract structure provides stability for both the agency and the contractor, ensuring continuity of critical operations.
- The full and open competition at the outset suggests a thorough evaluation process was conducted to select the best provider.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting NASA's advanced technology procurement. The market for highly specialized aerospace components like advanced turbo pumps is typically concentrated among a few key players with the necessary technical expertise and certifications. Spending in this area is driven by government research and development initiatives and long-term mission requirements, often involving significant upfront investment and long production cycles.
Small Business Impact
There is no indication of small business set-asides for this contract. Given the specialized nature of advanced aerospace components and the long-term relationship with a large prime contractor like RTX CORPORATION, it is likely that any subcontracting opportunities for small businesses would be managed by the prime. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a cost-plus award fee contract, NASA's program office would be responsible for monitoring performance against defined award criteria and approving fee payments. The Government Accountability Office (GAO) and the NASA Office of Inspector General (OIG) would have oversight jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- NASA Propulsion Systems Contracts
- Aerospace Component Procurement
- Long-Term Government Contracts
- Cost-Plus Award Fee Contracts
- Spacecraft Systems Development
Risk Flags
- Long contract duration may indicate potential for cost creep if not managed effectively.
- Cost-plus award fee structure requires diligent oversight to ensure value for money.
- Single award could represent a barrier to entry for potential competitors.
Tags
nasa, rtx-corporation, aerospace, propulsion-systems, definitive-contract, cost-plus-award-fee, full-and-open-competition, long-term-contract, defense-sector, turbo-pump, multi-billion-dollar-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.04 billion to RTX CORPORATION. ALT TURBO PUMP (VALUES ROLLED UP THRU MOD 271, PR 83680100271)
Who is the contractor on this award?
The obligated recipient is RTX 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 $1.04 billion.
What is the period of performance?
Start: 1986-12-18. End: 2012-09-26.
What specific turbo pump technology does this contract cover, and what are its key applications within NASA's programs?
This contract, valued at over $1 billion, pertains to the 'ALT TURBO PUMP' and was awarded to RTX CORPORATION by NASA. While the specific technical details of the 'ALT TURBO PUMP' are not publicly disclosed in detail, turbo pumps are critical components in rocket engines and spacecraft propulsion systems. They are responsible for increasing the pressure of propellants (like liquid hydrogen and liquid oxygen) before they are injected into the combustion chamber. This contract likely supports advanced propulsion systems for launch vehicles or deep space missions, where high performance and reliability are paramount. The long duration (1986-2012) suggests it was a foundational technology for multiple NASA initiatives during that era, potentially including the Space Shuttle program's evolution or early development phases of future exploration vehicles.
How does the Cost Plus Award Fee (CPAF) structure typically function, and what are the potential implications for cost control in this contract?
The Cost Plus Award Fee (CPAF) contract structure reimburses the contractor for all allowable costs incurred, plus a fixed fee that is subject to an award amount based on performance against pre-defined criteria. In this NASA contract with RTX CORPORATION, NASA would have established specific metrics related to the turbo pump's performance, reliability, schedule adherence, and potentially other factors. RTX CORPORATION would then earn a portion of the award fee based on how well they met or exceeded these metrics. The implication for cost control is that while costs are reimbursed, the 'award' portion of the fee incentivizes the contractor to perform exceptionally well. However, if the award criteria are not sufficiently stringent or if NASA's oversight is lax, there's a risk of costs escalating without commensurate performance gains. The long duration of this contract (over 25 years) suggests that the performance metrics were likely well-defined and consistently met to justify the sustained funding.
Given the contract's duration (1986-2012), what can be inferred about the technological lifecycle and obsolescence risk of the ALT TURBO PUMP?
A contract spanning from 1986 to 2012 (over 25 years) for a specific component like the ALT TURBO PUMP suggests it was either a highly durable, foundational technology or that NASA maintained it through multiple upgrades and modifications under the same contract umbrella. For a component like a turbo pump, which is subject to extreme conditions, a 25-year operational lifespan in a contract context implies significant engineering robustness or a phased approach to technology refresh. Obsolescence risk is managed through sustainment engineering, potential component redesigns, or by ensuring the contractor maintains the capability to produce or service legacy parts. Given the length of the contract, it's probable that NASA actively managed the technology lifecycle, possibly incorporating newer materials or designs within the contract's framework to mitigate obsolescence and maintain performance standards throughout its extended period.
What does the 'DEFINITIVE CONTRACT' designation imply about the nature of the requirement and the relationship between NASA and RTX CORPORATION?
A 'Definitive Contract' is a fixed-price or cost-reimbursement contract that, in its final form, specifies all the terms and conditions, including a precise statement of quantity, price, and delivery schedule. In the context of this NASA contract with RTX CORPORATION for the ALT TURBO PUMP, it signifies a clear, well-defined, and long-term requirement. It suggests that NASA had a stable and predictable need for this specific component over the contract's extended period (1986-2012). The definitive nature implies a mature program or system where requirements were unlikely to change drastically, allowing for a firm commitment. This designation also points to a strong, established relationship where both parties understood the scope, risks, and expectations, facilitating the long duration of the agreement.
How does the total value of $1.04 billion compare to other major NASA procurements for similar propulsion components?
The $1.04 billion total value for the ALT TURBO PUMP contract awarded to RTX CORPORATION is substantial, reflecting the critical nature and complexity of advanced aerospace propulsion components. Comparing this figure requires context regarding the specific technology, the duration of the contract, and the scope of work. For instance, major engine development programs or long-term sustainment contracts for entire rocket stages can run into billions of dollars over many years. Contracts for individual, albeit critical, components like turbo pumps, especially those with a duration exceeding two decades, would naturally accumulate significant value. While direct comparisons are difficult without knowing the exact technological generation and mission set, a billion-dollar value for a key propulsion element over such an extended period indicates it was a high-priority, high-cost item central to NASA's operational capabilities during its tenure.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ALTERNATIVE SOURCES
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 400 MAIN ST, EAST HARTFORD, CT, 06108
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,067,401,999
Exercised Options: $1,067,401,999
Current Obligation: $1,035,298,414
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1986-12-18
Current End Date: 2012-09-26
Potential End Date: 2012-09-26 00:00:00
Last Modified: 2019-07-17
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