NASA's $280M ISS WPA/Oxygen Generator Contract Awarded to Hamilton Sundstrand, Raising Competition Concerns
Contract Overview
Contract Amount: $280,806,686 ($280.8M)
Contractor: Hamilton Sundstrand Space Systems International, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-09-30
End Date: 2009-09-30
Contract Duration: 2,192 days
Daily Burn Rate: $128.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: PRELIMINARY DEFINITION OF THE ISS WATER PROCESSOR ASSEMBLY (WPA) AND OXYGEN GENERATOR ASSEMBLY
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096
Plain-Language Summary
National Aeronautics and Space Administration obligated $280.8 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC for work described as: PRELIMINARY DEFINITION OF THE ISS WATER PROCESSOR ASSEMBLY (WPA) AND OXYGEN GENERATOR ASSEMBLY Key points: 1. Significant investment in critical life support systems for the International Space Station. 2. Sole-source award to Hamilton Sundstrand suggests limited competition, potentially impacting price discovery. 3. Long-term contract duration (2003-2009) warrants close monitoring of cost performance. 4. Research and Development focus (NAICS 541710) indicates innovation but also inherent project risks.
Value Assessment
Rating: questionable
The contract's cost-plus award fee structure can incentivize performance but may lead to cost overruns if not managed tightly. Benchmarking against similar complex aerospace life support systems is difficult due to the unique nature of ISS components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued operation of vital life support systems on the ISS. Supports advanced technological development in space exploration. Potential for cost overruns due to the cost-plus award fee structure. Reliability of the WPA and Oxygen Generator is critical for astronaut safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus award fee structure can lead to cost growth.
- Long contract duration increases risk exposure.
- Lack of small business participation noted.
Positive Signals
- Critical technology for space exploration.
- Experienced contractor in aerospace systems.
- Potential for innovation in life support.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to aerospace engineering. Spending in this sector is often characterized by high innovation, long development cycles, and significant upfront investment, with costs frequently managed through cost-plus contracts.
Small Business Impact
The data indicates that small businesses were not involved in this contract, which is common for large, sole-source, prime contracts in the aerospace sector. Opportunities for small businesses may exist further down the supply chain.
Oversight & Accountability
The cost-plus award fee structure necessitates robust oversight from NASA to ensure contractor performance and control costs. Regular reviews and audits would be crucial to ensure accountability and prevent potential cost overruns.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Cost-plus award fee contract type
- Long contract duration
- Lack of small business participation
- High-risk R&D sector
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ct, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $280.8 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. PRELIMINARY DEFINITION OF THE ISS WATER PROCESSOR ASSEMBLY (WPA) AND OXYGEN GENERATOR ASSEMBLY
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.
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 $280.8 million.
What is the period of performance?
Start: 2003-09-30. End: 2009-09-30.
What is the estimated cost savings or efficiency gain achieved by awarding this contract sole-source versus a competitive process?
Quantifying exact savings from a sole-source award is challenging. However, competitive bidding typically drives down prices through market forces. In this case, the absence of competition likely resulted in a higher price for taxpayers than might have been achieved otherwise. NASA's oversight is critical to mitigate this by ensuring the contractor delivers value within the awarded fee structure.
What are the primary technical risks associated with the WPA and Oxygen Generator Assembly, and how are they being mitigated?
Technical risks likely include component reliability, integration challenges with the ISS, and performance under extreme space conditions. Mitigation strategies would involve rigorous testing, quality assurance protocols, and performance-based award fees tied to successful operation and reliability metrics. The long duration suggests a focus on sustained performance and maintenance.
How effectively has Hamilton Sundstrand performed under this contract in terms of cost, schedule, and technical objectives?
Assessing performance effectiveness requires access to NASA's contract performance reports and award fee determinations. Given the cost-plus award fee structure, performance is theoretically tied to incentives. However, without specific data on award fee payouts and cost variance analysis, a definitive judgment on effectiveness is not possible from the provided information.
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: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: RTX Corp
Address: 1 HAMILTON ROAD, WINDSOR LOCKS, CT, 06096
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $282,781,999
Exercised Options: $282,781,999
Current Obligation: $280,806,686
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-09-30
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2022-06-17
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