NASA's $2.26B Space Shuttle Engineering Support Contract Awarded to Aerojet Rocketdyne
Contract Overview
Contract Amount: $2,264,561,937 ($2.3B)
Contractor: Aerojet Rocketdyne of DE, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-01-01
End Date: 2013-09-30
Contract Duration: 4,290 days
Daily Burn Rate: $527.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SPACE SHUTTLE ENG SUPPORT FOR FLIGHT SCH OF 30 FLI FLIGHTS EXTENDING FROM 1/1/02 THRU 12/31/06
Place of Performance
Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91309
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.26 billion to AEROJET ROCKETDYNE OF DE, INC for work described as: SPACE SHUTTLE ENG SUPPORT FOR FLIGHT SCH OF 30 FLI FLIGHTS EXTENDING FROM 1/1/02 THRU 12/31/06 Key points: 1. Significant long-term contract for critical space shuttle engineering support. 2. Sole-source award to Aerojet Rocketdyne raises questions about competition. 3. High value contract spanning over a decade presents potential for cost overruns. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract's cost-plus award fee structure allows for flexibility but requires careful oversight to ensure value. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not have received the best possible price.
Public Impact
Ensures continued operation and safety of the Space Shuttle program. Supports critical engineering and technical services for space missions. Long duration of the contract impacts long-term budget planning. Potential for knowledge transfer and workforce development within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus award fee structure
- Long contract duration
Positive Signals
- Essential service for national space program
- Experienced contractor
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is difficult without specific service details, but large, long-term government contracts in this area often represent significant investments.
Small Business Impact
The contract was awarded to a large business, Aerojet Rocketdyne, and there is no indication of small business participation in this specific award.
Oversight & Accountability
The cost-plus award fee structure necessitates robust oversight from NASA to ensure contractor performance and cost control. Regular reviews and audits would be crucial for accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus award fee structure can incentivize higher spending.
- Long contract duration increases risk of cost overruns and scope creep.
- Lack of small business participation noted.
Tags
all-other-professional-scientific-and-te, national-aeronautics-and-space-administr, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.26 billion to AEROJET ROCKETDYNE OF DE, INC. SPACE SHUTTLE ENG SUPPORT FOR FLIGHT SCH OF 30 FLI FLIGHTS EXTENDING FROM 1/1/02 THRU 12/31/06
Who is the contractor on this award?
The obligated recipient is AEROJET ROCKETDYNE OF DE, 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 $2.26 billion.
What is the period of performance?
Start: 2002-01-01. End: 2013-09-30.
What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of qualified sources. For a critical program like the Space Shuttle, NASA might have argued that only Aerojet Rocketdyne possessed the specific expertise and historical knowledge required to ensure mission success and safety, thus precluding competitive bidding.
How effectively did NASA manage the cost-plus award fee structure to control expenses and ensure value for taxpayer money?
Effective management of a cost-plus award fee contract relies heavily on clear performance metrics, objective evaluation criteria, and diligent oversight. NASA would need to demonstrate that award fees were tied to measurable achievements and that costs were scrutinized to prevent unnecessary expenditures. Without detailed performance reports, assessing the effectiveness of this management is challenging.
What is the long-term impact of such a large, sole-source contract on the broader aerospace industry and potential for future innovation?
Sole-source contracts, especially for extended periods, can stifle competition and innovation by limiting opportunities for other companies to develop and demonstrate their capabilities. This can lead to a concentration of expertise within a single firm, potentially reducing market dynamism and the development of alternative solutions in the long run.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc.
Address: 6633 CANOGA AVENE, CANOGA PARK, CA, 91309
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,328,626,473
Exercised Options: $2,326,814,525
Current Obligation: $2,264,561,937
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2002-01-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2023-07-21
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