NASA's $395M R&D contract for space flight hardware with Sierra Lobo Inc. shows a long-term commitment
Contract Overview
Contract Amount: $39,497,973 ($39.5M)
Contractor: Sierra Lobo Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-10-01
End Date: 2008-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: R&D SPACE FLIGHT AND ASSOCIATED HARDWARE AT MSFC (ROLL-UP THRU MOD 25)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $39.5 million to SIERRA LOBO INC for work described as: R&D SPACE FLIGHT AND ASSOCIATED HARDWARE AT MSFC (ROLL-UP THRU MOD 25) Key points: 1. The contract's duration and total value suggest a significant investment in research and development. 2. Competition dynamics for this contract are crucial for understanding price discovery and potential cost efficiencies. 3. Performance context is key to evaluating the effectiveness of R&D spending over its extended period. 4. Sector positioning within aerospace R&D highlights the strategic importance of this contract. 5. Risk indicators may include the complexity of space flight hardware and the evolving nature of R&D.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics and comparable R&D projects. The cost-plus incentive fee structure suggests an attempt to align contractor incentives with cost control, but the total obligated amount of $394,979,730 over nearly six years indicates substantial investment. Further analysis would require comparing the outcomes and unit costs against similar space flight hardware development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing. The presence of two bidders suggests a moderate level of competition for this specialized R&D requirement.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a more competitive environment, which can drive down costs and improve the quality of goods and services received.
Public Impact
This contract directly benefits the National Aeronautics and Space Administration (NASA) by supporting its space exploration and research initiatives. The services delivered include research and development of space flight hardware, crucial for mission success. The geographic impact is primarily centered in Alabama, where Marshall Space Flight Center is located. Workforce implications include the employment of highly skilled engineers, scientists, and technicians involved in advanced aerospace R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee contracts can sometimes lead to cost overruns if not managed rigorously.
- The long duration of the contract may present challenges in adapting to rapidly evolving technologies in space flight.
- Assessing the true value for money requires detailed performance data over the contract's lifecycle.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- The contract supports critical R&D for NASA's space flight objectives.
- The use of an incentive fee structure aims to align contractor performance with contract goals.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for space flight hardware. The market for such specialized R&D is characterized by high barriers to entry due to technical expertise and capital requirements. Comparable spending benchmarks would involve looking at other NASA R&D contracts or those from similar government agencies focused on advanced technology development.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Sierra Lobo Inc. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would be managed by NASA's contracting officers and program managers. Accountability measures are embedded within the cost-plus incentive fee structure, which ties contractor profit to performance. Transparency is generally maintained through federal procurement databases, though detailed performance reports may not be publicly accessible.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Hardware Procurement
- Space Exploration Technology Development
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Cost-plus contracts require diligent oversight to manage costs.
- Complexity of space flight hardware development presents inherent technical risks.
Tags
research-and-development, space-flight, hardware, nasa, marshall-space-flight-center, sierra-lobo-inc, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, alabama, aerospace, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $39.5 million to SIERRA LOBO INC. R&D SPACE FLIGHT AND ASSOCIATED HARDWARE AT MSFC (ROLL-UP THRU MOD 25)
Who is the contractor on this award?
The obligated recipient is SIERRA LOBO 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 $39.5 million.
What is the period of performance?
Start: 2002-10-01. End: 2008-03-31.
What was the specific nature of the R&D conducted under this contract?
The contract focused on Research and Development in the Physical, Engineering, and Life Sciences, specifically related to space flight and associated hardware for NASA's Marshall Space Flight Center (MSFC). While the exact nature of the R&D is not detailed in the provided data, it would typically involve the design, prototyping, testing, and refinement of components and systems essential for space missions. This could encompass areas like propulsion systems, structural components, life support systems, or scientific instrumentation, all aimed at advancing NASA's capabilities in space exploration and research.
How does the total contract value of approximately $395 million compare to similar R&D contracts for space flight hardware?
The total contract value of approximately $395 million over a period of nearly six years (October 2002 to March 2008) is substantial for a specialized R&D effort in space flight hardware. To provide a precise comparison, one would need to analyze the scope, duration, and technological complexity of other NASA or Department of Defense R&D contracts for similar hardware. However, given the high costs associated with aerospace development and the long-term nature of the work, this figure appears to be within a reasonable range for a significant R&D initiative. It suggests a major investment in developing or improving critical space technologies.
What were the key performance indicators (KPIs) used to assess Sierra Lobo Inc.'s performance under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) used for this contract. However, for a Cost Plus Incentive Fee (CPIF) contract, performance is typically measured against pre-defined objectives related to technical performance, schedule adherence, and cost control. For space flight hardware R&D, KPIs might include factors like the successful development of prototypes, meeting specific performance thresholds (e.g., thrust, efficiency, durability), achieving milestones within projected timelines, and managing costs effectively to stay within target ranges. NASA contracting officers would have monitored these KPIs to determine incentive fee payouts.
What is the historical spending pattern for R&D space flight hardware at NASA's Marshall Space Flight Center?
The provided data represents a single contract awarded in 2002 for R&D space flight hardware at MSFC. To understand historical spending patterns, one would need to examine a broader dataset of contracts awarded to MSFC over an extended period. This would involve looking at the total R&D budget allocated to MSFC, the number and value of contracts awarded for space flight hardware, and trends in spending across different types of R&D. This specific contract, valued at $395 million over six years, indicates a significant investment during its period of performance, suggesting that MSFC has historically prioritized such R&D efforts.
What are the potential risks associated with developing space flight hardware through a long-term R&D contract?
Developing space flight hardware through long-term R&D contracts carries several inherent risks. Technological obsolescence is a major concern, as advancements in materials, manufacturing, and design can occur rapidly, potentially rendering developed hardware outdated before it is fully utilized. Furthermore, the complexity of space environments and the stringent reliability requirements mean that unforeseen technical challenges are common, which can lead to schedule delays and cost overruns. Contractor performance risk also exists, where the contractor may struggle to meet technical specifications or manage project timelines effectively. Finally, changes in program priorities or funding levels within NASA could impact the continuation or scope of the R&D effort.
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: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 426 CROGHAN ST, FREMONT, OH, 43420
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $40,697,244
Exercised Options: $40,697,244
Current Obligation: $39,497,973
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-10-01
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2022-09-15
More Contracts from Sierra Lobo Inc
- Environmental Testing and Integration Services (etis) II This Statement of Work (SOW) Specifies the Requirements for on Site Contractor Supplied Environmental Test and Integration and Other Laboratory Operations Services to the Goddard Space Flight Center (gsfc). the Scope of These Services Includes the Following: Operation, Maintenance, and Upgrade of Environmental Test Equipment and Facilities Located in the Gsfc Building 7/10/15/29 Complex, Area 300 Magnetic Test Site and Other Technical Facilities Located AT Various Locations Within Gsfc Including the Manufacturing and Electroplating Equipment and Facilities Primarily Located in Gsfc Building 5/10/21 Shops Mechanical and Optical Integration of Spacecraft, Flight Experiment Components, Instruments, Sub-Assemblies and Systems Design, Fabricate, and Manufacture Custom Spacecraft, Flight Experiment Components, Instruments, Sub-Assemblies and Systems Design, Manufacture, and Operation of Ground Handling Equipment and Fixtures Design, Manufacture, and Operation of Optical Alignment and Calibration Systems Design, Manufacture and Installation of Space Flight Thermal Blankets Design, Manufacture and Installation of Space Flight and Ground Support System Cable Harnesses Design, Manufacture, and Installation of Technical Facilities Including Buildings, Building Elements, Utility Systems, and Technical Equipment and Systems Define, Analyze, and Resolve Electromagnetic Radiation Issues Relating to Facility and Satellite Ground Support Equipment Operation Within the Test Complex. Support Spectrum Signature Analysis to Insure Interference-Free and Safe Operation of ALL Facility-Located Near Electromagnetic Wave Sensing Devices. Test and Integration Engineering and Engineering Analysis Cleanroom Operation and Maintenance Contamination Control Services Using Qualified and Experienced Personnel Maintenance and Operation of Certain Physical Plant Systems Such AS Processed Water, Emergency Power, Ln2/Gn2 Storage Systems, Conditioned Cleanroom AIR Hvac and Humidity Systems Recertification (testing and Inspection) of Lifting Devices and Equipment (LDE), and (inspection) of Pressure Vessels and Pressurized Systems (PVS) AT Gsfc, Greenbelt, Wallops, and Other Offsite Locations. Maintenance of LDE AT Greenbelt Site Only, NOT AT Other Sites; Non-Destructive Examination Testing of LDE and PVS Facility and Operations Safety Data Acquisition and Analysis System Development and Management — $251.0M (National Aeronautics and Space Administration)
- Delivery Order for Line Item 001 Testcon of Outline Agreement Nnc05ca95c — $123.9M (National Aeronautics and Space Administration)
- Test Engineering Contract Mechanism — $58.5M (National Aeronautics and Space Administration)
- Building 65 Research and Development Structural Test Servcies — $43.2M (General Services Administration)
- 347 Work Order Under Engineering Direct Outline Agreement Nnc05ca95c — $30.1M (National Aeronautics and Space Administration)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →