NASA awards Boeing $145M for 40 ISS Battery ORUs, a sole-source contract
Contract Overview
Contract Amount: $145,179,735 ($145.2M)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-02-21
End Date: 2010-10-01
Contract Duration: 2,779 days
Daily Burn Rate: $52.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT WITH THE BOEING COMPANY TO PROVIDE 40 REPLACEMENT BATTERY ORBITAL REPLACEMENT UNITS (ORUS) FOR ISS
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $145.2 million to THE BOEING COMPANY for work described as: CONTRACT WITH THE BOEING COMPANY TO PROVIDE 40 REPLACEMENT BATTERY ORBITAL REPLACEMENT UNITS (ORUS) FOR ISS Key points: 1. Significant investment in critical ISS components. 2. Sole-source award raises questions about price discovery. 3. Long contract duration suggests sustained need. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $145M for 40 ORUs averages $3.6M per unit. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market rates for similar complex aerospace components.
Cost Per Unit: $3.6M
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued operation of the International Space Station (ISS). Supports critical life support and power systems on the ISS. Highlights reliance on a single contractor for essential components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential for ISS operations
- High-value contract
Sector Analysis
This contract falls under Engineering Services, specifically related to aerospace. Spending in this sector is often characterized by high R&D costs, specialized expertise, and significant government investment, particularly for space exploration programs.
Small Business Impact
The contract was awarded to The Boeing Company and explicitly states no small business participation. This indicates that small businesses were not involved in the provision of these critical ISS components.
Oversight & Accountability
The contract was awarded by NASA, which has established oversight mechanisms for its procurement processes. However, the sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer money.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to lack of bids.
- Long contract duration increases dependency risk.
- No small business involvement.
Tags
engineering-services, national-aeronautics-and-space-administr, tx, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $145.2 million to THE BOEING COMPANY. CONTRACT WITH THE BOEING COMPANY TO PROVIDE 40 REPLACEMENT BATTERY ORBITAL REPLACEMENT UNITS (ORUS) FOR ISS
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $145.2 million.
What is the period of performance?
Start: 2003-02-21. End: 2010-10-01.
What is the justification for the sole-source award and how was the price determined without competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. NASA would have conducted a price analysis, potentially using historical data or independent cost estimates, to determine a fair and reasonable price, though competitive benchmarking is absent.
What are the risks associated with relying on a single supplier for such critical ISS components over an extended period?
The primary risks include potential supply chain disruptions if the sole supplier faces issues, lack of innovation due to absent competition, and the inability to leverage market competition for cost savings. This long-term dependency can also reduce negotiating leverage for future procurements.
How does this contract contribute to the overall mission effectiveness and long-term sustainability of the ISS?
This contract is crucial for maintaining the operational integrity of the ISS by providing essential replacement parts for its power systems. Ensuring the availability of these ORUs directly supports the continued functioning of the station and its scientific research capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 21150020591
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13100 SPACE CENTER BLVD, HOUSTON, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $145,181,735
Exercised Options: $145,181,735
Current Obligation: $145,179,735
Timeline
Start Date: 2003-02-21
Current End Date: 2010-10-01
Potential End Date: 2010-10-01 00:00:00
Last Modified: 2009-12-10
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