NASA's $378M contract for Electrical Systems Engineering Services awarded to Aegis Aerospace Inc. shows long-term engagement
Contract Overview
Contract Amount: $378,567,568 ($378.6M)
Contractor: Aegis Aerospace Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-12-22
End Date: 2011-02-04
Contract Duration: 2,235 days
Daily Burn Rate: $169.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 999
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ELECTRICAL SYSTEMS ENGINEERING SERVICES
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $378.6 million to AEGIS AEROSPACE INC for work described as: ELECTRICAL SYSTEMS ENGINEERING SERVICES Key points: 1. Contract duration of 2235 days suggests a need for sustained expertise in electrical systems engineering. 2. The award was made under a 'full and open competition after exclusion of sources' clause, indicating a specific justification for limiting initial bidders. 3. The contract type, 'Cost Plus Award Fee', incentivizes performance but requires careful monitoring of costs and award criteria. 4. The significant contract value points to a critical role in NASA's research and development activities. 5. The contractor, Aegis Aerospace Inc., has a substantial contract history with the agency, implying a level of trust and established performance. 6. The contract's focus on R&D in Physical, Engineering, and Life Sciences aligns with NASA's core mission objectives.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or comparable R&D service contracts. The Cost Plus Award Fee structure means the final cost could vary based on performance, making a fixed price comparison difficult. However, the substantial duration and value suggest a significant investment in specialized engineering expertise. Further analysis would require understanding the specific technical challenges and the criticality of these electrical systems to NASA's missions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be open, there were reasons for excluding certain sources, possibly due to specialized requirements or prior relationships. The number of bidders is not specified, but the exclusion clause implies a more targeted approach than a completely unrestricted open competition.
Taxpayer Impact: The 'exclusion of sources' aspect warrants scrutiny to ensure that the exclusion criteria were justified and did not unduly limit competition, potentially impacting the best value for taxpayers.
Public Impact
The primary beneficiaries are NASA's research and development programs, particularly those requiring advanced electrical systems engineering. This contract supports the development and maintenance of complex electrical systems crucial for space exploration and scientific missions. The geographic impact is primarily centered in Texas, where the contractor is located, potentially creating or sustaining high-skilled jobs in the region. The contract likely impacts a specialized workforce of electrical engineers and related technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Cost Plus Award Fee' structure can lead to cost overruns if not managed rigorously, as contractor profit is tied to performance metrics.
- The 'exclusion of sources' clause requires careful review to ensure it was a necessary and justified limitation on competition.
- The long duration of the contract (2235 days) could indicate potential for scope creep or evolving requirements that may not have been fully anticipated at the outset.
Positive Signals
- Aegis Aerospace Inc. has a long-standing relationship with NASA, suggesting a proven track record and understanding of agency needs.
- The contract's focus on R&D aligns with NASA's mission-critical objectives, indicating a strategic investment.
- The award fee component incentivizes high performance, potentially leading to superior outcomes for NASA's engineering challenges.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering services. The market for specialized aerospace engineering services is highly competitive, with a few key players possessing the necessary expertise and security clearances. NASA's spending in this area is substantial, driven by the complexity and high-stakes nature of space exploration. Comparable spending benchmarks would typically involve other large-scale government R&D contracts for complex systems integration and engineering.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and significant value of electrical systems engineering for NASA, it is unlikely that small businesses would be the primary awardees unless through subcontracting. The focus is on large, established aerospace firms capable of handling complex R&D projects. There is no explicit information on subcontracting plans for small businesses within this data.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program managers. The 'Cost Plus Award Fee' structure necessitates robust performance monitoring and evaluation against defined award criteria to ensure value for money. Transparency would be managed through standard federal procurement reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Electrical Systems Development
- Cost Plus Award Fee Contracts
- Federal R&D Spending
Risk Flags
- Potential for cost growth due to CPAF structure
- Justification for 'exclusion of sources' requires review
- Long contract duration may indicate evolving requirements
Tags
research-and-development, nasa, electrical-systems-engineering, aegis-aerospace-inc, definitive-contract, cost-plus-award-fee, full-and-open-competition-after-exclusion-of-sources, texas, large-contract, long-duration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $378.6 million to AEGIS AEROSPACE INC. ELECTRICAL SYSTEMS ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is AEGIS AEROSPACE 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 $378.6 million.
What is the period of performance?
Start: 2004-12-22. End: 2011-02-04.
What specific electrical systems engineering challenges did this contract address for NASA?
The provided data indicates the contract was for 'ELECTRICAL SYSTEMS ENGINEERING SERVICES' under NASA's R&D activities. While specific challenges are not detailed, such services typically encompass the design, development, testing, integration, and sustainment of complex electrical systems for spacecraft, launch vehicles, ground support equipment, and scientific instruments. This could include power generation and distribution, avionics, control systems, sensor electronics, and communication systems. Given the R&D nature, the contract likely supported the exploration of new technologies, the resolution of novel engineering problems, or the development of next-generation systems for future space missions, potentially involving high-reliability components, radiation hardening, and extreme environmental considerations.
How does the 'Cost Plus Award Fee' (CPAF) structure typically function, and what are its implications for this contract?
A Cost Plus Award Fee (CPAF) contract reimburses the contractor for allowable costs incurred, plus a fixed fee that is potentially adjusted based on performance against pre-defined criteria. The 'award fee' portion is variable and determined by the government based on subjective and objective performance evaluations. For this NASA contract, it means Aegis Aerospace Inc. would be reimbursed for its expenses in providing electrical systems engineering services. Their profit (the award fee) would depend on how well they met NASA's performance expectations, such as technical achievement, schedule adherence, and cost control. This structure incentivizes high performance but requires diligent government oversight to ensure the award fee is justified and that costs remain reasonable.
What does 'full and open competition after exclusion of sources' signify in the context of this procurement?
The phrase 'full and open competition after exclusion of sources' suggests a procurement process that began with the intent of broad competition but ultimately excluded certain potential offerors based on specific justifications. This is often used when a particular technology or capability is unique, or when there's a need to leverage existing relationships or specialized knowledge that only a limited number of entities possess. It implies that NASA determined that only specific sources could meet the requirements, or that excluding others was in the government's best interest for reasons documented in the procurement record. This differs from a sole-source award as it implies some level of initial consideration for broader competition before the exclusion.
What is the significance of the contract's long duration (2235 days)?
A contract duration of 2235 days (approximately 6.1 years) for electrical systems engineering services indicates a long-term, strategic need for these capabilities within NASA. Such extended periods are common for research and development projects, complex system development lifecycles, or ongoing support for major programs where requirements evolve over time. This duration suggests that the work is not a short-term task but rather integral to sustained mission objectives or technological advancement. It also implies a significant commitment of resources and a stable, ongoing requirement for specialized engineering expertise from Aegis Aerospace Inc.
How does the contractor's location in Texas (st: TX, sn: TEXAS) potentially influence this contract?
The contractor's location in Texas, specifically within the NASA "Space Corridor" (e.g., Houston area), suggests a potential synergy with established aerospace industry hubs. Texas has a significant presence of aerospace companies and a skilled workforce experienced in supporting NASA's missions. This proximity can facilitate collaboration, reduce logistical complexities, and potentially leverage existing infrastructure and talent pools. While the contract itself is for services, the physical location of Aegis Aerospace Inc. in Texas likely plays a role in its operational efficiency and its ability to draw upon regional expertise relevant to NASA's engineering needs.
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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 999
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2525 BAY AREA BLVD, HOUSTON, TX, 77058
Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $450,000,000
Exercised Options: $450,000,000
Current Obligation: $378,567,568
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2004-12-22
Current End Date: 2011-02-04
Potential End Date: 2011-02-04 00:00:00
Last Modified: 2017-10-05
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