NASA's $36.3M Facility Support Contract with WVU Research Corp Lacks Competition

Contract Overview

Contract Amount: $36,296,515 ($36.3M)

Contractor: West Virginia University Research Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2008-09-30

End Date: 2013-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $19.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: TO PROVIDE OPERATION AND MAINTENANCE FOR THE FACILITY THAT INCLUDES GROUNDS; INSTITUTIONAL SUPPORT AND COMPUTER SERVICES/NETWORK OPERATIONS FOR THE IV&V PROGRAM.

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $36.3 million to WEST VIRGINIA UNIVERSITY RESEARCH CORPORATION for work described as: TO PROVIDE OPERATION AND MAINTENANCE FOR THE FACILITY THAT INCLUDES GROUNDS; INSTITUTIONAL SUPPORT AND COMPUTER SERVICES/NETWORK OPERATIONS FOR THE IV&V PROGRAM. Key points: 1. The contract provides essential IT and facility support for NASA's IV&V Program. 2. Limited competition raises concerns about potential overspending and lack of innovation. 3. The long duration (5 years) and sole-source nature warrant close scrutiny. 4. Sector context suggests IT and facility services are common, but this specific application is unique.

Value Assessment

Rating: questionable

The contract's cost-plus-no-fee structure makes direct price comparison difficult. Without competitive bidding, it's challenging to ascertain if the $36.3M represents a fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium for services that could potentially be procured at a lower cost through a competitive process.

Public Impact

Taxpayers fund critical IT and facility operations for NASA's IV&V program. The absence of competition may hinder the adoption of more cost-effective technologies or service delivery models. The long-term nature of the contract could lock in potentially inefficient practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Facilities Support Services, a broad category. While IT and network operations are common, their application within a specialized program like NASA's IV&V is specific. Benchmarks for similar, highly specialized government support contracts are difficult to establish due to unique requirements.

Small Business Impact

The contract was awarded to West Virginia University Research Corporation, which is not a small business. There is no indication that small businesses were involved as subcontractors, missing an opportunity to support the small business economy.

Oversight & Accountability

The sole-source nature of this contract necessitates robust oversight from NASA to ensure the services are delivered effectively and at a reasonable cost, despite the absence of competitive pressure. Accountability for performance and cost control is paramount.

Related Government Programs

Risk Flags

Tags

facilities-support-services, national-aeronautics-and-space-administr, wv, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $36.3 million to WEST VIRGINIA UNIVERSITY RESEARCH CORPORATION. TO PROVIDE OPERATION AND MAINTENANCE FOR THE FACILITY THAT INCLUDES GROUNDS; INSTITUTIONAL SUPPORT AND COMPUTER SERVICES/NETWORK OPERATIONS FOR THE IV&V PROGRAM.

Who is the contractor on this award?

The obligated recipient is WEST VIRGINIA UNIVERSITY RESEARCH CORPORATION.

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 $36.3 million.

What is the period of performance?

Start: 2008-09-30. End: 2013-09-29.

What specific factors justified the sole-source award for these facility and IT support services, and were alternatives thoroughly explored?

The justification for a sole-source award typically involves unique capabilities, critical mission needs, or lack of viable alternatives. For this contract, the specific rationale would likely stem from the specialized nature of the IV&V program's IT infrastructure and the perceived unique ability of WVU Research Corp to meet these demands. A thorough review would assess if other entities could have provided comparable services, even if requiring some initial setup or adaptation.

How is NASA ensuring cost-effectiveness and value for money given the absence of competitive bidding?

NASA likely employs stringent oversight mechanisms, including performance metrics, regular reviews, and potentially independent cost analyses, to ensure value. The cost-plus-no-fee structure requires close monitoring of expenditures and justification for all costs incurred. Benchmarking against industry standards for similar, albeit less specialized, services might also be used to identify potential areas of overspending.

What is the long-term strategy for ensuring innovation and modernization of IT and facility services beyond this contract?

Given the contract's duration and sole-source nature, NASA's long-term strategy likely involves planning for future procurements that may reintroduce competition. This could include breaking down the services into smaller, more competitive lots, or actively seeking out new technologies and service providers to foster innovation. Regular market research and engagement with industry are crucial for identifying emerging solutions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: West Virginia University (UEI: 929332658)

Address: 886 CHESTNUT RIDGE RD RM 202, MORGANTOWN, WV, 26505

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public)

Financial Breakdown

Contract Ceiling: $40,000,000

Exercised Options: $40,000,000

Current Obligation: $36,296,515

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2008-09-30

Current End Date: 2013-09-29

Potential End Date: 2013-09-29 00:00:00

Last Modified: 2019-08-14

More Contracts from West Virginia University Research Corporation

View all West Virginia University Research Corporation federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending