NASA Awards $198M for Electrical Systems Engineering Services to Aegis Aerospace Inc

Contract Overview

Contract Amount: $198,417,473 ($198.4M)

Contractor: Aegis Aerospace Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2010-08-09

End Date: 2013-10-08

Contract Duration: 1,156 days

Daily Burn Rate: $171.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ELECTRICAL SYSTEMS ENGINEERING SERVICES (ESES) INTERIM CONTRACT FOR THE APPLIED ENGINEERING AND TECHNOLOGY DIRECTORATE (AETD). THE PRINCIPAL PURPOSE OF THIS CONTRACT IS TO PROVIDE ELECTRICAL SYSTEMS ENGINEERING SUPPORT SERVICES AND RELATED WORK TO THE (EED), (ISTD), (ISD), (MESA) DIVISION, AND RELATED ORGANIZATIONS, AS REQUIRED, FOR THE STUDY, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACE FLIGHT, AIRBORNE, AND GROUND SYSTEM HARDWARE AND SOFTWARE, INCLUDING DEVELOPMENT AND VALIDATION OF NEW TECHNOLOGIES TO ENABLE FUTURE SPACE AND SCIENCE MISSIONS. TO THIS END, THE CONTRACTOR SHALL PROVIDE ON/OFF-SITE MULTIDISCIPLINARY ENGINEERING SERVICES, PURSUANT TO TASK ORDERS ISSUED BY THE CONTRACTING OFFICER. THESE SERVICES SHALL INCLUDE THE PERSONNEL, FACILITIES, AND MATERIALS (UNLESS OTHERWISE PROVIDED BY THE GOVERNMENT) TO ACCOMPLISH THE TASKS.

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $198.4 million to AEGIS AEROSPACE INC for work described as: ELECTRICAL SYSTEMS ENGINEERING SERVICES (ESES) INTERIM CONTRACT FOR THE APPLIED ENGINEERING AND TECHNOLOGY DIRECTORATE (AETD). THE PRINCIPAL PURPOSE OF THIS CONTRACT IS TO PROVIDE ELECTRICAL SYSTEMS ENGINEERING SUPPORT SERVICES AND RELATED WORK TO THE (EED), (ISTD), (ISD), (MESA… Key points: 1. Contract supports critical space flight and ground systems engineering. 2. Aegis Aerospace Inc. is the sole awardee. 3. High risk due to lack of competition. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: questionable

The contract value of $198.4 million over three years for specialized engineering services appears high given the lack of competitive bidding. Benchmarking against similar R&D engineering support contracts is difficult without more detailed task order information.

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 as there was no market pressure to drive down prices.

Taxpayer Impact: The lack of competition on this significant contract raises concerns about whether the government received the best possible value for taxpayer funds.

Public Impact

Supports NASA's advanced space and science missions. Ensures continued development of critical space hardware and software. Potential for cost overruns due to sole-source nature. Impacts the R&D sector by directing significant funding to one firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses, and the sole-source nature further limits opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure that the services provided are necessary, cost-effective, and aligned with NASA's mission objectives.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, md, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $198.4 million to AEGIS AEROSPACE INC. ELECTRICAL SYSTEMS ENGINEERING SERVICES (ESES) INTERIM CONTRACT FOR THE APPLIED ENGINEERING AND TECHNOLOGY DIRECTORATE (AETD). THE PRINCIPAL PURPOSE OF THIS CONTRACT IS TO PROVIDE ELECTRICAL SYSTEMS ENGINEERING SUPPORT SERVICES AND RELATED WORK TO THE (EED), (ISTD), (ISD), (MESA) DIVISION, AND RELATED ORGANIZATIONS, AS REQUIRED, FOR THE STUDY, DESIGN, DEVELOPMENT, FABRICATION, INTEGRATION, TESTING, VERIFICATION, AND OPERATIONS OF SPACE FLIGHT, AIRBORNE, AND GROUND SYSTEM HARDWARE AND SOFTWARE,

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 $198.4 million.

What is the period of performance?

Start: 2010-08-09. End: 2013-10-08.

What specific factors justified the sole-source award for these critical engineering services, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without detailed documentation, it's unclear if these criteria were met or if alternative competitive approaches, such as phased procurements or market research for potential competitors, were thoroughly explored before opting for a sole-source contract.

How will NASA ensure cost control and value for money on this Cost Plus Fixed Fee contract without competitive pressure?

NASA can implement robust oversight mechanisms, including detailed performance metrics, regular audits, and stringent review of contractor expenditures. Establishing clear milestones and deliverables tied to fixed fees, along with strong negotiation of indirect cost rates, are crucial for managing costs and ensuring value in a non-competitive environment.

What is the long-term strategic impact of awarding such a significant contract sole-source on the broader aerospace engineering R&D market?

Sole-source awards, especially for substantial amounts, can stifle innovation and competition within the market by concentrating resources and expertise within a single firm. This may limit opportunities for other companies to develop and demonstrate their capabilities, potentially impacting the overall health and dynamism of the aerospace engineering R&D ecosystem.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 18050 SATURN LANE STE 300, HOUSTON, TX, 77058

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $288,693,176

Exercised Options: $288,693,176

Current Obligation: $198,417,473

Actual Outlays: $94,904

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2010-08-09

Current End Date: 2013-10-08

Potential End Date: 2013-10-08 00:00:00

Last Modified: 2020-08-17

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