NASA's $64.9M contract for ISS water production services awarded to Hamilton Sundstrand, a sole-source procurement
Contract Overview
Contract Amount: $64,892,679 ($64.9M)
Contractor: Hamilton Sundstrand Space Systems International, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-04-11
End Date: 2014-09-30
Contract Duration: 2,363 days
Daily Burn Rate: $27.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: WATER PRODUCTION SERVICES ON-BOARD THE INTERNATIONAL SPACE STATION (ISS)
Place of Performance
Location: WINDSOR LOCKS, HARTFORD County, CONNECTICUT, 06096, UNITED STATES OF AMERICA
Plain-Language Summary
National Aeronautics and Space Administration obligated $64.9 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC for work described as: WATER PRODUCTION SERVICES ON-BOARD THE INTERNATIONAL SPACE STATION (ISS) Key points: 1. The contract's value of $64.9 million over its period of performance suggests a significant investment in critical life support systems for the ISS. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential price overruns and the best possible value for taxpayer funds. 3. The duration of the contract (2363 days) indicates a long-term need for these specialized services, highlighting the ongoing reliance on this contractor. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests the services may involve complex technical solutions beyond simple maintenance. 5. The contract's 'NOT COMPETED' status is a key risk indicator, potentially limiting opportunities for cost savings through market competition. 6. The firm fixed-price contract type offers some cost certainty for the government, but the lack of competition could still lead to inflated base prices.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without comparable sole-source procurements for similar ISS life support systems. However, the absence of competition inherently limits the government's ability to secure the most favorable pricing. A firm fixed-price contract provides some cost control, but the initial price could be higher than if multiple vendors had competed. The total value of $64.9 million for water production services on the ISS warrants scrutiny to ensure it aligns with industry standards for such specialized, long-term support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one vendor, Hamilton Sundstrand Space Systems International, Inc., was solicited. The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without a competitive bidding process, it is difficult to assess the breadth of market interest or the potential for price discovery through multiple offers. This approach bypasses the standard procurement methods designed to foster competition and potentially lower costs.
Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. This can lead to higher overall program expenditures.
Public Impact
Astronauts and mission control personnel benefit from reliable water production systems, crucial for sustaining human life and operations aboard the International Space Station. The services delivered ensure the continuous availability of potable and hygiene water, directly supporting the health and safety of the ISS crew. The geographic impact is global, as the ISS orbits the Earth, and the functionality of its systems is vital for international space exploration efforts. The contract supports a highly specialized workforce within Hamilton Sundstrand, likely involving engineers, technicians, and scientists with expertise in space systems and life support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source awards can reduce government leverage in price negotiations.
- Dependence on a single contractor for critical life support systems poses a potential risk if the contractor faces performance issues or financial instability.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Hamilton Sundstrand is a known entity in aerospace and defense, suggesting potential for reliable performance.
- The contract addresses a critical need for life support on the ISS, indicating essential service delivery.
Sector Analysis
The aerospace industry, particularly the segment focused on space exploration and life support systems, is characterized by high barriers to entry, significant R&D investment, and a limited number of specialized contractors. NASA's spending in this area is crucial for maintaining its operational capabilities on the ISS. Comparable spending benchmarks are difficult to establish due to the unique nature of space-based life support, but contracts for similar critical systems often represent substantial investments. This contract fits within the broader category of space technology development and sustainment.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it was not awarded under the Small Business Administration's section 8(a) program. Given the sole-source nature and the specialized requirements, it is unlikely that significant subcontracting opportunities for small businesses were mandated or actively pursued through this specific procurement vehicle. The focus is on the prime contractor's capabilities.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officer and program management. As a sole-source award for a critical system on the ISS, it likely undergoes rigorous technical and programmatic oversight to ensure mission success. Transparency may be limited due to the non-competitive nature, but NASA's internal review processes and potential audits would serve as accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- International Space Station (ISS) Operations
- NASA Life Support Systems
- Spacecraft Environmental Control and Life Support Systems (ECLSS)
- Aerospace Research and Development Contracts
Risk Flags
- Sole-source procurement
- Lack of competition
- Critical life support system dependency
Tags
nasa, international-space-station, hamilton-sundstrand, sole-source, research-and-development, life-support-systems, firm-fixed-price, connecticut, aerospace, space-exploration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $64.9 million to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. WATER PRODUCTION SERVICES ON-BOARD THE INTERNATIONAL SPACE STATION (ISS)
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, 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 $64.9 million.
What is the period of performance?
Start: 2008-04-11. End: 2014-09-30.
What is Hamilton Sundstrand's track record with NASA and similar space contracts?
Hamilton Sundstrand, now part of Collins Aerospace (a Raytheon Technologies company), has a long history of providing critical systems for NASA programs, including the Space Shuttle and the International Space Station. Their expertise spans environmental control and life support systems (ECLSS), power generation, and propulsion. For the ISS, they have been a key supplier for various components, including water recycling and oxygen generation systems. Their extensive experience suggests a strong technical capability and a deep understanding of NASA's requirements. However, as with any long-term contractor, performance can vary, and specific contract histories should be reviewed for any past issues or successes.
How does the $64.9 million cost compare to similar ISS life support system contracts?
Direct comparison of the $64.9 million cost for water production services is difficult due to the unique, sole-source nature of this contract and the highly specialized requirements of the ISS. Life support systems are critical and complex, often involving proprietary technology and extensive research and development. However, in the broader context of space exploration, multi-year contracts for essential systems can easily run into tens or hundreds of millions of dollars. Without access to detailed cost breakdowns or comparable sole-source awards for similar ISS functions, it's challenging to definitively benchmark this specific price against market rates. The lack of competition inherently limits the ability to assess if this represents the best possible value.
What are the primary risks associated with a sole-source award for critical ISS systems?
The primary risks associated with a sole-source award for critical ISS systems like water production include: 1. **Higher Costs:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to inflated costs for taxpayers. 2. **Reduced Innovation:** A lack of competitive pressure can sometimes stifle innovation, as the contractor may not feel compelled to develop more efficient or cost-effective solutions. 3. **Vendor Lock-in:** The government becomes dependent on a single supplier, which can create leverage issues in future negotiations and increase vulnerability if the contractor experiences performance problems or goes out of business. 4. **Limited Oversight Effectiveness:** While NASA conducts oversight, the absence of competing proposals means there's no external validation of the contractor's proposed approach or pricing.
What is the historical spending pattern for water production services on the ISS?
Historical spending on water production services for the ISS would likely show a consistent need for these systems throughout the station's operational life. Given the critical nature of life support, funding for these services would be a priority. Early phases might have involved development and initial installation costs, followed by sustainment, maintenance, and upgrade contracts. Hamilton Sundstrand, as a long-term provider, would likely have received significant funding over various contract vehicles. Analyzing past contract awards to Hamilton Sundstrand and other potential suppliers (if any existed) for similar ECLSS functions would reveal trends in cost, duration, and scope, highlighting the sustained investment required for ISS operations.
How does the NAICS code 'Research and Development in the Physical, Engineering, and Life Sciences' apply to water production services?
The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' suggests that this contract likely extends beyond simple maintenance or off-the-shelf provision of water production equipment. It implies that the services may involve ongoing research, design, development, testing, or significant modification of water production systems to meet evolving ISS requirements, improve efficiency, or address new challenges. This could include developing advanced filtration techniques, optimizing water recycling processes, or ensuring system reliability under the unique conditions of space. The R&D component justifies a potentially higher cost and a specialized contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 1 HAMILTON RD, WINDSOR LOCKS, CT, 06096
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,000,000
Exercised Options: $65,000,000
Current Obligation: $64,892,679
Timeline
Start Date: 2008-04-11
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2015-05-21
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