NASA's $36.2M contract for aerospace R&D with The Aerospace Corporation shows a lack of competition
Contract Overview
Contract Amount: $36,218,756 ($36.2M)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2011-06-01
End Date: 2019-09-30
Contract Duration: 3,043 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SPECIAL STUDIES/ANALYSIS- AERONAUTICAL/SPACE
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $36.2 million to THE AEROSPACE CORPORATION for work described as: SPECIAL STUDIES/ANALYSIS- AERONAUTICAL/SPACE Key points: 1. This contract represents a significant investment in specialized aerospace research and development. 2. The sole-source nature of this award raises questions about potential cost efficiencies and market competitiveness. 3. Performance duration of over 8 years suggests a long-term need for these specific services. 4. The contractor, The Aerospace Corporation, likely possesses unique capabilities critical for NASA's mission. 5. The absence of a competitive bidding process may limit opportunities for innovation from other firms. 6. Understanding the specific R&D outcomes will be crucial to assessing the value delivered.
Value Assessment
Rating: fair
Benchmarking the value of this sole-source contract is challenging without comparable competitive bids. The cost-plus-fixed-fee structure allows for cost reimbursement plus a fixed fee, which can incentivize cost control but also carries risks if initial cost estimates are inaccurate. Given the specialized nature of aerospace R&D and the contractor's likely unique expertise, the pricing may reflect high technical barriers to entry. However, the lack of competition prevents a direct comparison to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only responsible source capable of meeting the government's needs. The lack of competition means that NASA did not solicit bids from multiple vendors, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The government relies on the contractor's good faith in pricing and cost reporting in sole-source situations.
Public Impact
This contract directly supports NASA's mission-critical research and development in aeronautical and space technologies. The primary beneficiary is NASA, which gains access to specialized expertise for advancing space exploration and aeronautics. The contract's impact is national, contributing to the U.S.'s leadership in aerospace innovation. Workforce implications are likely concentrated within The Aerospace Corporation's highly skilled engineering and scientific staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed carefully.
- Lack of transparency in the bidding process due to sole-source nature.
Positive Signals
- Contractor likely possesses unique and critical expertise for NASA's R&D needs.
- Long contract duration suggests a stable and ongoing requirement for specialized services.
- Focus on R&D aligns with NASA's strategic goals for technological advancement.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences related to aeronautics and space. The aerospace industry is characterized by high barriers to entry, significant capital investment, and a strong reliance on specialized technical expertise. NASA's spending in this area is crucial for maintaining technological superiority and driving innovation in space exploration and aviation. Comparable spending benchmarks are difficult to establish due to the specialized nature and sole-source award.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The specialized nature of the work and the sole-source award to a large, established entity like The Aerospace Corporation suggest that small businesses are unlikely to be primary participants in this specific contract. This may limit the direct economic impact on the small business ecosystem for this particular award.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing would be expected to ensure that costs are reasonable and allocable. Transparency is limited due to the sole-source nature, but NASA's internal review processes and potentially the Government Accountability Office (GAO) would provide accountability mechanisms. Inspector General jurisdiction would apply to allegations of fraud, waste, or abuse.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Sole Source Procurements
- Cost Plus Fixed Fee Contracts
Risk Flags
- Lack of Competition
- Cost-Plus-Fixed-Fee Structure
- Sole Source Award
Tags
research-and-development, aerospace, nasa, national-aeronautics-and-space-administration, sole-source, cost-plus-fixed-fee, special-studies-analysis, california, large-contract, federal-funded-research-and-development-center
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $36.2 million to THE AEROSPACE CORPORATION. SPECIAL STUDIES/ANALYSIS- AERONAUTICAL/SPACE
Who is the contractor on this award?
The obligated recipient is THE AEROSPACE 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 $36.2 million.
What is the period of performance?
Start: 2011-06-01. End: 2019-09-30.
What specific research and development activities were undertaken under this contract?
The contract data indicates the primary purpose was 'SPECIAL STUDIES/ANALYSIS- AERONAUTICAL/SPACE' under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific deliverables are not detailed in the provided data, this typically encompasses theoretical research, experimental design, data analysis, and the development of new technologies or methodologies related to aeronautics and space exploration. This could include areas like advanced propulsion systems, spacecraft design, materials science for aerospace applications, or atmospheric research. The 'SPECIAL STUDIES/ANALYSIS' designation suggests a focus on in-depth investigations and expert assessments rather than large-scale hardware development.
How does the total contract value of $36.2 million compare to similar sole-source R&D contracts awarded by NASA?
Comparing this $36.2 million sole-source contract requires access to a broader dataset of NASA's sole-source R&D procurements. However, for specialized, long-term R&D efforts in the aerospace sector, this value is not unusual, especially when performed by entities with unique expertise like The Aerospace Corporation. Sole-source awards inherently lack direct competitive benchmarks. To assess value, one would need to compare the scope, duration, and criticality of the work against other sole-source contracts for similar, highly specialized R&D services. Without such comparisons, it's difficult to definitively state if this represents a high or low value, but it signifies a substantial investment in a specific area of expertise.
What are the key risks associated with a sole-source, cost-plus-fixed-fee contract for R&D?
The primary risks associated with this contract structure are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to innovate cost-effectively. The government relies heavily on the contractor's integrity and accurate cost reporting. Secondly, the cost-plus-fixed-fee (CPFF) structure, while providing a defined profit margin (the fixed fee), allows the contractor to recover allowable costs. If the initial cost estimates are inaccurate or if costs escalate unexpectedly, the total expenditure could exceed initial projections. Effective government oversight is critical to mitigate these risks by scrutinizing costs and ensuring the contractor adheres to the contract's objectives.
What is the track record of The Aerospace Corporation in performing R&D for NASA?
The Aerospace Corporation is a federally funded research and development center (FFRDC) that has a long-standing relationship with the U.S. government, particularly in space and defense. They are known for providing objective technical analysis and systems engineering and integration. While specific performance metrics for this particular $36.2 million contract are not detailed here, their designation as an FFRDC implies a history of successfully undertaking complex, critical R&D tasks for government agencies like NASA. Their expertise is often sought for high-stakes, technically demanding projects where independent, expert analysis is paramount.
How does this contract fit into NASA's overall spending on aeronautical and space R&D?
This $36.2 million contract represents a portion of NASA's broader R&D budget. NASA's total R&D spending can fluctuate annually based on appropriations and program priorities. Contracts like this, focused on specialized studies and analysis, contribute to the foundational research and technical understanding that underpins larger space missions and aeronautical advancements. While not a massive expenditure in the context of multi-billion dollar space programs, it signifies a dedicated investment in critical knowledge acquisition and technological assessment within the aerospace domain. Its significance lies in its specific focus and the expertise of the 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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2310 EAST EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $210,000,000
Exercised Options: $210,000,000
Current Obligation: $36,218,756
Actual Outlays: $2,084,922
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: NNJ11HB94C
IDV Type: IDC
Timeline
Start Date: 2011-06-01
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2024-02-15
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