NASA awards $10.7M for COMBINED CYCLE ENGINE to Alliant Techsystems, a sole-source contract
Contract Overview
Contract Amount: $10,685,299 ($10.7M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2006-06-14
End Date: 2011-01-31
Contract Duration: 1,692 days
Daily Burn Rate: $6.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMBINED CYCLE ENGINE
Place of Performance
Location: RONKONKOMA, SUFFOLK County, NEW YORK, 11779
State: New York Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $10.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: COMBINED CYCLE ENGINE Key points: 1. Contract awarded to a single vendor, limiting competitive pricing. 2. Significant duration of 1692 days suggests a long-term need. 3. Aircraft Manufacturing sector (NAICS 336411) is a specialized field. 4. Cost Plus Fixed Fee contract type can lead to cost overruns. 5. No small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, combined with a sole-source award, raises concerns about potential overspending. Benchmarking against similar engine development contracts is difficult without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced price discovery.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the COMBINED CYCLE ENGINE.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the pricing justification for this sole-source award. Potential for cost escalation under the Cost Plus Fixed Fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
Positive Signals
- Specific engine technology development
- Long-term contract duration
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which often involves complex, high-value components. Spending benchmarks in this specialized area are highly variable and depend on the specific technology.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature of aircraft manufacturing, it's possible that larger, established firms are the primary contractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid is fair and reasonable. Oversight should focus on the justification for not competing the requirement.
Related Government Programs
- Aircraft Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Potential for cost overruns
- No small business participation
Tags
aircraft-manufacturing, national-aeronautics-and-space-administr, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $10.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. COMBINED CYCLE ENGINE
Who is the contractor on this award?
The obligated recipient is ALLIANT TECHSYSTEMS OPERATIONS LLC.
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 $10.7 million.
What is the period of performance?
Start: 2006-06-14. End: 2011-01-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without access to the specific justification documentation, it's impossible to definitively state why this contract was not competed. However, such awards require rigorous justification to ensure fair and reasonable pricing.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns?
Cost Plus Fixed Fee (CPFF) contracts shift a significant portion of the financial risk to the government. While the contractor receives a fixed fee, they are reimbursed for allowable costs. If costs exceed estimates, the government pays more, increasing the risk of cost overruns. This structure incentivizes contractors to control costs to maximize their profit margin on the fixed fee.
What is the potential impact of this sole-source award on future innovation in this engine technology?
Sole-source awards can stifle innovation by limiting market entry for new or smaller companies with potentially novel approaches. When a contract is not competed, it reduces the incentive for other firms to invest in developing competing technologies or solutions. This can lead to a less dynamic market and potentially slower technological advancement in the long run.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 77 RAYNOR AVE, RONKONKOMA, NY, 11779
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,685,307
Exercised Options: $10,685,307
Current Obligation: $10,685,299
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NNL05AA06B
IDV Type: IDC
Timeline
Start Date: 2006-06-14
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2019-04-10
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