NASA's $26.3M Boeing contract for cryogenic technologies saw 4 bidders, indicating moderate competition
Contract Overview
Contract Amount: $26,291,530 ($26.3M)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2011-09-16
End Date: 2016-10-12
Contract Duration: 1,853 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COMPOSITE CRYOGENIC TECHNOLOGIES AND DEMONSTRATION (CCTD) TASK ORDER
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
National Aeronautics and Space Administration obligated $26.3 million to THE BOEING COMPANY for work described as: COMPOSITE CRYOGENIC TECHNOLOGIES AND DEMONSTRATION (CCTD) TASK ORDER Key points: 1. Contract value of $26.3M over 5 years suggests a significant investment in advanced cryogenic research. 2. The use of Cost Plus Fixed Fee (CPFF) pricing may introduce cost overrun risks if not managed closely. 3. Boeing's selection as the contractor points to established capabilities in aerospace and complex engineering projects. 4. The contract's focus on Research and Development (R&D) aligns with NASA's mission to push technological boundaries. 5. A moderate level of competition (4 bidders) suggests a potentially balanced price discovery process. 6. The contract duration of 1853 days (approx. 5 years) allows for substantial development and testing phases.
Value Assessment
Rating: good
The contract value of $26.3 million over approximately five years for cryogenic technologies appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced aerospace materials and systems is challenging due to the unique focus. However, the Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure value for money, as it can incentivize cost increases if not properly managed. The total award amount of $26.3M for this task order suggests a substantial project scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with four bids received. This level of competition is generally considered healthy, suggesting that multiple capable vendors were aware of and interested in the opportunity. The presence of four bidders likely contributed to a more competitive pricing environment and allowed NASA to select from a range of technical approaches and cost proposals.
Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, preventing potential overpayment.
Public Impact
The primary beneficiaries are NASA and the broader aerospace research community, gaining advancements in cryogenic technologies. The contract delivers research and development services crucial for future space exploration and scientific missions. The geographic impact is primarily centered in California, where the contractor is located, potentially creating or sustaining high-skilled jobs. Workforce implications include employment for specialized engineers, scientists, and technicians involved in cryogenic research and development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed.
- The specialized nature of cryogenic technologies may limit the pool of qualified small businesses for subcontracting opportunities.
- Long contract duration could present challenges in adapting to rapidly evolving technological landscapes.
Positive Signals
- Full and open competition with four bidders suggests a robust selection process.
- The contract is awarded to a major aerospace contractor (Boeing), implying a high likelihood of technical expertise and project execution capability.
- The R&D focus indicates investment in cutting-edge technology development, potentially leading to significant future advancements.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical and engineering sciences related to cryogenics. The aerospace industry, a significant consumer of cryogenic technologies for propulsion and life support, is a key area of application. The market for cryogenic systems is substantial, driven by aerospace, medical, and industrial applications. NASA's investment aligns with the broader trend of advancing space exploration capabilities.
Small Business Impact
This contract was not set aside for small businesses, and there is no explicit indication of subcontracting goals for small businesses in the provided data. As a large prime contract awarded to Boeing, there may be opportunities for small businesses to participate as subcontractors, particularly those with specialized expertise in cryogenic components or related research services. However, the extent of small business involvement will depend on Boeing's subcontracting strategy.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). Specific oversight mechanisms would likely include regular progress reviews, technical evaluations, and financial audits, especially given the Cost Plus Fixed Fee (CPFF) structure. Transparency is generally maintained through NASA's contract reporting systems, and accountability rests with the contracting officer and program managers to ensure deliverables meet requirements and costs remain within projections.
Related Government Programs
- NASA Advanced Technology Research
- Space Propulsion Systems Development
- Cryogenic Fuel Research
- Aerospace Engineering Services
- Advanced Materials Research
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to mitigate potential cost overruns.
- The specialized nature of cryogenic technologies may present challenges in finding qualified small business subcontractors.
- R&D contracts inherently carry technical and schedule risks due to the uncertainty of research outcomes.
Tags
nasa, boeing, cryogenics, research-and-development, full-and-open-competition, cost-plus-fixed-fee, delivery-order, california, aerospace, technology-development, large-business
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $26.3 million to THE BOEING COMPANY. COMPOSITE CRYOGENIC TECHNOLOGIES AND DEMONSTRATION (CCTD) TASK ORDER
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $26.3 million.
What is the period of performance?
Start: 2011-09-16. End: 2016-10-12.
What is the historical spending trend for cryogenic technology research and development at NASA?
Analyzing NASA's historical spending on cryogenic technology R&D requires a deep dive into budget allocations across various centers and programs over multiple fiscal years. Generally, NASA has consistently invested in cryogenics due to its critical role in space propulsion (e.g., liquid hydrogen and oxygen fuels) and life support systems for long-duration missions. Spending fluctuates based on program priorities, such as the development of new launch vehicles (like the Space Launch System) or advanced in-space propulsion concepts. While specific aggregate figures for 'cryogenic technology R&D' are not readily available without detailed budget analysis, it's a foundational area that receives significant, albeit often integrated, funding within broader exploration and science missions. The $26.3M awarded to Boeing represents a specific task order within this ongoing investment.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for R&D projects of this nature?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government to adapt to evolving research requirements but carries a higher risk of cost growth if the contractor's costs exceed estimates. Other R&D contract types include Cost-Plus-Incentive-Fee (CPIF), which incentivizes cost savings, and Cost-Plus-Award-Fee (CPAF), where the fee is based on performance evaluations. For complex, exploratory R&D like cryogenics, CPFF provides a balance, but requires robust government oversight to manage costs effectively.
What are the key performance indicators (KPIs) typically used to evaluate success in cryogenic technology development contracts?
Key performance indicators (KPIs) for cryogenic technology development contracts often focus on technical performance, schedule adherence, and cost control. Technical KPIs might include the efficiency of cryogenic fluid storage (e.g., boil-off rates), the performance of cryogenic cooling systems under various thermal loads, the reliability and lifespan of cryogenic components, and the achievement of specific temperature or pressure targets. Schedule KPIs would involve meeting key milestones for design, fabrication, testing, and delivery. Cost KPIs would focus on managing actual costs against the estimated costs and ensuring the final fee is justified. For a contract like this, NASA would likely define specific, measurable, achievable, relevant, and time-bound (SMART) goals related to the advancement and demonstration of specific cryogenic technologies.
What is Boeing's track record with NASA on similar cryogenic technology or advanced R&D contracts?
Boeing has a long and extensive track record with NASA, participating in numerous complex aerospace and R&D programs. While specific details on past cryogenic technology contracts require granular data access, Boeing has been a prime contractor for major NASA initiatives including the Space Launch System (SLS), Starliner spacecraft, and various research projects involving advanced materials, propulsion, and life support systems – all areas where cryogenics play a crucial role. Their history suggests a strong capability in managing large, technically challenging R&D efforts. NASA's continued selection of Boeing for significant contracts indicates a generally positive assessment of their performance, technical expertise, and ability to deliver on complex requirements, including those involving advanced technologies like cryogenics.
How does the $26.3M contract value compare to the overall NASA budget for R&D in the physical and engineering sciences?
The $26.3 million contract value represents a specific task order focused on cryogenic technologies. NASA's overall budget for Research and Development (R&D) in the physical, engineering, and life sciences (excluding biotechnology) is significantly larger, often spanning billions of dollars annually across various directorates and centers. This single contract, while substantial for its specific purpose, is a component within a much broader R&D portfolio. For context, NASA's Science Mission Directorate and Space Technology Mission Directorate, which fund much of this type of R&D, typically receive annual appropriations in the multi-billion dollar range. Therefore, this contract is a targeted investment within a larger framework of NASA's scientific and technological advancement goals.
What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712)?
The primary risks associated with the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) are inherent to the nature of R&D itself. These include technical uncertainty, where research outcomes may not be as expected or may fail to achieve desired breakthroughs. Schedule risks are also common, as R&D timelines can be unpredictable, often requiring extensions due to unforeseen challenges. Cost risks are significant, particularly with cost-reimbursable contract types, as R&D can be more expensive than initially projected. Furthermore, there's a risk of obsolescence if the technology developed is surpassed by advancements elsewhere before it can be fully implemented or commercialized. Finally, there's the risk of not meeting specific performance requirements or failing to transition the developed technology into practical application.
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: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $26,719,258
Exercised Options: $26,719,258
Current Obligation: $26,291,530
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NNL10AA05B
IDV Type: IDC
Timeline
Start Date: 2011-09-16
Current End Date: 2016-10-12
Potential End Date: 2016-10-12 00:00:00
Last Modified: 2022-08-04
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