NASA's $79M SLS Booster R&D Contract Awarded to Dynetics, Inc. for Advanced Engineering
Contract Overview
Contract Amount: $79,269,344 ($79.3M)
Contractor: Dynetics, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2012-10-01
End Date: 2020-01-31
Contract Duration: 2,678 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::OT::IGF SPACE LAUNCH SYSTEM (SLS) ADVANCED BOOSTER ENGINEERING DEMONSTRATION AND/OR RISK REDUCTION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $79.3 million to DYNETICS, INC. for work described as: IGF::OT::IGF SPACE LAUNCH SYSTEM (SLS) ADVANCED BOOSTER ENGINEERING DEMONSTRATION AND/OR RISK REDUCTION Key points: 1. Contract focused on advanced booster engineering and risk reduction for the Space Launch System (SLS). 2. Awarded under full and open competition, indicating a broad search for qualified contractors. 3. The contract duration of approximately 2678 days suggests a long-term, complex research and development effort. 4. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is the primary NAICS code. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract was awarded to Dynetics, Inc., a single entity, suggesting specialized capabilities were sought.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and focus on advanced engineering for a unique program like the SLS. The total award amount of $79.3 million over nearly 7.5 years suggests a significant investment in developing critical technologies. Without comparable contracts for similar advanced booster engineering demonstrations, a precise value-for-money assessment is difficult. However, the firm fixed-price nature of the contract implies that the government has a defined cost ceiling, which can be seen as a positive control measure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The solicitation process likely involved a comprehensive review of proposals to identify the most capable and cost-effective solution for the advanced booster engineering and risk reduction requirements. The number of bids received (8) indicates a reasonable level of interest and competition for this specialized R&D effort.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, ensuring that public funds are used efficiently for critical space exploration programs.
Public Impact
The primary beneficiaries are NASA and its Artemis program, which relies on the SLS for deep space missions. The contract supports the development of advanced technologies for rocket boosters, crucial for heavy-lift launch capabilities. The work is likely concentrated in Alabama, where Dynetics, Inc. is headquartered, potentially creating or sustaining high-skilled jobs in the region. This contract contributes to the advancement of U.S. capabilities in space exploration and national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The long duration and high cost of the SLS program itself present ongoing financial risks.
- Reliance on a single contractor for critical R&D phases can introduce single-point-of-failure risks if not managed carefully.
- The complexity of advanced booster technology means that unforeseen technical challenges could lead to schedule delays or cost overruns, despite the FFP structure.
Positive Signals
- The firm fixed-price contract structure transfers significant cost risk to the contractor.
- Awarding under full and open competition suggests a thorough vetting process to select the best technical and business solution.
- The focus on 'demonstration and/or risk reduction' indicates a proactive approach to identifying and mitigating potential technical issues early in the development cycle.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on aerospace engineering and advanced materials for space launch vehicles. The market for such specialized R&D is dominated by a few large aerospace contractors and highly specialized engineering firms. NASA's Space Launch System (SLS) is a critical component of the U.S. human spaceflight program, and contracts supporting its development represent significant investments in cutting-edge technology. Comparable spending benchmarks are difficult to establish due to the unique nature of SLS, but R&D spending in the aerospace sector is substantial.
Small Business Impact
This contract was not set aside for small businesses, and Dynetics, Inc. is not listed as a small business. The nature of advanced aerospace engineering and development for a program like SLS typically requires extensive resources and specialized expertise, which often favors larger, established firms. There is no explicit information provided regarding subcontracting plans for small businesses, but it is common for prime contractors in such large-scale projects to engage small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program management. The agency's internal audit and inspection functions would also play a role in ensuring compliance and performance. Given the nature of R&D contracts, oversight would focus on technical progress, adherence to milestones, and financial accountability. Transparency is generally maintained through contract award announcements and program updates, though detailed R&D progress reports are often proprietary.
Related Government Programs
- Space Launch System (SLS) Program
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Advanced Booster Technology Development
Risk Flags
- Long-term R&D contract duration
- High-value contract for specialized engineering
- Firm Fixed Price contract type on R&D
- Single awardee for critical technology development
Tags
r-and-d, aerospace, nasa, space-launch-system, booster-engineering, dynetics-inc, firm-fixed-price, full-and-open-competition, alabama, research-and-development-in-the-physical-engineering-and-life-sciences-except-biotechnology, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $79.3 million to DYNETICS, INC.. IGF::OT::IGF SPACE LAUNCH SYSTEM (SLS) ADVANCED BOOSTER ENGINEERING DEMONSTRATION AND/OR RISK REDUCTION
Who is the contractor on this award?
The obligated recipient is DYNETICS, 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 $79.3 million.
What is the period of performance?
Start: 2012-10-01. End: 2020-01-31.
What is Dynetics, Inc.'s track record with NASA and large-scale aerospace projects?
Dynetics, Inc. has a history of working with NASA and other government agencies on complex engineering and technology development projects. While this specific contract for SLS advanced booster engineering is significant, Dynetics has been involved in various aerospace initiatives, including work on propulsion systems, advanced materials, and other critical components for space and defense applications. Their experience often involves research, design, prototyping, and testing. The company is known for its technical expertise and ability to tackle challenging engineering problems. A review of their past performance on similar government contracts would provide further insight into their capabilities and reliability in executing large-scale, high-stakes projects like the SLS booster development.
How does the $79.3 million award compare to other R&D contracts for rocket components?
Comparing the $79.3 million award for the SLS advanced booster engineering and risk reduction to other R&D contracts for rocket components requires careful consideration of scope, duration, and technological complexity. This contract, spanning nearly 7.5 years, is substantial for a specific R&D effort focused on a critical, high-risk component of a major launch vehicle. While individual component R&D contracts can vary widely, this amount suggests a significant investment in ensuring the reliability and performance of the SLS boosters. Larger, more comprehensive development programs for entire rocket stages or engines would naturally command higher figures. However, for a focused risk-reduction and engineering demonstration phase, $79.3 million represents a considerable allocation of resources, reflecting the strategic importance of the SLS program.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract revolve around the inherent technical complexity of developing advanced rocket boosters for a new heavy-lift launch system. These include potential challenges in materials science, structural integrity under extreme conditions, propulsion system integration, and overall system reliability. Given that this is a 'demonstration and/or risk reduction' contract, the goal is to identify and mitigate these risks proactively. The firm fixed-price (FFP) contract structure shifts a significant portion of the financial risk to Dynetics, Inc., incentivizing them to manage costs effectively. NASA's oversight, milestone-based payments, and rigorous testing protocols are key management strategies to address technical and performance risks throughout the contract duration.
What is the expected impact of this contract on the Space Launch System (SLS) program's overall timeline and budget?
This contract is crucial for the successful development and future operation of the Space Launch System (SLS). By focusing on advanced booster engineering and risk reduction, it aims to ensure that the boosters are reliable, performant, and cost-effective. Successful completion of the R&D outlined in this contract should de-risk critical aspects of the booster design, potentially preventing costly delays or redesigns later in the program. While the $79.3 million is a significant investment, it is intended to safeguard the larger budget and timeline of the overall SLS program, which runs into billions of dollars. The contract's firm fixed-price nature provides budget certainty for this specific R&D scope, contributing to better overall program financial planning.
How has NASA's spending on SLS booster development evolved over time, and does this contract represent a shift?
NASA's spending on the Space Launch System (SLS) program, including its booster development, has been substantial and has evolved over the program's lifecycle. Initial funding focused on foundational design and technology maturation, followed by detailed design, manufacturing, and testing phases. This $79.3 million contract, awarded in 2012 and ending in 2020, specifically targets 'Advanced Booster Engineering Demonstration and/or Risk Reduction.' This suggests it represents a focused effort within the broader SLS development to tackle specific, high-priority technical challenges or explore innovative approaches for the boosters. It is part of a continuum of spending aimed at ensuring the SLS's readiness and capability, rather than a radical shift, but highlights a phase dedicated to mitigating key technical uncertainties before full-scale production and flight.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $101,369,345
Exercised Options: $79,269,345
Current Obligation: $79,269,344
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-10-01
Current End Date: 2020-01-31
Potential End Date: 2020-01-31 00:00:00
Last Modified: 2024-09-06
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