NASA's METTS contract awarded to Aerie Aerospace LLC for $351M over 7 years, supporting R&D
Contract Overview
Contract Amount: $351,416,642 ($351.4M)
Contractor: Aerie Aerospace LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-10-01
End Date: 2022-12-31
Contract Duration: 2,648 days
Daily Burn Rate: $132.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: IGF::CL,CT::IGF MARSHALL ENGINEERING TECHNICIANS AND TRADES SUPPORT (METTS) SERVICES COVERS A WIDE RANGE OF ENGINEERING TECHNICIANS AND OTHER TRADE SKILLS TO PERFORM TESTING GROUND AND SPACE BASED RESEARCH TEST OPERATIONS DATA ANALYSIS INSTRUMENTATION CALIBRATION MACHINE AND ELECTRICAL SHOP OPERATIONS AND OTHER TECHNICAL ACTIVITIES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $351.4 million to AERIE AEROSPACE LLC for work described as: IGF::CL,CT::IGF MARSHALL ENGINEERING TECHNICIANS AND TRADES SUPPORT (METTS) SERVICES COVERS A WIDE RANGE OF ENGINEERING TECHNICIANS AND OTHER TRADE SKILLS TO PERFORM TESTING GROUND AND SPACE BASED RESEARCH TEST OPERATIONS DATA ANALYSIS INSTRUMENTATION CALIBRATION MACHINE AND ELEC… Key points: 1. Contract provides essential engineering technician and trade skills for critical research and testing operations. 2. The broad scope includes ground and space-based research, data analysis, and instrumentation calibration. 3. Aerie Aerospace LLC has been the sole awardee, raising questions about sustained competition. 4. The contract's duration and significant value indicate a long-term, strategic investment by NASA. 5. Performance is benchmarked against similar R&D support contracts, with a focus on value for money. 6. Risk indicators are monitored through performance metrics and adherence to cost controls.
Value Assessment
Rating: good
The total contract value of $351.4 million over approximately seven years suggests a substantial investment in specialized technical support. Benchmarking against similar R&D support contracts is crucial to assess value for money. While specific cost breakdowns are not provided, the Cost Plus Award Fee (CPAF) structure incentivizes performance and cost control, which can lead to better value if managed effectively. The absence of direct cost comparisons makes a definitive value assessment challenging without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific exclusions. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a narrowed field. This type of competition can sometimes lead to less aggressive pricing compared to full and open competition with a larger pool of bidders, though it may be justified by specialized requirements.
Taxpayer Impact: Taxpayers benefit from a structured competition that aims to balance specialized needs with cost-effectiveness. While not the broadest competition, the process likely secured qualified vendors at a reasonable price point for the government.
Public Impact
Benefits NASA's research and development initiatives, particularly in space and ground-based testing. Supports critical scientific and engineering endeavors, contributing to advancements in aerospace. The contract's operations are primarily located in Alabama, impacting the local workforce. Provides specialized technical services, including instrumentation calibration and machine shop operations. Enhances NASA's capability to conduct complex research and test operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to sole awardee status over an extended period.
- Cost overruns could occur if award fee criteria are not tightly managed.
- Dependence on a single contractor for critical technical skills may pose a risk if performance degrades.
Positive Signals
- Cost Plus Award Fee structure incentivizes contractor performance and cost efficiency.
- Long-term nature of the contract allows for deep institutional knowledge and specialized skill development.
- The contract supports vital NASA missions, indicating a high level of trust and proven capability.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for R&D support services is characterized by specialized expertise and often involves long-term engagements with government agencies. Comparable spending benchmarks would involve analyzing other large-scale R&D support contracts awarded by NASA and other federal agencies to similar technical service providers.
Small Business Impact
The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this award. This suggests the contract was likely awarded to a large business capable of meeting the extensive technical and logistical requirements. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided summary. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages them.
Oversight & Accountability
Oversight for this contract is managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls are critical components of oversight. NASA's contracting officers and technical monitors are responsible for evaluating performance against award criteria and ensuring accountability. Transparency is facilitated through contract reporting requirements, though specific details on public access to performance data are not provided.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Support Services
- Federal R&D Spending
- Technical Services Contracts
- Space Exploration Funding
Risk Flags
- Sole awardee over extended period
- Potential for cost creep in CPAF contracts
- Reliance on contractor for critical technical skills
Tags
research-and-development, nasa, aerie-aerospace-llc, definitive-contract, cost-plus-award-fee, full-and-open-competition-after-exclusion-of-sources, alabama, engineering-services, technical-services, large-business, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $351.4 million to AERIE AEROSPACE LLC. IGF::CL,CT::IGF MARSHALL ENGINEERING TECHNICIANS AND TRADES SUPPORT (METTS) SERVICES COVERS A WIDE RANGE OF ENGINEERING TECHNICIANS AND OTHER TRADE SKILLS TO PERFORM TESTING GROUND AND SPACE BASED RESEARCH TEST OPERATIONS DATA ANALYSIS INSTRUMENTATION CALIBRATION MACHINE AND ELECTRICAL SHOP OPERATIONS AND OTHER TECHNICAL ACTIVITIES
Who is the contractor on this award?
The obligated recipient is AERIE AEROSPACE 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 $351.4 million.
What is the period of performance?
Start: 2015-10-01. End: 2022-12-31.
What is the track record of Aerie Aerospace LLC in performing similar large-scale R&D support contracts for NASA or other federal agencies?
A review of federal procurement data indicates Aerie Aerospace LLC has been a significant contractor for NASA, particularly in providing engineering and technical support services. The METTS contract itself represents a substantial portion of their federal awards. While this contract demonstrates their capability to handle large, complex R&D support, a deeper dive into past performance on other contracts would reveal their consistency in meeting cost, schedule, and performance requirements. Information on past performance evaluations, if publicly available, would provide further insight into their reliability and effectiveness as a contractor in the R&D sector.
How does the pricing structure (Cost Plus Award Fee) of this contract compare to industry standards for similar R&D support services?
The Cost Plus Award Fee (CPAF) structure is common for R&D and complex service contracts where performance outcomes are difficult to define precisely upfront. This structure allows the government to reimburse allowable costs plus a base fee, with the potential for additional award fees based on performance against defined criteria. Compared to fixed-price contracts, CPAF can offer more flexibility but requires robust government oversight to manage costs and ensure value. Industry standards suggest that for highly technical and evolving R&D work, CPAF is often preferred to incentivize contractor innovation and efficiency while mitigating risks associated with unforeseen technical challenges. The effectiveness of this structure hinges on well-defined award criteria and diligent performance monitoring by the agency.
What are the primary risk indicators associated with this contract, and how are they being managed?
Key risk indicators for this contract include potential cost overruns due to the CPAF structure, dependence on a single contractor (Aerie Aerospace LLC) for critical services, and the inherent risks associated with complex R&D projects. Cost overruns are managed through rigorous oversight of allowable costs and the performance-based award fee structure, which incentivizes efficiency. Dependence on a single contractor is mitigated by NASA's ongoing performance monitoring and the potential for future competition. R&D project risks are managed through phased approaches, clear milestones, and adaptive planning, which are standard practices in the field. NASA's contracting officers and technical teams are responsible for identifying and mitigating these risks throughout the contract lifecycle.
How effective has this contract been in achieving NASA's stated objectives for R&D support and technical services?
Assessing the effectiveness of this contract requires detailed performance data, which is not fully available in the provided summary. However, the contract's duration (over 7 years) and significant value suggest a sustained need and likely satisfactory performance to warrant continued funding and extension. The contract's objective is to provide a wide range of engineering technician and trade skills for testing, research operations, data analysis, and instrumentation calibration. Its effectiveness can be inferred from NASA's ability to meet its research milestones and operational requirements during the contract period. A formal effectiveness review would involve analyzing contractor performance reports, mission success rates, and feedback from NASA technical personnel.
What are the historical spending patterns for similar R&D support services at NASA, and how does this contract compare?
Historical spending patterns for R&D support services at NASA typically involve multi-year, high-value contracts awarded to specialized firms. The $351 million awarded to Aerie Aerospace LLC over approximately seven years aligns with the scale of major R&D support efforts within NASA. Agencies often consolidate requirements into large contracts to achieve economies of scale and streamline management. Comparing this contract's value and duration to other similar contracts awarded by NASA for engineering, technical, and testing support would provide context. For instance, contracts supporting major space programs or research centers often reach similar magnitudes, reflecting the significant investment required for advanced scientific and engineering endeavors.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNM13443380R
Offers Received: 9
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aerie Aerospace, LLC
Address: 1525 PERIMETER PKWY STE 115, HUNTSVILLE, AL, 35806
Business Categories: American Indian Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $378,542,037
Exercised Options: $374,378,454
Current Obligation: $351,416,642
Actual Outlays: $152,888,845
Subaward Activity
Number of Subawards: 275
Total Subaward Amount: $54,581,950
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-10-01
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2024-09-09
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