NASA's $116M SSME Propulsion Testing Contract Awarded to Aerojet Rocketdyne Without Competition
Contract Overview
Contract Amount: $116,034,218 ($116.0M)
Contractor: Aerojet Rocketdyne of DE, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2002-01-15
End Date: 2007-03-31
Contract Duration: 1,901 days
Daily Burn Rate: $61.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: HARDWARE ASSURANCE PROPULSION TESTING, TEST SUPPORT SERVICES OF SPACE SHUTTLE MAIN ENGINE SSME
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $116.0 million to AEROJET ROCKETDYNE OF DE, INC for work described as: HARDWARE ASSURANCE PROPULSION TESTING, TEST SUPPORT SERVICES OF SPACE SHUTTLE MAIN ENGINE SSME Key points: 1. Contract awarded on a cost-plus-award-fee basis, allowing for performance-based incentives. 2. Long-term contract duration of 1901 days suggests a need for sustained support. 3. The contract's focus on Space Shuttle Main Engine (SSME) testing indicates critical, specialized support. 4. Awarded by NASA's Space Propulsion Testing division, highlighting its role in space exploration. 5. The absence of competition raises questions about potential cost efficiencies and innovation. 6. The contract's value of over $116 million underscores the significant investment in propulsion technology.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized nature and the lack of competitive bids. The cost-plus-award-fee structure allows for flexibility but can also lead to higher costs if not managed tightly. Without comparable contracts or detailed cost breakdowns, assessing the true value-for-money is difficult. However, the sustained funding over several years suggests a recognized need for these specific testing services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities, proprietary technology, or when urgency dictates a direct award. The lack of competition limits the government's ability to leverage market forces to drive down prices or encourage innovative solutions from a broader range of contractors.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. It also limits opportunities for other businesses to compete for this significant contract.
Public Impact
Benefits NASA's propulsion research and development efforts, crucial for space exploration. Ensures the continued testing and validation of critical Space Shuttle Main Engine (SSME) components. Supports advanced aerospace engineering and technical expertise within the contractor's workforce. Contributes to the safety and reliability of future space missions by ensuring engine performance. The services are geographically concentrated at NASA facilities, likely in Mississippi where the contractor has a presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in higher costs for taxpayers.
- Sole-source award limits opportunities for other qualified businesses.
- Cost-plus-award-fee structure requires diligent oversight to control expenses.
- Long contract duration without re-competition could reduce incentive for cost reduction.
Positive Signals
- Contract supports critical national interest in space exploration and propulsion technology.
- Aerojet Rocketdyne has specialized expertise in rocket engine testing, likely essential for SSME.
- Award-fee component incentivizes contractor performance and quality.
- Sustained funding indicates a stable and predictable need for these services.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development services related to rocket propulsion. The market for specialized aerospace testing services is often characterized by high barriers to entry due to the need for advanced technology, skilled personnel, and significant infrastructure. NASA's spending in this area is critical for maintaining technological superiority and advancing space exploration capabilities. Comparable spending benchmarks are difficult to establish due to the unique nature of SSME testing.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the specialized and high-value nature of SSME propulsion testing, it is unlikely that small businesses would be primary contractors for such a complex requirement. However, the prime contractor, Aerojet Rocketdyne, may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The cost-plus-award-fee structure necessitates robust monitoring of costs and performance to ensure the contractor meets objectives and earns award fees appropriately. Transparency is generally high within NASA's procurement processes, with contract awards and details often publicly available through systems like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Space Shuttle Main Engine (SSME) Development and Support
- NASA Propulsion Systems Research
- Aerospace Testing and Evaluation Services
- Rocket Engine Component Testing
- Spacecraft Propulsion Systems
Risk Flags
- Sole-source award
- Cost-plus-award-fee structure
- Lack of competition
- Specialized technology dependence
Tags
nasa, aerospace, propulsion-testing, space-shuttle-main-engine, ssme, aerojet-rocketdyne, cost-plus-award-fee, sole-source, mississippi, research-and-development, definitive-contract, testing-laboratories-and-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $116.0 million to AEROJET ROCKETDYNE OF DE, INC. HARDWARE ASSURANCE PROPULSION TESTING, TEST SUPPORT SERVICES OF SPACE SHUTTLE MAIN ENGINE SSME
Who is the contractor on this award?
The obligated recipient is AEROJET ROCKETDYNE OF DE, 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 $116.0 million.
What is the period of performance?
Start: 2002-01-15. End: 2007-03-31.
What is Aerojet Rocketdyne's track record with NASA on similar propulsion testing contracts?
Aerojet Rocketdyne (now part of Aerojet Rocketdyne Holdings, Inc.) has a long history of supporting NASA's propulsion programs, including significant involvement with the Space Shuttle Main Engine (SSME) and other rocket propulsion systems. Their expertise in this highly specialized field is well-established. They have been a key contractor for various NASA centers, providing design, manufacturing, and testing services for rocket engines and related components. Their historical performance on such contracts would likely have been a key factor in the sole-source award, suggesting a proven ability to meet NASA's stringent requirements for safety, reliability, and performance in critical space missions.
How does the cost-plus-award-fee (CPAF) structure compare to other contract types for R&D services?
The Cost-Plus-Award-Fee (CPAF) contract type is often used for research and development (R&D) or services where performance outcomes are difficult to define precisely at the outset or where innovation is a key objective. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs. However, it also includes an award fee, determined by the government based on performance against pre-defined criteria, which incentivizes the contractor to exceed minimum requirements. This differs from Cost-Plus-Fixed-Fee (CPFF), which has a fixed fee, or Cost-Plus-Incentive-Fee (CPIF), which adjusts the fee based on cost targets. CPAF offers flexibility but requires careful government oversight to manage costs and evaluate performance objectively.
What are the primary risks associated with a sole-source award for specialized technical services like SSME testing?
The primary risks associated with a sole-source award for specialized technical services like SSME testing include potential cost overruns due to the lack of competitive pressure, reduced incentive for innovation, and a lack of market validation for pricing. Without competing bids, the government may pay a premium. Furthermore, reliance on a single contractor can create vulnerabilities if that contractor faces financial difficulties, operational issues, or decides to exit the market. There's also a risk that the contractor may not be as motivated to find efficiencies or adopt cutting-edge technologies as they might be in a competitive environment. Ensuring robust contract management and oversight becomes paramount.
What is the historical spending trend for SSME propulsion testing services by NASA?
Historical spending on Space Shuttle Main Engine (SSME) propulsion testing services by NASA would have been significant during the operational life of the Space Shuttle program (1981-2011). This contract, awarded in 2002 and ending in 2007, falls within that period, indicating continued investment in testing and support even as the program neared its end. Post-Shuttle, NASA's spending on propulsion testing has shifted towards new programs like the Space Launch System (SLS) and commercial crew/cargo initiatives. Analyzing specific historical spending requires access to detailed NASA procurement data over various fiscal years, but it's clear that SSME-related activities represented a substantial portion of NASA's propulsion R&D budget during its active phase.
How does the geographic location of the contractor (Mississippi) impact the contract's execution and oversight?
The contractor, Aerojet Rocketdyne, has a significant presence in Mississippi, which likely houses key facilities for propulsion testing. This geographic concentration can streamline operations and potentially reduce logistical complexities for the contractor. For NASA oversight, having the primary work performed at a specific site allows for focused monitoring by resident contracting officers' representatives (CORs) or on-site personnel. However, it also means that oversight efforts are concentrated, and any disruptions at that location could significantly impact contract performance. The distance from NASA headquarters or other major centers might necessitate specific travel budgets for oversight personnel.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)
Address: 6633 CANOGA AVENE, CANOGA PARK, CA, 91309
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $122,863,638
Exercised Options: $122,270,412
Current Obligation: $116,034,218
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2002-01-15
Current End Date: 2007-03-31
Potential End Date: 2009-07-08 00:00:00
Last Modified: 2019-09-30
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