NASA awards $2.6M for thermal protection system testing, raising questions about competition and value

Contract Overview

Contract Amount: $2,597,140 ($2.6M)

Contractor: Kratos SRE, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2022-11-08

End Date: 2026-09-30

Contract Duration: 1,422 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BPA CALL #1 UNDER BPA 80ARC023AA001, MATERIAL PROPERTY TESTING OF THERMAL PROTECTION SYSTEMS FOR SCIENCE MISSION DIRECTORATE MISSIONS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $2.6 million to KRATOS SRE, INC. for work described as: BPA CALL #1 UNDER BPA 80ARC023AA001, MATERIAL PROPERTY TESTING OF THERMAL PROTECTION SYSTEMS FOR SCIENCE MISSION DIRECTORATE MISSIONS. Key points: 1. Contract awarded on a non-competitive basis, limiting price discovery. 2. Firm-fixed-price contract type suggests defined scope and risk allocation. 3. Duration of over three years indicates a long-term need for these services. 4. Contractor has a track record with NASA, but specific performance data is limited. 5. Testing services are critical for mission success and safety. 6. Geographic location in California may influence labor costs and logistics.

Value Assessment

Rating: fair

The contract value of $2.6 million for material property testing of thermal protection systems appears moderate for specialized aerospace services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The firm-fixed-price structure provides cost certainty, but the lack of competition prevents a thorough assessment of cost-effectiveness. Further analysis would require comparing this award to similar testing contracts awarded competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source or limited competition basis. The absence of a full and open competition means that only one or a limited number of bidders were solicited. This significantly reduces the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The rationale for not competing the award needs further investigation.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. Without multiple bids, there is less pressure on the contractor to offer competitive rates.

Public Impact

The Science Mission Directorate benefits from critical testing of thermal protection systems, ensuring the integrity of spacecraft. This contract supports the development and maintenance of advanced materials essential for space exploration. The services provided contribute to the safety and success of NASA's scientific missions. The contract has implications for the specialized workforce in material testing and aerospace engineering within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and suboptimal value for taxpayer funds.
Limited public information on contractor performance for similar NASA contracts hinders a comprehensive risk assessment.
The specific technical requirements and justification for sole-source award are not detailed, increasing opacity.
The long contract duration without competitive re-evaluation could lead to complacency or escalating costs over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
The contractor is likely specialized in material property testing, suggesting technical capability.
The services are essential for NASA's mission objectives, indicating a critical need.
The contract is awarded to a US-based company, supporting domestic industry.

Sector Analysis

The aerospace industry relies heavily on specialized testing services to ensure the reliability and safety of components, particularly for high-stakes applications like space missions. Material property testing of thermal protection systems is a niche but critical segment within this sector. The market for such services is characterized by high technical barriers to entry and a limited number of qualified providers. NASA's spending in this area is driven by the unique demands of space exploration, where component failure can have catastrophic consequences. Comparable spending benchmarks are difficult to establish due to the specialized nature of the work and the often-proprietary nature of testing methodologies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The prime contractor, KRATOS SRE, INC., is likely a large business. There is no information provided regarding subcontracting plans or goals for small businesses. This suggests that the primary benefits of this contract will accrue to the large business prime and its direct employees or subcontractors, with no explicit mechanism to ensure small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under NASA's contracting officer and program management. The firm-fixed-price nature of the award implies that the contractor bears the risk of cost overruns, simplifying some aspects of oversight. However, the lack of competition reduces transparency and makes it harder to independently verify the reasonableness of costs. NASA's internal audit and Inspector General offices would be responsible for ensuring compliance and investigating any potential fraud, waste, or abuse, though the limited competition may present challenges in assessing value for money.

Related Government Programs

NASA Science Mission Directorate Contracts
Aerospace Material Testing Services
Thermal Protection System Development
Spacecraft Component Qualification

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency in Award Justification
Uncertainty of Best Value Determination

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $2.6 million to KRATOS SRE, INC.. BPA CALL #1 UNDER BPA 80ARC023AA001, MATERIAL PROPERTY TESTING OF THERMAL PROTECTION SYSTEMS FOR SCIENCE MISSION DIRECTORATE MISSIONS.

Who is the contractor on this award?

The obligated recipient is KRATOS SRE, 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 $2.6 million.

What is the period of performance?

Start: 2022-11-08. End: 2026-09-30.

What is the specific technical expertise of KRATOS SRE, INC. in thermal protection system testing?

KRATOS SRE, INC. (now part of Kratos Defense & Security Solutions) has a history of providing engineering, testing, and analysis services for aerospace and defense applications. Their expertise often includes structural testing, materials testing, and simulation. For thermal protection systems (TPS), this would likely involve testing materials' resistance to extreme temperatures, aerodynamic heating, and structural loads experienced during atmospheric entry or launch. While the company has broad capabilities, the specific details of their experience with NASA's TPS requirements for Science Mission Directorate missions, and how this particular BPA call leverages that expertise, would require a deeper dive into their contract history and technical documentation. The award itself suggests they possess the necessary qualifications, but the extent and relevance of their past performance in this precise niche are not fully detailed in the provided data.

How does the $2.6 million contract value compare to similar material property testing contracts for aerospace applications?

Benchmarking the $2.6 million contract value for material property testing of thermal protection systems is challenging without access to a comprehensive database of similar, competitively awarded contracts. Specialized aerospace testing services, especially those involving extreme environments and critical mission components, command premium pricing due to the high technical expertise, specialized equipment, and rigorous quality control required. Contracts for such services can range from hundreds of thousands to tens of millions of dollars, depending on the scope, duration, and complexity. Given that this contract was not competed, it's difficult to ascertain if $2.6 million represents a fair market price or if a competitive process might have yielded a lower cost. A comparative analysis would ideally look at contracts for TPS material characterization, thermal shock testing, and structural integrity testing under simulated space conditions awarded by NASA or other agencies like the DoD.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for suboptimal value for taxpayer money due to the lack of competition. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the lowest possible price, potentially leading to cost inefficiencies. Another risk is the possibility of technical performance issues if the contractor's capabilities, while deemed sufficient for a sole-source award, are not as robust as those of other potential providers. Furthermore, the lack of transparency inherent in sole-source awards makes it harder to scrutinize the justification for the award and the reasonableness of the price. Finally, there's a risk of vendor lock-in, where the government becomes reliant on a single provider for critical services, potentially limiting future flexibility and innovation.

What is the expected impact of this contract on NASA's Science Mission Directorate missions?

This contract is expected to have a direct and positive impact on NASA's Science Mission Directorate (SMD) missions by ensuring the reliability and safety of critical thermal protection systems (TPS). TPS are vital for spacecraft, particularly during atmospheric entry, re-entry, or ascent phases, where they protect the vehicle and its payload from extreme heat. By funding the material property testing of these systems, NASA is investing in the foundational science and engineering that underpins mission success. This testing helps identify potential material weaknesses, validate performance under expected conditions, and inform design improvements. Ultimately, this contributes to reducing mission risks, enhancing the longevity of spacecraft, and enabling more ambitious scientific endeavors in space.

What are the historical spending patterns for material property testing services by NASA or similar agencies?

Historical spending patterns for material property testing services by NASA and similar agencies like the Department of Defense (DoD) show a consistent and significant investment in specialized testing capabilities. These agencies procure such services regularly to qualify materials and components for extreme environments, ensure structural integrity, and validate performance under mission-specific conditions. Spending can fluctuate based on the number and complexity of ongoing programs, such as new spacecraft development, satellite upgrades, or long-duration space missions. While specific aggregate data for 'material property testing of thermal protection systems' is not readily available publicly, broader categories like 'engineering services,' 'research and development,' and 'testing laboratories' reveal billions of dollars spent annually across the federal government. NASA, in particular, dedicates substantial resources to ensuring the safety and efficacy of its hardware through rigorous testing protocols.

Are there any specific performance metrics or deliverables outlined for this contract?

The provided data indicates the contract is 'FIRM FIXED PRICE' and specifies a start date of 2022-11-08 and an end date of 2026-09-30, with a total value of $2,597,140. However, it does not detail the specific performance metrics, deliverables, or milestones associated with the material property testing of thermal protection systems. Typically, firm-fixed-price contracts require the contractor to provide specific outputs, such as test reports, data analysis, material characterization results, or recommendations for design improvements, by agreed-upon deadlines. The effectiveness of this contract hinges on clearly defined requirements and measurable outcomes that align with the needs of the Science Mission Directorate's missions. Without access to the contract's statement of work (SOW), a precise evaluation of performance metrics is not possible.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 80ARC022R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10680 TREENA ST STE 600, SAN DIEGO, CA, 92131

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: $2,597,140

Exercised Options: $2,597,140

Current Obligation: $2,597,140

Actual Outlays: $1,163,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 80ARC023AA001

IDV Type: BPA

Timeline