NASA awards $36.2M R&D contract to General Electric for HYTEC PHASE 2, focusing on physical sciences

Contract Overview

Contract Amount: $36,184,546 ($36.2M)

Contractor: General Electric Company

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2024-02-15

End Date: 2029-02-15

Contract Duration: 1,827 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: HYTEC PHASE 2

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45215

State: Ohio Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $36.2 million to GENERAL ELECTRIC COMPANY for work described as: HYTEC PHASE 2 Key points: 1. Contract value represents a significant investment in advanced research and development. 2. General Electric's selection suggests confidence in their technical capabilities and past performance. 3. The contract duration of five years indicates a long-term commitment to the project's goals. 4. The R&D focus aligns with NASA's mission to push technological boundaries. 5. The specific NAICS code points to specialized research in physical, engineering, and life sciences. 6. The contract type, Cost Sharing, implies shared financial risk and reward between NASA and the contractor.

Value Assessment

Rating: good

Benchmarking the value of this $36.2 million R&D contract is challenging without specific performance metrics or deliverables. However, for a five-year research initiative involving a major aerospace contractor like General Electric, the investment appears reasonable given the potential for technological advancement. Comparing it to similar large-scale R&D efforts within NASA or other federal agencies would provide further context on its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive process is expected to drive fair pricing and encourage innovative solutions. This approach generally benefits the government by ensuring it receives the best value through a rigorous evaluation of technical merit and cost.

Taxpayer Impact: Full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that can lead to more cost-effective outcomes and a wider range of technological solutions.

Public Impact

This contract will likely benefit the aerospace and advanced manufacturing sectors through technological innovation. The services delivered are expected to advance fundamental research in physical sciences, potentially leading to new materials, processes, or systems. The geographic impact is primarily centered around General Electric's research facilities, likely in Ohio, but the resulting technologies could have a national or global reach. Workforce implications may include the creation or sustainment of highly skilled R&D jobs in engineering, physics, and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term R&D projects if not closely managed.
  • Dependence on a single large contractor may limit future flexibility or alternative solutions.
  • The success of the research is inherently uncertain, posing a risk to the return on investment.

Positive Signals

  • Award to a reputable contractor like General Electric suggests a high likelihood of technical competence.
  • Full and open competition indicates a robust selection process, aiming for the best value.
  • The cost-sharing model aligns incentives and demonstrates contractor commitment to project success.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace industry, a significant consumer of such R&D, relies heavily on innovation to maintain its competitive edge and achieve mission objectives. Spending in this area is critical for developing next-generation technologies. Comparable spending benchmarks would typically involve other large-scale, multi-year R&D initiatives funded by agencies like NASA, DoD, or DOE.

Small Business Impact

This contract does not appear to have a small business set-aside. As a large-scale R&D effort awarded to a major corporation, the primary focus is likely on specialized capabilities. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this research.

Oversight & Accountability

Oversight for this contract will likely be managed by NASA's contracting officers and program managers, who will monitor progress, expenditures, and adherence to the contract terms. Accountability measures are built into the cost-sharing agreement and performance milestones. Transparency is generally maintained through contract awards databases and public reporting, though specific R&D details may be proprietary.

Related Government Programs

  • NASA Advanced Technology Research
  • Department of Defense Research and Development Contracts
  • National Science Foundation Grants
  • Advanced Materials Research Programs
  • Aerospace Engineering Research

Risk Flags

  • Potential for R&D project delays
  • Uncertainty of research outcomes
  • Reliance on a single large contractor

Tags

nasa, general-electric, research-and-development, physical-sciences, definitive-contract, cost-sharing, full-and-open-competition, ohio, large-business, fy2024

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $36.2 million to GENERAL ELECTRIC COMPANY. HYTEC PHASE 2

Who is the contractor on this award?

The obligated recipient is GENERAL ELECTRIC 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 $36.2 million.

What is the period of performance?

Start: 2024-02-15. End: 2029-02-15.

What is General Electric's track record with NASA on similar R&D contracts?

General Electric has a long-standing relationship with NASA, often involved in developing advanced technologies for aerospace applications. While specific details on past R&D contracts of this exact nature are not readily available in the provided data, GE's history includes significant contributions to propulsion systems, materials science, and power generation for space exploration and aviation. Their extensive experience in these fields suggests a strong foundation for undertaking the HYTEC PHASE 2 project. Further analysis would involve reviewing NASA's contract award history for GE, looking for patterns in R&D focus, contract values, and performance outcomes to assess their suitability and reliability for this specific undertaking.

How does the $36.2 million value compare to similar NASA R&D investments?

The $36.2 million contract value for HYTEC PHASE 2 is a substantial investment, typical for advanced R&D projects requiring significant resources and expertise over several years. NASA frequently awards contracts in the tens to hundreds of millions of dollars for research initiatives aimed at developing cutting-edge technologies. For instance, contracts for advanced propulsion systems, new spacecraft materials, or complex simulation software can fall within this range. Without knowing the specific technical objectives and scope of HYTEC PHASE 2, a direct comparison is difficult. However, given its five-year duration and the involvement of a major contractor like General Electric, the funding level appears commensurate with the potential complexity and long-term nature of the research.

What are the primary risks associated with this R&D contract?

The primary risks associated with this R&D contract are inherent to the nature of research and development. Technical risk is significant, as the project may not achieve its intended scientific or engineering breakthroughs. Schedule risk exists due to the potential for unforeseen challenges that could delay progress. Cost risk, while partially mitigated by the cost-sharing model, remains a concern, as R&D efforts can sometimes exceed initial budget estimates if scope changes or technical hurdles prove more costly to overcome. Furthermore, there's a risk that the developed technology may not be successfully transitioned into practical applications or may become obsolete before deployment.

How effective is the cost-sharing model in ensuring project success?

The cost-sharing model is designed to align the interests of both NASA and General Electric, thereby enhancing the likelihood of project success. By requiring the contractor to bear a portion of the project costs, it incentivizes efficient resource management and a strong focus on achieving the defined research objectives. This shared financial commitment can lead to more rigorous oversight from the contractor's side and a greater sense of ownership over the project's outcomes. It also serves as a risk-sharing mechanism, distributing the financial burden if the research encounters difficulties or does not yield the expected results, making the overall investment more palatable for the government.

What is the historical spending trend for NASA's R&D in physical sciences?

NASA's historical spending on R&D in physical sciences has generally been substantial, reflecting the agency's core mission of space exploration and aeronautics, which heavily rely on advancements in physics, materials science, and engineering. While specific year-over-year trends for the 'Physical, Engineering, and Life Sciences' category (NAICS 541715) can fluctuate based on strategic priorities and budget allocations, there has been a consistent and significant investment. Major programs like the James Webb Space Telescope, Mars exploration missions, and aeronautics research have all required substantial R&D funding. Analyzing historical NASA budget documents and contract databases would reveal trends showing peaks and troughs related to specific technological pushes or program cycles, but the overall commitment to this domain remains a cornerstone of NASA's operations.

What are the potential long-term implications of this research for NASA's future missions?

The long-term implications of the HYTEC PHASE 2 research for NASA's future missions could be transformative. Depending on the specific focus within physical sciences, this project might yield breakthroughs in areas such as advanced materials for spacecraft construction (lighter, stronger, more heat-resistant), novel energy generation or storage systems for deep space missions, improved sensor technologies for planetary observation, or enhanced propulsion methods. Successful outcomes could lead to more ambitious and cost-effective exploration endeavors, enable longer-duration human missions, or contribute to fundamental scientific understanding of the universe. The research could also have spin-off applications in terrestrial industries, further justifying the investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTTransportation R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 80GRC023N0001

Offers Received: 1

Pricing Type: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 1 NEUMANN WAY, CINCINNATI, OH, 45215

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: $68,074,384

Exercised Options: $68,074,384

Current Obligation: $36,184,546

Actual Outlays: $19,381,610

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,904,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2024-02-15

Current End Date: 2029-02-15

Potential End Date: 2029-02-15 00:00:00

Last Modified: 2026-02-04

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