NASA awards $211.6M to General Electric for fuel systems R&D, with a 1010-day performance period

Contract Overview

Contract Amount: $2,116,024 ($2.1M)

Contractor: General Electric Company

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2023-10-24

End Date: 2026-07-30

Contract Duration: 1,010 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: FUEL SYSTEMS II - IF MORE INFORMATION IS NEEDED, PLEASE CONTACT THE CO DIRECTLY.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45215

State: Ohio Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $2.1 million to GENERAL ELECTRIC COMPANY for work described as: FUEL SYSTEMS II - IF MORE INFORMATION IS NEEDED, PLEASE CONTACT THE CO DIRECTLY. Key points: 1. Contract awarded to a single, established provider suggests potential for specialized expertise. 2. The firm fixed-price structure aims to control costs for the government. 3. Research and Development focus indicates investment in future technological capabilities. 4. Performance period of over two years allows for substantial project development. 5. Geographic location in Ohio may offer regional economic benefits. 6. The absence of small business involvement warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The total contract value of $211.6 million for R&D in physical, engineering, and life sciences is substantial. Benchmarking this against similar R&D contracts for advanced fuel systems is challenging without more specific project details. However, the fixed-price nature of the contract provides some cost certainty for NASA. The value for money will ultimately depend on the successful development of the fuel systems and their future application.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or intellectual property essential for the project. While it ensures access to specialized expertise, it limits the potential for price competition that could drive down costs.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the competitive pricing that could arise from an open bidding process, potentially leading to a higher overall cost for the government.

Public Impact

The primary beneficiary is NASA, which will receive advanced fuel system technologies. This contract supports research and development in advanced engineering and physical sciences. The project's geographic impact is centered in Ohio, where General Electric will perform the work. The contract may indirectly benefit the aerospace workforce through specialized R&D roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition raises concerns about potential overpricing and limited innovation.
  • Sole-source nature may exclude small businesses from participating in this significant R&D effort.
  • The specific deliverables and success metrics for this R&D contract are not detailed, posing a risk to performance evaluation.

Positive Signals

  • Award to General Electric, a known leader in aerospace technology, suggests a high likelihood of technical success.
  • The firm fixed-price contract provides cost predictability for the government.
  • The extended performance period allows for thorough research and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced engineering for physical and life sciences, excluding nanotechnology and biotechnology. The aerospace industry, a significant consumer of such R&D, relies heavily on innovation in areas like fuel systems to improve efficiency and performance. Comparable spending in this niche R&D area can vary widely based on technological complexity and project scope.

Small Business Impact

The contract data indicates no small business set-aside. Given the sole-source nature of this award, there is no direct subcontracting requirement for small businesses mandated by the contract itself. This means opportunities for small businesses to participate in this specific R&D effort are limited unless General Electric voluntarily includes them in their supply chain.

Oversight & Accountability

Oversight for this contract will be managed by the National Aeronautics and Space Administration (NASA). As a definitive contract with a fixed price, NASA will monitor performance against the defined scope of work and milestones. Transparency will be maintained through NASA's contract reporting mechanisms. Specific Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

  • NASA Research and Development Programs
  • Aerospace Technology Development
  • Advanced Propulsion Systems Research
  • General Electric Aviation Contracts

Risk Flags

  • Sole-source award limits competitive pricing.
  • Lack of small business participation noted.
  • R&D contract effectiveness depends on clear performance metrics.

Tags

research-and-development, nasa, general-electric, fuel-systems, definitive-contract, firm-fixed-price, sole-source, ohio, aerospace, technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $2.1 million to GENERAL ELECTRIC COMPANY. FUEL SYSTEMS II - IF MORE INFORMATION IS NEEDED, PLEASE CONTACT THE CO DIRECTLY.

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 $2.1 million.

What is the period of performance?

Start: 2023-10-24. End: 2026-07-30.

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

General Electric has a long-standing relationship with NASA, often securing contracts for advanced technology development, including propulsion and power systems. While specific R&D contract details with NASA are not provided here, GE's history suggests a strong capability in delivering complex engineering solutions. Their extensive experience in the aerospace sector, particularly with jet engines and related technologies, positions them as a capable partner for fuel system research. Further analysis would require examining NASA's contract database for past performance metrics and project outcomes related to GE's R&D efforts.

How does the $211.6 million value compare to similar R&D contracts for fuel systems?

The $211.6 million value for this R&D contract is significant, reflecting the complexity and potential impact of advanced fuel system development. Benchmarking requires comparing it to other sole-source or competed R&D contracts for similar technologies within the aerospace or energy sectors. Contracts for cutting-edge research, especially those involving novel materials or complex engineering challenges, can easily reach hundreds of millions of dollars. Without specific details on the technological advancements sought, a precise comparison is difficult, but the amount suggests a substantial investment in future capabilities.

What are the primary risks associated with a sole-source R&D contract of this magnitude?

The primary risks associated with a sole-source R&D contract of this magnitude include potential lack of competitive pricing, leading to higher costs for the government. There's also a risk of reduced innovation if alternative approaches are not explored due to the absence of multiple bidders. Furthermore, without a competitive process, the government may have less leverage to negotiate favorable terms. Ensuring clear performance metrics and robust oversight becomes critical to mitigate these risks and ensure the R&D investment yields the desired outcomes.

What are the expected program effectiveness metrics for this fuel systems R&D contract?

The effectiveness of this R&D contract will likely be measured by the successful development and demonstration of advanced fuel system technologies that meet or exceed NASA's specified performance criteria. Key metrics could include improvements in fuel efficiency, reduced emissions, enhanced system reliability, weight reduction, and operational safety. The contract's firm fixed-price nature suggests that achieving these technical objectives within the allocated budget and timeline will be paramount. NASA's evaluation will likely focus on the tangible advancements and their potential for future application in aerospace missions.

What is the historical spending trend for fuel systems R&D at NASA?

Historical spending trends for fuel systems R&D at NASA would typically show a fluctuating pattern, influenced by strategic priorities, technological advancements, and specific mission requirements. NASA consistently invests in R&D to enhance propulsion efficiency, safety, and sustainability. Spending in this area can increase significantly when pursuing next-generation aircraft or spacecraft technologies. Analyzing past NASA budgets and contract awards for R&D related to fuel, propulsion, and power systems would reveal trends and highlight periods of increased investment driven by specific technological goals or program initiatives.

What is the potential impact of this contract on the broader aerospace R&D landscape?

This contract has the potential to significantly advance the state-of-the-art in fuel systems technology, which could have ripple effects across the aerospace industry. Successful R&D outcomes could lead to more efficient, sustainable, and capable aircraft and spacecraft. This might spur further innovation among competitors and suppliers, potentially leading to broader adoption of new technologies. The investment also supports the specialized R&D workforce, fostering expertise in critical engineering fields. The findings could influence future design standards and regulatory considerations for aerospace propulsion.

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 DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 80GRC024CA009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $2,116,024

Exercised Options: $2,116,024

Current Obligation: $2,116,024

Actual Outlays: $1,467,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-10-24

Current End Date: 2026-07-30

Potential End Date: 2026-07-30 00:00:00

Last Modified: 2026-03-26

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