NASA Awards $5.7M Contract for Solar Orbiter SPICE Phases E/F Effort to Southwest Research Institute
Contract Overview
Contract Amount: $5,695,162 ($5.7M)
Contractor: Southwest Research Institute
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-05-01
End Date: 2028-04-30
Contract Duration: 2,921 days
Daily Burn Rate: $1.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SOLAR ORBITER SPICE PHASES E/F EFFORT
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78238
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $5.7 million to SOUTHWEST RESEARCH INSTITUTE for work described as: SOLAR ORBITER SPICE PHASES E/F EFFORT Key points: 1. Contract awarded to Southwest Research Institute for critical space mission components. 2. The contract value is $5,695,161.50. 3. This is a sole-source award, indicating limited competition. 4. The contract spans nearly 8 years, from May 2020 to April 2028. 5. The North American Industry Classification System (NAICS) code is 336419.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar space mission instrument development contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, which limits price discovery and potentially increases costs for taxpayers. The justification for a sole-source award should be thoroughly reviewed to ensure it is warranted.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Supports the Solar Orbiter mission, a joint ESA-NASA project to study the Sun. The SPICE instrument is crucial for analyzing solar wind and magnetic fields. This contract ensures the continued development and operation of vital scientific instrumentation. The long duration of the contract suggests a significant, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Long contract duration may not reflect current market efficiencies.
Positive Signals
- Supports a high-priority scientific mission.
- Awarded to an experienced contractor in space instrumentation.
- Contract duration aligns with mission phases.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to space exploration and instrumentation. Spending in this sector is often characterized by long development cycles, high R&D costs, and specialized expertise, making competitive bidding challenging but crucial for cost control.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of subcontracting goals for small businesses. This represents a missed opportunity to support small business participation in major aerospace projects.
Oversight & Accountability
The contract is managed by NASA, which has established oversight mechanisms for its projects. However, the sole-source nature of this award warrants close monitoring to ensure cost efficiency and adherence to scope.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Cost Plus Fixed Fee contracts can incentivize spending.
- Potential for cost overruns due to long contract duration.
- No clear small business participation outlined.
Tags
other-guided-missile-and-space-vehicle-p, national-aeronautics-and-space-administr, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $5.7 million to SOUTHWEST RESEARCH INSTITUTE. SOLAR ORBITER SPICE PHASES E/F EFFORT
Who is the contractor on this award?
The obligated recipient is SOUTHWEST RESEARCH INSTITUTE.
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 $5.7 million.
What is the period of performance?
Start: 2020-05-01. End: 2028-04-30.
What was the specific justification provided by NASA for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically centers on the unique capabilities of the contractor, the need for compatibility with existing systems, or urgent requirements where competition is not feasible. NASA's procurement regulations require a thorough review and justification for such awards. Without access to the specific documentation, it's impossible to detail the exact reasons or confirm if alternatives were explored, but the agency must demonstrate that competition was impractical or would not yield satisfactory results.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar space instrument development efforts, and what mechanisms are in place to control cost g
The effectiveness of the fixed fee in a Cost Plus Fixed Fee (CPFF) contract depends heavily on how it was negotiated relative to the estimated costs and the contractor's performance incentives. For specialized space instrument development, fixed fees can range significantly based on complexity and risk. NASA typically employs Earned Value Management (EVM) systems and regular performance reviews to monitor costs, schedule, and technical progress, aiming to identify and mitigate potential cost overruns early in the contract lifecycle.
Given the nearly 8-year duration, what provisions exist within the contract to ensure the pricing remains competitive and reflects potential technological advancements or market shifts over time?
Long-term contracts like this often include clauses for periodic reviews of pricing, especially for labor rates and material costs, to ensure they remain fair and reasonable. While the fixed fee itself is set, the 'cost' portion of CPFF is subject to actual expenditures. Provisions might allow for adjustments based on economic price adjustments (EPAs) or re-negotiation if significant market shifts occur. However, the core pricing structure is generally established at the outset, making it crucial that the initial negotiation was robust.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 80GSFC19R0043
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6220 CULEBRA RD, SAN ANTONIO, TX, 78238
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,492,737
Exercised Options: $8,492,737
Current Obligation: $5,695,162
Actual Outlays: $5,262,759
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $110,659
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-05-01
Current End Date: 2028-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2026-02-12
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