NASA's SESDA V contract awarded to ADNET SYSTEMS INC for $227.5M, focusing on R&D in physical sciences

Contract Overview

Contract Amount: $227,460,537 ($227.5M)

Contractor: Adnet Systems Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2023-04-01

End Date: 2028-03-31

Contract Duration: 1,826 days

Daily Burn Rate: $124.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPACE AND EARTH SCIENCES DATA ANALYSIS (SESDA V)

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $227.5 million to ADNET SYSTEMS INC for work described as: SPACE AND EARTH SCIENCES DATA ANALYSIS (SESDA V) Key points: 1. The contract's cost-plus-fixed-fee structure suggests a focus on managing research and development where precise costs are hard to predict. 2. With a duration of five years, this contract represents a significant, long-term investment in scientific research and data analysis capabilities. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, but with specific pre-qualified entities. 4. The primary agency and servicing agency are both NASA, suggesting a high degree of internal alignment and focus for this contract. 5. The North American Industry Classification System (NAICS) code 541715 points to a specialized area of research and development. 6. The contract's value of over $227 million underscores the substantial resources dedicated to space and earth sciences data analysis.

Value Assessment

Rating: good

The contract value of $227.5 million over five years averages to approximately $45.5 million annually. Benchmarking this requires comparison to similar large-scale R&D contracts within NASA or other science-focused agencies. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where scope and costs can evolve, but it necessitates careful oversight to ensure efficiency and prevent cost overruns. Without specific cost breakdowns or comparable contract data, a precise value-for-money assessment is challenging, but the competitive award suggests a reasonable price was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while the competition was open, there were likely pre-qualification criteria or a limited pool of eligible bidders. The presence of 7 bidders suggests a healthy level of interest and competition within the specialized field. This approach balances the need for specialized expertise with ensuring a competitive environment, which can lead to better pricing and innovation.

Taxpayer Impact: The competitive nature, even if limited, is beneficial for taxpayers as it drives ADNET SYSTEMS INC to offer competitive pricing and efficient service delivery to secure and maintain the contract.

Public Impact

The primary beneficiaries are NASA and its various research divisions, which will receive advanced data analysis and research support. The contract supports critical scientific endeavors related to space exploration, Earth observation, and fundamental scientific research. The geographic impact is national, supporting federal research initiatives, with potential for global scientific collaboration and data sharing. Workforce implications include the creation or sustainment of highly skilled jobs in scientific research, data analysis, and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts if not rigorously managed.
  • Reliance on a single contractor for a significant period could limit flexibility in adapting to rapidly changing research needs.
  • The 'exclusion of sources' aspect of the competition might limit the pool of innovative solutions from non-pre-qualified entities.

Positive Signals

  • Long-term commitment indicates a stable funding environment for critical research and development activities.
  • Award to ADNET SYSTEMS INC suggests confidence in their established capabilities and past performance.
  • The competitive bidding process, even with exclusions, likely resulted in a well-defined scope and negotiated price.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical sciences research. This is a highly specialized segment of the federal contracting market, often characterized by long-term investments, significant intellectual property considerations, and the need for deep technical expertise. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by agencies like NASA, NSF, or DoD for scientific research and data analysis services. The market size for such specialized R&D services is substantial, driven by national priorities in science, technology, and exploration.

Small Business Impact

The data indicates that small business participation (sb) is marked as false, and there is no specific small business set-aside (ss) noted for this contract. This suggests that the primary award was not targeted towards small businesses. However, ADNET SYSTEMS INC may engage small businesses as subcontractors to fulfill specific aspects of the contract, which would be detailed in their subcontracting plan. The absence of a direct set-aside means the primary focus was on competition among larger, potentially more specialized firms.

Oversight & Accountability

Oversight for this contract will likely be managed by NASA contracting officers and program managers, ensuring adherence to the contract terms, performance standards, and budget. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures and progress. NASA's Inspector General may also conduct audits and investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency is typically maintained through contract award databases and reporting requirements, though specific project details might be sensitive.

Related Government Programs

  • NASA Science Mission Directorate Contracts
  • Earth Science Research Programs
  • Space Exploration Data Analysis
  • Advanced Scientific Computing Services
  • Federal Research and Development Spending

Risk Flags

  • Potential for cost overruns in CPFF contracts.
  • Long contract duration may limit agility.
  • Competition was not fully unrestricted.

Tags

nasa, space-and-earth-sciences, data-analysis, research-and-development, cost-plus-fixed-fee, definitive-contract, full-and-open-competition-after-exclusion-of-sources, adnet-systems-inc, maryland, science-and-technology, federal-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $227.5 million to ADNET SYSTEMS INC. SPACE AND EARTH SCIENCES DATA ANALYSIS (SESDA V)

Who is the contractor on this award?

The obligated recipient is ADNET SYSTEMS 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 $227.5 million.

What is the period of performance?

Start: 2023-04-01. End: 2028-03-31.

What is ADNET SYSTEMS INC's track record with NASA and similar large-scale R&D contracts?

ADNET SYSTEMS INC has a history of performing work for NASA and other government agencies, often in areas related to aerospace, engineering, and scientific support. Their experience with previous contracts, such as prior iterations of the SESDA program (if applicable), would provide insight into their capabilities, reliability, and cost management. A review of their past performance evaluations and any reported issues or successes on similar contracts would be crucial. For SESDA V, NASA would have evaluated ADNET's past performance as a key factor in the award decision, looking for demonstrated success in managing complex R&D projects, meeting technical requirements, and adhering to schedules and budgets.

How does the $227.5 million contract value compare to previous NASA data analysis contracts?

The $227.5 million value over five years, averaging approximately $45.5 million annually, positions SESDA V as a significant contract within NASA's portfolio. To benchmark this, one would compare it to the total value and annual spending of previous data analysis and R&D support contracts awarded by NASA, particularly those managed by the same directorates or centers. For instance, comparing it to the predecessor contract (e.g., SESDA IV) would reveal if spending has increased, decreased, or remained stable, potentially reflecting changes in scope, inflation, or program priorities. It would also be useful to compare it against similar large-scale R&D contracts awarded by other agencies like the National Science Foundation (NSF) or the Department of Energy (DOE) to understand its relative scale within the broader federal R&D landscape.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks with a CPFF contract of this magnitude ($227.5M) revolve around cost control and contractor efficiency. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If the contractor's costs exceed projections, the government bears the burden, potentially leading to budget overruns if not managed tightly. Risks include scope creep, inefficient resource allocation by the contractor, and difficulties in accurately estimating R&D costs upfront. Robust oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value for its investment.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact price discovery and innovation?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUAES) mechanism implies that while the competition was open to all responsible sources, certain sources were excluded based on pre-defined criteria, possibly related to specific technical capabilities, security clearances, or prior performance. This can streamline the acquisition process by focusing on a qualified pool but may limit the breadth of innovation compared to truly unrestricted full and open competition. Price discovery might be slightly constrained as the pool of bidders is smaller, potentially reducing the downward pressure on prices. However, if the excluded sources were not essential for the core requirements, FOUAES can still yield competitive pricing and effective solutions from the remaining qualified bidders.

What are the potential performance implications of awarding this contract to ADNET SYSTEMS INC for five years?

A five-year contract award to ADNET SYSTEMS INC provides a stable, long-term foundation for critical space and Earth sciences data analysis. This duration allows for sustained focus on complex research objectives, fosters deeper institutional knowledge within the contractor, and potentially leads to more efficient operations over time. However, it also carries risks. If ADNET's performance falters or if technological advancements render their approach suboptimal, the long duration could hinder NASA's ability to pivot quickly. NASA's ongoing performance monitoring, clear contract milestones, and defined remedies for underperformance are crucial to ensure continued value and alignment with evolving scientific needs throughout the contract's life.

What is the historical spending trend for NASA's data analysis and R&D support services?

Historical spending trends for NASA's data analysis and R&D support services generally show a consistent, significant investment driven by the agency's core mission. Spending fluctuates based on specific mission needs, the lifecycle of major projects, and overall budget appropriations. Contracts like SESDA V represent a substantial portion of this spending. Analyzing past budgets and contract awards reveals a pattern of long-term commitments to scientific research and technological development. Trends might indicate shifts towards specific areas like climate science, AI in data analysis, or advanced computing, influencing the size and focus of future contracts in this domain.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 80GSFC21R005

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6720B ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $362,610,122

Exercised Options: $360,000,000

Current Obligation: $227,460,537

Actual Outlays: $186,788,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-04-01

Current End Date: 2028-03-31

Potential End Date: 2028-03-31 00:00:00

Last Modified: 2026-03-20

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