NASA Awards $7.25M for OSAM-1 Mission Lidar Sensor, Sole-Source Contract
Contract Overview
Contract Amount: $7,253,100 ($7.3M)
Contractor: Jena-Optronik Gesellschaft MIT Beschraenkter Haftung
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-04-17
End Date: 2025-12-31
Contract Duration: 623 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COMMERCIAL LIGHT DETECTION AND RANGING (LIDAR) SENSOR FOR THE ON-ORBIT SERVICING, ASSEMBLY, AND MANUFACTURING (OSAM-1) MISSION.
Plain-Language Summary
National Aeronautics and Space Administration obligated $7.3 million to JENA-OPTRONIK GESELLSCHAFT MIT BESCHRAENKTER HAFTUNG for work described as: COMMERCIAL LIGHT DETECTION AND RANGING (LIDAR) SENSOR FOR THE ON-ORBIT SERVICING, ASSEMBLY, AND MANUFACTURING (OSAM-1) MISSION. Key points: 1. The contract is for a critical Lidar sensor for the OSAM-1 mission. 2. JENA-OPTRONIK GESELLSCHAFT MIT BESCHRAENKTER HAFTUNG is the sole provider. 3. The award method raises questions about price discovery and potential overpayment. 4. The sector is Other Guided Missile and Space Vehicle Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $7.25M for a single Lidar sensor is difficult to benchmark without competitive data. The lack of competition suggests potential for a higher price than if multiple vendors were considered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and may result in a less favorable price for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
The OSAM-1 mission is crucial for advancing space capabilities. The Lidar sensor is a key component for on-orbit servicing and manufacturing. Lack of competition could impact future space technology procurement strategies. Transparency in sole-source awards is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in procurement.
Positive Signals
- Critical technology for space mission.
- Awarded to a specialized manufacturer.
Sector Analysis
This award falls within the Other Guided Missile and Space Vehicle Parts Manufacturing sector. Spending in this niche area is often characterized by high R&D costs and specialized expertise, leading to fewer potential suppliers.
Small Business Impact
The awardee is not listed as a small business. There is no indication that small businesses were considered or subcontracted for this specific award, which is common for highly specialized aerospace components.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable. NASA's procurement processes should be scrutinized to understand why competition was not pursued.
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
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency
- Supply chain dependency
Tags
other-guided-missile-and-space-vehicle-p, national-aeronautics-and-space-administr, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $7.3 million to JENA-OPTRONIK GESELLSCHAFT MIT BESCHRAENKTER HAFTUNG. COMMERCIAL LIGHT DETECTION AND RANGING (LIDAR) SENSOR FOR THE ON-ORBIT SERVICING, ASSEMBLY, AND MANUFACTURING (OSAM-1) MISSION.
Who is the contractor on this award?
The obligated recipient is JENA-OPTRONIK GESELLSCHAFT MIT BESCHRAENKTER HAFTUNG.
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 $7.3 million.
What is the period of performance?
Start: 2024-04-17. End: 2025-12-31.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves a unique capability or proprietary technology held by a single vendor. NASA would need to provide documentation demonstrating that no other source can meet the requirement. To ensure price reasonableness, they would likely rely on historical pricing data, independent cost estimates, or comparisons to similar, albeit not identical, components if available.
What are the risks associated with relying on a single supplier for such a critical component of the OSAM-1 mission?
The primary risk is supply chain disruption. If JENA-OPTRONIK GESELLSCHAFT MIT BESCHRAENKTER HAFTUNG faces production issues, delays, or goes out of business, the OSAM-1 mission could be significantly jeopardized. There's also the risk of vendor lock-in, where future upgrades or repairs become dependent on the original supplier, potentially at higher costs.
How does this sole-source award impact the overall cost-effectiveness and value for taxpayers for the OSAM-1 mission?
Sole-source awards inherently reduce cost-effectiveness by eliminating competitive pressure that drives down prices. Taxpayers may bear a higher cost for this Lidar sensor than if multiple vendors had competed. While the mission's strategic value is high, the procurement method raises concerns about achieving optimal value for the investment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 80GSFC24Q0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Airbus SE
Address: OTTO-EPPENSTEIN-STR. 3, JENA
Business Categories: Category Business, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $7,253,100
Exercised Options: $7,253,100
Current Obligation: $7,253,100
Actual Outlays: $6,827,922
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-04-17
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-19
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