NASA's $111M EGS Support Contract Awarded to Ares Technical Services Corporation for Engineering Services
Contract Overview
Contract Amount: $111,280,498 ($111.3M)
Contractor: Ares Technical Services Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2026-09-30
Contract Duration: 2,556 days
Daily Burn Rate: $43.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: KENNEDY EXPLORATION GROUND SYSTEMS (EGS) PROGRAM (LX) SUPPORT SERVICES CONTRACT THREE (KLXS III).
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $111.3 million to ARES TECHNICAL SERVICES CORPORATION for work described as: KENNEDY EXPLORATION GROUND SYSTEMS (EGS) PROGRAM (LX) SUPPORT SERVICES CONTRACT THREE (KLXS III). Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. Ares Technical Services Corporation is the sole awardee, highlighting their competitive positioning for this specific requirement. 4. The contract duration of 2556 days (approximately 7 years) indicates a long-term need for these specialized engineering services. 5. The base award amount is substantial, requiring thorough performance monitoring to ensure value for taxpayer dollars. 6. The contract is for engineering services, a critical component for complex programs like Kennedy Exploration Ground Systems.
Value Assessment
Rating: good
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the award to Ares Technical Services Corporation through full and open competition suggests a competitive pricing environment. The fixed fee component provides some incentive for cost efficiency. Further analysis would require comparing the contractor's performance and cost structure against similar engineering support contracts for large-scale government programs.
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 presence of 7 bidders (as indicated by 'no': 7) suggests a healthy level of competition for these specialized engineering services. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.
Public Impact
The primary beneficiaries are NASA's Kennedy Space Center and its exploration ground systems programs, ensuring continued operational support. Services delivered include critical engineering support essential for the development, maintenance, and operation of space launch infrastructure. The geographic impact is concentrated in Florida, specifically at the Kennedy Space Center, supporting a key national asset. This contract supports a specialized workforce of engineers and technical professionals, contributing to the high-tech employment sector in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns and ensure the fixed fee remains reasonable.
- Long contract duration necessitates ongoing performance evaluation to ensure sustained quality and value.
- Sole awardee status, despite open competition, warrants monitoring to ensure continued competitive pressure on future procurements.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace for these services.
- The fixed fee component provides a clear incentive for the contractor to manage costs effectively.
- The contract supports critical national infrastructure for space exploration, aligning with strategic government objectives.
Sector Analysis
This contract falls within the Engineering Services sector, a vital component of the aerospace and defense industry. The market for specialized engineering support for government space programs is highly competitive, with a limited number of firms possessing the requisite expertise and security clearances. Spending in this sector is driven by government investment in research, development, and operational support for complex technological endeavors. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by NASA and other federal agencies for similar infrastructure projects.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Ares Technical Services Corporation, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract will be managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Fixed Fee contract, NASA will need to closely monitor the contractor's incurred costs and the reasonableness of the fixed fee. Accountability measures will be tied to performance metrics outlined in the contract. Transparency will be facilitated through contract reporting requirements. NASA's Inspector General may also conduct audits and investigations to ensure proper use of funds and contract compliance.
Related Government Programs
- NASA Launch Services Program
- NASA Exploration Systems Development
- Space Launch System (SLS) Program
- Orion Spacecraft Program
- Kennedy Space Center Operations Support
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Performance Deficiency Risk
- Schedule Delay Risk
- Long-Term Contract Management Complexity
Tags
engineering-services, nasa, kennedy-space-center, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, large-contract, aerospace, florida, technical-support
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $111.3 million to ARES TECHNICAL SERVICES CORPORATION. KENNEDY EXPLORATION GROUND SYSTEMS (EGS) PROGRAM (LX) SUPPORT SERVICES CONTRACT THREE (KLXS III).
Who is the contractor on this award?
The obligated recipient is ARES TECHNICAL SERVICES CORPORATION.
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 $111.3 million.
What is the period of performance?
Start: 2019-10-01. End: 2026-09-30.
What is the track record of Ares Technical Services Corporation with NASA and similar government contracts?
Ares Technical Services Corporation has a history of performing various technical and engineering support services for government agencies, including NASA. Their past performance on similar contracts is a critical factor in their selection for the EGS Support Services Contract. While specific details of past performance are often proprietary or found in detailed contract award documents, agencies typically evaluate a contractor's ability to meet cost, schedule, and performance requirements on previous engagements. A review of federal procurement databases and past performance questionnaires would provide a more granular understanding of their historical success rates, any past performance issues, and their overall reputation within the federal contracting community, particularly for large-scale engineering and support services.
How does the pricing structure (Cost Plus Fixed Fee) compare to other engineering support contracts of similar scope?
The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, long-duration government contracts where the scope of work may evolve or is difficult to define precisely at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed. Compared to other structures like Firm-Fixed-Price (FFP), CPFF offers more flexibility for the government when dealing with uncertainty but carries a higher risk of cost growth if not managed diligently. Benchmarking would involve comparing the negotiated fixed fee percentage and the overall cost performance of similar NASA engineering support contracts awarded under CPFF to assess if Ares Technical Services Corporation's terms are competitive and represent good value.
What are the primary risks associated with this contract and how are they being mitigated?
Key risks for this contract include potential cost overruns inherent in CPFF contracts, performance deficiencies in delivering critical engineering support, and schedule delays impacting NASA's exploration programs. Mitigation strategies typically involve robust government oversight, including regular cost reviews, performance monitoring against defined metrics, and stringent quality assurance processes. The fixed fee provides some incentive for the contractor to manage costs and performance. Furthermore, contract clauses related to termination for default or convenience, along with potential award-fee incentives tied to exceptional performance, serve as additional risk mitigation tools. The long duration also presents a risk of evolving technological requirements or program changes that need to be managed through contract modifications.
How effective is the competition level in ensuring value for taxpayer money on this contract?
The contract was awarded under full and open competition with seven bidders, which is a strong indicator of a competitive environment. This level of competition generally leads to better price discovery and encourages bidders to offer their best value propositions to secure the award. For a Cost Plus Fixed Fee contract, while competition primarily influences the initial fixed fee and the overall cost competitiveness of the proposals, ongoing oversight is crucial for ensuring continued value. The presence of multiple capable bidders suggests that NASA had a good selection of qualified contractors, increasing the likelihood that the chosen contractor, Ares Technical Services Corporation, offered a competitive package. However, sustained value depends on effective contract management and performance monitoring throughout the contract's lifecycle.
What is the historical spending trend for similar engineering support services at NASA's Kennedy Space Center?
Historical spending on engineering support services at NASA's Kennedy Space Center (KSC) has been substantial, reflecting the complexity and scale of its launch and exploration infrastructure. Over the years, KSC has contracted for a wide array of services, including systems engineering, technical support, facility operations, and research and development support. Spending patterns are influenced by program lifecycles, such as the transition from the Space Shuttle program to the Artemis program, which required significant investments in ground systems modernization. Analyzing past contract awards for similar services, their durations, and total values provides a benchmark for understanding the typical investment required for maintaining and advancing KSC's capabilities. This specific contract, KLXS III, represents a continuation and evolution of such support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8444 WESTPARK DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $150,877,526
Exercised Options: $127,604,798
Current Obligation: $111,280,498
Actual Outlays: $104,763,830
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $56,781,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-03-20
More Contracts from Ares Technical Services Corporation
- Other Functions the Contractor Shall Provide On-Site and Off-Site Safety and Mission Assurance Services (smas) Support AS Necessary to Meet the Requirements Contained in This Statement of Work. On-Site IS Required Primarily for Those SMA Activities Performed Directly on Center Supporting Spacecraft and Instruments Being Developed In-House, Whereas, Off-Site SMA Support IS Required for Spacecraft and Instrument Development Being Developed by Industry, Universities, Other Nasa Centers and International Partners. in General, On-Site Support Requires More Technical Support Providing Greater Insight Over Day-To-Day Operations. Off-Site Support Generally Requires Less Technical Support Providing General Over-Sight of the Day-To-Day Operations. Insight and Support in Oversight ARE Defined AS Follows: - Insight - Institutional Observer of Technical and Safety Adequacy of the Product, Evaluates Compliance With Technical and Safety Standards and Requirements. - Oversight Makes Recommendations to Nasa Civil Servants to Permit IT to Direct and Approve ITS Contractors. the Contractor Shall Evaluate Compliance With Mission Performance Requirements and Make Recommendations to Nasa Civil Servants. the Contractor Shall Furnish Qualified Personnel, Materials, Facilities and Equipment, Except AS Otherwise Noted, Necessary to Provide Safety and Mission Assurance Services Support to the SMA Directorate — $182.7M (National Aeronautics and Space Administration)
- Perform a Wide Variety of Professional Safety Services — $31.6M (Department of Defense)
View all Ares Technical Services Corporation federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →