NASA awards $365.5M sole-source contract for Commercial Crew Program systems engineering support
Contract Overview
Contract Amount: $365,510 ($365.5K)
Contractor: THE Aerospace Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-10-01
End Date: 2027-04-15
Contract Duration: 1,292 days
Daily Burn Rate: $283/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR COMMERCIAL CREW PROGRAM (CCP) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) SUPPORT.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $365,510.17 to THE AEROSPACE CORPORATION for work described as: NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR COMMERCIAL CREW PROGRAM (CCP) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) SUPPORT. Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant investment in critical systems engineering and integration for the Commercial Crew Program. 3. Long-term contract duration suggests ongoing need for specialized technical expertise. 4. Focus on R&D in physical, engineering, and life sciences, aligning with NASA's mission. 5. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 6. Geographic concentration of work in Florida.
Value Assessment
Rating: fair
This contract's value is substantial, reflecting the complexity of supporting NASA's Commercial Crew Program. As a sole-source award, direct price comparisons to similar competitively bid contracts are difficult. The Cost Plus Fixed Fee structure necessitates close oversight to manage costs effectively and ensure value for money. Benchmarking against historical NASA SE&I support contracts would provide further insight into the reasonableness of the pricing, but without competitive data, a definitive value assessment is challenging.
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 is the only responsible source. The lack of competition means that price discovery through market forces was not leveraged, potentially leading to higher costs than if multiple bids had been solicited.
Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The absence of competition reduces the incentive for the contractor to offer the lowest possible price.
Public Impact
Ensures continued safe and reliable transportation of astronauts to and from the International Space Station. Supports the development and sustainment of critical spaceflight systems. Benefits the U.S. human spaceflight program and its long-term objectives. Maintains specialized engineering and integration expertise within the aerospace sector. Work primarily impacts the aerospace industry and associated technical workforce in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely managed.
- Lack of transparency in the sole-source justification process.
- Concentration of significant funding in a single contractor for a critical program.
- Potential for vendor lock-in due to specialized knowledge.
Positive Signals
- Ensures continuity of essential systems engineering and integration support for a vital program.
- Leverages specialized expertise of The Aerospace Corporation in space systems.
- Supports NASA's ongoing mission objectives for human spaceflight.
- Long-term contract provides stability for critical program functions.
- Focus on R&D aligns with advancing space exploration capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and integration services for complex aerospace systems. The market for such specialized support is often dominated by a few key players with proven track records in government contracting, particularly within the defense and space industries. NASA's spending in this area is crucial for maintaining its technological edge and achieving its ambitious exploration goals. Comparable spending benchmarks would likely involve other large-scale aerospace engineering support contracts awarded by NASA or the Department of Defense.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The focus is on a large, sole-source prime contract, suggesting that the prime contractor will likely utilize its own resources or potentially subcontract to other large businesses for specialized needs, rather than prioritizing small business participation.
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 implement robust financial and performance monitoring to ensure costs remain within acceptable bounds and that the contractor meets all technical requirements. Transparency will be dependent on NASA's reporting practices and any public disclosures related to the Commercial Crew Program's progress and expenditures. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- NASA Commercial Crew Program
- NASA Systems Engineering and Integration Support
- Aerospace Engineering Services
- Research and Development Contracts
Risk Flags
- Sole-source award may limit cost savings.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Lack of competitive bidding reduces price discovery.
- Long-term duration requires sustained oversight.
Tags
nasa, commercial-crew-program, systems-engineering, integration-support, research-and-development, sole-source, cost-plus-fixed-fee, aerospace, florida, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $365,510.17 to THE AEROSPACE CORPORATION. NASA SPECIALIZED ENGINEERING, EVALUATION, AND TEST SERVICES (NSEETS) TASK ORDER FOR COMMERCIAL CREW PROGRAM (CCP) SYSTEMS ENGINEERING AND INTEGRATION (SE&I) SUPPORT.
Who is the contractor on this award?
The obligated recipient is THE AEROSPACE 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 $365,510.17.
What is the period of performance?
Start: 2023-10-01. End: 2027-04-15.
What is the track record of The Aerospace Corporation with NASA, particularly on similar large-scale engineering support contracts?
The Aerospace Corporation has a long-standing relationship with NASA and has historically provided critical systems engineering and integration support for numerous spaceflight programs. Their expertise is well-recognized in the aerospace community. While specific details on past contract values and performance metrics for similar NASA SE&I contracts are not provided here, their continued selection for vital programs like the Commercial Crew Program suggests a strong performance history and a high degree of trust from the agency. Further analysis would involve reviewing NASA's contract award histories and performance evaluations for The Aerospace Corporation on comparable projects to assess their consistency and value delivery over time.
How does the pricing structure (Cost Plus Fixed Fee) compare to other NASA SE&I support contracts, and what are the associated risks?
The Cost Plus Fixed Fee (CPFF) contract type is common for R&D and complex services where the scope may evolve or be difficult to define precisely upfront. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While this structure provides flexibility, it carries inherent risks for the government, primarily the potential for cost overruns if the contractor's costs exceed estimates. Unlike fixed-price contracts, the government bears the majority of the cost risk. Benchmarking CPFF contracts requires comparing fee percentages and total costs against similar services and program complexities. Without competitive bids, assessing the 'fairness' of the fee and total estimated cost is challenging and relies heavily on NASA's internal cost analysis and oversight.
What are the key performance indicators (KPIs) and metrics NASA will use to evaluate the contractor's performance under this task order?
While specific KPIs are not detailed in the provided data, NASA typically employs a rigorous performance evaluation framework for critical programs like the Commercial Crew Program. For systems engineering and integration support, KPIs would likely include metrics related to technical performance (e.g., system reliability, integration success rates), schedule adherence (e.g., meeting key milestones for spacecraft development and testing), cost control (e.g., managing project expenses within allocated budgets), and quality of deliverables (e.g., accuracy and completeness of engineering analyses, reports, and recommendations). NASA's contract management personnel would be responsible for monitoring these KPIs, conducting regular performance reviews, and ensuring the contractor meets or exceeds the established standards throughout the contract period.
What is the historical spending trend for NASA's Commercial Crew Program systems engineering and integration support, and how does this award fit within that trend?
Historical spending data for NASA's Commercial Crew Program (CCP) SE&I support is not provided in this data snippet. However, the Commercial Crew Program is a multi-year, high-priority initiative involving significant investment in developing and operating commercial spacecraft for human spaceflight. SE&I support is fundamental to the program's success, encompassing complex technical analyses, integration of various system components, risk management, and verification/validation activities. This $365.5 million award, spanning over approximately four years, represents a substantial but likely consistent level of funding for essential technical expertise required to maintain the program's operational tempo and safety standards. Understanding the trend would require examining prior task orders and contracts awarded for similar support over the program's lifecycle.
Given the sole-source nature, what mechanisms are in place to ensure accountability and prevent potential complacency from the contractor?
Accountability for a sole-source contract, especially one as critical as CCP SE&I support, relies heavily on robust government oversight and clearly defined performance expectations. NASA will likely implement stringent contract management processes, including regular progress reviews, technical interchange meetings, and performance assessments against defined milestones and technical requirements. The fixed fee component of the CPFF contract provides some incentive for the contractor to manage costs efficiently to protect their profit margin. Furthermore, NASA's ability to modify contract terms, withhold payments for non-performance, or ultimately terminate the contract for cause serves as a significant accountability measure. Transparency in reporting and open communication channels are also crucial for maintaining contractor focus and responsiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2310 EAST EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $385,463
Exercised Options: $385,463
Current Obligation: $365,510
Actual Outlays: $315,098
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 80GSFC19D0011
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2027-04-15
Potential End Date: 2027-04-15 00:00:00
Last Modified: 2026-04-07
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