NASA awards $416M to Resolution LLC for flight systems integration and technical expertise
Contract Overview
Contract Amount: $4,161,703 ($4.2M)
Contractor: Resolution LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-06-24
End Date: 2026-06-30
Contract Duration: 736 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FLIGHT SYSTEMS TEAM SYSTEMS INTEGRATION AND TECHNICAL EXPERTISE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.2 million to RESOLUTION LLC for work described as: FLIGHT SYSTEMS TEAM SYSTEMS INTEGRATION AND TECHNICAL EXPERTISE Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences. 2. Resolution LLC is the sole contractor for this definitive contract. 3. The contract has a fixed price structure, indicating cost certainty. 4. Performance period spans over two years, from June 2024 to June 2026. 5. The contract is not set aside for small businesses. 6. The North American Industry Classification System (NAICS) code is 541715.
Value Assessment
Rating: questionable
Benchmarking the value of this $416 million contract is challenging without specific deliverables or comparable contracts. As a sole-source award for research and development, the pricing is likely based on negotiated rates and projected effort. However, the lack of competition raises concerns about whether the government secured the best possible price. Further analysis would require understanding the specific technical requirements and the contractor's historical performance and pricing on similar projects.
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 when circumstances prevent a competitive process. The lack of competition means that NASA did not benefit from the price discovery that typically occurs in a competitive bidding environment, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure to drive down prices.
Public Impact
The primary beneficiary is NASA, which will receive advanced flight systems integration and technical expertise. The services delivered are critical for research and development in physical, engineering, and life sciences. The contract is based in Alabama, potentially impacting the local workforce and economy. The specialized nature of the work may require highly skilled personnel, contributing to high-value job creation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the procurement process due to non-competitive nature.
- Potential for cost overruns if not managed closely, given the R&D nature.
- Limited visibility into alternative solutions or innovative approaches from other vendors.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Resolution LLC is awarded a significant contract, indicating trust in their capabilities.
- Contract duration of over two years allows for sustained development and integration.
- Focus on R&D suggests investment in cutting-edge technologies and future capabilities.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation, high technical expertise, and often long development cycles. Government spending in this area is crucial for advancing scientific knowledge and developing new technologies. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but significant investments are common for advanced aerospace and defense projects.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that the primary award goes to Resolution LLC, and opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to Resolution LLC. The absence of a small business set-aside means that a portion of the contract value will not be specifically directed towards fostering small business growth within this procurement.
Oversight & Accountability
Oversight for this contract will primarily be managed by the National Aeronautics and Space Administration (NASA). As a definitive contract with a firm fixed-price structure, NASA will monitor performance against defined milestones and deliverables. Transparency is limited due to the sole-source nature of the award. Accountability measures will be embedded within the contract terms, focusing on the successful completion of R&D objectives. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Systems Integration
- Technical Expertise Services
- Advanced Flight Systems Development
- Engineering and Scientific Research
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns in R&D
- Limited transparency in procurement
Tags
research-and-development, nasa, definitive-contract, firm-fixed-price, sole-source, alabama, flight-systems, technical-expertise, large-contract, engineering, physical-sciences, life-sciences
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.2 million to RESOLUTION LLC. FLIGHT SYSTEMS TEAM SYSTEMS INTEGRATION AND TECHNICAL EXPERTISE
Who is the contractor on this award?
The obligated recipient is RESOLUTION LLC.
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 $4.2 million.
What is the period of performance?
Start: 2024-06-24. End: 2026-06-30.
What is Resolution LLC's track record with NASA on similar R&D contracts?
Information regarding Resolution LLC's specific track record with NASA on similar R&D contracts is not provided in the given data. A comprehensive assessment would require reviewing NASA's contract databases and performance reports for Resolution LLC. Key areas to investigate would include past performance ratings, any contract modifications, delivery timeliness, and overall cost performance on previous R&D projects. Understanding their history with NASA would provide crucial context for evaluating their capability to successfully execute this new $416 million contract and whether their past performance justifies a sole-source award.
How does the $416 million value compare to similar R&D contracts for flight systems integration?
The $416 million value for this definitive contract for flight systems integration and technical expertise is substantial. However, without specific details on the scope of work, deliverables, and the technological maturity of the systems being developed, direct comparison to other R&D contracts is difficult. R&D contracts can vary widely in cost based on the complexity, duration, and novelty of the research. To benchmark this value, one would need to identify comparable NASA or Department of Defense contracts for similar phases of flight systems development, considering factors like the number of bidders, contract type, and performance period. The sole-source nature of this award also complicates direct value-for-money comparisons.
What are the primary risks associated with a sole-source R&D contract of this magnitude?
The primary risks associated with a sole-source R&D contract of this magnitude include potential overpricing due to the lack of competitive bidding, limited innovation stemming from the absence of diverse vendor perspectives, and a higher risk of cost overruns if the R&D objectives are not clearly defined or if unforeseen technical challenges arise. There's also a risk that the government may not be aware of more cost-effective or technologically superior solutions available from other vendors. Effective oversight and robust contract management are critical to mitigate these risks. The fixed-price nature offers some cost certainty, but the R&D component inherently carries uncertainty.
How effective is the firm fixed-price contract type for managing R&D uncertainty?
A firm fixed-price (FFP) contract type aims to provide cost certainty for the government by shifting most of the risk to the contractor. For R&D, this can be a double-edged sword. While it caps the government's financial exposure, it can disincentivize the contractor from exploring innovative or less predictable solutions if they are perceived as riskier or more costly to pursue within the fixed price. Conversely, if the R&D scope is well-defined and the contractor has a high degree of confidence in achieving the objectives within budget, FFP can be effective. However, for highly exploratory R&D, cost-plus contract types might offer more flexibility for innovation, albeit with higher government risk.
What is the historical spending trend for NAICS code 541715 at NASA?
Historical spending trends for NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) at NASA would typically show significant investment, reflecting the agency's core mission. Analyzing past NASA contracts under this code would reveal patterns in contract values, durations, and the types of research pursued. This data could indicate whether spending in this area has been increasing or decreasing, and which specific sub-disciplines within physical, engineering, and life sciences receive the most funding. Such analysis is crucial for understanding NASA's strategic priorities and the overall market for R&D services within the agency.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1525 SPARKMAN DRIVE NW, SUITE A1, HUNTSVILLE, AL, 35816
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,581,573
Exercised Options: $4,581,573
Current Obligation: $4,161,703
Actual Outlays: $3,021,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-06-24
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-20
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