NASA awards $15.1M contract for demolition services at Marshall Space Flight Center
Contract Overview
Contract Amount: $15,129,755 ($15.1M)
Contractor: Ahtna Target JV, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-07-21
End Date: 2027-07-30
Contract Duration: 739 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CENTER WIDE DEMOLITION OF ABANDONED STRUCTURES AND BUILDINGS NO LONGER IN USE BY MSFC OR THE AGENCY LOCATED ON MSFC.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $15.1 million to AHTNA TARGET JV, LLC for work described as: CENTER WIDE DEMOLITION OF ABANDONED STRUCTURES AND BUILDINGS NO LONGER IN USE BY MSFC OR THE AGENCY LOCATED ON MSFC. Key points: 1. Contract focuses on environmental remediation and site preparation. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (739 days) suggests a significant scope of work. 4. Fixed-price contract type aims to control costs for the government. 5. Geographic focus on Alabama indicates localized economic impact. 6. Small business participation is not explicitly detailed in the award notice.
Value Assessment
Rating: fair
The contract value of $15.1 million for demolition services appears to be within a reasonable range for a federal project of this nature, especially considering the potential complexities of environmental remediation and site clearance at a major aerospace facility. However, without specific benchmarks for comparable demolition projects at NASA or other federal agencies, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost certainty, but the absence of competitive bidding limits the ability to benchmark against market rates derived from a competitive process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one contractor, AHTNA TARGET JV, LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple firms submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they limit the government's ability to explore a wider range of pricing and service options that a competitive environment would foster.
Taxpayer Impact: A sole-source award means taxpayers may not benefit from the cost efficiencies and innovation that typically arise from open competition among multiple qualified bidders.
Public Impact
The primary beneficiary is NASA's Marshall Space Flight Center, which will see its facilities cleared for future use or redevelopment. The services delivered include the demolition and removal of abandoned structures and buildings. The geographic impact is concentrated in Huntsville, Alabama, potentially creating local employment opportunities during the contract period. The contract may indirectly support the local economy through the employment of a specialized demolition workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding limits price discovery and potential cost savings for taxpayers.
- Sole-source award raises concerns about whether the most cost-effective solution was secured.
- The long duration of the contract could present risks if project requirements or site conditions change significantly.
Positive Signals
- Firm fixed-price contract type provides cost certainty for the government.
- The award to AHTNA TARGET JV, LLC suggests they possess specialized capabilities required for this project.
- The contract supports NASA's infrastructure management and modernization efforts.
Sector Analysis
The demolition and remediation services sector is a critical component of infrastructure management for government agencies. This contract falls within the broader environmental services and construction industries. Federal spending in this area often supports facility modernization, decommissioning of obsolete assets, and environmental cleanup. Comparable spending benchmarks are difficult to establish without detailed project scopes, but large-scale demolition at federal sites can range from hundreds of thousands to tens of millions of dollars, depending on size, complexity, and environmental hazards.
Small Business Impact
The contract notice indicates that small business participation was not a primary consideration in this sole-source award, as the prime contractor, AHTNA TARGET JV, LLC, is likely not a small business itself. There is no explicit mention of small business set-asides or subcontracting goals. This means that opportunities for small businesses to participate in this specific contract may be limited unless the prime contractor voluntarily engages them for specialized services.
Oversight & Accountability
Oversight for this contract will likely be managed by the National Aeronautics and Space Administration (NASA), specifically the Marshall Space Flight Center's contracting and facilities management departments. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to complete the work for the agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract performance data and payment information are typically subject to federal reporting requirements.
Related Government Programs
- NASA Facilities Maintenance and Repair
- Environmental Remediation Services
- Demolition and Decommissioning Contracts
- Federal Infrastructure Modernization Programs
Risk Flags
- Sole-source award may limit cost savings.
- Potential for cost overruns if unforeseen site conditions arise.
- Lack of competitive bidding reduces transparency in pricing.
Tags
nasa, demolition, environmental-remediation, sole-source, definitive-contract, firm-fixed-price, alabama, construction, infrastructure, marshall-space-flight-center
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $15.1 million to AHTNA TARGET JV, LLC. CENTER WIDE DEMOLITION OF ABANDONED STRUCTURES AND BUILDINGS NO LONGER IN USE BY MSFC OR THE AGENCY LOCATED ON MSFC.
Who is the contractor on this award?
The obligated recipient is AHTNA TARGET JV, 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 $15.1 million.
What is the period of performance?
Start: 2025-07-21. End: 2027-07-30.
What is the track record of AHTNA TARGET JV, LLC in performing similar demolition and remediation contracts for federal agencies?
A review of federal procurement data indicates that AHTNA TARGET JV, LLC has a history of performing various construction and environmental services for government entities. While specific details on demolition projects of this scale are not immediately available in the provided data, the company's experience in related fields suggests a foundational capability. Further investigation into their past performance reports, contract awards, and client feedback would be necessary to fully assess their suitability and past success in executing complex demolition and remediation tasks for agencies like NASA. Understanding their performance on similar projects, including adherence to timelines, budget, and safety standards, is crucial for evaluating the risk associated with this sole-source award.
How does the $15.1 million contract value compare to similar demolition projects at other NASA centers or federal facilities?
Benchmarking the $15.1 million contract value requires detailed comparison with projects of similar scope, complexity, and location. Demolition projects can vary significantly based on factors such as the size and type of structures, presence of hazardous materials (e.g., asbestos, lead paint), environmental remediation requirements, and site accessibility. Without specific details on the number and type of buildings to be demolished at MSFC, direct comparison is challenging. However, large-scale demolition and environmental cleanup at federal facilities can easily reach multi-million dollar figures. The sole-source nature of this award prevents a direct comparison to competitively bid projects, which would typically offer a clearer indication of market-driven pricing and value for money.
What are the primary risks associated with awarding this demolition contract on a sole-source basis?
The primary risk associated with a sole-source award is the potential for a lack of price competition, which could lead to the government paying a higher price than if the contract had been competed. This also limits the opportunity to explore innovative solutions or superior performance that might have been offered by other qualified contractors. Furthermore, without a competitive process, there's a reduced incentive for the awarded contractor to optimize costs and efficiency throughout the contract lifecycle. There's also a risk that the government may not be aware of other contractors with the necessary specialized skills or that the justification for the sole-source award might be based on incomplete information, potentially overlooking more advantageous options.
What are the expected outcomes and effectiveness of these demolition services for NASA's Marshall Space Flight Center?
The expected outcome of these demolition services is the safe and efficient removal of abandoned structures and buildings that are no longer in use by NASA at the Marshall Space Flight Center. This process is crucial for site modernization, enabling the repurposing of land for new facilities, research, or development initiatives. The effectiveness of the contract will be measured by the timely completion of the demolition work within the agreed-upon budget, adherence to environmental regulations, and the successful clearance of the designated areas. Ultimately, these services contribute to the overall operational efficiency and strategic planning capabilities of the MSFC by freeing up valuable real estate and eliminating safety hazards associated with derelict structures.
How has NASA's spending on demolition and remediation services trended in recent fiscal years?
Analyzing NASA's spending trends on demolition and remediation services requires access to historical contract data across multiple fiscal years. While the specific data for this contract is for an upcoming period, general trends in federal spending on infrastructure, facility maintenance, and environmental cleanup often fluctuate based on agency priorities, budget allocations, and the lifecycle of existing facilities. Agencies like NASA, with extensive and aging infrastructure, typically allocate consistent funding for such services. However, significant modernization projects or base realignments can lead to spikes in spending. Without specific historical data for NASA's demolition and remediation category, it's difficult to provide a precise trend analysis, but it is a recurring necessity for managing large federal installations.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: SALVAGE SERVICES › DEMOLITION OF NONBUILDING FACILITY
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 110 W 38TH AVE STE 200M, ANCHORAGE, AK, 99503
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,129,755
Exercised Options: $15,129,755
Current Obligation: $15,129,755
Actual Outlays: $7,877,497
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-07-21
Current End Date: 2027-07-30
Potential End Date: 2027-07-30 00:00:00
Last Modified: 2025-09-12
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 →