NASA awards $4.48M contract for atmospheric lidar instrument, focusing on cloud and aerosol transport research
Contract Overview
Contract Amount: $4,484,629 ($4.5M)
Contractor: Hexagon US Federal, Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-09-29
End Date: 2026-03-29
Contract Duration: 912 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 500
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: FY 23 PHASE III - ATMOSPHERIC LIDAR INSTRUMENT FOR CLOUDS AND AEROSOL TRANSPORT (ALICAT) POWER AND ELECTRONICS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.5 million to HEXAGON US FEDERAL, INC for work described as: FY 23 PHASE III - ATMOSPHERIC LIDAR INSTRUMENT FOR CLOUDS AND AEROSOL TRANSPORT (ALICAT) POWER AND ELECTRONICS Key points: 1. Contract aims to advance atmospheric research capabilities through specialized instrument development. 2. The award signifies investment in understanding complex atmospheric phenomena. 3. Research and Development sector sees continued funding for scientific instrumentation. 4. Fixed-price contract structure provides cost certainty for the government. 5. Long-term performance period suggests a complex and multi-stage development process. 6. Geographic focus on Alabama indicates potential for regional economic impact.
Value Assessment
Rating: good
The contract value of $4.48 million for a definitive contract over approximately 2.5 years appears reasonable for specialized R&D in atmospheric science. Benchmarking against similar complex instrument development contracts would provide further context, but the fixed-price nature suggests an effort to control costs. The award amount is not excessively high relative to the scope of developing a sophisticated lidar instrument.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a broad solicitation may have occurred, specific circumstances led to excluding certain sources before the final award. This suggests a limited competition pool, potentially due to specialized requirements or prior work. The number of bidders is not specified, but the limited nature implies less price discovery than full and open competition.
Taxpayer Impact: A limited competition may result in slightly higher prices compared to a broad, open competition, as fewer vendors are vying for the contract. However, if the exclusion was based on highly specific technical qualifications, it ensures the government receives specialized expertise.
Public Impact
Benefits NASA's atmospheric science research division by providing advanced measurement capabilities. Delivers a critical atmospheric lidar instrument for studying clouds and aerosols. Potential geographic impact in Alabama through contract performance and associated economic activity. Supports a specialized segment of the scientific instrumentation and R&D workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could potentially reduce cost savings for taxpayers.
- The long performance period (912 days) increases the risk of scope creep or unforeseen technical challenges.
- Reliance on a single contractor for this specialized instrument could pose a risk if performance issues arise.
Positive Signals
- Fixed-price contract type helps to control costs and provides budget certainty.
- The award is for a specific, well-defined research instrument, indicating a clear objective.
- NASA's selection of Hexagon US Federal suggests confidence in their technical capabilities for this project.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for atmospheric research instrumentation is specialized, often involving a limited number of firms with the requisite expertise in lidar technology and sensor development. Spending in this area is driven by scientific objectives and the need for advanced observational tools to understand complex environmental processes.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee, Hexagon US Federal, Inc., is likely a larger entity, and the specialized nature of the work may not lend itself easily to small business subcontracting opportunities in this instance.
Oversight & Accountability
Oversight will likely be managed by NASA's contracting officers and program managers responsible for the atmospheric science division. Accountability measures are inherent in the definitive contract structure with defined milestones and deliverables. Transparency is facilitated through federal contract databases, though specific performance details may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA Earth Science Division Programs
- Atmospheric Monitoring and Research Contracts
- Scientific Instrument Development Contracts
- Lidar Technology Research
Risk Flags
- Limited competition may impact price competitiveness.
- Long contract duration increases risk of schedule delays or scope creep.
- Technical complexity of lidar instrument development poses inherent risks.
Tags
research-and-development, nasa, atmospheric-science, lidar, instrumentation, definitive-contract, firm-fixed-price, limited-competition, alabama, fy23, physical-sciences, engineering
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.5 million to HEXAGON US FEDERAL, INC. FY 23 PHASE III - ATMOSPHERIC LIDAR INSTRUMENT FOR CLOUDS AND AEROSOL TRANSPORT (ALICAT) POWER AND ELECTRONICS
Who is the contractor on this award?
The obligated recipient is HEXAGON US FEDERAL, INC.
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 $4.5 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-03-29.
What is Hexagon US Federal, Inc.'s track record with NASA and similar R&D contracts?
Hexagon US Federal, Inc. has a history of performing contracts with various government agencies, including NASA. While specific details on their track record with atmospheric lidar instruments are not provided in this data, their selection for this definitive contract suggests they possess the necessary technical qualifications and past performance relevant to NASA's requirements. Further analysis would involve reviewing their contract history with NASA for similar research and development projects, particularly those involving complex sensor or instrument development, to assess their reliability and success rate in delivering on time and within budget.
How does the $4.48 million value compare to similar atmospheric lidar instrument development contracts?
Benchmarking the $4.48 million contract value requires comparing it to similar contracts for the development of atmospheric lidar instruments. The complexity, technological sophistication, and specific capabilities (e.g., cloud vs. aerosol focus, range, resolution) of the instrument significantly influence cost. Contracts for highly specialized, cutting-edge instruments can range from a few million to tens of millions of dollars. Given that this is a definitive contract for a Phase III development, the value appears within a reasonable range for a specialized scientific instrument, assuming it involves significant engineering and integration efforts. A detailed comparison would necessitate identifying contracts with comparable technical specifications and development phases.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include technical challenges in developing a novel or advanced lidar instrument, potential cost overruns despite the fixed-price structure, and schedule delays due to the complexity of atmospheric research and instrument integration. Mitigation strategies likely involve rigorous project management, phased development with clear milestones, NASA's technical oversight, and potentially performance incentives or penalties. The 'limited competition' aspect also introduces a risk of suboptimal pricing if market alternatives were not fully explored. The long performance period (912 days) inherently carries risks of scope creep and evolving technical requirements, which NASA's oversight aims to manage.
How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this type of specialized R&D?
This procurement approach aims to balance the benefits of competition with the need for specialized expertise. By excluding certain sources, NASA likely targeted firms with highly specific capabilities in atmospheric lidar technology. While this may limit the number of bidders compared to a truly open competition, it increases the likelihood of selecting a contractor with the precise skills required for this complex R&D. The effectiveness hinges on whether the exclusion criteria were justified and if the remaining pool still offered sufficient competitive tension to ensure a fair price and value for the government. It's a trade-off between maximizing competition and ensuring technical suitability.
What is the historical spending trend for atmospheric research instruments at NASA?
Historical spending on atmospheric research instruments at NASA has been consistent, reflecting the agency's ongoing commitment to Earth science and climate research. Funding levels fluctuate based on specific program needs, technological advancements, and budgetary allocations. NASA invests in a variety of observational tools, including satellites, ground-based sensors, and airborne platforms, with lidar technology being a key component for detailed atmospheric profiling. Analyzing past budgets for NASA's Earth Science Division would reveal trends in funding for instrument development, with significant investments often directed towards projects with long-term scientific objectives and potential for technological innovation, such as the ALICAT instrument.
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 › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 500
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $4,484,629
Exercised Options: $4,484,629
Current Obligation: $4,484,629
Actual Outlays: $2,645,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-29
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 00:00:00
Last Modified: 2026-03-17
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