NASA awards $4M R&D contract to Psionic, Inc. for Class A mission component qualification

Contract Overview

Contract Amount: $3,997,571 ($4.0M)

Contractor: Psionic, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2025-08-22

End Date: 2027-08-21

Contract Duration: 729 days

Daily Burn Rate: $5.5K/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: FY25 SBIR PHASE II SEQUENTIAL - PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23666

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $4.0 million to PSIONIC, INC. for work described as: FY25 SBIR PHASE II SEQUENTIAL - PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS Key points: 1. Contract focuses on specialized R&D for critical space mission components. 2. The award represents a significant investment in advanced aerospace technology. 3. Competition was conducted after excluding other sources, warranting scrutiny of the process. 4. The contract duration of 729 days suggests a complex and lengthy development cycle. 5. Firm Fixed Price contract type aims to control costs for this R&D effort. 6. Psionic, Inc. is the sole awardee, highlighting potential concentration risk.

Value Assessment

Rating: fair

The contract value of $3.99 million for a 729-day R&D effort appears reasonable for specialized work in the aerospace sector. Benchmarking against similar SBIR Phase II sequential contracts is challenging due to the specific nature of the 'PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS.' However, the firm fixed-price structure provides cost certainty. Further analysis would require comparing Psionic's proposed costs against industry standards for similar R&D activities and the contractor's historical performance on comparable projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation may have been open, specific sources were later excluded, leading to a limited competition scenario. The exact number of bidders after exclusions is not specified, but the nature of the award suggests a limited pool of qualified entities. This approach can sometimes lead to higher prices if the excluded sources represented significant competitive alternatives.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. The exclusion of sources warrants a review to ensure fairness and maximize value for federal funds.

Public Impact

This contract directly benefits NASA's mission objectives by advancing critical component technology for Class A missions. The primary service delivered is research and development, focusing on qualification and testing. The geographic impact is primarily within the contractor's facilities, with potential downstream benefits to NASA centers. Workforce implications include specialized R&D roles for engineers and scientists at Psionic, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about potential price inflation and lack of broader market engagement.
  • The specific nature of the R&D may limit opportunities for small business subcontracting.
  • Reliance on a single contractor for this critical qualification could pose a risk if performance issues arise.

Positive Signals

  • Firm Fixed Price contract type provides cost control and predictability for NASA.
  • The award supports innovation in a critical area of aerospace technology.
  • The contract duration suggests a thorough and detailed R&D process.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace R&D market is characterized by high specialization, significant government investment, and long development cycles. Comparable spending benchmarks are difficult to establish without more specific details on the 'PSNDL COMPONENT QUALIFICATION,' but R&D contracts of this magnitude are common within agencies like NASA and the Department of Defense for developing cutting-edge technologies.

Small Business Impact

The contract data indicates that small business set-aside was not utilized (ss: false, sb: false). Given the specialized nature of the R&D, there may be limited opportunities for small business subcontracting unless Psionic, Inc. actively seeks them out. The primary focus is on the prime contractor's capabilities, and the impact on the broader small business ecosystem will depend on Psionic's subcontracting strategy.

Oversight & Accountability

Oversight will likely be managed by NASA's contracting officers and program managers responsible for Class A missions. Accountability measures are embedded in the firm fixed-price contract terms and performance milestones. Transparency is facilitated through contract databases, though detailed technical progress reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • SBIR Program
  • NASA Research and Development Contracts
  • Aerospace Component Development
  • Class A Mission Support

Risk Flags

  • Limited competition may impact price discovery.
  • Contractor performance history on similar projects needs verification.
  • Specifics of 'PSNDL COMPONENT QUALIFICATION' are not publicly detailed.
  • Justification for 'exclusion of sources' requires scrutiny.

Tags

research-and-development, nasa, aerospace, definitive-contract, firm-fixed-price, limited-competition, virginia, fy25, sbir-phase-ii, mission-critical-components

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $4.0 million to PSIONIC, INC.. FY25 SBIR PHASE II SEQUENTIAL - PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS

Who is the contractor on this award?

The obligated recipient is PSIONIC, 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 $4.0 million.

What is the period of performance?

Start: 2025-08-22. End: 2027-08-21.

What is the specific nature of the 'PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS' and why was it deemed necessary?

The 'PSNDL COMPONENT QUALIFICATION FOR CLASS A MISSIONS' refers to a critical research and development effort aimed at ensuring the reliability, performance, and safety of a specific component intended for use in NASA's Class A missions. Class A missions are typically high-priority, high-cost endeavors with significant scientific or national security objectives, demanding the highest levels of assurance for all systems and components. The qualification process likely involves rigorous testing, analysis, and validation to meet stringent performance standards and mitigate risks associated with mission failure. The specific 'PSNDL' designation likely refers to a proprietary or internal NASA project name or a specific type of component critical to the mission's success, such as a propulsion system, guidance unit, or life support element. This R&D is crucial to de-risk the mission and ensure its objectives can be met.

How does Psionic, Inc.'s track record compare to other potential contractors for this type of specialized R&D?

Assessing Psionic, Inc.'s track record requires a detailed review of their past performance on similar government contracts, particularly those involving aerospace R&D and component qualification. Information on their success rates, adherence to schedule and budget, and the quality of their deliverables on previous projects would be crucial. Without access to proprietary performance evaluations or a comprehensive database of contractor histories, a direct comparison is difficult. However, the fact that they were awarded this contract, even under limited competition, suggests they possess the necessary technical expertise and capabilities. Further investigation into their portfolio, including any prior SBIR Phase II awards or NASA-specific R&D projects, would provide a clearer picture of their suitability and competitive standing.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Key performance indicators (KPIs) for this contract would likely revolve around the successful qualification of the specified component according to NASA's defined standards for Class A missions. This would include meeting technical performance benchmarks, completing all required testing phases within the allocated timeframe, and delivering comprehensive documentation of the qualification process and results. Success will be measured by NASA's acceptance of the qualification data and the component's readiness for integration into the mission. Specific metrics might include test success rates, adherence to design specifications, reliability metrics demonstrated during testing, and the completeness and clarity of the final technical reports. The firm fixed-price nature of the contract also implies that staying within the awarded budget is a critical measure of success.

What is the historical spending pattern for similar R&D efforts related to Class A missions at NASA?

Historical spending patterns for similar R&D efforts related to Class A missions at NASA typically show significant and sustained investment. Class A missions, being high-priority and high-risk, necessitate substantial funding for component development, testing, and qualification to ensure mission success. Spending in this area can range from hundreds of thousands to tens of millions of dollars per contract, depending on the complexity and criticality of the components involved. Agencies often utilize programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) to fund early-stage R&D, followed by larger, more targeted contracts for advanced development and qualification. Analyzing NASA's budget allocations for mission assurance, systems engineering, and specific mission directorates would reveal trends in R&D spending for critical components over fiscal years. This $3.99 million award aligns with the typical investment scale for such specialized R&D.

What are the potential risks associated with the 'exclusion of sources' in the competition process?

The 'exclusion of sources' in a competitive bidding process, even if justified, carries potential risks. Primarily, it can limit the diversity of solutions and innovations considered, as potentially capable contractors are prevented from participating. This reduction in competition can lead to less competitive pricing, meaning taxpayers might pay more than necessary. Furthermore, if the exclusion was perceived as arbitrary or unfair, it could lead to protests or legal challenges, causing delays and increasing administrative costs. It also raises questions about the transparency and fairness of the procurement process. While there might be valid technical or programmatic reasons for excluding certain sources (e.g., security concerns, specific proprietary technology), these reasons must be clearly documented and justifiable to ensure the integrity of the procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral 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: 1100 EXPLORATION WAY STE 209, HAMPTON, VA, 23666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,997,571

Exercised Options: $3,997,571

Current Obligation: $3,997,571

Actual Outlays: $746,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2025-08-22

Current End Date: 2027-08-21

Potential End Date: 2027-08-21 00:00:00

Last Modified: 2026-01-14

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