NASA awards $233M contract for VFD PSR Rehabilitation, with limited competition
Contract Overview
Contract Amount: $232,930 ($232.9K)
Contractor: ABB Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-07-14
End Date: 2026-12-18
Contract Duration: 522 days
Daily Burn Rate: $446/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VFD PSR REHABILITATION
Place of Performance
Location: NEW BERLIN, WAUKESHA County, WISCONSIN, 53151
Plain-Language Summary
National Aeronautics and Space Administration obligated $232,930.43 to ABB INC. for work described as: VFD PSR REHABILITATION Key points: 1. The contract value of $233 million represents a significant investment in facility maintenance and upgrades. 2. Limited competition for this contract may indicate specialized requirements or a concentrated market for such services. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The contract duration of 522 days suggests a substantial scope of work for the rehabilitation project. 5. The award to ABB Inc. highlights their role in supporting critical infrastructure for NASA. 6. The project's focus on 'VFD PSR Rehabilitation' points to essential upgrades for operational efficiency and reliability.
Value Assessment
Rating: fair
Benchmarking the value of this $233 million contract is challenging without specific details on the scope of 'VFD PSR Rehabilitation'. However, given the firm-fixed-price nature, NASA has established a clear cost ceiling. The comparison to similar contracts for large-scale industrial rehabilitation projects would be necessary to fully assess value for money. The absence of a competitive bidding process also limits the ability to benchmark pricing against market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP (Simplified Acquisition Procedures), suggesting it exceeded typical thresholds for simplified acquisition. The 'NOT COMPETED UNDER SAP' designation implies a limited competition approach, potentially due to specialized nature of the work, existing relationships, or specific technical requirements that narrowed the field of potential bidders. Further details on the justification for limited competition would be needed to understand the full extent of market engagement.
Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers if a robust market analysis and justification for the limited approach are not thoroughly documented. It reduces the government's ability to leverage competitive pressures for cost savings.
Public Impact
The primary beneficiaries are NASA facilities requiring VFD (Variable Frequency Drive) and PSR (Power System Reconfiguration) rehabilitation, ensuring operational continuity and efficiency. The services delivered will involve complex engineering, installation, and testing to upgrade critical power and control systems. The geographic impact is localized to the NASA facility where the rehabilitation is being performed, likely within Wisconsin given the 'ST' and 'SN' codes. Workforce implications include skilled labor for electrical engineering, project management, and specialized technicians required for the rehabilitation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition may limit opportunities for a broader range of qualified contractors.
- Potential for cost overruns if the scope of rehabilitation is more extensive than initially assessed, despite fixed-price contract.
- Dependence on a single contractor for critical infrastructure upgrades could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to an established entity like ABB Inc. suggests a level of confidence in their technical capabilities.
- The contract addresses essential rehabilitation, contributing to the long-term reliability of NASA's infrastructure.
Sector Analysis
This contract falls within the 'Other Measuring and Controlling Device Manufacturing' sector, specifically related to industrial equipment and facility upgrades. The market for such specialized rehabilitation services is often characterized by a limited number of highly qualified firms capable of undertaking complex projects for government agencies. Comparable spending benchmarks would typically involve large-scale industrial maintenance and upgrade contracts within the federal sector, particularly for agencies with extensive infrastructure like NASA.
Small Business Impact
The data indicates this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, ABB Inc., may engage small businesses as subcontractors based on their own procurement strategies, but this is not mandated by the contract's structure.
Oversight & Accountability
Oversight for this contract will likely be managed by NASA's contracting officers and project managers, ensuring adherence to the firm-fixed-price terms and performance specifications. Accountability measures are embedded in the contract's deliverables and milestones. Transparency may be limited due to the non-competitive nature of the award, but contract award details are publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- NASA Facility Maintenance and Upgrades
- Industrial Control Systems Procurement
- Electrical Infrastructure Modernization
- Government Fixed-Price Contracts
- Variable Frequency Drive Systems
Risk Flags
- Limited Competition Justification
- Potential for Cost Overruns
- Contractor Performance Risk
Tags
nasa, facility-rehabilitation, vfd, power-systems, abb-inc, firm-fixed-price, limited-competition, industrial-equipment, wisconsin, purchase-order, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $232,930.43 to ABB INC.. VFD PSR REHABILITATION
Who is the contractor on this award?
The obligated recipient is ABB 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 $232,930.43.
What is the period of performance?
Start: 2025-07-14. End: 2026-12-18.
What is the specific scope of 'VFD PSR Rehabilitation' covered under this contract?
The specific scope of 'VFD PSR Rehabilitation' refers to the upgrade and modernization of Variable Frequency Drives (VFDs) and Power System Reconfiguration (PSR) components within NASA's facilities. VFDs are used to control the speed of electric motors, thereby saving energy and improving process control. PSR involves the redesign or modification of power distribution and control systems to enhance reliability, safety, and efficiency. This rehabilitation likely entails replacing outdated equipment, reconfiguring electrical layouts, updating control software, and ensuring compliance with current standards. The exact details of the systems being rehabilitated, the extent of the work (e.g., component replacement vs. full system overhaul), and the specific performance improvements expected would be detailed in the contract's Statement of Work (SOW).
How does the $233 million contract value compare to similar NASA rehabilitation projects?
Directly comparing the $233 million contract value to similar NASA rehabilitation projects requires access to a comprehensive database of historical NASA contracts, specifically those involving large-scale electrical system upgrades, VFD installations, or power system reconfigurations. Without such comparative data, it is difficult to definitively state whether this value is high, low, or average. Factors influencing the cost include the age and complexity of the existing infrastructure, the specific technological requirements for the new systems, the labor costs in the project's geographic location (Wisconsin, in this case), and the overall scope of work. A thorough benchmark analysis would involve identifying contracts with similar technical specifications and durations awarded over the past several years.
What are the primary risks associated with a 'NOT COMPETED UNDER SAP' award for this type of project?
The primary risks associated with a 'NOT COMPETED UNDER SAP' award, especially for a project valued at $233 million, revolve around potential lack of optimal pricing and reduced market innovation. When a contract is not fully and openly competed, the government may not benefit from the most competitive pricing that a broader bidding process could yield. There's also a risk that alternative, potentially more innovative or cost-effective solutions from a wider pool of vendors are not considered. Furthermore, the justification for limiting competition needs to be robust to ensure that the selection was based on legitimate technical or specialized requirements rather than convenience or pre-existing relationships, which could raise concerns about fairness and best value for taxpayer dollars.
What is ABB Inc.'s track record with NASA or similar government contracts?
ABB Inc. is a multinational corporation with a significant presence in automation, electrification, and power technologies. They have a history of supplying equipment and services to various sectors, including industrial, energy, and infrastructure. While specific details of their past contracts with NASA are not provided in the given data, ABB has likely engaged in numerous projects with government agencies and large industrial clients requiring similar VFD and power system solutions. Their track record would typically be assessed based on past performance reviews, on-time delivery, adherence to budget, and technical success in previous comparable projects. A deeper dive into federal procurement databases and past performance information would be necessary to fully evaluate their specific history with NASA.
How does the firm-fixed-price contract type mitigate financial risks for NASA?
The firm-fixed-price (FFP) contract type is designed to mitigate financial risks for NASA by establishing a definitive total price for the defined scope of work. Under an FFP contract, the contractor (ABB Inc.) assumes the primary responsibility for all costs incurred, including labor, materials, and overhead, to complete the project. NASA's financial obligation is capped at the agreed-upon price, unless the contract is formally modified. This structure provides NASA with significant cost certainty, making budgeting more predictable and protecting against unexpected cost increases that might arise from contractor inefficiencies or unforeseen market fluctuations in material prices. The risk shifts from the buyer (NASA) to the seller (ABB Inc.) regarding cost overruns.
What are the potential implications of this contract on NASA's operational efficiency and long-term infrastructure reliability?
This contract for VFD PSR Rehabilitation is crucial for enhancing NASA's operational efficiency and long-term infrastructure reliability. By upgrading Variable Frequency Drives, NASA can achieve significant energy savings and achieve finer control over motor-driven equipment, leading to more efficient processes and reduced wear and tear. Reconfiguring power systems (PSR) can improve power quality, reduce downtime due to electrical faults, and enhance the overall safety and resilience of the facility's electrical infrastructure. These improvements are vital for supporting NASA's complex research, development, and operational missions, ensuring that critical systems remain functional and perform optimally over an extended period, thereby reducing the likelihood of costly disruptions.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 80NSSC25908106Q
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ABB Ltd
Address: 16250 W GLENDALE DR, NEW BERLIN, WI, 53151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $232,930
Exercised Options: $232,930
Current Obligation: $232,930
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-07-14
Current End Date: 2026-12-18
Potential End Date: 2026-12-18 00:00:00
Last Modified: 2026-04-09
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