NASA awards $2M sole-source contract for source intelligence renewal, raising value-for-money questions
Contract Overview
Contract Amount: $19,965 ($20.0K)
Contractor: Source 44 LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2026-06-26
End Date: 2027-06-25
Contract Duration: 364 days
Daily Burn Rate: $55/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 SOURCE INTELLIGENCE RENEWAL
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92122
Plain-Language Summary
National Aeronautics and Space Administration obligated $19,965 to SOURCE 44 LLC for work described as: FY26 SOURCE INTELLIGENCE RENEWAL Key points: 1. Contract awarded on a sole-source basis, limiting price competition and potentially increasing costs. 2. The contract is a renewal, suggesting a continued need for these specific intelligence services. 3. Fixed-price contract type offers some cost certainty but may not fully capture efficiency gains. 4. The duration of one year (364 days) is standard for this type of service renewal. 5. Awarded to SOURCE 44 LLC, indicating a specific capability or existing relationship. 6. Geographic location in California may have implications for local economic impact and labor costs.
Value Assessment
Rating: questionable
Given the sole-source nature of this award, a direct comparison to similar contracts is challenging. However, the $1.99 million price tag for a one-year intelligence renewal warrants scrutiny. Without competitive bidding, it's difficult to ascertain if this represents a fair market price or if potential cost savings were forgone. The fixed-price structure provides some predictability, but the absence of competition raises concerns about whether NASA is achieving optimal value for its investment in source intelligence.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating it was awarded directly to SOURCE 44 LLC without soliciting bids from other vendors. This approach is typically used when a specific vendor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition means there was no opportunity for multiple firms to bid, which could lead to higher prices than if the contract had been open to a wider pool of bidders.
Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without bids from other companies, it's harder to ensure the government is getting the best possible price for the intelligence provided.
Public Impact
The primary beneficiary is NASA, which will receive continued access to critical source intelligence. These services are essential for NASA's operational planning, risk assessment, and strategic decision-making. The contract supports specialized intelligence analysis, contributing to national security and space exploration objectives. While specific geographic impact is not detailed, the services likely support national-level intelligence needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Lack of transparency in the procurement process due to non-competitive award.
- Potential for vendor lock-in if SOURCE 44 LLC is the only provider of this specific intelligence.
Positive Signals
- Contract renewal suggests satisfaction with the current provider's performance.
- Fixed-price contract offers cost certainty for the duration of the award.
- Specific intelligence services are crucial for NASA's mission success.
Sector Analysis
The intelligence services sector is a critical component of national security and government operations, encompassing data collection, analysis, and dissemination. This contract falls within the broader professional, scientific, and technical services industry. While specific market size data for 'source intelligence renewal' is not readily available, the overall government spending on intelligence and related analytical services is substantial, often involving specialized firms with unique technological or analytical capabilities. NASA's reliance on such services underscores their importance in supporting complex governmental missions.
Small Business Impact
This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The award to a single entity, SOURCE 44 LLC, does not appear to involve provisions for engaging smaller businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program managers. As a sole-source award, transparency might be limited compared to competed contracts. Accountability measures would be tied to the performance metrics outlined in the contract terms and conditions. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Intelligence Gathering Services
- National Security Support Contracts
- Technical Consulting Services
- Data Analysis Services
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency
Tags
intelligence-services, nasa, california, purchase-order, firm-fixed-price, sole-source, professional-scientific-technical-services, fy26, renewal, source-intelligence
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $19,965 to SOURCE 44 LLC. FY26 SOURCE INTELLIGENCE RENEWAL
Who is the contractor on this award?
The obligated recipient is SOURCE 44 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 $19,965.
What is the period of performance?
Start: 2026-06-26. End: 2027-06-25.
What is the specific nature of the 'source intelligence' being renewed, and why is it considered sole-source?
The specific nature of the 'source intelligence' is not detailed in the provided data, but it likely pertains to information gathering and analysis critical for NASA's operations, risk management, or strategic planning. The sole-source designation suggests that SOURCE 44 LLC possesses unique capabilities, proprietary data, or a specific methodology that is not readily available from other vendors, or that the urgency of the requirement precluded a full and open competition. This could involve specialized technical expertise, access to unique data feeds, or a long-standing, integrated relationship with NASA's intelligence functions. Without further details on the service's criticality and the market landscape for such specialized intelligence, it is difficult to definitively justify the sole-source award from a value-for-money perspective.
How does the $1.99 million price compare to historical spending on this service or similar intelligence contracts?
Historical spending data for this specific 'source intelligence renewal' is not provided, making a direct comparison impossible. However, the $1.99 million figure for a one-year contract for specialized intelligence services is substantial. To assess value, this amount would need to be benchmarked against similar intelligence contracts awarded by NASA or other federal agencies for comparable services. Factors such as the scope of work, the level of analysis required, the technology involved, and the contractor's overhead and profit margins would influence pricing. The absence of competitive bidding in this sole-source award means that this price was not tested against market alternatives, potentially indicating a higher cost than could have been achieved through competition.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, intelligence service contracts would include metrics related to the accuracy, timeliness, relevance, and actionable nature of the intelligence provided. For a renewal, it's likely that the existing KPIs from the previous contract period are being carried forward, assuming satisfactory performance. NASA's contracting officers would be responsible for monitoring SOURCE 44 LLC's adherence to these performance standards throughout the contract duration. The effectiveness of the intelligence provided would be assessed against its contribution to NASA's mission objectives and decision-making processes.
What is the track record of SOURCE 44 LLC in delivering intelligence services to the federal government?
Information regarding the specific track record of SOURCE 44 LLC in delivering intelligence services to the federal government is not detailed in the provided data. As this is a renewal, it implies that the contractor has successfully performed under a previous contract with NASA. A comprehensive assessment would require reviewing past performance evaluations, any past performance issues or disputes, and the overall history of their contract awards and completions across federal agencies. Given the sole-source nature, it suggests NASA has confidence in their past performance or unique capabilities. Further due diligence would involve examining publicly available contract databases and performance reports, if accessible.
Are there any identified risks associated with this sole-source contract, beyond potential cost overruns?
Beyond the primary risk of potential cost overruns due to lack of competition, other risks associated with this sole-source contract could include vendor lock-in, where NASA becomes overly reliant on SOURCE 44 LLC's unique capabilities, making it difficult to switch providers in the future. There's also a risk of complacency if the contractor faces no competitive pressure to innovate or improve service delivery. Furthermore, if the intelligence provided is critical and the sole-source provider experiences operational disruptions (e.g., financial instability, data breaches), NASA's mission could be significantly impacted. The lack of transparency inherent in sole-source awards can also obscure potential risks related to data security or ethical considerations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4660 LA JOLLA VILLAGE DRIVE, SAN DIEGO, CA, 92122
Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,965
Exercised Options: $19,965
Current Obligation: $19,965
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-06-26
Current End Date: 2027-06-25
Potential End Date: 2027-06-25 00:00:00
Last Modified: 2026-04-08
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