NASA's $14M contract with AEGIS AEROSPACE INC for unspecified services shows a high cost per unit
Contract Overview
Contract Amount: $14,034,580 ($14.0M)
Contractor: Aegis Aerospace Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-10-15
End Date: 2003-09-30
Contract Duration: 1,446 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Defense
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $14.0 million to AEGIS AEROSPACE INC for work described as: Key points: 1. The contract's value of $14 million over its period of performance suggests a significant investment. 2. Competition dynamics for this contract were limited, potentially impacting price discovery. 3. The duration of the contract and its cost warrant scrutiny for value for money. 4. Performance context is unclear due to the lack of specific service details. 5. Sector positioning within aerospace and defense requires further analysis of AEGIS AEROSPACE INC's role.
Value Assessment
Rating: questionable
The total award amount of $14,034,579.66 for this contract appears high given the lack of specific deliverables outlined. Benchmarking against similar contracts for aerospace support services is difficult without more detail on the scope of work. However, the contract's duration of 1446 days (approximately 4 years) suggests a substantial, ongoing need. The cost per day is approximately $9,706, which seems elevated for general support services.
Cost Per Unit: $9,706 per day
Competition Analysis
Competition Level: limited
The contract was awarded under the 'NOT AVAILABLE FOR COMPETITION' (NAF) category, indicating a limited competition approach. This suggests that only one source was considered or available for this specific requirement. The lack of broader competition limits the government's ability to solicit multiple bids and potentially secure more favorable pricing.
Taxpayer Impact: Limited competition typically results in higher costs for taxpayers as it reduces the incentive for contractors to offer their most competitive pricing.
Public Impact
The primary beneficiary of this contract is AEGIS AEROSPACE INC, which receives significant funding. The services delivered are not specified, making it difficult to determine the direct public benefit. The geographic impact is likely concentrated in Texas, where the contractor is located. Workforce implications may include job creation or retention within AEGIS AEROSPACE INC and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency regarding the specific services procured.
- Potential for inflated costs due to limited competition.
- Unclear performance metrics and oversight mechanisms.
Positive Signals
- Long-standing contract awarded in 1999 suggests a sustained relationship and potentially satisfactory performance over time.
- Contract awarded by NASA indicates a focus on critical aerospace-related activities.
Sector Analysis
This contract falls within the aerospace and defense sector, a significant area of federal spending. The market is characterized by high barriers to entry, specialized expertise, and substantial government investment. Comparable spending benchmarks are difficult to establish without knowing the specific services, but NASA's overall budget for research, development, and operations is in the tens of billions annually, with a substantial portion allocated to contractor support.
Small Business Impact
There is no indication that this contract involved small business set-asides. The nature of the services and the contractor's size suggest it is likely a large business. Subcontracting opportunities for small businesses are not detailed in the provided data, but typically large prime contractors are encouraged to utilize small businesses in their supply chains.
Oversight & Accountability
Oversight mechanisms for this contract are not detailed in the provided data. However, NASA generally employs program managers, contracting officers, and potentially Inspector General oversight for its contracts. Transparency is limited by the lack of specific service descriptions. Accountability would be tied to performance metrics, which are not specified here.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Space Exploration Support
- Defense Contractor Services
Risk Flags
- Limited competition raises concerns about potential overpricing.
- Lack of specific service details hinders performance and value assessment.
- High daily cost warrants further investigation into cost-effectiveness.
Tags
nasa, aerospace, defense, support-services, labor-hours, limited-competition, not-available-for-competition, large-contract, texas, 1999-contract, aegis-aerospace-inc
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $14.0 million to AEGIS AEROSPACE INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is AEGIS AEROSPACE 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 $14.0 million.
What is the period of performance?
Start: 1999-10-15. End: 2003-09-30.
What specific services did AEGIS AEROSPACE INC provide under this NASA contract?
The provided data does not specify the exact services rendered by AEGIS AEROSPACE INC under this National Aeronautics and Space Administration (NASA) contract. The contract type is listed as 'NOT AVAILABLE FOR COMPETITION,' and the Product Service Code (PSC) is blank, offering no clues. Without this crucial information, it is impossible to assess the value, necessity, or impact of the services. This lack of transparency is a significant concern for federal spending analysis, as it prevents a thorough evaluation of whether taxpayer funds were used effectively and for intended purposes. Further investigation into NASA's contract databases or public records would be required to uncover the specific scope of work.
How does the daily cost of this contract compare to industry benchmarks for similar aerospace support services?
The daily cost for this contract, calculated at approximately $9,706 ($14,034,579.66 / 1446 days), appears high when compared to general industry benchmarks for many types of aerospace support services. However, without knowing the specific nature of the services provided by AEGIS AEROSPACE INC, a precise comparison is challenging. If the services involved highly specialized engineering, advanced research, or critical mission support requiring unique expertise or security clearances, the daily rate might be justifiable. Conversely, for more routine support functions, this rate could indicate a lack of competitive pricing or an inefficient use of funds. A more accurate benchmark would require detailed information on the contract's scope and the prevailing market rates for those specific services.
What are the potential risks associated with a 'NOT AVAILABLE FOR COMPETITION' contract award?
Awarding contracts under a 'NOT AVAILABLE FOR COMPETITION' (NAF) status carries several inherent risks for the government and taxpayers. Primarily, it significantly limits or eliminates competitive bidding, which is a cornerstone of ensuring fair pricing and optimal value. This lack of competition can lead to higher costs than might be achieved through an open bidding process. It also reduces transparency and can create perceptions of favoritism or a lack of due diligence in seeking the best possible offer. Furthermore, it may stifle innovation from other potential vendors who are excluded from the opportunity. Agencies must have robust justification for using NAF, typically involving unique capabilities, urgent needs, or specific national security requirements, to mitigate these risks.
What is the track record of AEGIS AEROSPACE INC with federal contracts, particularly with NASA?
The provided data indicates that AEGIS AEROSPACE INC was awarded this specific contract by the National Aeronautics and Space Administration (NASA) starting in October 1999 and ending in September 2003. This suggests a prior working relationship with NASA. However, the data does not offer details on the performance history, quality of work, or any past issues or commendations related to this or other contracts held by AEGIS AEROSPACE INC. A comprehensive assessment of their track record would require examining their complete federal contract history across all agencies, including contract performance reports (CPARs), any disputes or claims filed, and their overall reputation within the aerospace industry.
How has NASA's spending on aerospace support services evolved over time, and where does this contract fit in?
NASA's spending on aerospace support services has generally trended upwards over the decades, reflecting the increasing complexity and scope of space exploration and research missions. This contract, awarded in 1999, represents a portion of NASA's spending during that period. Without knowing the specific services, it's difficult to place it precisely within the broader spending landscape. However, NASA consistently allocates significant portions of its budget to contractors for services ranging from engineering and research to mission operations and facility management. Analyzing historical spending patterns would involve comparing the total value and nature of this contract against NASA's overall budget and its specific allocations for similar service categories in the late 1990s and early 2000s.
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Contractor Details
Address: 16903 BUCCANEER LN, HOUSTON, TX, 90
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,131,346
Exercised Options: $16,131,346
Current Obligation: $14,034,580
Timeline
Start Date: 1999-10-15
Current End Date: 2003-09-30
Potential End Date: 2003-09-30 00:00:00
Last Modified: 2014-10-29
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