NASA awards $997K to Aerojet Rocketdyne for propulsion tech development over 7 years

Contract Overview

Contract Amount: $9,971,626 ($10.0M)

Contractor: Aerojet Rocketdyne, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2002-11-06

End Date: 2009-12-14

Contract Duration: 2,595 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MULTIPLE PR#'S FOR THIS ACTION 4200000791 & 4200000899 DEVELOPMENT OF TECH ELEMENTS OF NASA

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $10.0 million to AEROJET ROCKETDYNE, INC. for work described as: MULTIPLE PR#'S FOR THIS ACTION 4200000791 & 4200000899 DEVELOPMENT OF TECH ELEMENTS OF NASA Key points: 1. Contract value represents a modest investment in critical space technology. 2. Aerojet Rocketdyne is a key player in the aerospace propulsion market. 3. Long contract duration suggests a need for sustained development and testing. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 5. Focus on propulsion units indicates a strategic investment in space exploration capabilities.

Value Assessment

Rating: fair

The total award of $997,162 over nearly seven years averages to approximately $142,451 annually. This figure appears modest for the development of advanced propulsion technology, suggesting either a focused scope or that this award represents a portion of a larger program. Benchmarking against similar R&D contracts in aerospace propulsion is difficult without more detailed scope information, but the per-year investment seems low for cutting-edge development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple companies had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach is generally favorable for price discovery and ensuring the government receives competitive offers. The use of full and open competition suggests that NASA sought the best available technology and pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value and potentially lower prices through market forces.

Public Impact

Benefits NASA's space exploration and defense initiatives by advancing propulsion technology. Services delivered include the development of critical technological elements for space vehicles. Geographic impact is primarily within the aerospace industry, with potential for broader technological spin-offs. Workforce implications include specialized engineering and technical roles within Aerojet Rocketdyne and potentially NASA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
  • The long duration of the contract requires sustained oversight to ensure progress and prevent scope creep.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive process.
  • Aerojet Rocketdyne is an established entity in the aerospace propulsion sector.
  • The contract focuses on a critical technology area for space exploration.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing sector. This is a highly specialized area within the broader aerospace industry, characterized by significant R&D investment, long development cycles, and stringent performance requirements. The market is dominated by a few key players, including Aerojet Rocketdyne, due to the high barriers to entry and specialized expertise required.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a sole-source or prime contract with a large, established aerospace firm, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of these opportunities would depend on Aerojet Rocketdyne's subcontracting plan and the specific technological components required.

Oversight & Accountability

Oversight for this cost-plus-fixed-fee contract would typically involve NASA's contracting officers and technical representatives monitoring progress, costs, and adherence to the fixed fee. Accountability measures are built into the contract's milestones and deliverables. Transparency is generally maintained through contract award databases, though detailed project progress reports may be considered sensitive.

Related Government Programs

  • NASA Research and Development Contracts
  • Aerospace Propulsion Systems
  • Guided Missile Manufacturing
  • Space Vehicle Components

Risk Flags

  • Cost Overrun Potential
  • Scope Creep Risk
  • Long-Term Project Management

Tags

nasa, aerojet-rocketdyne, aerospace, propulsion-systems, research-and-development, cost-plus-fixed-fee, full-and-open-competition, guided-missile-manufacturing, space-vehicle-manufacturing, washington, defense-contracting

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $10.0 million to AEROJET ROCKETDYNE, INC.. MULTIPLE PR#'S FOR THIS ACTION 4200000791 & 4200000899 DEVELOPMENT OF TECH ELEMENTS OF NASA

Who is the contractor on this award?

The obligated recipient is AEROJET ROCKETDYNE, 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 $10.0 million.

What is the period of performance?

Start: 2002-11-06. End: 2009-12-14.

What is Aerojet Rocketdyne's track record with NASA on similar propulsion development contracts?

Aerojet Rocketdyne has a long and extensive history of working with NASA and the Department of Defense on various propulsion systems, including solid rocket motors, liquid rocket engines, and related technologies. Their track record includes contributions to major space programs like the Space Shuttle, Mars missions, and various satellite deployments. While specific performance metrics for past contracts are not detailed here, their continued selection for critical propulsion work suggests a generally positive performance history and established expertise. However, like many large defense contractors, they have also faced scrutiny and contract disputes on occasion, underscoring the need for diligent oversight on all awards.

How does the $997,162 award compare to typical R&D spending for advanced propulsion systems?

The total award of $997,162 over nearly seven years, averaging around $142,451 annually, appears modest for the development of advanced propulsion systems. Major propulsion development programs, especially those involving new technologies or significant upgrades, often involve hundreds of millions or even billions of dollars. This award might represent a specific, focused research effort, a component of a larger program, or early-stage feasibility studies. Without more context on the specific technological elements being developed, it's challenging to make a definitive comparison, but it is significantly lower than typical large-scale engine development contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technology development?

The primary risks with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' aspect means the government bears the risk of actual costs incurred. If costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient management by the contractor, the government pays more. The contractor's incentive is to complete the work within the estimated cost to maximize their fee, but there's less inherent pressure to minimize costs compared to fixed-price contracts. Diligent government oversight is crucial to manage these risks effectively.

What is the strategic importance of developing new guided missile and space vehicle propulsion units for NASA?

The development of advanced propulsion units is strategically vital for NASA's core missions. Enhanced propulsion capabilities enable deeper space exploration, faster transit times to celestial bodies, and the ability to carry heavier payloads. For guided missiles, advancements in propulsion directly impact range, speed, maneuverability, and payload capacity, which are critical for national security. Investing in this area ensures the U.S. maintains a technological edge in both space exploration and defense, supporting scientific discovery, economic opportunities, and global security.

How has NASA's spending on propulsion technology development evolved over the past decade?

NASA's spending on propulsion technology development has fluctuated over the past decade, influenced by shifting program priorities, budget allocations, and technological advancements. Significant investments have been directed towards programs like the Space Launch System (SLS) and commercial crew/cargo initiatives, which inherently require advanced propulsion. There's also a continuous push for more efficient, sustainable, and powerful propulsion systems for deep space missions, including research into electric propulsion, nuclear thermal propulsion, and advanced chemical rockets. While specific aggregate figures require detailed analysis of NASA's budget justifications, the trend generally shows sustained, albeit variable, investment in this critical area.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)

Address: 11411 139TH PL NE, REDMOND, WA, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,971,626

Exercised Options: $9,971,626

Current Obligation: $9,971,626

Timeline

Start Date: 2002-11-06

Current End Date: 2009-12-14

Potential End Date: 2009-12-14 00:00:00

Last Modified: 2009-12-16

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