NASA's $12.4M RLV Propulsion Risk Reduction contract with Aerojet Rocketdyne Inc. for space research

Contract Overview

Contract Amount: $12,400,783 ($12.4M)

Contractor: Aerojet Rocketdyne Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2001-05-21

End Date: 2009-09-26

Contract Duration: 3,050 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 51

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: TECHONOLOGY AREA 8 (TAB) PROPULSION RISK REDUCTION SECOND GENERATION REUSABLE LAUNCH VEHICLE (RLV)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35812

State: Alabama Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $12.4 million to AEROJET ROCKETDYNE INC for work described as: TECHONOLOGY AREA 8 (TAB) PROPULSION RISK REDUCTION SECOND GENERATION REUSABLE LAUNCH VEHICLE (RLV) Key points: 1. Contract focused on reducing risks for reusable launch vehicle propulsion systems. 2. Aerojet Rocketdyne Inc. was the sole awardee under full and open competition. 3. The contract spanned over 8 years, indicating a long-term research and development effort. 4. Cost-plus incentive fee structure suggests performance-based incentives for the contractor. 5. The contract was awarded by NASA's Space Launch System program office. 6. This initiative aligns with NASA's broader goals for advanced space exploration and technology.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its specialized nature in RLV propulsion risk reduction and its historical context (2001-2009). The cost-plus incentive fee (CPIF) structure aims to balance cost control with performance, but actual value depends heavily on the achieved risk reduction milestones. Without detailed performance data and comparable contracts for similar R&D efforts, a definitive value assessment is difficult. The duration of the contract suggests a significant investment in technology 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 bidders were likely solicited. However, the fact that only one award was made suggests that Aerojet Rocketdyne Inc. was the most qualified or competitive bidder for this specific, highly specialized RLV propulsion risk reduction effort. The level of competition for such niche R&D can be limited by the availability of specialized expertise.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the best value is obtained. However, for highly specialized R&D, the number of capable bidders may be inherently limited.

Public Impact

Benefits NASA's Space Launch System program by advancing critical propulsion technologies. Enhances the safety and reliability of future reusable launch vehicles. Contributes to the development of advanced aerospace engineering capabilities within the US. Supports the growth of specialized aerospace manufacturing and research sectors. Potential long-term impact on reducing the cost of space access through reusable technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long contract duration (8 years) could lead to cost overruns if not managed tightly.
  • CPIF contracts can sometimes incentivize contractors to incur higher costs if incentives are not perfectly aligned with overall program goals.
  • Specialized nature of the technology may limit the pool of potential competitors for future related contracts.

Positive Signals

  • Focus on risk reduction directly addresses critical aspects of launch vehicle development.
  • Full and open competition, even with a single award, suggests an attempt to find the best solution.
  • The contract's completion within the specified timeframe (though long) indicates progress in a complex field.

Sector Analysis

This contract falls within the Aerospace and Defense sector, specifically focusing on space launch vehicle technology. The market for RLV propulsion is highly specialized, dominated by a few key players with extensive R&D capabilities. NASA's spending in this area is crucial for maintaining technological leadership and enabling future space missions. Comparable spending benchmarks are difficult to establish due to the unique nature of risk reduction efforts, but investments in propulsion systems are typically substantial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the highly specialized nature of reusable launch vehicle propulsion risk reduction, it is unlikely that small businesses would be the primary contractors for such a complex R&D effort. Subcontracting opportunities for small businesses may exist in specific component manufacturing or support services, but the prime contract is with a large aerospace firm.

Oversight & Accountability

Oversight for this contract would have been managed by NASA's contracting officers and program managers. As a cost-plus incentive fee contract, performance metrics and milestones would be closely monitored to ensure the achievement of risk reduction goals and control costs. Transparency would be facilitated through regular reporting requirements from the contractor. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

  • Space Launch System (SLS)
  • Advanced Propulsion Systems Research
  • Reusable Launch Vehicle Development Programs
  • NASA Research and Development Contracts

Risk Flags

  • Long-term R&D contract duration
  • Specialized technology area
  • Sole awardee under full and open competition

Tags

nasa, aerojet-rocketdyne-inc, space-research-and-technology, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, reusable-launch-vehicle, propulsion-systems, risk-reduction, alabama, 2001-2009

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $12.4 million to AEROJET ROCKETDYNE INC. TECHONOLOGY AREA 8 (TAB) PROPULSION RISK REDUCTION SECOND GENERATION REUSABLE LAUNCH VEHICLE (RLV)

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 $12.4 million.

What is the period of performance?

Start: 2001-05-21. End: 2009-09-26.

What specific propulsion technologies were targeted for risk reduction under this contract?

The contract, 'TECHNOLOGY AREA 8 (TAB) PROPULSION RISK REDUCTION SECOND GENERATION REUSABLE LAUNCH VEHICLE (RLV)', focused on mitigating risks associated with advanced propulsion systems for future reusable launch vehicles. While the provided data does not detail the specific technologies, such efforts typically involve areas like engine reliability, thermal management, fuel efficiency, materials science for high-stress environments, and advanced manufacturing techniques for complex engine components. The goal was to mature these technologies to a point where their integration into operational RLVs would be less risky and more predictable, thereby reducing the likelihood of mission failure or significant cost overruns during later development phases.

How did the cost-plus incentive fee (CPIF) structure influence Aerojet Rocketdyne's performance?

The Cost-Plus Incentive Fee (CPIF) structure is designed to incentivize the contractor to perform efficiently by sharing in cost savings or cost overruns. In this contract, Aerojet Rocketdyne Inc. would have had a target cost, a target profit, and a fee-sharing formula. If the final cost was below the target, both NASA and Aerojet would share in the savings, with Aerojet receiving a higher profit. Conversely, if costs exceeded the target, Aerojet's profit would be reduced, and potentially they could incur a loss if costs went significantly over. This structure encourages the contractor to manage costs effectively while meeting performance objectives related to risk reduction, aiming to achieve a balance between cost control and technological advancement.

What was the significance of the contract's duration (2001-2009) for RLV development?

The contract's extensive duration of approximately 8 years (from May 2001 to September 2009) highlights the complex and long-term nature of developing advanced propulsion systems for reusable launch vehicles (RLVs). Such R&D efforts require significant time for research, design, prototyping, testing, and iterative refinement. A multi-year timeline allows for thorough investigation of technical challenges, exploration of innovative solutions, and rigorous validation of performance and reliability. This extended period suggests that the contract was focused on fundamental technology maturation rather than the assembly of a near-ready system, aiming to lay a robust foundation for subsequent RLV programs.

Were there any performance issues or cost overruns reported during the contract's lifecycle?

The provided data does not contain specific details regarding performance issues or cost overruns for this particular contract. However, the nature of Cost-Plus Incentive Fee (CPIF) contracts means that cost performance is inherently monitored and shared. Without access to NASA's internal contract performance reports, audit findings, or program reviews from that era, it is impossible to definitively state whether the contract experienced significant deviations from its planned costs or performance targets. The long duration and R&D focus suggest that some level of adjustment and re-evaluation of targets may have occurred.

How does this contract compare to other NASA investments in propulsion technology?

This contract represents a specific investment in risk reduction for second-generation RLV propulsion, distinct from broader engine development or procurement contracts. NASA invests heavily in propulsion across various programs, including the Space Launch System (SLS), Commercial Crew/Cargo, and advanced concepts. This $12.4 million contract, while significant for its focused R&D scope, is likely a component within a larger portfolio of propulsion-related spending. Its value lies in its targeted approach to mitigating risks for future reusable systems, potentially enabling more cost-effective and reliable space access in the long run, compared to contracts focused solely on building or testing existing engine designs.

Industry Classification

NAICS: Public AdministrationSpace Research and TechnologySpace Research and Technology

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 51

Pricing Type: COST PLUS INCENTIVE FEE (V)

Contractor Details

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

Address: HWY 50 & AEROJET ROAD, RANCHO CORDOVA, CA, 95742

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,421,850

Exercised Options: $12,421,850

Current Obligation: $12,400,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2001-05-21

Current End Date: 2009-09-26

Potential End Date: 2009-09-26 00:00:00

Last Modified: 2021-03-02

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