NASA Awards $1.35B Follow-On Contract for CXO Operations and Science Support to Smithsonian Institution

Contract Overview

Contract Amount: $1,346,978,052 ($1.3B)

Contractor: Smithsonian Institution

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-08-31

End Date: 2027-09-30

Contract Duration: 8,796 days

Daily Burn Rate: $153.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FOLLOW ON CONTRACT TO PROVIDE OPERATIONS AND SCIENCE SUPPORT TO THE CXO

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.35 billion to SMITHSONIAN INSTITUTION for work described as: FOLLOW ON CONTRACT TO PROVIDE OPERATIONS AND SCIENCE SUPPORT TO THE CXO Key points: 1. The contract is a follow-on to existing work, suggesting a continued need for these specific services. 2. The sole-source nature raises questions about potential cost efficiencies and innovation that competition might bring. 3. Long contract duration (over 20 years) could lead to cost overruns if not managed effectively. 4. The primary sector is R&D, which often involves complex and evolving requirements.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize contractors to increase costs to maximize profit. Without competitive bidding, it's difficult to assess if the $1.35B price tag represents fair value compared to similar R&D support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the government's ability to secure the best possible price through market forces.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services compared to what could be achieved through a competitive process.

Public Impact

Continued support for critical CXO operations ensures ongoing scientific research and data collection. The long-term nature of the contract provides stability for the performing organization and its employees. Potential for cost inefficiencies due to sole-source award could impact the overall return on investment for taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost-plus contract type can incentivize cost growth.
  • Very long contract duration increases risk of cost overruns and obsolescence.

Positive Signals

  • Ensures continuity of critical operations and science support.
  • Long-term award provides stability for a key research institution.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for scientific advancement, but often requires careful oversight due to the inherent uncertainties and long timelines involved.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. The primary contractor is a large institution, suggesting limited direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight by NASA to ensure the Smithsonian Institution is delivering services efficiently and at a reasonable cost, especially given the Cost Plus Fixed Fee structure and long duration.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Sole-source award limits competition.
  • Cost-plus contract type can lead to cost overruns.
  • Long contract duration increases risk.
  • Lack of small business participation.
  • Potential for contractor inefficiency without competitive pressure.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ma, definitive-contract, billion-dollar

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.35 billion to SMITHSONIAN INSTITUTION. FOLLOW ON CONTRACT TO PROVIDE OPERATIONS AND SCIENCE SUPPORT TO THE CXO

Who is the contractor on this award?

The obligated recipient is SMITHSONIAN INSTITUTION.

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 $1.35 billion.

What is the period of performance?

Start: 2003-08-31. End: 2027-09-30.

What specific justifications were provided for awarding this contract on a sole-source basis, and do they align with federal procurement regulations for such exceptions?

Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of NASA's justification documentation is necessary to determine if the rationale for awarding this contract to the Smithsonian Institution without competition was valid and met the stringent criteria for sole-source procurement.

How will NASA ensure cost control and prevent potential overruns within this Cost Plus Fixed Fee contract, given its sole-source nature and extended duration?

NASA must implement robust cost monitoring and control mechanisms, including regular audits and performance reviews. Establishing clear performance metrics and milestones, along with stringent change order management, will be crucial. Regular communication and negotiation with the contractor to manage scope and cost are essential to mitigate risks associated with the contract type and long-term commitment.

What mechanisms are in place to assess the ongoing effectiveness and scientific value of the operations and science support provided by the Smithsonian Institution under this contract?

NASA should establish clear, measurable performance standards and key performance indicators (KPIs) tied to scientific outcomes and operational efficiency. Regular technical reviews, peer assessments of scientific contributions, and user feedback mechanisms are vital. Periodic evaluations of the contract's alignment with NASA's strategic research goals will ensure continued relevance and value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 60 GARDEN ST, CAMBRIDGE, MA, 02138

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,611,469,193

Exercised Options: $1,406,417,924

Current Obligation: $1,346,978,052

Actual Outlays: $371,593,822

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2003-08-31

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2026-03-13

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