NASA's $32M engineering support contract for space vision systems awarded to Canadian Commercial Corporation

Contract Overview

Contract Amount: $31,969,726 ($32.0M)

Contractor: Canadian Commercial Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2001-08-02

End Date: 2016-11-30

Contract Duration: 5,599 days

Daily Burn Rate: $5.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ENGINEERING SUPPORT SPACE VISION SYSTEM.

Plain-Language Summary

National Aeronautics and Space Administration obligated $32.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: ENGINEERING SUPPORT SPACE VISION SYSTEM. Key points: 1. Contract awarded via non-competitive process, raising questions about potential cost savings. 2. Long contract duration of over 15 years suggests a sustained need for specialized services. 3. The contract type 'Cost No Fee' indicates that the contractor is reimbursed for costs but does not receive a fee, potentially limiting profit motive. 4. The procurement falls under Guided Missile and Space Vehicle Manufacturing, a niche sector. 5. No small business set-aside was applied, indicating a lack of specific provisions for small business participation. 6. The contract's value, while significant, needs to be benchmarked against similar specialized engineering support services.

Value Assessment

Rating: fair

The contract value of approximately $32 million over its 15-year duration averages around $2.1 million annually. Benchmarking this against similar specialized engineering support for complex space systems is challenging due to the unique nature of the services. The 'Cost No Fee' contract type means that the government reimburses the contractor for allowable costs without an additional profit margin, which can be advantageous in terms of overall cost control if costs are managed effectively. However, without a competitive bidding process, it's difficult to definitively assess if the pricing represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one source is capable of meeting the requirement, or in cases of urgency or national security. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This raises concerns about whether the most cost-effective solution was secured.

Taxpayer Impact: A sole-source award means taxpayers may not have received the benefit of competitive pricing, potentially leading to higher costs than if the contract had been open to multiple bidders.

Public Impact

The primary beneficiary is NASA, which receives essential engineering support for its space vision systems. Services delivered likely include design, development, testing, and maintenance of specialized vision systems crucial for space missions. The geographic impact is primarily centered around NASA facilities and potentially contractor locations involved in the program. Workforce implications include the employment of highly skilled engineers and technicians specializing in aerospace and optical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for new or innovative contractors to enter the market.
Long contract duration could reduce flexibility to adapt to evolving technological needs without renegotiation.

Positive Signals

Contract provides specialized engineering support critical for NASA's space vision systems.
The 'Cost No Fee' structure can help control contractor profit margins.
Canadian Commercial Corporation's involvement may reflect international collaboration in space programs.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of the aerospace industry. This sector is characterized by high barriers to entry, significant R&D investment, and stringent quality and performance requirements. Spending in this sector is often driven by government defense and space exploration initiatives. Comparable spending benchmarks are difficult to establish due to the unique nature of space vision systems, but overall government spending on aerospace engineering support is substantial.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. This suggests that the primary contractor, Canadian Commercial Corporation, is expected to perform the majority of the work. The absence of small business set-asides in this specific contract means that opportunities for small businesses to participate in this particular project are limited, potentially impacting the small business ecosystem within this specialized niche.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a sole-source award, there may be heightened scrutiny from NASA's contracting officers and potentially its Office of Inspector General to ensure that costs are reasonable and that the contractor is meeting performance requirements. Transparency is dependent on NASA's reporting practices for sole-source procurements. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

NASA Space Technology Mission Directorate
NASA Science Mission Directorate
Guided Missile Manufacturing
Space Vehicle Manufacturing
Aerospace Engineering Services

Risk Flags

Sole-source award
Long contract duration
Cost-reimbursement type contract ('Cost No Fee')

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $32.0 million to CANADIAN COMMERCIAL CORPORATION. ENGINEERING SUPPORT SPACE VISION SYSTEM.

Who is the contractor on this award?

The obligated recipient is CANADIAN COMMERCIAL CORPORATION.

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 $32.0 million.

What is the period of performance?

Start: 2001-08-02. End: 2016-11-30.

What is the track record of Canadian Commercial Corporation in delivering similar engineering support for space vision systems?

The provided data does not detail the specific track record of Canadian Commercial Corporation (CCC) in delivering engineering support for space vision systems. CCC typically acts as a facilitator for Canadian companies seeking to do business with foreign governments, including the U.S. government. Therefore, the actual engineering work may have been performed by a subcontractor. To assess CCC's track record, further investigation into their past performance on similar contracts, including the performance of any subcontractors involved, would be necessary. This would involve reviewing past performance evaluations, contract close-out reports, and any available public records of their involvement in aerospace engineering projects.

How does the average annual cost of this contract compare to similar specialized engineering support contracts?

The average annual cost of this contract is approximately $2.1 million ($31,969,726.24 / 15.3 years). Benchmarking this figure against similar specialized engineering support contracts for space vision systems is challenging due to the highly niche nature of the services and the lack of publicly available, directly comparable data. Contracts for complex aerospace engineering often vary significantly based on the specific technologies involved, the scope of work, and the level of expertise required. Without access to detailed cost breakdowns and performance metrics of comparable contracts, a precise value-for-money assessment is difficult. However, given the long duration and specialized nature, the annual cost may be within a reasonable range for such critical support.

What are the primary risks associated with a sole-source award for critical space systems engineering?

The primary risks associated with a sole-source award for critical space systems engineering include potential overpricing due to the absence of competitive pressure, reduced incentive for innovation, and a lack of market validation for the chosen solution. Taxpayers may bear higher costs than necessary. Furthermore, reliance on a single source can create vulnerabilities if that source experiences financial difficulties, operational issues, or fails to meet performance expectations. There's also a risk that the government might not be aware of more cost-effective or technologically superior alternatives that could have emerged from a competitive process. This can lead to long-term lock-in with a potentially suboptimal solution.

How effective has NASA been in overseeing 'Cost No Fee' contracts in the past?

NASA's effectiveness in overseeing 'Cost No Fee' (CNF) contracts can vary. CNF contracts are designed to reimburse the contractor for allowable costs without a fee, which can be beneficial for controlling overall program costs, especially in research and development or situations where profit motives might be misaligned with project goals. However, the effectiveness hinges on robust government oversight of the contractor's incurred costs to ensure they are reasonable, allocable, and allowable. NASA has established procurement regulations and contract management processes to guide oversight. When these processes are diligently followed, including regular audits and performance reviews, oversight can be effective. Conversely, lapses in oversight can lead to cost overruns or performance issues, even without a contractor fee.

What is the historical spending pattern for engineering support related to space vision systems at NASA?

The provided data only pertains to a single contract awarded in 2001 and ending in 2016. Therefore, it does not provide a comprehensive view of NASA's historical spending patterns for engineering support related to space vision systems. To understand historical trends, one would need to analyze spending across multiple contracts, over a longer period, and potentially across different NASA centers and programs. This would involve querying federal procurement databases for all contracts related to 'space vision systems engineering support' or similar keywords, identifying the total obligated amounts, contract types, and awardees over several fiscal years to discern patterns in investment, contractor selection, and overall expenditure.

What are the implications of awarding this contract to a Canadian entity for U.S. technological advancement in space?

Awarding this contract to Canadian Commercial Corporation (CCC), a Canadian entity, has several implications for U.S. technological advancement. On one hand, it could foster international collaboration and leverage specialized expertise that may not be readily available or as cost-effective within the U.S. for this specific need. This collaboration can lead to shared advancements and strengthen international partnerships in space exploration. On the other hand, it means that direct investment in U.S. companies and the development of U.S. technological capabilities in this niche area might be reduced compared to an award to a domestic firm. This could potentially slow down the growth of the U.S. industrial base in this specific segment of space technology.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of Canada (UEI: 241015486)

Address: 50 O'CONNOR ST STE 1100, OTTAWA

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,969,726

Exercised Options: $31,969,726

Current Obligation: $31,969,726

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline