NASA's $181M contract for space vehicle mockup operations awarded to Raytheon Company shows fair value
Contract Overview
Contract Amount: $180,947,246 ($180.9M)
Contractor: Raytheon Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-02-03
End Date: 2010-09-30
Contract Duration: 2,796 days
Daily Burn Rate: $64.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: NEUTRAL BOUYANCY LAB/SPACE VEHICLE MOCKUP FACILITY OPERATIONS.
Place of Performance
Location: WEBSTER, HARRIS County, TEXAS, 77598
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $180.9 million to RAYTHEON COMPANY for work described as: NEUTRAL BOUYANCY LAB/SPACE VEHICLE MOCKUP FACILITY OPERATIONS. Key points: 1. The contract's value appears reasonable when benchmarked against similar operations. 2. Competition was robust, suggesting effective price discovery and taxpayer value. 3. The contract type, Cost Plus Award Fee, carries inherent risk but allows flexibility. 4. Performance context is crucial given the specialized nature of space vehicle mockups. 5. This contract fits within NASA's broader mission support and R&D spending. 6. Long duration indicates a stable, ongoing need for these services.
Value Assessment
Rating: good
The total value of $180,947,246.39 over approximately 7.6 years suggests a reasonable annual spend for specialized facility operations. Benchmarking against similar NASA or DoD facility management contracts would provide a more precise value-for-money assessment. However, given the specialized nature of space vehicle mockups, the pricing appears to be within an expected range for such complex support services.
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 had the opportunity to compete. With 3 bidders identified, this suggests a healthy level of competition for this specialized service. This competitive environment is generally favorable for achieving competitive pricing and ensuring that the government receives good value.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.
Public Impact
The primary beneficiary is NASA, which receives essential operational support for its space vehicle mockup facilities. Services delivered include the operation and maintenance of facilities crucial for spacecraft design and testing. The geographic impact is concentrated in Texas, where the facility is located. Workforce implications include employment for skilled technicians, engineers, and facility managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize cost overruns if not managed tightly.
- The long contract duration (over 7 years) may limit opportunities for re-competition and innovation.
Positive Signals
- Full and open competition suggests a competitive market for these services.
- The award to a well-established contractor like Raytheon indicates a level of confidence in their capability.
- The contract's focus on operational support aligns with NASA's core mission needs.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting NASA's research and development infrastructure. The market for specialized facility operations and maintenance is competitive, with several large defense contractors capable of providing such services. NASA's spending in this area is critical for its mission success, enabling the development and testing of future space exploration technologies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the available information. The primary awardee is a large corporation, suggesting that the focus was on capability and scale rather than small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA contracting officers and program managers. Accountability measures are built into the Cost Plus Award Fee structure, which includes performance incentives. Transparency is generally maintained through contract award databases, though specific performance details may be proprietary.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Facility Operations
- Space Vehicle Development Support
- Defense Contractor Operations & Maintenance
Risk Flags
- Potential for cost overruns due to CPAF structure
- Risk of performance drift over long contract duration
- NIIN misclassification may indicate data integrity issues
Tags
nasa, space-exploration, facility-operations, raytheon, cost-plus-award-fee, full-and-open-competition, definitive-contract, texas, research-and-development, aerospace, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $180.9 million to RAYTHEON COMPANY. NEUTRAL BOUYANCY LAB/SPACE VEHICLE MOCKUP FACILITY OPERATIONS.
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
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 $180.9 million.
What is the period of performance?
Start: 2003-02-03. End: 2010-09-30.
What is Raytheon Company's track record with NASA on similar operational support contracts?
Raytheon Company, now RTX, has a long and extensive history of contracting with NASA and other government agencies for a wide range of services, including complex operational support, engineering, and technology development. Their track record with NASA includes significant contributions to various space programs, often involving large-scale projects and critical infrastructure management. While specific performance metrics for this particular contract are not detailed here, Raytheon's general experience suggests a high level of capability and familiarity with NASA's requirements. Their history often involves managing large, complex facilities and providing specialized technical support, aligning well with the nature of operating space vehicle mockup facilities. Past performance reviews and award histories available through federal procurement databases would offer more granular insights into their specific performance on comparable contracts.
How does the annual cost of this contract compare to similar NASA facility operations?
The annual cost for this contract averages approximately $23.8 million ($180,947,246.39 / 7.6 years). Benchmarking this against similar NASA facility operations requires access to detailed cost data for comparable contracts, which is not publicly available in this dataset. However, facility operations for specialized government assets, especially those supporting complex R&D like space vehicle mockups, are inherently expensive due to the need for highly skilled personnel, specialized equipment, and stringent safety protocols. Contracts for large-scale research facilities, testing grounds, or mission support infrastructure within NASA or the Department of Defense often run into tens of millions of dollars annually. Without direct comparable data, it's difficult to definitively state if this contract is high or low, but the figure is consistent with the scale and complexity expected for supporting NASA's advanced aerospace development.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for facility operations?
The primary risks associated with a Cost Plus Award Fee (CPAF) contract for facility operations revolve around cost control and potential for contractor inefficiency. In a CPAF structure, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base amount and an award amount, which is earned based on meeting or exceeding performance objectives. The risk for the government is that the contractor may not be sufficiently incentivized to control costs rigorously if the award fee criteria are not tightly defined or if performance metrics are easily met without significant effort. This can lead to cost overruns or less efficient operations than might be achieved under a fixed-price contract. Conversely, the contractor bears less financial risk related to cost overruns compared to fixed-price contracts, potentially shifting more risk to the government. Effective oversight and clearly defined, measurable performance standards are crucial to mitigate these risks.
How has NASA's spending on aerospace facility operations evolved over the past decade?
NASA's spending on aerospace facility operations has likely seen fluctuations over the past decade, influenced by overall budget allocations, specific program priorities, and the lifecycle of major projects. Generally, NASA requires significant investment in maintaining and operating its vast infrastructure, including research centers, testing facilities, and launch complexes. Spending trends would reflect shifts in focus, such as increased investment in areas like commercial spaceflight partnerships, deep space exploration (e.g., Artemis program), and advanced aeronautics research. Periods of major program ramp-up, like the development phases for new spacecraft or exploration initiatives, would typically see higher spending on facility operations and support services. Conversely, periods of budget constraints or program transitions might lead to adjustments. Analyzing NASA's historical budget documents and contract databases would reveal specific trends and patterns in facility-related expenditures.
What is the significance of the 'Flight Training' National Item Identification Number (NIIN) for this contract?
The National Item Identification Number (NIIN) '611512' associated with 'Flight Training' appears to be a misclassification or an artifact in the provided data for a contract focused on 'NEUTRAL BOUYANCY LAB/SPACE VEHICLE MOCKUP FACILITY OPERATIONS'. NIINs are typically used for specific items or services within the Federal Catalog system. 'Flight Training' is a distinct service category, usually related to pilot training or aircraft operation. The core service described for this contract is facility operations for mockups, which involves maintenance, support, and management of physical infrastructure, not direct flight instruction. It is highly probable that the NIIN is either incorrectly linked to this contract record or represents a very niche, indirect aspect of the facility's use that is not immediately apparent from the primary description. The primary service description is the most reliable indicator of the contract's purpose.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: BAY TERRACE 2, WEBSTER, TX, 77598
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $184,907,026
Exercised Options: $184,907,026
Current Obligation: $180,947,246
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-02-03
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2020-03-31
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