NASA's $143M contract for shuttle manipulator system operations awarded to Canadian Commercial Corporation

Contract Overview

Contract Amount: $143,164,656 ($143.2M)

Contractor: Canadian Commercial Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2002-12-26

End Date: 2007-12-31

Contract Duration: 1,831 days

Daily Burn Rate: $78.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Other

Official Description: SUSTAINING ENGINEERING & OPERATIONS SHUTTLE REMOTE MANIPULATOR SYSTEM

Plain-Language Summary

National Aeronautics and Space Administration obligated $143.2 million to CANADIAN COMMERCIAL CORPORATION for work described as: SUSTAINING ENGINEERING & OPERATIONS SHUTTLE REMOTE MANIPULATOR SYSTEM Key points: 1. Contract value represents significant investment in sustaining engineering and operational support for a critical spaceflight component. 2. Sole-source award raises questions about potential missed opportunities for competitive pricing and innovation. 3. Long contract duration suggests a need for stable, long-term support, but also potential for cost overruns if not managed closely. 4. The nature of the service, specialized remote manipulator system operations, may limit the pool of qualified contractors. 5. Performance context is tied to the Space Shuttle program, a complex and high-stakes operational environment. 6. Sector positioning is within aerospace manufacturing and support services, a highly specialized and capital-intensive industry.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. The total value of over $143 million spread across approximately five years indicates a substantial commitment. Without competitive bids, it's difficult to definitively assess if this represents optimal value for money. However, the cost-plus-no-fee (CPNF) contract type suggests that the contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize cost control, but also carries risks if cost estimation is inaccurate. Comparing to similar contracts for remote manipulator systems or specialized aerospace engineering support would be necessary for a more robust value assessment.

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 potential bidders. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of competition means that NASA did not benefit from the price discovery and innovation that typically arises from a competitive bidding process. This can potentially lead to higher costs for the government compared to what might have been achieved through open competition.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the negotiated price reflects the lowest possible cost for the required services.

Public Impact

The primary beneficiaries are NASA and the Space Shuttle program, ensuring the continued operational capability of the remote manipulator system. Services delivered include sustaining engineering, maintenance, and operational support for the shuttle's robotic arm. Geographic impact is primarily centered around NASA's shuttle launch and operational facilities. Workforce implications include the employment of specialized engineers and technicians required for advanced aerospace systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Cost-plus-no-fee contract type can lead to cost overruns if not carefully managed.
Long contract duration increases exposure to potential scope creep or evolving requirements.
Specialized nature of the service may create contractor dependency.
Lack of transparency in the sole-source justification process.

Positive Signals

Award to a known entity (Canadian Commercial Corporation) may imply established capabilities.
Sustaining engineering and operations are critical for mission success.
Contract duration suggests a stable, long-term need for these specialized services.
Focus on operational support ensures continued functionality of key shuttle systems.

Sector Analysis

The aerospace manufacturing and support sector is characterized by high barriers to entry, significant R&D investment, and stringent quality and safety requirements. Contracts like this, supporting complex spaceflight hardware, are typical within this sector. The market for such specialized services is often limited to a few highly capable firms. Spending benchmarks for similar sustaining engineering and operational support contracts for major aerospace programs can range widely, but multi-million dollar awards over several years are common for critical systems.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. The specialized nature of the work, focusing on remote manipulator systems for space vehicles, likely requires highly specific expertise and certifications that may be more readily available from larger, established aerospace firms. Therefore, the direct impact on the small business ecosystem is likely minimal, with no explicit provisions for small business participation noted.

Oversight & Accountability

Oversight for this contract would fall under NASA's contracting and program management offices. As a sole-source award, the justification and negotiation process would be subject to internal review and potentially audits by government accountability offices. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's performance and financial execution.

Related Government Programs

Space Shuttle Program
NASA Engineering and Safety Center
Aerospace Support Services
Robotic Systems Maintenance
Space Vehicle Manufacturing Support

Risk Flags

Sole-source award
Potential for cost overruns
Lack of competitive benchmarking
Contract duration

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $143.2 million to CANADIAN COMMERCIAL CORPORATION. SUSTAINING ENGINEERING & OPERATIONS SHUTTLE REMOTE MANIPULATOR 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 $143.2 million.

What is the period of performance?

Start: 2002-12-26. End: 2007-12-31.

What is the track record of Canadian Commercial Corporation in supporting NASA or similar aerospace programs?

Canadian Commercial Corporation (CCC) acts as a government-to-government contracting agency for Canadian companies. While CCC itself is not an operational entity, it facilitates contracts for Canadian businesses. Information on CCC's specific track record with NASA for the Sustaining Engineering & Operations Shuttle Remote Manipulator System contract would depend on the performance of the underlying Canadian supplier. Generally, CCC has a history of facilitating international procurement for Canadian goods and services. For NASA, the focus would be on the technical capabilities and past performance of the specific company contracted through CCC to perform the work. Assessing this requires looking beyond CCC to the prime contractor's history with similar complex aerospace systems and operational support.

How does the $143 million contract value compare to similar contracts for robotic arm maintenance and operations?

Direct comparison of the $143 million contract value for the Shuttle Remote Manipulator System (SRMS) operations is difficult due to the unique nature of spaceflight hardware and the specialized, long-term support required. Contracts for robotic systems in industrial settings are typically much lower in value and scope. However, within the aerospace sector, multi-year contracts for sustaining engineering and operational support for critical components like the SRMS can easily reach tens to hundreds of millions of dollars, especially considering the high reliability and safety standards demanded. The five-year duration of this contract ($143M / 5 years = ~$28.6M per year) places it within the range for significant, long-term support of a complex aerospace system, though without competitive benchmarking, its 'value for money' remains a point of assessment.

What are the primary risks associated with a sole-source award for critical aerospace operations?

The primary risks associated with a sole-source award for critical aerospace operations like the Shuttle Remote Manipulator System (SRMS) include a lack of competitive pricing, potentially leading to higher costs for the government. Without competition, there's reduced incentive for the contractor to innovate or aggressively seek efficiencies. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility. Furthermore, the absence of multiple bidders can obscure potential performance issues or technical limitations that might be revealed during a competitive evaluation. Ensuring robust oversight and performance management becomes even more critical in sole-source scenarios to mitigate these inherent risks.

How effective has the Canadian Commercial Corporation been in managing similar complex engineering contracts?

The effectiveness of the Canadian Commercial Corporation (CCC) in managing complex engineering contracts is generally viewed through its role as a facilitator and guarantor of contracts for Canadian suppliers. CCC's mandate is to help Canadian companies access international markets and to provide governments with reliable procurement solutions. Their success is often measured by the successful delivery of goods and services by the underlying Canadian prime contractor. For complex engineering contracts, CCC's effectiveness relies on its due diligence in selecting capable suppliers and its ability to manage the intergovernmental agreements. Specific performance metrics for CCC's management of this particular NASA contract would require detailed review of project milestones, cost performance, and technical delivery against the contract's objectives.

What are the historical spending patterns for the Shuttle Remote Manipulator System operations and maintenance?

Historical spending patterns for the Shuttle Remote Manipulator System (SRMS) operations and maintenance would be intrinsically linked to the Space Shuttle program's operational lifecycle. Prior to this $143 million contract (2002-2007), similar sustaining engineering and operational support would have been procured under different contracts, likely also with a focus on specialized aerospace firms. The total expenditure over the shuttle program's history would have been substantial, reflecting the complexity and criticality of the SRMS. Analyzing past contracts would reveal trends in cost, duration, and contractor selection. This $143 million contract represents a specific phase of spending during the later years of the shuttle program, focusing on ensuring continued operational readiness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment 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 SUITE 1100, OTTAWA

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $170,763,991

Exercised Options: $170,763,991

Current Obligation: $143,164,656

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline