NASA's $218M Shuttle Training Facility Contract Awarded to Raytheon Company
Contract Overview
Contract Amount: $218,276,175 ($218.3M)
Contractor: Raytheon Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-10-06
End Date: 2005-04-30
Contract Duration: 2,033 days
Daily Burn Rate: $107.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TRAINING SYSTEM SHUTTLE MISSION FACILTIY
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $218.3 million to RAYTHEON COMPANY for work described as: TRAINING SYSTEM SHUTTLE MISSION FACILTIY Key points: 1. Contract value of $218.28M for shuttle mission facility training. 2. Raytheon Company is the sole awardee. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. The contract falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPAF) structure can lead to higher costs than fixed-price contracts. Benchmarking against similar large-scale engineering service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPAF structure might incentivize cost increases to achieve award fees, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are utilized for this significant engineering service contract. The CPAF structure necessitates careful oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Ensures continued training capabilities for the Space Shuttle program. Supports critical infrastructure for astronaut preparation. Contributes to the operational readiness of NASA's human spaceflight missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may lead to higher than anticipated costs.
- Lack of small business participation noted.
- Contract duration is substantial, requiring long-term oversight.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national program (Space Shuttle).
Sector Analysis
This contract for engineering services supports NASA's space exploration initiatives. Spending in this sector is often characterized by high complexity, long durations, and significant R&D components, with costs varying widely based on project scope.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Raytheon, did not subcontract with small businesses for this specific award, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The contract's Cost Plus Award Fee structure requires robust oversight from NASA to ensure performance objectives are met and costs are managed effectively. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Award Fee structure.
- No small business participation.
- Long contract duration.
- Potential for cost overruns.
- Reliance on a single prime contractor.
Tags
engineering-services, national-aeronautics-and-space-administr, tx, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $218.3 million to RAYTHEON COMPANY. TRAINING SYSTEM SHUTTLE MISSION FACILTIY
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 $218.3 million.
What is the period of performance?
Start: 1999-10-06. End: 2005-04-30.
What is the projected cost efficiency of the Cost Plus Award Fee structure for this training facility?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by offering award fees for meeting or exceeding certain metrics. However, it can also lead to higher overall costs compared to fixed-price contracts if not managed diligently. NASA's oversight is critical to ensure that award fees are tied to genuine performance improvements and that costs remain within reasonable bounds for the services rendered.
What are the primary risks associated with the long duration and CPAF model of this contract?
The primary risks include potential cost escalation over the contract's 2033-day duration due to the CPAF model, which allows for cost reimbursement plus an award fee. Scope creep and contractor inefficiencies could inflate costs without adequate oversight. Additionally, maintaining consistent performance and relevance of the training facility over such an extended period presents a challenge.
How effectively does this contract support the long-term goals of NASA's training programs?
This contract is crucial for maintaining and operating the Shuttle Mission Training Facility, directly supporting the operational readiness and astronaut training for the Space Shuttle program. Its long duration suggests a commitment to sustained training capabilities. However, its effectiveness will depend on NASA's ability to adapt the facility and training protocols to evolving mission requirements and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: BAY TERRACE 2, 555 FORGE RIVER RD, WEBSTER, TX, 36
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $187,162,999
Exercised Options: $188,029,359
Current Obligation: $218,276,175
Timeline
Start Date: 1999-10-06
Current End Date: 2005-04-30
Potential End Date: 2005-04-30 00:00:00
Last Modified: 2011-11-04
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