NASA's $3.87B Space Flight Operations Contract Awarded to United Space Alliance, L.L.C
Contract Overview
Contract Amount: $3,871,425,000 ($3.9B)
Contractor: United Space Alliance, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-10-01
End Date: 2006-12-31
Contract Duration: 821 days
Daily Burn Rate: $4.7M/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SPACE FLIGHT OPERATIONS
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $3.87 billion to UNITED SPACE ALLIANCE, LLC for work described as: SPACE FLIGHT OPERATIONS Key points: 1. Significant contract value of $3.87 billion for space flight operations. 2. Sole awardee, United Space Alliance, LLC, raises questions about competition. 3. Contract type is Cost Plus Award Fee, which can incentivize performance but may lead to cost overruns. 4. The R&D sector (NAICS 541710) often involves complex and high-risk projects.
Value Assessment
Rating: questionable
The contract value of $3.87 billion is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value is difficult. The Cost Plus Award Fee structure suggests potential for performance-based incentives, but also carries risk of cost escalation.
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 competitive bidding.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for space flight operations.
Public Impact
Impacts critical space flight operations, essential for national scientific and exploration goals. Potential for significant taxpayer investment in a non-competed, high-value contract. Raises concerns about the efficiency and cost-effectiveness of NASA's procurement practices for major programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- High contract value
Positive Signals
- Focus on critical space flight operations
- Potential for performance incentives
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high innovation, long development cycles, and significant upfront investment, making competitive benchmarking challenging.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this large-scale contract. The prime contractor, United Space Alliance, LLC, is likely a large entity, suggesting limited opportunities for small business subcontracting.
Oversight & Accountability
The non-competed nature of this substantial contract warrants close oversight to ensure accountability and prevent potential cost inefficiencies. NASA's internal review processes and potential Inspector General audits would be crucial.
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
- Lack of competition
- Sole-source award
- Cost Plus Award Fee structure
- High contract value
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $3.87 billion to UNITED SPACE ALLIANCE, LLC. SPACE FLIGHT OPERATIONS
Who is the contractor on this award?
The obligated recipient is UNITED SPACE ALLIANCE, LLC.
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 $3.87 billion.
What is the period of performance?
Start: 2004-10-01. End: 2006-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding the procurement's integrity. Without competition, it's difficult to ascertain if NASA secured the best value. Exploring the rationale behind this decision is essential for evaluating the fairness and efficiency of the procurement process and ensuring taxpayer funds are used optimally.
How does the Cost Plus Award Fee structure impact the final cost and performance outcomes compared to other contract types for similar space operations?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by offering award fees based on meeting specific criteria. However, it also carries the risk of cost overruns as the government covers allowable costs plus potential award fees. Analyzing the final cost against initial projections and evaluating the achieved performance metrics is crucial to determine if CPAF was the most effective and economical choice for these space flight operations.
What are the long-term implications of awarding such a significant portion of space flight operations to a single entity without competition?
Awarding a large segment of space flight operations to a single entity without competition can lead to a lack of innovation and potentially higher costs over time due to reduced market pressure. It also concentrates critical capabilities within one company, potentially creating dependencies and limiting future flexibility for NASA's strategic objectives and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 1150 GEMINI ST, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $208,929,021
Exercised Options: $208,929,021
Current Obligation: $3,871,425,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2004-10-01
Current End Date: 2006-12-31
Potential End Date: 2006-12-31 00:00:00
Last Modified: 2020-01-15
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