NASA awards $27.7M for payload development, with Sierra Nevada Company as prime contractor
Contract Overview
Contract Amount: $27,674,465 ($27.7M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-11-10
End Date: 2013-04-30
Contract Duration: 902 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MULTI-MISSION MODULAR PAYLOAD DEVELOPMENT TASK ORDER UNDER THE MULTI-AWARD MSV IDIQ. THE CONTRACTOR SHALL FURNISH ALL LABOR, SUPPLIES, MATERIALS, TRAVEL, OTHER DIRECT COSTS AND FEES NECESSARY TO ACCOMPLISH THE REQUIREMENTS CONTAINED IN THE ATTACHED TASK ORDER.
Place of Performance
Location: SPARKS, WASHOE County, NEVADA, 89434
State: Nevada Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $27.7 million to SIERRA NEVADA COMPANY, LLC for work described as: MULTI-MISSION MODULAR PAYLOAD DEVELOPMENT TASK ORDER UNDER THE MULTI-AWARD MSV IDIQ. THE CONTRACTOR SHALL FURNISH ALL LABOR, SUPPLIES, MATERIALS, TRAVEL, OTHER DIRECT COSTS AND FEES NECESSARY TO ACCOMPLISH THE REQUIREMENTS CONTAINED IN THE ATTACHED TASK ORDER. Key points: 1. Contract focuses on research and development for physical, engineering, and life sciences. 2. Sierra Nevada Company, LLC, is the prime contractor for this task order. 3. The contract was awarded under full and open competition. 4. This award represents a significant investment in advanced payload capabilities. 5. The contract duration spans over 900 days, indicating a substantial development effort. 6. The contract type is Cost Plus Fixed Fee, common for R&D projects.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without detailed cost breakdowns and comparable project data. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs were estimated and a fixed fee was negotiated, which can sometimes lead to cost overruns if not managed tightly. The total award amount of $27.7 million for a multi-mission modular payload development over approximately 2.5 years appears within a reasonable range for complex R&D, but a detailed cost analysis would be needed for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through robust bidding, leading to better value for the government's investment.
Public Impact
This contract directly benefits NASA's scientific and technological advancement goals. The services delivered are crucial for developing advanced payload capabilities for space missions. The geographic impact is primarily national, supporting U.S. leadership in space exploration. Workforce implications include skilled engineers, scientists, and technicians involved in R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can incentivize cost overruns if not closely monitored.
- The long duration of the contract increases the risk of scope creep or evolving requirements.
- Reliance on a single prime contractor for complex R&D may pose risks if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Multiple bidders (7) indicate significant market interest and potential for innovation.
- The contract is for a critical area of R&D, aligning with NASA's strategic objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for space payload development is highly specialized, involving a limited number of experienced contractors capable of meeting NASA's stringent requirements. Comparable spending benchmarks would typically be found within other NASA R&D contracts for similar payload or technology development efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal, though the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officer and program management. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms, and while specific IG jurisdiction isn't detailed, NASA's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse.
Related Government Programs
- NASA Space Technology Mission Directorate
- NASA Science Mission Directorate
- Advanced Payload Development Programs
- Space Exploration Technology Contracts
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Scope Creep Potential (Long Duration)
- Performance Dependency on Single Prime Contractor
Tags
research-and-development, nasa, sierra-nevada-company, space-technology, payload-development, cost-plus-fixed-fee, full-and-open-competition, multi-award-idiq, delivery-order, national
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.7 million to SIERRA NEVADA COMPANY, LLC. MULTI-MISSION MODULAR PAYLOAD DEVELOPMENT TASK ORDER UNDER THE MULTI-AWARD MSV IDIQ. THE CONTRACTOR SHALL FURNISH ALL LABOR, SUPPLIES, MATERIALS, TRAVEL, OTHER DIRECT COSTS AND FEES NECESSARY TO ACCOMPLISH THE REQUIREMENTS CONTAINED IN THE ATTACHED TASK ORDER.
Who is the contractor on this award?
The obligated recipient is SIERRA NEVADA COMPANY, 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 $27.7 million.
What is the period of performance?
Start: 2010-11-10. End: 2013-04-30.
What is the track record of Sierra Nevada Company, LLC, in performing similar R&D contracts for NASA or other federal agencies?
Sierra Nevada Company, LLC (SNC) has a notable track record with NASA and other government agencies, particularly in areas related to space systems, aviation, and national security. They have been involved in various NASA programs, including cargo resupply missions to the International Space Station (ISS) with their Dream Chaser spacecraft, and development of other space technologies. Their experience spans complex engineering, manufacturing, and integration. For R&D contracts specifically, SNC's history suggests a capability to handle intricate technical challenges. However, a detailed review of past performance on similar CPFF R&D task orders would be necessary to fully assess their suitability and historical cost control effectiveness for this specific multi-mission modular payload development.
How does the $27.7 million award compare to other NASA contracts for similar payload development efforts?
Comparing this $27.7 million award requires access to detailed data on similar NASA payload development contracts, which is not readily available in the public domain. However, the amount appears substantial, reflecting the complexity and scope of developing 'multi-mission modular payloads.' NASA's R&D spending can vary significantly based on the technology's maturity, the mission's objectives, and the development phase. Contracts for early-stage research might be smaller, while those involving hardware development, testing, and integration, as implied here, can reach tens of millions of dollars. Without specific comparable contract data, it's difficult to definitively benchmark this award, but it aligns with the scale of significant technology development initiatives within NASA.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how are they mitigated in this case?
The primary risk with CPFF contracts is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a negotiated fixed fee. This can lead to cost overruns if not managed diligently. Mitigation strategies employed by agencies like NASA typically include robust oversight by the Contracting Officer's Representative (COR), detailed cost monitoring, regular progress reviews, and strict adherence to the contract's scope of work. For this specific contract, the presence of 7 bidders suggests a competitive environment that may have helped in setting a reasonable fee. However, ongoing vigilance in cost tracking and performance management by NASA is crucial to mitigate these inherent risks.
What is the expected impact of this contract on NASA's future mission capabilities and scientific objectives?
This contract is expected to significantly enhance NASA's future mission capabilities by developing advanced 'multi-mission modular payloads.' These payloads are likely designed to be adaptable and reconfigurable, allowing them to be used across various scientific and exploration missions. This modularity can reduce future development costs and timelines for new missions, increase flexibility in payload deployment, and enable new scientific investigations. By investing in such adaptable technologies, NASA aims to broaden its scientific reach, improve operational efficiency, and maintain its leadership in space exploration and Earth observation.
How has NASA's spending on Research and Development (R&D) in the physical, engineering, and life sciences evolved over the past five years?
NASA's spending on R&D in the physical, engineering, and life sciences (NAICS code 541712) has generally seen fluctuations driven by budgetary allocations and program priorities. While specific year-over-year figures for this precise NAICS code are complex to isolate from broader NASA R&D budgets, the agency consistently invests billions annually in scientific research and technology development. Trends often reflect a focus on areas like advanced propulsion, robotics, climate science instrumentation, and human spaceflight technologies. Periods of increased investment may coincide with the initiation of major new exploration initiatives or technology development campaigns, such as those related to lunar or Martian exploration, or advancements in Earth observation capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 444 SALOMON CIR, SPARKS, NV, 89434
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $28,174,465
Exercised Options: $28,174,465
Current Obligation: $27,674,465
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: NNA11AA05B
IDV Type: IDC
Timeline
Start Date: 2010-11-10
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2019-08-09
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