NASA's $22.17M Space Vehicle Contract Awarded to Sierra Nevada Company for R&D
Contract Overview
Contract Amount: $22,172,842 ($22.2M)
Contractor: Sierra Nevada Company, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2014-09-05
End Date: 2020-01-15
Contract Duration: 1,958 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF MODULAR SPACE VEHICLE SPACE TEST PROGRAM SATELLITE-5 (STPSAT-5) MODULAR SPACE VEHICLE (MSV) TASK ORDER 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: LOUISVILLE, BOULDER County, COLORADO, 80027
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.2 million to SIERRA NEVADA COMPANY, LLC for work described as: IGF::OT::IGF MODULAR SPACE VEHICLE SPACE TEST PROGRAM SATELLITE-5 (STPSAT-5) MODULAR SPACE VEHICLE (MSV) TASK ORDER THE CONTRACTOR SHALL FURNISH ALL LABOR, SUPPLIES, MATERIALS, TRAVEL, OTHER DIRECT COSTS, AND FEES, NECESSARY TO ACCOMPLISH THE REQUIREMENTS CONTAINED IN THE ATTAC… Key points: 1. Contract focuses on research and development for physical and engineering sciences, excluding biotechnology. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Sierra Nevada Company, LLC, is the sole awardee for this task order. 4. The contract duration spans approximately 1958 days, indicating a long-term project. 5. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 6. This award falls under the Research and Development in the Physical, Engineering, and Life Sciences NAICS code. 7. The contract was issued as a Delivery Order under a larger contract vehicle. 8. The contract was awarded by NASA's National Aeronautics and Space Administration.
Value Assessment
Rating: good
The contract value of $22.17 million for a modular space vehicle task order appears reasonable given the R&D nature and long duration. Benchmarking against similar complex space system development contracts would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) structure is common for R&D where exact costs are uncertain, but it requires careful oversight to manage expenses and ensure the fixed fee remains appropriate for the effort.
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 bids. The presence of 5 bids suggests a healthy level of competition for this specific task order. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple offerors.
Public Impact
This contract supports advancements in space vehicle technology and research. The primary beneficiary is NASA's space exploration and research initiatives. The services delivered are critical for the Space Test Program Satellite-5 (STPSat-5) mission. The contract's geographic impact is primarily within the aerospace sector, likely concentrated in areas with significant aerospace industry presence. Workforce implications include specialized engineering, scientific, and technical roles within Sierra Nevada Company and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a potential risk with CPFF contracts if not managed diligently.
- Scope creep could increase costs beyond the initial estimates.
- Delays in development could impact NASA's broader space program timelines.
Positive Signals
- Awarded under full and open competition, indicating a robust selection process.
- Sierra Nevada Company is a known entity in the aerospace sector, suggesting relevant expertise.
- The contract is for a specific task order, implying it fits within a pre-established contract vehicle.
- The long duration suggests a well-defined, albeit complex, project scope.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space technology research and development. The market for modular space vehicles and satellite development is highly specialized, with a limited number of prime contractors capable of undertaking such complex projects. Spending in this area is driven by national security, scientific exploration, and commercial space initiatives. Comparable spending benchmarks would involve analyzing other NASA or DoD contracts for similar space vehicle development and integration services.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Sierra Nevada Company, LLC, is the prime contractor. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this task order and if the prime contractor has a history of engaging small businesses.
Oversight & Accountability
Oversight for this contract would primarily be conducted by NASA's contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee is justified. Transparency would be facilitated through regular reporting requirements from the contractor and potentially through NASA's public contract databases, though specific details of performance may be sensitive.
Related Government Programs
- NASA Space Launch System (SLS)
- NASA Commercial Crew Program
- DoD Space Development Agency (SDA) Contracts
- National Reconnaissance Office (NRO) Satellite Programs
- National Science Foundation (NSF) Research Grants
Risk Flags
- Cost Overrun Risk (CPFF)
- Schedule Delay Risk
- Scope Creep Potential
- Technological Obsolescence (long duration)
Tags
nasa, space-exploration, research-and-development, space-vehicle, sierra-nevada-company, cost-plus-fixed-fee, delivery-order, full-and-open-competition, aerospace, colorado, science-and-technology, national-aeronautics-and-space-administration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.2 million to SIERRA NEVADA COMPANY, LLC. IGF::OT::IGF MODULAR SPACE VEHICLE SPACE TEST PROGRAM SATELLITE-5 (STPSAT-5) MODULAR SPACE VEHICLE (MSV) TASK ORDER 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 $22.2 million.
What is the period of performance?
Start: 2014-09-05. End: 2020-01-15.
What is Sierra Nevada Company's track record with NASA and similar space vehicle development contracts?
Sierra Nevada Company (SNC) has a significant track record with NASA and other government agencies in aerospace and defense. They have been involved in various NASA programs, including cargo resupply missions to the International Space Station (ISS) with their Dream Chaser spacecraft. SNC also has experience developing and integrating various space systems, including satellites and payloads. Their involvement in the Space Test Program (STP) is also notable, as this contract is part of that initiative. A detailed review of their past performance ratings on similar contracts, particularly those involving R&D and complex vehicle development, would be necessary to fully assess their capabilities and reliability for this specific task order.
How does the $22.17 million cost compare to similar modular space vehicle development contracts?
Benchmarking the $22.17 million cost requires comparing it to contracts for similar modular space vehicles (MSVs) or satellite development programs with comparable complexity, duration, and scope. Factors such as the specific technological requirements, the level of R&D involved, the number of components, and the mission objectives significantly influence cost. Without access to a database of comparable MSV development contracts, a precise comparison is difficult. However, for a long-duration R&D project involving a custom-built space vehicle, this figure appears within a plausible range, assuming it covers all labor, materials, travel, and fees necessary for the defined task order requirements.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for space vehicle R&D?
The primary risks associated with a CPFF contract for space vehicle R&D revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as they are reimbursed for actual expenses plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if the project scope expands. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee provides adequate profit margin. If actual costs significantly exceed estimates, the contractor's profit can be eroded. Effective oversight, detailed cost tracking, and clear scope management are crucial to mitigate these risks.
How effective is the 'full and open competition' process in ensuring value for taxpayer money in specialized R&D contracts like this?
The 'full and open competition' process is generally considered the most effective method for ensuring value for taxpayer money, even in specialized R&D contracts. By allowing all responsible sources to compete, it fosters a wider range of innovative solutions and drives down prices through market forces. For complex R&D, the challenge lies in defining evaluation criteria that accurately assess technical merit and potential, not just price. When properly executed, with clear requirements and robust evaluation, full and open competition increases the likelihood that the government selects the best technical solution at a competitive price, thereby maximizing the value of taxpayer investment.
What is the historical spending trend for NASA's Space Test Program (STP) and similar R&D initiatives?
Historical spending for NASA's Space Test Program (STP) and similar R&D initiatives within NASA and the Department of Defense (DoD) generally shows significant and often increasing investment, driven by evolving technological needs and strategic priorities. STP, in particular, focuses on providing spaceflight opportunities for a variety of payloads, often involving research and technology demonstrations. While specific annual spending figures for STP fluctuate based on the number and complexity of missions undertaken, the overall trend in space-related R&D spending by government agencies has been substantial. Analyzing historical budgets for NASA's Science Mission Directorate and relevant DoD space programs would provide context for this $22.17 million award.
What are the potential implications of the contract's duration (1958 days) on project management and cost?
A contract duration of 1958 days (approximately 5.4 years) for a space vehicle R&D project implies a long-term, complex undertaking. This extended timeline allows for thorough research, development, testing, and integration phases. However, it also introduces risks such as potential technological obsolescence, changes in program priorities, and increased likelihood of cost escalation due to inflation or unforeseen technical challenges. Effective project management is critical to maintain focus, control scope, and manage costs over such a long period. Regular reviews and potential contract modifications may be necessary to adapt to evolving requirements or circumstances.
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: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sierra Nevada Corporation
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: $22,879,537
Exercised Options: $22,879,537
Current Obligation: $22,172,842
Actual Outlays: $105,002
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,293,853
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: NNA11AA05B
IDV Type: IDC
Timeline
Start Date: 2014-09-05
Current End Date: 2020-01-15
Potential End Date: 2020-01-15 00:00:00
Last Modified: 2025-09-17
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