NASA awards $54M for HST Robot System, a sole-source procurement for guided missile and space vehicle manufacturing
Contract Overview
Contract Amount: $54,013,361 ($54.0M)
Contractor: Canadian Commercial Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-10-01
End Date: 2010-09-30
Contract Duration: 2,190 days
Daily Burn Rate: $24.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: PROCUREMENT FOR THE HST ROBOT SYSTEM FOR THE ROBOTIC SERVICE MISSION
Plain-Language Summary
National Aeronautics and Space Administration obligated $54.0 million to CANADIAN COMMERCIAL CORPORATION for work described as: PROCUREMENT FOR THE HST ROBOT SYSTEM FOR THE ROBOTIC SERVICE MISSION Key points: 1. The contract value of $54M is significant for specialized space robotics. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The duration of 6 years suggests a complex, long-term project. 4. The sector is highly specialized, limiting direct competition.
Value Assessment
Rating: questionable
The contract value of $54M for a specialized robotic system is difficult to benchmark without comparable sole-source procurements. The lack of competition makes it challenging to assess if the price is fair and reasonable compared to market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher costs for taxpayers and limiting price discovery through market forces.
Taxpayer Impact: The absence of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive process.
Public Impact
Ensures continued operation and maintenance of the Hubble Space Telescope's robotic capabilities. Supports critical scientific research and data collection from space. Potential for cost overruns due to sole-source nature impacts taxpayer funds allocated to space exploration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical space mission
- Specialized technology development
Sector Analysis
This procurement falls within the Guided Missile and Space Vehicle Manufacturing sector, characterized by high R&D costs, specialized expertise, and often long development cycles. Spending in this niche area is typically driven by national strategic interests and scientific advancement.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The specialized nature of space robotics often requires large, established contractors with specific expertise and infrastructure.
Oversight & Accountability
Oversight for this sole-source contract would typically involve NASA's internal review processes and potentially congressional oversight committees, focusing on justification for the sole-source award and adherence to contract terms.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to lack of competition.
- Limited transparency in price negotiation.
- No small business participation indicated.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $54.0 million to CANADIAN COMMERCIAL CORPORATION. PROCUREMENT FOR THE HST ROBOT SYSTEM FOR THE ROBOTIC SERVICE MISSION
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 $54.0 million.
What is the period of performance?
Start: 2004-10-01. End: 2010-09-30.
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 typically stems from a lack of available competition, unique capabilities of a specific contractor, or urgent needs. For specialized systems like the HST robot, it's possible only one entity possessed the requisite knowledge and technology. Alternative competitive strategies might have been explored but deemed impractical or less effective given the specific requirements of the mission.
How does the final cost compare to initial estimates, and what mechanisms were in place to control costs given the sole-source nature?
Without access to the contract's financial history, it's difficult to assess the final cost against estimates. For sole-source contracts, cost control mechanisms often include detailed negotiation, independent cost analysis by the procuring agency, and stringent oversight of contractor performance and expenditures. Firm Fixed Price contracts aim to shift cost risk to the contractor, but effective negotiation is crucial.
What is the long-term impact of this sole-source procurement on the government's ability to acquire similar robotic systems in the future?
Sole-source procurements can potentially limit future competition if they foster contractor monopolies or prevent the development of alternative technologies. However, for highly specialized systems, they may be necessary to ensure mission success. The government might mitigate this by investing in R&D to broaden the supplier base or by structuring future contracts to encourage competition.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Government of Canada (UEI: 241015486)
Address: 50 O'CONNOR ST STE 1100, OTTAWA
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,013,361
Exercised Options: $54,013,361
Current Obligation: $54,013,361
Timeline
Start Date: 2004-10-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-09-14
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