NASA's Sounding Rocket Operations contract awarded to Peraton Inc. for over $327M to manage launch services
Contract Overview
Contract Amount: $327,271,386 ($327.3M)
Contractor: Peraton Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2016-10-01
End Date: 2024-03-31
Contract Duration: 2,738 days
Daily Burn Rate: $119.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF NASA SOUNDING ROCKET OPERATIONS CONTRACT (NSROC) III THE PURPOSE OF THE CONTRACT IS TO SERVE AS THE PRINCIPAL MECHANISM FOR IMPLEMENTATION OF THE NASA SOUNDING ROCKETS PROGRAM (NSRP). THE NSROC III CONTRACTOR SHALL MANAGE AND BE RESPONSIBLE FOR PROVIDING ALL ASSOCIATED SERVICES AND SUPPLIES (EXCEPT THOSE PROVIDED AS GOVERNMENT FURNISHED PROPERTY). AS SUCH, THE CONTRACTOR SHALL DESIGN, FABRICATE, INTEGRATE, AND PERFORM FLIGHT QUALIFICATION TESTING OF SUB-ORBITAL PAYLOADS, PROVIDE LAUNCH VEHICLES AND ASSOCIATED HARDWARE, AND PROVIDE VARIOUS ACTIVITIES ASSOCIATED WITH SUBSEQUENT MISSION LAUNCH OPERATIONS. THE CONTRACTOR WILL CONDUCT AN ESTIMATED 18 LAUNCHES PER YEAR, BASED ON THE MISSION MODEL, THROUGHOUT THE PERIOD OF PERFORMANCE.
Place of Performance
Location: WALLOPS ISLAND, ACCOMACK County, VIRGINIA, 23337
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $327.3 million to PERATON INC. for work described as: IGF::OT::IGF NASA SOUNDING ROCKET OPERATIONS CONTRACT (NSROC) III THE PURPOSE OF THE CONTRACT IS TO SERVE AS THE PRINCIPAL MECHANISM FOR IMPLEMENTATION OF THE NASA SOUNDING ROCKETS PROGRAM (NSRP). THE NSROC III CONTRACTOR SHALL MANAGE AND BE RESPONSIBLE FOR PROVIDING ALL ASSOCIA… Key points: 1. Contract provides comprehensive services for NASA's Sounding Rocket Program, including payload design, fabrication, and launch operations. 2. The contractor is responsible for an estimated 18 launches annually, indicating a consistent operational tempo. 3. This contract represents a significant investment in sub-orbital space research and development. 4. The cost-plus-fixed-fee (CPFF) structure may incentivize cost management by the contractor. 5. Performance is benchmarked against historical sounding rocket program costs and industry standards for similar services.
Value Assessment
Rating: good
The total contract value of $327.3 million over approximately 7.5 years suggests a substantial but potentially reasonable investment for comprehensive sounding rocket operations. Benchmarking against similar large-scale aerospace support contracts indicates that the per-year cost is within expected ranges for specialized launch services. The CPFF contract type allows for flexibility in scope but requires careful oversight to ensure cost efficiency. Without specific per-unit launch costs or detailed breakdowns of services, a precise value-for-money assessment is challenging, but the duration and scope suggest a competitive pricing strategy was likely employed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders likely participated. This competitive process is expected to drive more favorable pricing and service offerings for NASA. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award price. A robust competition generally leads to better outcomes for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price discovery process, leading to potentially lower costs and higher quality services.
Public Impact
Benefits NASA's scientific research by providing essential launch capabilities for sub-orbital missions. Supports the development and deployment of scientific payloads for atmospheric, space, and astrophysical research. Impacts the aerospace workforce through specialized engineering, technical, and operational roles. Enables scientific discovery by facilitating access to space for research experiments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
- Reliance on a single contractor for critical launch operations could pose a risk if performance falters.
- Scope creep could increase the overall cost beyond initial projections without adequate controls.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Long-term contract provides stability for program execution and contractor investment.
- Contractor's responsibility for end-to-end services streamlines operations for NASA.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting space launch services. The market for sounding rocket operations is specialized, often dominated by a few key players capable of meeting NASA's stringent requirements. Comparable spending benchmarks would include other government launch service contracts and large-scale aerospace engineering support agreements. The total value of $327 million over nearly eight years reflects the complexity and criticality of providing reliable access to space for scientific research.
Small Business Impact
The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While the prime contractor, Peraton Inc., is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem within the aerospace sector.
Oversight & Accountability
Oversight is likely managed through NASA's program management offices, with contract performance monitored against established milestones and deliverables. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- NASA Sounding Rockets Program
- NASA Launch Services Program
- Aerospace Engineering Services Contracts
- Sub-orbital Payload Development
Risk Flags
- Cost Control in CPFF Contracts
- Contractor Performance Monitoring
- Scope Creep Potential
Tags
nasa, sounding-rocket, aerospace, launch-services, cost-plus-fixed-fee, full-and-open-competition, virginia, engineering-services, sub-orbital, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $327.3 million to PERATON INC.. IGF::OT::IGF NASA SOUNDING ROCKET OPERATIONS CONTRACT (NSROC) III THE PURPOSE OF THE CONTRACT IS TO SERVE AS THE PRINCIPAL MECHANISM FOR IMPLEMENTATION OF THE NASA SOUNDING ROCKETS PROGRAM (NSRP). THE NSROC III CONTRACTOR SHALL MANAGE AND BE RESPONSIBLE FOR PROVIDING ALL ASSOCIATED SERVICES AND SUPPLIES (EXCEPT THOSE PROVIDED AS GOVERNMENT FURNISHED PROPERTY). AS SUCH, THE CONTRACTOR SHALL DESIGN, FABRICATE, INTEGRATE, AND PERFORM FLIGHT QUALIFICATION TESTING OF SUB-ORBITAL PAYLOADS, PROVIDE L
Who is the contractor on this award?
The obligated recipient is PERATON INC..
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 $327.3 million.
What is the period of performance?
Start: 2016-10-01. End: 2024-03-31.
What is Peraton Inc.'s track record with NASA and similar government contracts?
Peraton Inc. has a significant history of performing complex technical and mission support services for various U.S. government agencies, including NASA. Their portfolio often includes areas like space operations, intelligence, defense, and cyber. For NASA, Peraton has been involved in various projects, demonstrating capability in managing large-scale, high-stakes contracts. Their experience with systems engineering, integration, and mission assurance is critical for a contract like the Sounding Rocket Operations Contract (NSROC III). A review of past performance evaluations and contract awards would reveal specific successes and any challenges encountered, providing context for their suitability for this role. Their ability to manage budgets, schedules, and technical requirements on previous NASA contracts is a key indicator of their potential performance on NSROC III.
How does the $327 million contract value compare to historical spending on sounding rocket operations?
The $327.3 million contract value for the NSROC III program, spanning approximately 7.5 years (October 2016 to March 2024), translates to an average annual expenditure of roughly $43.6 million. This figure needs to be contextualized against historical spending patterns for NASA's Sounding Rocket Program (NSRP). Historically, sounding rocket operations have varied in cost depending on the number and complexity of missions. If previous contracts supported a similar number of launches (estimated 18 per year) and encompassed comparable services (design, fabrication, launch), this value appears to be in a reasonable range. However, a detailed comparison would require analyzing inflation-adjusted costs of prior NSRP contracts and the specific scope of services provided in those periods to ascertain if this represents an increase, decrease, or stable level of investment.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?
The Cost Plus Fixed Fee (CPFF) contract structure, while offering flexibility for evolving requirements, carries inherent risks, primarily related to cost control. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee. The main risk is that the contractor may have less incentive to control costs rigorously compared to fixed-price contracts, as cost overruns directly increase the total amount paid by the government (though the fee remains fixed). This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable, allocable, and allowable, and prevent potential inefficiencies or scope creep that could inflate the overall expenditure. Effective management and clear definition of work are crucial to mitigate these risks.
How does the estimated 18 launches per year impact the program's effectiveness and cost?
An estimated 18 launches per year suggests a consistent and active sounding rocket program, crucial for maintaining scientific momentum and operational proficiency. This tempo allows researchers regular access to sub-orbital space for experiments in fields like atmospheric science, space physics, and microgravity research. From a cost perspective, a predictable launch rate can lead to economies of scale for the contractor in terms of personnel, equipment utilization, and supply chain management. It also allows NASA to better budget and plan its scientific payload development and utilization. However, ensuring that these launches are mission-critical and scientifically valuable is key to maximizing the program's effectiveness and justifying the associated costs.
What are the implications of 'full and open competition' for taxpayer value on this contract?
Awarding the NSROC III contract through 'full and open competition' is a significant positive indicator for taxpayer value. This process mandates that all responsible sources are permitted to submit a bid, fostering a competitive environment. Competition typically drives down prices as contractors vie for the award, potentially leading to more cost-effective solutions. It also encourages innovation and higher quality service delivery as companies strive to differentiate themselves. For taxpayers, this means that the $327 million allocated for sounding rocket operations is more likely to represent a fair market price for the services rendered, minimizing the risk of overpayment and maximizing the return on investment in scientific research capabilities.
What specific types of scientific payloads are typically launched via sounding rockets under this program?
Sounding rockets are instrumental in providing relatively low-cost, rapid access to the upper atmosphere and near-space environment for scientific research. Under programs like NASA's Sounding Rocket Program (NSRP), payloads typically focus on areas such as atmospheric composition and dynamics, ionospheric and magnetospheric studies, solar physics, and astrophysics (e.g., observing celestial objects from above the densest part of the atmosphere). These rockets can carry instruments to altitudes ranging from tens to hundreds of kilometers, enabling experiments in microgravity, testing new sensor technologies, and collecting data that complements observations from larger, more complex space missions. The flexibility of sounding rockets allows for timely investigations of transient phenomena and targeted scientific campaigns.
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
Solicitation ID: NNG14490137R
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $334,873,169
Exercised Options: $334,873,169
Current Obligation: $327,271,386
Actual Outlays: $204,333,196
Subaward Activity
Number of Subawards: 363
Total Subaward Amount: $63,223,594
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-10-01
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2026-02-12
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