NASA's $1.4B Extravehicular Space Operations Contract Awarded to Hamilton Sundstrand
Contract Overview
Contract Amount: $1,407,204,745 ($1.4B)
Contractor: Hamilton Sundstrand Space Systems International, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-10-01
End Date: 2027-09-30
Contract Duration: 6,208 days
Daily Burn Rate: $226.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: EXTRAVEHICULAR SPACE OPERATIONS CONTRACT (ESOC)
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.41 billion to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC. for work described as: EXTRAVEHICULAR SPACE OPERATIONS CONTRACT (ESOC) Key points: 1. The contract value is substantial at $1.4 billion. 2. This is a sole-source award, indicating limited competition. 3. The contract duration is over 17 years, posing long-term risk. 4. The sector is 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize cost overruns. Without competitive benchmarks, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning there was no opportunity for price discovery through market competition. This raises concerns about potential overpayment.
Taxpayer Impact: The lack of competition for a $1.4 billion contract means taxpayers may not be receiving the best possible price.
Public Impact
Taxpayers are funding a significant, long-term contract without competitive bidding. The duration of the contract raises questions about adaptability to future technological advancements. NASA's reliance on a single source for critical space operations equipment warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Cost-plus contract type
Positive Signals
- Established contractor
- Long-term planning for space operations
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically for space vehicle parts. Spending in this sector is often characterized by high R&D costs and long development cycles, but competitive bidding is crucial for efficiency.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight from NASA to ensure cost control and performance. Accountability for award fee criteria needs to be clearly defined and monitored.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost Plus Award Fee structure can lead to cost overruns.
- Long contract duration (over 17 years) increases risk of obsolescence.
- No small business participation noted.
- Lack of transparency on justification for sole-source award.
Tags
other-guided-missile-and-space-vehicle-p, 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 $1.41 billion to HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, INC.. EXTRAVEHICULAR SPACE OPERATIONS CONTRACT (ESOC)
Who is the contractor on this award?
The obligated recipient is HAMILTON SUNDSTRAND SPACE SYSTEMS INTERNATIONAL, 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 $1.41 billion.
What is the period of performance?
Start: 2010-10-01. End: 2027-09-30.
What specific justification was provided for awarding this contract on a sole-source basis, and how does it align with NASA's procurement regulations?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities or urgent needs. NASA's procurement regulations would require a detailed justification document to be approved by appropriate officials before such a contract could be awarded.
How will NASA ensure cost-effectiveness and prevent potential cost overruns given the Cost Plus Award Fee structure and lack of competition?
NASA will likely implement stringent oversight mechanisms, including detailed performance metrics, regular audits, and a clearly defined award fee structure tied to specific, measurable outcomes. The agency will need to actively manage the contractor's costs and ensure that the award fee criteria incentivize efficiency and value, rather than simply cost reimbursement.
What are the potential risks associated with a sole-source, long-duration contract for critical space operations equipment, particularly regarding technological obsolescence?
The primary risks include potential lack of innovation due to no competitive pressure, higher costs than a competed contract, and the possibility of technological obsolescence over the 17-year duration. NASA must build in mechanisms for technology refresh, performance improvements, and potentially renegotiation clauses to mitigate these risks and ensure the equipment remains state-of-the-art.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NNJ10306479R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 18050 SATURN LN, STE 400, HOUSTON, TX, 77058
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,845,698,770
Exercised Options: $1,487,077,230
Current Obligation: $1,407,204,745
Actual Outlays: $683,057,589
Subaward Activity
Number of Subawards: 185
Total Subaward Amount: $290,866,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-10-01
Current End Date: 2027-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2026-03-27
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