NASA awards $18.7M for aluminum plates and ingots, supporting critical development efforts
Contract Overview
Contract Amount: $18,698,675 ($18.7M)
Contractor: Arconic Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-06-14
End Date: 2011-02-04
Contract Duration: 1,331 days
Daily Burn Rate: $14.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PURCHASING 2195 ALUMINUM THIN PLATES AND INGOTS FOR DEVELOPMENT EFFORT.
Place of Performance
Location: RIVERDALE, SCOTT County, IOWA, 52722
State: Iowa Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $18.7 million to ARCONIC INC. for work described as: PURCHASING 2195 ALUMINUM THIN PLATES AND INGOTS FOR DEVELOPMENT EFFORT. Key points: 1. Contract value appears reasonable for specialized materials used in development. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract shifts risk to the contractor. 4. Contract duration of over three years indicates a sustained need. 5. The award is for a specific manufacturing category, suggesting specialized industrial support.
Value Assessment
Rating: good
The contract value of $18.7 million for aluminum plates and ingots seems appropriate given the specialized nature of the materials and the development effort they support. Benchmarking against similar procurements for advanced materials in aerospace or defense would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government has secured a defined cost for these materials, which is a positive indicator for budget predictability.
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. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and terms. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving fair market prices.
Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better terms due to a competitive bidding environment, ensuring that federal funds are used efficiently for necessary materials.
Public Impact
The primary beneficiaries are NASA's development programs requiring specialized aluminum materials. The services delivered include the supply of thin aluminum plates and ingots. The geographic impact is likely concentrated around NASA facilities and the contractor's manufacturing sites. Workforce implications may include jobs in aluminum manufacturing and aerospace development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in raw material markets impacting long-term cost-effectiveness.
- Ensuring consistent quality and adherence to specifications for critical development applications.
Positive Signals
- Fixed-price contract structure provides cost certainty for the government.
- Full and open competition promotes market-driven pricing.
- Long contract duration suggests a stable and predictable supply chain for NASA.
Sector Analysis
This contract falls within the broader manufacturing sector, specifically focusing on aluminum rolling and extrusion, which is a key component of the materials industry. The market for specialized aluminum alloys is driven by demand from high-tech sectors like aerospace, defense, and automotive. NASA's procurement of these materials for development efforts aligns with industry trends towards advanced material utilization to enhance performance and efficiency in complex projects.
Small Business Impact
The data indicates that 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 in their broader supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers, ensuring adherence to the terms and specifications. Accountability is established through the firm fixed-price contract, which obligates the contractor to deliver specified materials at an agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Material Procurement
- Advanced Manufacturing Support
Risk Flags
- Potential for raw material price volatility
- Ensuring adherence to stringent development specifications
Tags
nasa, aerospace, materials-manufacturing, aluminum, development-effort, full-and-open-competition, firm-fixed-price, large-contract, usg-agency
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $18.7 million to ARCONIC INC.. PURCHASING 2195 ALUMINUM THIN PLATES AND INGOTS FOR DEVELOPMENT EFFORT.
Who is the contractor on this award?
The obligated recipient is ARCONIC 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 $18.7 million.
What is the period of performance?
Start: 2007-06-14. End: 2011-02-04.
What is the historical spending pattern for similar aluminum plate and ingot procurements by NASA?
Analyzing historical spending for similar aluminum plate and ingot procurements by NASA would involve reviewing past contract awards for comparable materials, quantities, and specifications. This would help establish a baseline for pricing trends and identify any significant deviations in the current $18.7 million award. Factors such as inflation, market volatility for raw materials like aluminum, and changes in technological requirements could explain variations over time. A detailed historical analysis would require access to comprehensive federal procurement databases and the ability to filter for specific product codes (NAICS 331315) and agencies. Without this specific historical data, it's challenging to definitively assess if this contract represents an increase or decrease in spending for such materials.
How does the unit cost of these aluminum plates and ingots compare to commercial market rates?
Determining the precise unit cost comparison to commercial market rates for these aluminum plates and ingots is complex without specific details on the alloy composition, dimensions, tolerances, and quantity ordered. Federal procurement often involves specialized materials that may command higher prices than standard commercial grades due to stringent quality control, testing, and certification requirements. However, the full and open competition mechanism is designed to drive prices towards market levels. A thorough comparison would necessitate obtaining detailed specifications from the contract and comparing them against quotes from commercial suppliers for identical or highly similar materials. If the contract price per unit is significantly higher than commercial benchmarks, it could indicate potential issues with pricing or the specialized nature of the government's requirements.
What are the specific development efforts supported by this procurement?
The contract specifies that the aluminum plates and ingots are for a 'development effort.' While the exact nature of this effort is not detailed in the provided data, it likely pertains to research and development activities within NASA aimed at creating new technologies, spacecraft components, or experimental systems. Aluminum is a critical material in aerospace due to its strength-to-weight ratio. These materials could be used in prototyping, testing new designs, or fabricating components for experimental aircraft, satellites, or other advanced aerospace projects. Understanding the specific development goals would provide further context on the criticality and potential risks associated with the material's performance and timely delivery.
What is Arconic Inc.'s track record with NASA for similar material procurements?
Arconic Inc. (or its predecessor entities) has a history of supplying materials to the aerospace and defense sectors, including potentially to NASA. To assess their track record specifically with NASA for similar aluminum plate and ingot procurements, one would need to examine past contract awards to Arconic from NASA. This would involve looking at the volume, value, and performance history of previous contracts. A positive track record, characterized by on-time delivery, adherence to specifications, and competitive pricing on prior awards, would suggest a lower risk for this current contract. Conversely, any history of performance issues, disputes, or significant cost overruns on similar contracts could raise concerns about Arconic's reliability and the overall value proposition.
Are there any identified risks associated with the contractor (Arconic Inc.) or the nature of this procurement?
Potential risks associated with this procurement include standard supply chain risks, such as fluctuations in aluminum commodity prices, potential manufacturing delays, or quality control issues that could impact the development effort. For the contractor, Arconic Inc., risks might involve their financial stability, capacity to meet NASA's specific technical requirements, and their overall performance history. Given that this is for a 'development effort,' there's an inherent risk that the project's requirements could evolve, potentially impacting the scope or specifications of the materials needed. A thorough risk assessment would also consider geopolitical factors affecting aluminum supply and any past performance issues Arconic may have had with government contracts.
Industry Classification
NAICS: Manufacturing › Alumina and Aluminum Production and Processing › Aluminum Sheet, Plate, and Foil Manufacturing
Product/Service Code: METAL BARS, SHEETS, SHAPES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Alcoa Extrusions, Inc. (UEI: 001339472)
Address: 4879 STATE ST, BETTENDORF, IA, 01
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,698,675
Exercised Options: $18,698,675
Current Obligation: $18,698,675
Timeline
Start Date: 2007-06-14
Current End Date: 2011-02-04
Potential End Date: 2011-02-04 00:00:00
Last Modified: 2011-06-09
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