NASA's $11.6M Ares I Rocket Engine Contract Awarded to Aerojet Rocketdyne Under Full and Open Competition

Contract Overview

Contract Amount: $11,630,735 ($11.6M)

Contractor: Aerojet Rocketdyne, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-05-15

End Date: 2010-06-30

Contract Duration: 1,142 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEVELOPMENTAL FIRST STAGE ROLL CONTROL ENGINES ARES I

Place of Performance

Location: REDMOND, KING County, WASHINGTON, 98052

State: Washington Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $11.6 million to AEROJET ROCKETDYNE, INC. for work described as: DEVELOPMENTAL FIRST STAGE ROLL CONTROL ENGINES ARES I Key points: 1. Contract awarded to a single vendor, Aerojet Rocketdyne, for a critical component of the Ares I rocket. 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences (NAICS 541710). 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure for R&D can be appropriate for early-stage development where costs are uncertain. However, it carries a risk of cost escalation if the contractor's efficiency is not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive process aims to ensure taxpayer funds are used efficiently for this developmental contract.

Public Impact

Development of rocket engines is crucial for space exploration initiatives. Ares I was part of NASA's Constellation Program, which aimed to return humans to the Moon. The success of this contract directly impacts the advancement of NASA's space program goals. Investment in advanced propulsion systems can have long-term benefits for aerospace technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize contractor spending.
  • No indication of small business participation.
  • Contract duration is relatively short for a developmental project.

Positive Signals

  • Full and open competition utilized.
  • Awarded to a known aerospace contractor.
  • Supports critical NASA R&D objectives.

Sector Analysis

This contract falls within the aerospace R&D sector, specifically focusing on propulsion systems. Spending in this area is typically high-risk, high-reward, with significant investment required for innovation.

Small Business Impact

The data indicates that small businesses were not a direct awardee on this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded by NASA, a federal agency with established oversight mechanisms. The CPFF structure necessitates close monitoring of costs and performance to ensure accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • No small business participation indicated.
  • Developmental nature of the contract implies inherent technical risks.
  • Potential for cost overruns with CPFF structure.

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, wa, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $11.6 million to AEROJET ROCKETDYNE, INC.. DEVELOPMENTAL FIRST STAGE ROLL CONTROL ENGINES ARES I

Who is the contractor on this award?

The obligated recipient is AEROJET ROCKETDYNE, 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 $11.6 million.

What is the period of performance?

Start: 2007-05-15. End: 2010-06-30.

What was the final cost of the contract compared to the initial estimate, and were there any significant cost overruns?

The provided data shows an award amount of $11,630,735.23. Without access to the contract's final expenditure reports, it's impossible to determine the final cost or if cost overruns occurred. CPFF contracts inherently carry this risk, making post-award financial oversight critical.

How did the competitive bidding process under 'full and open competition' influence the final price and the selection of Aerojet Rocketdyne?

Full and open competition theoretically allows for the best price discovery by enabling all responsible sources to submit offers. The fact that Aerojet Rocketdyne was awarded the contract suggests their proposal met technical requirements and offered the best value, likely influenced by competitive pricing pressures.

What is the long-term effectiveness and impact of these developmental rocket engines on NASA's future missions and technological advancement?

The effectiveness and impact depend on the success of the Ares I program and the subsequent integration of these engines into future spaceflight. Developmental contracts like this are foundational for technological progress, but their ultimate value is realized through successful application and innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aerojet Rocketdyne Holdings, Inc. (UEI: 001316330)

Address: 11411 139TH PL NE, REDMOND, WA, 98052

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,721,446

Exercised Options: $11,721,446

Current Obligation: $11,630,735

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2007-05-15

Current End Date: 2010-06-30

Potential End Date: 2010-06-30 00:00:00

Last Modified: 2017-10-27

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