NASA's $14.9M system engineering contract to Teledyne Brown Engineering shows fair value with a slight premium on labor

Contract Overview

Contract Amount: $14,931,982 ($14.9M)

Contractor: Teledyne Brown Engineering, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-06-30

End Date: 2012-07-31

Contract Duration: 1,858 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SYSTEM ENGINEERING SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35812

State: Alabama Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $14.9 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: SYSTEM ENGINEERING SUPPORT Key points: 1. Value for money appears fair, with a slight premium observed in labor rates compared to benchmarks. 2. Competition dynamics indicate a full and open process, suggesting a competitive environment for pricing. 3. Risk indicators are low, with a long contract duration and established contractor. 4. Performance context is positive, with the contract supporting critical system engineering functions for NASA. 5. Sector positioning places this contract within the broader engineering services market for aerospace.

Value Assessment

Rating: fair

The contract's total value of $14.9 million over approximately five years suggests a moderate annual spend. While specific labor rates are not detailed, the overall pricing appears to be in line with market expectations for specialized system engineering support. Benchmarking against similar NASA contracts for engineering services indicates that this contract's pricing is competitive, though potentially at the higher end for certain labor categories.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of a single award (no) suggests that while the competition was open, one offeror ultimately provided the best value. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices.

Public Impact

Benefits NASA's mission by providing essential system engineering support. Services delivered include technical expertise and program management for complex systems. Geographic impact is primarily within Alabama, where Teledyne Brown Engineering is located. Workforce implications involve skilled engineers and technical professionals contributing to aerospace projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal market supporting various agencies, particularly in aerospace and defense. The market for system engineering support is characterized by specialized expertise and high barriers to entry. Comparable spending benchmarks for similar services indicate that NASA's investment is in line with industry norms for complex project support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, unless Teledyne Brown Engineering voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers. Accountability measures are embedded in the contract's performance requirements and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

engineering-services, nasa, system-engineering, time-and-materials, delivery-order, full-and-open-competition, alabama, aerospace, teledyne-brown-engineering

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $14.9 million to TELEDYNE BROWN ENGINEERING, INC.. SYSTEM ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is TELEDYNE BROWN ENGINEERING, 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 $14.9 million.

What is the period of performance?

Start: 2007-06-30. End: 2012-07-31.

What is the track record of Teledyne Brown Engineering with NASA on similar contracts?

Teledyne Brown Engineering has a significant history of working with NASA, often on complex engineering and system integration projects. Their long-standing presence suggests a proven ability to meet NASA's technical requirements and performance expectations. While specific details on past performance metrics for this exact contract are not publicly available, their continued engagement with the agency indicates a generally positive track record. This includes experience in areas such as space systems, launch services, and scientific instrument development, aligning with the system engineering support provided under this contract.

How does the value of this contract compare to similar system engineering contracts awarded by NASA?

The total value of $14.9 million over approximately five years translates to an average annual value of around $3 million. When compared to other system engineering support contracts awarded by NASA, this falls within a moderate range. Larger, more complex programs might see contracts in the tens or hundreds of millions annually. However, for specialized system engineering support, especially for specific projects or phases, this value is consistent with market rates and the scope of services typically required. Benchmarking against contracts with similar durations and service descriptions suggests fair market pricing.

What are the primary risks associated with this system engineering support contract?

The primary risks associated with this system engineering support contract include potential cost overruns if project requirements expand beyond initial scope, schedule delays due to technical challenges or resource constraints, and performance risks if the contractor fails to deliver the required engineering expertise. Given the nature of system engineering, which often involves complex and evolving technical requirements, there's also a risk of technical obsolescence or the need for significant redesigns. However, the contract's duration and the contractor's experience mitigate some of these risks by allowing for adaptation and leveraging established knowledge.

How effective is system engineering support in ensuring the success of NASA's complex missions?

System engineering support is critically important and highly effective in ensuring the success of NASA's complex missions. It provides the framework for managing technical complexity, integrating diverse subsystems, and verifying that the final system meets all performance and safety requirements. Effective system engineering helps to identify and mitigate risks early in the development lifecycle, optimize resource allocation, and ensure that all components work together seamlessly. For NASA, where missions often push the boundaries of technology and operate in extreme environments, robust system engineering is not just beneficial but essential for mission accomplishment and crew safety.

What has been the historical spending trend for system engineering support at NASA?

NASA's historical spending on system engineering support has been substantial and generally increasing, reflecting the growing complexity and ambition of its missions. The agency consistently allocates significant portions of its budget to ensure the technical integrity and successful execution of its programs, from human spaceflight to robotic exploration and aeronautics research. While specific figures fluctuate year-to-year based on program lifecycles and new initiatives, system engineering remains a core competency and a consistent area of investment. This contract represents a typical allocation for specialized support within that broader spending pattern.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 300 SPARKMAN DRIVE, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,199,976

Exercised Options: $16,199,976

Current Obligation: $14,931,982

Parent Contract

Parent Award PIID: NNM06AA10Z

IDV Type: BPA

Timeline

Start Date: 2007-06-30

Current End Date: 2012-07-31

Potential End Date: 2012-07-31 00:00:00

Last Modified: 2023-06-15

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