NASA awards $2.19M contract to Boeing for liquid nitrogen purging services over 3 years

Contract Overview

Contract Amount: $2,185,392 ($2.2M)

Contractor: THE Boeing Company

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2009-12-01

End Date: 2013-03-31

Contract Duration: 1,216 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER FOR PURGING LIQUID NITROGEN.

Place of Performance

Location: SEAL BEACH, ORANGE County, CALIFORNIA, 90740

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $2.2 million to THE BOEING COMPANY for work described as: TASK ORDER FOR PURGING LIQUID NITROGEN. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Limited competition may have impacted price discovery and value for taxpayer funds. 3. The contract duration of over three years suggests a sustained need for these specialized services. 4. Boeing's extensive experience in aerospace may justify their selection, but alternatives should be considered. 5. The service involves critical support for NASA's facilities, indicating a high level of technical requirement. 6. Performance will be monitored to ensure value and adherence to contract terms.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to definitively assess if the pricing reflects market rates or offers optimal value for money. The cost-plus-fixed-fee structure means costs could fluctuate, requiring close oversight to manage expenditures effectively. Comparing this to similar, competitively bid contracts for specialized purging services would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning NASA did not conduct a competitive bidding process. This approach is typically used when only one responsible source is available or when urgency dictates. The lack of competition limits the opportunity for price negotiation and may result in higher costs for the government compared to a fully competed contract. It also means that the government did not benefit from the innovation and efficiency that can arise from multiple bidders vying for the contract.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price due to the absence of competitive pressure. This can lead to higher overall government spending on necessary services.

Public Impact

The primary beneficiary is NASA, which receives essential support for its facilities operations. The service delivered is the purging of liquid nitrogen, a critical process for maintaining specialized equipment and infrastructure. The geographic impact is localized to NASA facilities in California, where the contractor will perform the work. The contract supports specialized technical roles within the aerospace and facilities management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing and potential cost savings for taxpayers.
  • Cost-plus-fixed-fee contract type can lead to cost overruns if not closely managed.
  • Lack of transparency in the selection process due to sole-source nature.

Positive Signals

  • Awarded to a reputable contractor, The Boeing Company, with significant aerospace experience.
  • The service addresses a critical operational need for NASA facilities.
  • Contract duration indicates a stable, long-term requirement, allowing for consistent service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing specialized maintenance and operational needs. The aerospace industry, where NASA operates, often requires highly technical and unique support services. While the direct dollar amount is modest, the nature of the service is critical for the functioning of advanced research and operational facilities. Comparable spending benchmarks would likely be found within contracts for specialized industrial cleaning, maintenance, and technical support services for government and private sector research and development facilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, The Boeing Company, is a large aerospace firm. There is no explicit information regarding subcontracting plans for small businesses within this specific task order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, and there are no clear indications of subcontracting opportunities being prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officer and technical representatives. Given the sole-source nature and cost-plus-fixed-fee structure, rigorous monitoring of costs, performance, and adherence to the contract's scope of work is crucial. Transparency is limited by the non-competitive award, but NASA's internal procurement regulations and oversight mechanisms would apply. Any potential issues or disputes would likely be handled through NASA's established contract dispute resolution processes.

Related Government Programs

  • NASA Facilities Maintenance Contracts
  • Aerospace Support Services
  • Specialized Industrial Services
  • Liquid Nitrogen Handling Services

Risk Flags

  • Sole-source award
  • Cost-plus-fixed-fee contract type
  • Limited competition

Tags

nasa, facilities-support-services, california, sole-source, cost-plus-fixed-fee, aerospace, liquid-nitrogen-purging, delivery-order, boeing, national-aeronautics-and-space-administration

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $2.2 million to THE BOEING COMPANY. TASK ORDER FOR PURGING LIQUID NITROGEN.

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

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 $2.2 million.

What is the period of performance?

Start: 2009-12-01. End: 2013-03-31.

What is the historical spending pattern for liquid nitrogen purging services at NASA?

Analyzing historical spending patterns for liquid nitrogen purging services at NASA requires access to detailed procurement data beyond this single task order. Without a broader dataset, it's difficult to establish a trend. However, the duration of this contract (over three years) suggests a consistent need. If similar sole-source awards have been made in the past for this service, it could indicate a recurring requirement that has not been subject to competitive bidding. Conversely, if this is an isolated instance, it might represent a specific project need. A comprehensive review of NASA's procurement history for similar services would be necessary to identify any patterns in spending, contract types, and competition levels.

How does the cost-plus-fixed-fee structure impact the overall value for money in this contract?

The cost-plus-fixed-fee (CPFF) contract structure means that the contractor (Boeing) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure can be useful for complex projects where the scope is not fully defined, it shifts some of the cost risk to the government. For value for money, this means that NASA must diligently oversee and audit Boeing's incurred costs to ensure they are reasonable, allocable, and allowable. The fixed fee provides some incentive for efficiency, as it does not increase with costs, but the primary driver for cost control rests on NASA's oversight capabilities. Without competitive pressure, the initial cost estimates underpinning the fixed fee may not be as aggressive as they would be in a fixed-price contract awarded through competition.

What are the specific risks associated with a sole-source award for specialized services like liquid nitrogen purging?

The primary risk of a sole-source award for specialized services is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, the government loses the opportunity to benefit from price discovery and negotiation that competition typically provides. Another risk is a potential lack of innovation, as there is less incentive for the sole provider to develop more cost-effective or efficient methods. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities to engage a broader range of capable contractors, including small businesses.

What is Boeing's track record with NASA for similar facilities support services?

The Boeing Company has a long-standing and extensive relationship with NASA, primarily known for its major aerospace programs and spacecraft development. While this specific task order focuses on facilities support services (liquid nitrogen purging), Boeing's broad capabilities in complex project management, engineering, and technical execution are well-established. Their track record with NASA generally involves large-scale, high-stakes projects. For facilities support, their experience would likely leverage their expertise in managing complex technical operations and ensuring safety and reliability, which are critical in aerospace environments. A detailed review of Boeing's past performance on similar, smaller-scale facilities or technical support contracts with NASA would provide more specific insights.

Are there alternative methods or technologies for liquid nitrogen purging that NASA could have considered?

The feasibility of alternative methods or technologies for liquid nitrogen purging depends heavily on the specific application and NASA's requirements. Liquid nitrogen is often chosen for its cryogenic properties and inert nature, making it suitable for rapid cooling and purging of sensitive systems where moisture or contaminants must be eliminated. Potential alternatives might include other inert gases (like helium or argon) for purging, or different cooling methods if rapid cryogenic cooling isn't the primary objective. However, for applications requiring the specific properties of liquid nitrogen, such as in space-bound hardware preparation or specialized laboratory environments, direct alternatives might be limited. The sole-source nature of this award means these alternatives were likely not explored through a competitive process.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5800 WOOLSEY CANYON ROAD, CANOGA PARK, CA, 91304

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: $2,185,396

Exercised Options: $2,185,396

Current Obligation: $2,185,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: NNM10AA02C

IDV Type: IDC

Timeline

Start Date: 2009-12-01

Current End Date: 2013-03-31

Potential End Date: 2013-03-31 00:00:00

Last Modified: 2026-03-04

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