NASA's $205.5M contract for launch vehicle stages adapter awarded to Teledyne Brown Engineering

Contract Overview

Contract Amount: $205,530,182 ($205.5M)

Contractor: Teledyne Brown Engineering, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2014-02-01

End Date: 2027-09-30

Contract Duration: 4,989 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF LAUNCH VEHICLE/STAGES ADAPTER

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $205.5 million to TELEDYNE BROWN ENGINEERING, INC. for work described as: IGF::OT::IGF LAUNCH VEHICLE/STAGES ADAPTER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial, spanning over 12 years, indicating a long-term need. 4. The contract is for Research and Development in Physical, Engineering, and Life Sciences, a critical area for NASA. 5. The contract is geographically concentrated in Alabama, potentially benefiting the local economy. 6. The contract is not set aside for small businesses, meaning larger firms are the primary recipients.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable R&D contracts. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's costs plus a fixed fee, which can incentivize cost control but also carries risks of cost escalation if initial estimates are inaccurate or scope changes. The total value of $205.5 million over nearly 13 years suggests a significant investment in a specialized area.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this specialized R&D requirement. While competition is generally positive for price discovery, the specific nature of advanced R&D can sometimes limit the number of qualified bidders.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

The primary beneficiary is NASA, which will receive the developed launch vehicle stages adapter for its space exploration missions. This contract supports advanced research and development in aerospace engineering, pushing technological boundaries. The geographic impact is concentrated in Alabama, where Teledyne Brown Engineering is located, potentially creating or sustaining high-skilled jobs. The successful development of this component could contribute to the success of future NASA missions and the broader U.S. space program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can be susceptible to cost overruns if not rigorously managed.
  • Long contract durations (nearly 13 years) increase the risk of scope creep or evolving technological requirements.
  • Limited competition (3 bidders) for specialized R&D may indicate higher potential costs than in more commoditized markets.

Positive Signals

  • Awarded through full and open competition, maximizing potential bidder pool.
  • Contract supports critical R&D for NASA's space exploration objectives.
  • Concentration in Alabama may provide economic benefits to a specific region.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development for launch vehicle components. The market for such specialized R&D is often characterized by a limited number of highly skilled contractors capable of meeting stringent requirements. NASA's spending in this area is crucial for maintaining technological leadership in space exploration. Comparable spending benchmarks are difficult to ascertain due to the unique nature of launch vehicle development.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contract value will flow to the large prime contractor, Teledyne Brown Engineering. The impact on the small business ecosystem is likely minimal unless Teledyne Brown Engineering voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by NASA's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • NASA Launch Services Program
  • Space Launch System (SLS) Development
  • Commercial Crew Program
  • Advanced Space Technology Research

Risk Flags

  • Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
  • Long contract duration increases risk of technological obsolescence or scope creep.
  • Limited number of bidders (3) may indicate specialized requirements that could impact price.
  • R&D contracts can be subject to unforeseen technical challenges.

Tags

nasa, research-and-development, aerospace, launch-vehicle, cost-plus-fixed-fee, full-and-open-competition, alabama, teledyne-brown-engineering, long-term-contract, prime-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $205.5 million to TELEDYNE BROWN ENGINEERING, INC.. IGF::OT::IGF LAUNCH VEHICLE/STAGES ADAPTER

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 $205.5 million.

What is the period of performance?

Start: 2014-02-01. End: 2027-09-30.

What is the historical performance of Teledyne Brown Engineering with NASA contracts?

Teledyne Brown Engineering has a history of working with NASA, particularly in areas related to space systems engineering and integration. Their experience often involves complex projects requiring specialized technical expertise. While specific performance metrics for past contracts are not detailed here, their continued selection for significant R&D work suggests a generally satisfactory track record with the agency. A deeper dive into past contract performance reviews, award fees, and any past performance issues would provide a more comprehensive assessment of their reliability and capability for this specific launch vehicle adapter contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to other NASA R&D contracts?

Cost Plus Fixed Fee (CPFF) is a common contract type for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation is a primary goal. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can be more expensive for the government if costs escalate beyond initial projections. NASA utilizes CPFF frequently for advanced R&D, but also employs other types like Cost Plus Incentive Fee (CPIF) or firm-fixed-price for more defined scopes. The appropriateness of CPFF here depends on the inherent uncertainties in developing a novel launch vehicle adapter.

What are the key risks associated with this specific contract's duration and R&D focus?

The primary risks associated with this nearly 13-year R&D contract are technological obsolescence and cost overruns. Developing a launch vehicle adapter involves cutting-edge engineering, and over such a long period, new technologies could emerge that render the current approach outdated or less efficient. Furthermore, the CPFF structure, while providing flexibility, inherently carries the risk of cost escalation if development challenges prove more complex or time-consuming than anticipated. Scope creep, where requirements expand beyond the original intent, is another significant risk over an extended R&D timeline. Rigorous program management and regular reviews are crucial to mitigate these risks.

What is the estimated value of the fixed fee component within the total contract value?

The provided data does not explicitly state the fixed fee amount or percentage. In a Cost Plus Fixed Fee (CPFF) contract, the total contract value is the sum of the estimated cost of performance and the fixed fee. The fixed fee is negotiated upfront and remains constant regardless of the final cost incurred by the contractor, provided the scope of work is met. To determine the fee's value, one would need access to the contract's negotiated terms, which typically detail the fee as a percentage of the estimated cost or a specific dollar amount. Without this, it's impossible to quantify the fee component of the $205.5 million total.

How does the $205.5 million total obligation compare to NASA's annual R&D spending?

NASA's annual budget for Research, Development, Test, and Evaluation (RDT&E) typically ranges in the tens of billions of dollars. For example, in recent fiscal years, NASA's RDT&E appropriations have often exceeded $10 billion annually. Therefore, the $205.5 million total obligation for this specific launch vehicle adapter contract, spread over nearly 13 years, represents a relatively small fraction of NASA's overall R&D investment in any given year. It signifies a focused, long-term investment in a critical component rather than a massive, broad-based expenditure.

What are the implications of the contract being awarded in Alabama for federal R&D investment distribution?

The award of this $205.5 million contract to Teledyne Brown Engineering in Alabama signifies a significant federal R&D investment concentrated in that state. While NASA conducts research across various institutions and locations nationwide, major prime contracts like this can have a substantial economic impact on the region where the contractor is based. This includes job creation, technology development, and potential spin-off opportunities. It highlights how federal R&D funding, while driven by program needs, can also influence the geographic distribution of scientific and engineering capabilities within the United States.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Teledyne Technologies Incorporated

Address: 300 SPARKMAN DR NW, HUNTSVILLE, AL, 35805

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: $228,301,313

Exercised Options: $222,990,182

Current Obligation: $205,530,182

Actual Outlays: $104,702,986

Subaward Activity

Number of Subawards: 424

Total Subaward Amount: $60,289,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNM13AA35C

IDV Type: IDC

Timeline

Start Date: 2014-02-01

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2026-04-08

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