NASA to Procure 10 RL10 Engines for SLS Missions from Aerojet Rocketdyne for $285M
Contract Overview
Contract Amount: $285,094,371 ($285.1M)
Contractor: Aerojet Rocketdyne, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2016-04-01
End Date: 2028-12-31
Contract Duration: 4,657 days
Daily Burn Rate: $61.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: EXPLORATION UPPER STAGE ENGINES MSFC WILL PROCURE TEN (10) RL10 FLIGHT ENGINES FROM AEROJET ROCKETDYNE, INC. TO SUPPORT THE SPACE LAUNCH SYSTEM (SLS) EXPLORATION MISSIONS 2 AND 3 (EM-2 AND EM-3). EACH FLIGHT WILL REQUIRE A FOUR (4) ENGINE CLUSTER. ADDITIONALLY, TWO (2) SPARE ENGINES WILL BE PROCURED. CORRESPONDING TO THESE SPECIFIC RL10 ENGINES, NASA MSFC WILL PROCURE VEHICLE AND PROGRAM INTEGRATION SUPPORT, FLIGHT SUPPORT, AND HUMAN RATING COMPLIANCE REVIEW SUPPORT.
Place of Performance
Location: JUPITER, PALM BEACH County, FLORIDA, 33478
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $285.1 million to AEROJET ROCKETDYNE, INC. for work described as: EXPLORATION UPPER STAGE ENGINES MSFC WILL PROCURE TEN (10) RL10 FLIGHT ENGINES FROM AEROJET ROCKETDYNE, INC. TO SUPPORT THE SPACE LAUNCH SYSTEM (SLS) EXPLORATION MISSIONS 2 AND 3 (EM-2 AND EM-3). EACH FLIGHT WILL REQUIRE A FOUR (4) ENGINE CLUSTER. ADDITIONALLY, TWO (2) SPARE ENG… Key points: 1. Sole-source procurement of critical RL10 engines for high-profile NASA missions. 2. Aerojet Rocketdyne is the sole provider, raising competition concerns. 3. Significant taxpayer investment in space exploration technology. 4. R&D sector spending focused on advanced propulsion systems.
Value Assessment
Rating: questionable
The contract value of $285M for 10 engines and associated support appears high, especially given the sole-source nature. Benchmarking against similar advanced rocket engine procurements is difficult due to limited public data and the specialized nature of the RL10.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Aerojet Rocketdyne, Inc. This lack of competition likely resulted in higher pricing than could have been achieved through a competitive bidding process.
Taxpayer Impact: Taxpayers are funding a critical component for NASA's ambitious space exploration goals, but the absence of competition may lead to a less cost-effective outcome.
Public Impact
Enables critical deep space missions like Exploration Missions 2 and 3. Supports the development and operation of the Space Launch System (SLS). Invests in advanced rocket engine technology with potential dual-use applications. Highlights NASA's reliance on specialized, high-cost components for space exploration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- High contract value
- Lack of transparency in pricing
- Long contract duration
Positive Signals
- Critical technology for national space program
- Supports high-profile NASA missions
- Potential for technological advancement
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector. Spending in this area is often characterized by high costs, long development cycles, and specialized expertise, with benchmarks difficult to establish due to unique project requirements.
Small Business Impact
There is no indication that small businesses are involved in this specific procurement. The contract is awarded directly to a large aerospace company, Aerojet Rocketdyne, Inc., suggesting limited opportunities for small business participation at this prime contract level.
Oversight & Accountability
The contract is managed by NASA's Marshall Space Flight Center (MSFC). Oversight will likely focus on technical performance, schedule adherence, and cost control, particularly given the cost-plus award fee structure and the critical nature of the engines.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- High contract value requires careful cost management and oversight.
- Long contract duration increases exposure to market and technological changes.
- Reliance on a single supplier creates supply chain risk.
- Cost Plus Award Fee structure can incentivize cost growth if not managed tightly.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $285.1 million to AEROJET ROCKETDYNE, INC.. EXPLORATION UPPER STAGE ENGINES MSFC WILL PROCURE TEN (10) RL10 FLIGHT ENGINES FROM AEROJET ROCKETDYNE, INC. TO SUPPORT THE SPACE LAUNCH SYSTEM (SLS) EXPLORATION MISSIONS 2 AND 3 (EM-2 AND EM-3). EACH FLIGHT WILL REQUIRE A FOUR (4) ENGINE CLUSTER. ADDITIONALLY, TWO (2) SPARE ENGINES WILL BE PROCURED. CORRESPONDING TO THESE SPECIFIC RL10 ENGINES, NASA MSFC WILL PROCURE VEHICLE AND PROGRAM INTEGRATION SUPPORT, FLIGHT SUPPORT, AND HUMAN RATING COMPLIANCE REVIEW SUPPORT.
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 $285.1 million.
What is the period of performance?
Start: 2016-04-01. End: 2028-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from a lack of viable alternatives or unique capabilities held by a single provider. NASA would need to demonstrate that Aerojet Rocketdyne, Inc. is the only source capable of meeting the technical requirements for the RL10 engines. To ensure fair and reasonable pricing, NASA would likely conduct a thorough cost and price analysis, potentially including negotiation and review of the contractor's cost data.
How does the per-unit cost of these RL10 engines compare to historical procurements or similar engines from other sources?
Direct comparison is challenging due to the specialized nature of the RL10 engines and the sole-source award. Historical data for identical RL10 flight engines procured under competitive conditions is scarce. Without competitive bids, establishing a precise benchmark is difficult. However, the overall contract value of $285M for 10 engines and support suggests a significant investment per unit, warranting scrutiny.
What are the potential risks associated with relying on a single supplier for such critical space mission components?
The primary risk is the lack of competition, which can lead to inflated costs and reduced incentive for innovation or efficiency. Supply chain disruptions, production issues, or the supplier's financial stability become critical vulnerabilities. Furthermore, NASA has limited leverage if performance issues arise, potentially delaying crucial missions and increasing overall program costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NNM16580708R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 15270 ENDEAVOR DR, JUPITER, FL, 33478
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $304,184,935
Exercised Options: $303,820,257
Current Obligation: $285,094,371
Actual Outlays: $175,835,615
Subaward Activity
Number of Subawards: 140
Total Subaward Amount: $36,403,297
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-04-01
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-31
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