NASA awards $23.1M for A-3 Test Stand Diffuser, completing a decade-long construction project
Contract Overview
Contract Amount: $23,122,702 ($23.1M)
Contractor: American Tank & Vessel Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-02-03
End Date: 2011-11-04
Contract Duration: 1,004 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: A-3 TEST STAND, TEST CELL DIFFUSER IN ACCORDANCE WITH THE ABOVE CONTRACT, CONTRACTOR SHALL PROVIDE BID ITEM 0002 OF THE BASIC CONTRACT ENTITLED A3 TEST STAND TEST CELL AND DIFFUSER IN ACCORDANCE WITH THE SPECIFICATIONS AND DRAWINGS IN SECTION J. WORK SHALL BE COMPLETED WITHIN 540 CALENDAR DAYS AFTER RECEPIT OF THE NOTICE TO PROCEED.
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $23.1 million to AMERICAN TANK & VESSEL INC for work described as: A-3 TEST STAND, TEST CELL DIFFUSER IN ACCORDANCE WITH THE ABOVE CONTRACT, CONTRACTOR SHALL PROVIDE BID ITEM 0002 OF THE BASIC CONTRACT ENTITLED A3 TEST STAND TEST CELL AND DIFFUSER IN ACCORDANCE WITH THE SPECIFICATIONS AND DRAWINGS IN SECTION J. WORK SHALL BE COMPLETED WITHIN 54… Key points: 1. The contract value represents a significant investment in specialized aerospace testing infrastructure. 2. Completion of the A-3 Test Stand Diffuser signifies a critical step in upgrading NASA's testing capabilities. 3. The project's duration and final cost should be analyzed against initial projections for efficiency. 4. Fixed-price contract type suggests cost certainty for the agency, shifting risk to the contractor. 5. The award to AMERICAN TANK & VESSEL INC warrants a review of their past performance on similar projects. 6. Geographic concentration in Mississippi highlights regional economic impact and specialized labor needs.
Value Assessment
Rating: fair
The total award of $23.1 million for the A-3 Test Stand Diffuser appears substantial, reflecting the specialized nature of aerospace testing equipment. Benchmarking this cost against similar large-scale industrial construction projects, particularly those involving unique testing facilities, is crucial. Without specific comparable data on test stand diffusers, a precise value-for-money assessment is difficult, but the scale suggests a significant investment. The firm fixed-price nature of the contract implies that the contractor bore the primary risk for cost overruns, which can be a positive indicator if the final price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 3 bidders suggests a reasonable level of competition for this specialized construction project. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. This approach ensures that the government receives the best possible value by considering all qualified sources.
Public Impact
The primary beneficiaries are NASA's research and development programs, which gain enhanced testing capabilities. The contract delivers a critical component for advanced aerospace testing, supporting innovation in flight technology. The project's geographic impact is concentrated in Mississippi, potentially creating specialized jobs and supporting local industry. Workforce implications include the need for skilled construction labor and specialized technicians for installation and operation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the 1004-day duration and the complexity of specialized construction.
- Ensuring the final delivered product meets all stringent NASA specifications for performance and safety.
- Assessing the long-term maintenance and operational costs associated with this specialized test equipment.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract type mitigates cost overrun risk for the government.
- The project addresses a critical need for advanced aerospace testing infrastructure.
Sector Analysis
This contract falls within the Industrial Building Construction sector, specifically for specialized aerospace testing facilities. The market for such bespoke infrastructure is niche, often dominated by a few experienced contractors capable of meeting stringent government specifications. Comparable spending benchmarks would likely involve other large-scale government construction projects or significant private sector investments in advanced manufacturing and testing capabilities. The scale of this award suggests it is a significant project within its specific sub-sector.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. While the prime contractor, AMERICAN TANK & VESSEL INC, may be a large business, the subcontracting opportunities for small businesses would depend on the contractor's own subcontracting plan. Further investigation into the contractor's subcontracting history and goals would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers. Given the nature of construction, regular site inspections and progress reviews would be standard oversight mechanisms. Accountability is established through the firm fixed-price contract terms, which penalize the contractor for deviations from scope or quality. Transparency would be facilitated through contract award databases and potentially public reports on project milestones, though detailed operational oversight information may be limited.
Related Government Programs
- NASA Research and Development Facilities
- Aerospace Testing Infrastructure
- Large-Scale Industrial Construction Contracts
- Federal Fixed-Price Contracts
Risk Flags
- Long contract duration may increase risk of cost escalation or performance issues.
- Specialized nature of the equipment requires stringent quality control and testing.
- Potential for schedule slippage in complex construction projects.
Tags
nasa, construction, industrial-building-construction, aerospace, full-and-open-competition, firm-fixed-price, large-contract, mississippi, test-stand, infrastructure, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $23.1 million to AMERICAN TANK & VESSEL INC. A-3 TEST STAND, TEST CELL DIFFUSER IN ACCORDANCE WITH THE ABOVE CONTRACT, CONTRACTOR SHALL PROVIDE BID ITEM 0002 OF THE BASIC CONTRACT ENTITLED A3 TEST STAND TEST CELL AND DIFFUSER IN ACCORDANCE WITH THE SPECIFICATIONS AND DRAWINGS IN SECTION J. WORK SHALL BE COMPLETED WITHIN 540 CALENDAR DAYS AFTER RECEPIT OF THE NOTICE TO PROCEED.
Who is the contractor on this award?
The obligated recipient is AMERICAN TANK & VESSEL 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 $23.1 million.
What is the period of performance?
Start: 2009-02-03. End: 2011-11-04.
What is the track record of AMERICAN TANK & VESSEL INC on similar large-scale industrial construction projects for government agencies?
A review of past performance for AMERICAN TANK & VESSEL INC on similar projects is essential. While this award is for $23.1 million, understanding their experience with projects of comparable complexity, scale, and technical requirements, particularly for aerospace or defense clients, would provide critical insight. Data on their on-time and on-budget completion rates, any past disputes or contract modifications, and client satisfaction feedback would help assess their capability to deliver on this NASA contract. Without specific historical data on their performance on analogous projects, it is difficult to definitively gauge their suitability beyond the fact that they were selected through full and open competition.
How does the final cost of $23.1 million compare to the initial estimated cost for the A-3 Test Stand Diffuser project?
The provided data does not include the initial estimated cost for the A-3 Test Stand Diffuser project, making a direct comparison to the final award amount of $23.1 million impossible. Understanding the initial budget projections is crucial for assessing whether the final cost represents good value or indicates potential cost growth during the procurement or execution phases. If the final award was significantly higher than initial estimates, it would warrant further investigation into the reasons, such as changes in scope, market conditions, or unforeseen technical challenges. Conversely, if the award was within initial estimates, it suggests effective planning and competitive pricing.
What were the key performance metrics and milestones established for this contract, and how were they measured?
The contract specifies a completion timeline of 540 calendar days after receipt of the Notice to Proceed, indicating a primary performance metric related to schedule adherence. However, the specific technical performance metrics and quality standards for the A-3 Test Stand Diffuser are detailed in Section J of the contract specifications and drawings, which are not provided here. These would likely include parameters related to airflow, pressure, structural integrity, and operational reliability. Measurement of these metrics would involve rigorous testing and inspection protocols conducted by NASA personnel throughout the construction and commissioning phases to ensure compliance with all technical requirements.
What is the historical spending pattern for similar test stand construction or upgrades at NASA facilities over the last five years?
Analyzing historical spending patterns for similar test stand construction or upgrades at NASA facilities over the last five years would provide valuable context for the $23.1 million award. This would involve identifying previous contracts for test stands, wind tunnels, engine test cells, or other specialized aerospace testing infrastructure. Examining the award amounts, contract types, durations, and competition levels of these past projects would help establish a benchmark for current spending. Significant deviations in cost, duration, or competition for the A-3 Test Stand Diffuser compared to historical trends could signal either exceptional value or potential areas of concern requiring further scrutiny.
What are the potential risks associated with the long duration (1004 days total contract period) and the firm fixed-price nature of this contract?
The long contract duration of 1004 days (from award to estimated completion) for the A-3 Test Stand Diffuser presents several potential risks. These include the possibility of material cost escalation over time, even with a fixed-price contract, if the contractor did not adequately account for inflation. There's also a risk of contractor performance degradation over an extended period, or potential changes in NASA's requirements that could lead to costly change orders. The firm fixed-price nature, while beneficial for cost certainty, shifts the risk of unforeseen technical challenges or cost overruns entirely to the contractor. If the contractor underestimated the complexity or encountered significant issues, they might face financial strain, potentially impacting project quality or leading to disputes.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNS08270186R
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1005 GOVERNMENT ST, MOBILE, AL, 02
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,122,702
Exercised Options: $23,122,702
Current Obligation: $23,122,702
Contract Characteristics
Multi-Year Contract: Yes
Parent Contract
Parent Award PIID: NNS09AA55B
IDV Type: IDC
Timeline
Start Date: 2009-02-03
Current End Date: 2011-11-04
Potential End Date: 2011-11-04 00:00:00
Last Modified: 2014-06-17
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