NASA Awards L3Harris $32.8M for Telescope Development, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $32,764,930 ($32.8M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-03-19
End Date: 2024-08-23
Contract Duration: 1,618 days
Daily Burn Rate: $20.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS CONTRACT IS TO ACQUIRE ONE TELESCOPE STRUCTURAL/THERMAL MODEL (STM) AND TWO ENGINEERING DEVELOPMENT UNIT (EDU) TELESCOPES. THE CONTRACTOR SHALL DESIGN, FABRICATE, ALIGN, TEST, VERIFY PER APPROVED PLAN AND DELIVER A STM AND TWO EDU TELESCOPES.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14624
State: New York Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $32.8 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THIS CONTRACT IS TO ACQUIRE ONE TELESCOPE STRUCTURAL/THERMAL MODEL (STM) AND TWO ENGINEERING DEVELOPMENT UNIT (EDU) TELESCOPES. THE CONTRACTOR SHALL DESIGN, FABRICATE, ALIGN, TEST, VERIFY PER APPROVED PLAN AND DELIVER A STM AND TWO EDU TELESCOPES. Key points: 1. The contract focuses on acquiring a structural/thermal model and two engineering development unit telescopes. 2. L3Harris Technologies, Inc. is the sole contractor for this complex optical instrument manufacturing. 3. The project spans over four years, indicating a significant investment in advanced telescope technology. 4. While competition is noted as 'full and open', the specific award details suggest a single prime contractor.
Value Assessment
Rating: questionable
The total award value is $32.8 million. Without specific per-unit cost data or benchmarks for similar advanced telescope models, it's difficult to definitively assess pricing. However, the complexity and custom nature of these components suggest high development costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the data does not specify the number of bids received or the evaluation process, making it hard to determine the extent of price discovery achieved.
Taxpayer Impact: Taxpayer funds are being used for the development of advanced telescope components, which could lead to significant scientific advancements but also carries the risk of cost overruns if not managed effectively.
Public Impact
Development of advanced telescope technology for potential scientific research and space exploration. Investment in specialized manufacturing capabilities for complex optical instruments. Potential for job creation within the aerospace and defense sector. Long-term project duration may indicate the intricate nature of the development process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration (1618 days) increases risk of scope creep and cost escalation.
- No small business participation noted, potentially missing opportunities for smaller innovative firms.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Contract is for critical telescope components, supporting potential scientific or defense objectives.
- Clear definition of deliverables (STM and two EDU telescopes).
Sector Analysis
This contract falls under the Optical Instrument and Lens Manufacturing sector, a specialized area within advanced manufacturing. Spending in this sector is often driven by government research, defense, and space exploration initiatives, characterized by high R&D costs and long development cycles.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This suggests that the prime contractor, L3Harris Technologies, Inc., is a large business, and opportunities for subcontracting to small businesses were either not pursued or not specified in the award details.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), which typically has robust oversight mechanisms for its procurements. However, the specific oversight activities and accountability measures for this particular contract are not detailed in the provided data.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases risk of schedule delays and cost escalation.
- Lack of specific performance metrics and penalties.
- No indication of small business subcontracting.
- Potential for scope creep given the developmental nature of the project.
Tags
optical-instrument-and-lens-manufacturin, national-aeronautics-and-space-administr, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $32.8 million to L3HARRIS TECHNOLOGIES, INC.. THIS CONTRACT IS TO ACQUIRE ONE TELESCOPE STRUCTURAL/THERMAL MODEL (STM) AND TWO ENGINEERING DEVELOPMENT UNIT (EDU) TELESCOPES. THE CONTRACTOR SHALL DESIGN, FABRICATE, ALIGN, TEST, VERIFY PER APPROVED PLAN AND DELIVER A STM AND TWO EDU TELESCOPES.
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, 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 $32.8 million.
What is the period of performance?
Start: 2020-03-19. End: 2024-08-23.
What is the projected cost per telescope unit, and how does it compare to industry benchmarks for similar advanced optical instruments?
The provided data does not offer a per-unit cost breakdown for the telescopes. The total award is $32.8 million for one STM and two EDU telescopes. Benchmarking is difficult without more specific technical details and market comparisons for custom-built, high-precision optical systems of this nature.
What are the key performance indicators (KPIs) and milestones for this contract, and what are the penalties or incentives tied to them?
The data specifies the deliverables (STM and two EDU telescopes) and the contract duration (1618 days). However, it does not detail specific KPIs, interim milestones, or the associated financial incentives or penalties. Understanding these would be crucial for assessing performance risk and contractor accountability.
How will the effectiveness of the delivered telescopes be measured, particularly in terms of their scientific or operational utility?
The contract mandates design, fabrication, alignment, testing, and verification per approved plans. While this ensures technical compliance, the ultimate effectiveness will be judged by their performance in their intended application, likely scientific observation or space missions. The data lacks details on post-delivery performance validation or mission success metrics.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC19R0032
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 400 INITIATIVE DR, ROCHESTER, NY, 14606
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,904,485
Exercised Options: $32,904,485
Current Obligation: $32,764,930
Actual Outlays: $32,653,698
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $3,055,752
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-19
Current End Date: 2024-08-23
Potential End Date: 2024-08-23 00:00:00
Last Modified: 2025-04-02
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