DoD's $28M JETSON contract for on-orbit nuclear power R&D awarded to Westinghouse

Contract Overview

Contract Amount: $28,055,039 ($28.1M)

Contractor: Westinghouse Government Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2026-03-30

Contract Duration: 913 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON)

Place of Performance

Location: HOPKINS, RICHLAND County, SOUTH CAROLINA, 29061

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to WESTINGHOUSE GOVERNMENT SERVICES LLC for work described as: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) Key points: 1. Contract focuses on cutting-edge research and development for a novel application of nuclear power. 2. Awarded through full and open competition, suggesting a broad search for qualified contractors. 3. The contract type (Cost Plus Fixed Fee) is common for R&D where costs are uncertain. 4. Performance period extends over 2.5 years, allowing for substantial research progress. 5. The R&D NAICS code (541715) indicates a focus on physical and engineering sciences. 6. The contract is not set aside for small businesses, indicating a focus on large, specialized firms.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its highly specialized and emergent nature. The $28 million award over approximately 2.5 years suggests a significant investment in exploring a novel technology. Without comparable contracts for on-orbit nuclear power systems, a direct value-for-money assessment is difficult. However, the Cost Plus Fixed Fee structure implies that the government will reimburse allowable costs plus a negotiated fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some incentive for the contractor to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of the Air Force sought proposals from all responsible sources. This approach is generally preferred as it maximizes the pool of potential offerors and is expected to foster competitive pricing. The number of bids received (2) is on the lower side for full and open competition, which might warrant further investigation into market dynamics or the highly specialized nature of the requirement.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging a wider range of solutions and potentially more competitive pricing than a sole-source award.

Public Impact

This contract supports the development of advanced technologies for national security applications, potentially enhancing space-based capabilities. The research aims to enable new operational concepts for Department of Defense missions in space. Successful development could lead to advancements in power generation for future space platforms. The project is located in South Carolina, potentially creating specialized R&D jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher final costs than fixed-price contracts if not managed diligently.
The limited number of bidders (2) in a full and open competition could indicate a niche market or high barriers to entry, potentially limiting price competition.
The emergent nature of the technology means that cost and schedule risks are inherently high.

Positive Signals

Awarded through full and open competition, maximizing the opportunity for diverse technical approaches.
The contract is for research and development, indicating a forward-looking investment in critical technologies.
The fixed fee component of the contract provides a defined profit margin, offering some cost predictability.

Sector Analysis

The Research and Development sector, specifically NAICS code 541715, encompasses a broad range of scientific and technical services. This contract falls within the defense R&D sub-sector, focusing on advanced technologies for space applications. The market for specialized space technology R&D is often characterized by a limited number of highly capable contractors, government funding, and long development cycles. Comparable spending in this niche area is difficult to pinpoint without more specific details on the technology's maturity and application.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The nature of developing emergent technologies like on-orbit nuclear power typically requires significant resources, specialized expertise, and established infrastructure, which often favors larger, prime contractors. This suggests that the primary focus is on securing the most capable entity for this complex R&D effort.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing of incurred costs will be crucial. The contract's performance will be monitored against defined milestones and deliverables. Transparency regarding research progress and expenditures will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure where appropriate.

Related Government Programs

Advanced Space Technology Research
Nuclear Propulsion Development
Department of Defense Research and Development Programs
On-Orbit Systems Engineering

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technological Feasibility Risk (Emergent Technology)
Safety and Regulatory Risk (Nuclear Materials in Space)
Limited Competition Pool (2 Bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to WESTINGHOUSE GOVERNMENT SERVICES LLC. JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON)

Who is the contractor on this award?

The obligated recipient is WESTINGHOUSE GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $28.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-03-30.

What is the specific technological objective of the JETSON contract?

The JETSON (JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER) contract aims to research and develop technologies necessary for supplying nuclear power on-orbit. While the provided data does not detail the specific technological breakthroughs sought, the objective is to enable the use of nuclear power sources for Department of Defense (DoD) space assets. This could involve developing compact, safe, and reliable nuclear reactors suitable for space environments, along with the associated power conversion and thermal management systems. The research is critical for future DoD space missions that may require sustained, high-power generation capabilities beyond what is achievable with solar or other conventional power sources.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development projects where the scope of work and final costs are inherently uncertain. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred during the performance of the contract, plus a fixed fee representing the contractor's profit. This structure incentivizes the contractor to control costs because the fee remains constant regardless of the actual costs incurred. However, it also places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. Effective oversight is crucial to prevent cost overruns and ensure value for taxpayer money.

What are the potential risks associated with developing on-orbit nuclear power systems?

Developing on-orbit nuclear power systems presents several significant risks. Firstly, there are inherent safety concerns related to launching and operating nuclear materials in space, requiring stringent safety protocols and containment measures to prevent accidents or radioactive contamination. Secondly, the technological challenges are immense, involving miniaturization, radiation shielding, thermal management in a vacuum, and long-term reliability in harsh space environments. Thirdly, the cost of development and deployment is likely to be very high, given the complexity and specialized nature of the technology. Finally, there are regulatory and political hurdles, as international agreements and public perception surrounding space-based nuclear power can be sensitive.

What is the significance of awarding this contract to Westinghouse Government Services LLC?

Westinghouse Government Services LLC is a subsidiary of Westinghouse Electric Company, a company with a long history and extensive expertise in nuclear technology, including power generation and naval reactors. Awarding the JETSON contract to Westinghouse suggests that the Department of the Air Force identified them as having the requisite technical capabilities, experience, and infrastructure to undertake this highly specialized and complex research and development effort. Their established track record in nuclear engineering provides a degree of confidence in their ability to tackle the unique challenges associated with developing on-orbit nuclear power systems.

How does the $28 million funding compare to typical R&D spending in advanced space technologies?

The $28 million awarded for the JETSON contract represents a substantial investment for a single R&D project, particularly one focused on emergent technology. While it's difficult to provide precise benchmarks without knowing the specific technological maturity and scope, R&D funding for advanced space technologies can vary widely. Early-stage conceptual research might receive less, while programs aiming for prototype development or system integration could command significantly more. Given the complexity and novelty of on-orbit nuclear power, $28 million over approximately 2.5 years suggests a significant commitment to exploring feasibility and developing foundational technologies, placing it within the upper range for initial R&D phases in highly specialized defense space initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: FA945321S0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5801 BLUFF RD, HOPKINS, SC, 29061

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,055,039

Exercised Options: $28,055,039

Current Obligation: $28,055,039

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline