NASA's $209M Spacecraft Acquisition Contract to BAE Systems: A 17-Year R&D Endeavor
Contract Overview
Contract Amount: $209,456,375 ($209.5M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-02-15
End Date: 2017-03-06
Contract Duration: 6,229 days
Daily Burn Rate: $33.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: RAPID SPACECRAFT ACQUISITION MASTER CONTRACT
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $209.5 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: RAPID SPACECRAFT ACQUISITION MASTER CONTRACT Key points: 1. This contract represents a significant, long-term investment in research and development for spacecraft. 2. The duration of the contract (over 16 years) suggests a focus on complex, evolving technological needs. 3. A firm-fixed-price structure indicates that cost risks were largely borne by the contractor. 4. The contract was awarded through full and open competition, implying a robust selection process. 5. The broad NAICS code (541710) covers a wide range of physical, engineering, and life sciences R&D. 6. The contract's completion date in 2017 suggests it may be a precursor to newer acquisition strategies. 7. The absence of small business set-asides warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its long duration and specialized R&D nature. The total obligated amount of over $209 million spread across more than 16 years averages to approximately $13 million annually, which could be considered reasonable for complex spacecraft development. However, without specific deliverables or comparable contracts for similar spacecraft R&D, a definitive value-for-money assessment is difficult. The firm-fixed-price contract type suggests that the government aimed to control costs, but the long performance period could introduce risks if initial cost estimates were not robust.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 6 bids suggests a competitive environment, which typically leads to better pricing and innovation. The specific number of bidders (6) provides a reasonable level of competition, allowing NASA to select the most advantageous offer based on technical merit and price. This approach generally serves taxpayer interests by fostering a market where contractors vie for government business.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to innovate and offer competitive solutions.
Public Impact
The primary beneficiaries are likely NASA's scientific and exploration missions requiring advanced spacecraft. Services delivered include research and development related to the physical, engineering, and life sciences for spacecraft. The geographic impact is primarily centered around the contractor's facilities in Colorado, but the ultimate impact is global through space exploration. Workforce implications include highly skilled R&D personnel in aerospace engineering, physics, and related scientific fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may obscure potential cost overruns or scope creep if not managed tightly.
- Lack of specific small business participation noted, raising questions about broader economic impact.
- Firm-fixed-price over a long period could lead to contractor challenges if unforeseen technical hurdles arise.
Positive Signals
- Awarded through full and open competition, ensuring a broad selection of potential providers.
- Firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from overspending.
- Long-term nature suggests a strategic commitment to critical R&D needs for NASA.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development for spacecraft. The market for spacecraft development is highly specialized, involving a limited number of prime contractors capable of undertaking such complex projects. NASA's spending in this area is crucial for advancing space exploration, scientific research, and national security. Comparable spending benchmarks would typically involve other large-scale R&D contracts for satellite systems, launch vehicles, or deep-space probes, often running into hundreds of millions or billions of dollars over their lifecycles.
Small Business Impact
The data indicates that this contract did not have a specific small business set-aside. Furthermore, the 'sb' field is false, suggesting no explicit small business participation goals were mandated at the prime contract level. This raises questions about the extent of small business involvement through subcontracting. While large prime contracts can offer subcontracting opportunities, the absence of a direct set-aside means small businesses had to compete for these lower-tier roles, potentially limiting their direct access to this significant federal funding.
Oversight & Accountability
Oversight for this contract would have been managed by the National Aeronautics and Space Administration (NASA). As a definitive contract awarded under full and open competition, it would be subject to standard contract administration processes, including performance monitoring, financial reviews, and compliance checks. Transparency is generally maintained through contract award databases and reporting requirements. NASA's Office of Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Space Launch System (SLS)
- Commercial Crew Program
- James Webb Space Telescope
- Mars Exploration Program
- Small Business Innovation Research (SBIR) Program
Risk Flags
- Long contract duration may indicate potential for scope creep or cost escalation if not managed proactively.
- Lack of explicit small business participation goals warrants scrutiny of subcontracting opportunities.
- Firm-fixed-price structure over an extended period could pose challenges if unforeseen technical or market changes occur.
Tags
nasa, aerospace, research-and-development, spacecraft, baesystems, definitive-contract, firm-fixed-price, full-and-open-competition, colorado, large-contract, long-term-contract, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $209.5 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. RAPID SPACECRAFT ACQUISITION MASTER CONTRACT
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS 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 $209.5 million.
What is the period of performance?
Start: 2000-02-15. End: 2017-03-06.
What was the specific technological focus of the 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT' awarded to BAE Systems?
The contract, 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT,' awarded to BAE Systems Space & Mission Systems Inc. by NASA, was primarily focused on Research and Development (R&D) in the Physical, Engineering, and Life Sciences, as indicated by the NAICS code 541710. While the contract title suggests a focus on rapid acquisition, the long performance period (February 15, 2000, to March 6, 2017) implies a strategic, long-term R&D effort rather than immediate off-the-shelf procurement. Specific details regarding the exact spacecraft technologies developed or researched under this master contract would typically be found in the detailed statements of work and technical reports associated with individual task orders issued against the contract. These could range from propulsion systems, life support, advanced materials, sensor technology, to guidance and control systems for various space missions.
How does the $209 million total value compare to other NASA spacecraft R&D contracts of similar duration?
Comparing the $209 million total value of the 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT' to other NASA spacecraft R&D contracts of similar duration (over 16 years) is complex without specific comparable data. However, on an annualized basis, the contract averaged approximately $13 million per year. This figure can be considered moderate to significant for specialized R&D. For context, major NASA programs like the James Webb Space Telescope or the development of the Space Launch System (SLS) involved costs in the billions of dollars, but these were often for specific, large-scale mission hardware rather than a master R&D contract. Smaller, more focused R&D efforts or contracts for specific subsystems might fall within a lower range. The 'RAPID' nature in the title, contrasted with the long duration, suggests it might have been an umbrella contract to facilitate various R&D efforts efficiently.
What were the key performance indicators (KPIs) or success metrics used to evaluate BAE Systems' performance under this contract?
The specific Key Performance Indicators (KPIs) or success metrics for the 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT' are not detailed in the provided summary data. Typically, for R&D contracts, especially those awarded as firm-fixed-price, performance is evaluated against milestones outlined in task orders, adherence to technical specifications, timely delivery of research findings or prototypes, and overall innovation. NASA's contract officers and technical monitors would have been responsible for assessing BAE Systems' progress. Success might be measured by the successful development of new technologies, the validation of research hypotheses, the ability to transition R&D outcomes into subsequent acquisition programs, or the cost-effectiveness of the research conducted relative to the initial estimates.
Given the contract's completion in 2017, what has been NASA's subsequent approach to spacecraft acquisition and R&D?
Following the completion of contracts like the 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT' in 2017, NASA has continued to evolve its spacecraft acquisition and R&D strategies. There has been an increasing emphasis on commercial partnerships, leveraging the capabilities of the private sector through programs like the Commercial Lunar Payload Services (CLPS) and Commercial Lunar Payload Services (CLPS). NASA also continues to invest in advanced R&D through various mechanisms, including grants, other large-scale development contracts, and internal research efforts. The agency aims for more agile acquisition processes, often utilizing modular architectures and fostering competition for different mission elements. The focus remains on developing cutting-edge technologies for exploration, science, and human spaceflight, adapting to new technological advancements and budget realities.
What is the significance of the 'Master Contract' designation in the context of this award?
The designation 'Master Contract' in 'RAPID SPACECRAFT ACQUISITION MASTER CONTRACT' typically signifies an indefinite-delivery/indefinite-quantity (IDIQ) or a similar type of contract vehicle designed to streamline the procurement of a broad range of goods or services over a period. In this case, it suggests that BAE Systems was selected as a prime contractor capable of fulfilling various future spacecraft-related R&D needs for NASA. Instead of competing each individual R&D project separately, NASA could issue task orders against this master contract. This approach allows for faster acquisition of necessary research and development, potentially reduces administrative burden, and establishes a pre-vetted relationship with a capable contractor, fostering continuity and expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Ball Corp
Address: 1600 COMMERCE ST, BOULDER, CO, 80301
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,500,000,000
Exercised Options: $209,456,375
Current Obligation: $209,456,375
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2000-02-15
Current End Date: 2017-03-06
Potential End Date: 2017-03-06 00:00:00
Last Modified: 2022-04-05
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