NASA's Space Shuttle Solid Rocket Motors Contract Reached $4.09 Billion Over 14 Years, Awarded Sole-Source
Contract Overview
Contract Amount: $4,091,578,203 ($4.1B)
Contractor: ATK Launch Systems LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-08-19
End Date: 2013-09-30
Contract Duration: 5,156 days
Daily Burn Rate: $793.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: SPACE SHUTTLE REUSABLE SOLID ROCKET MOTORS
Place of Performance
Location: BRIGHAM CITY, BOX ELDER County, UTAH, 84302, UNITED STATES OF AMERICA
State: Utah Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.09 billion to ATK LAUNCH SYSTEMS LLC for work described as: SPACE SHUTTLE REUSABLE SOLID ROCKET MOTORS Key points: 1. The contract for Space Shuttle Reusable Solid Rocket Motors was a significant expenditure of over $4 billion. 2. ATK Launch Systems LLC was the sole provider, indicating a lack of competition. 3. The long duration (1999-2013) and cost-plus award fee structure may have limited cost control. 4. The sector is primarily aerospace manufacturing, specifically propulsion systems.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee (CPAF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts. Without competitive bidding, it's difficult to benchmark pricing against alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning ATK Launch Systems LLC was the only provider. This lack of competition likely resulted in higher prices than if multiple vendors had vied for the contract, as there was no market pressure to reduce costs.
Taxpayer Impact: Taxpayers bore the full cost of this sole-source contract, with no competitive savings realized.
Public Impact
The Space Shuttle program was a cornerstone of US space exploration for decades. The reliability and performance of these rocket motors were critical for mission success and astronaut safety. This contract represents a substantial investment in national space capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Cost-plus structure may incentivize higher spending.
- Long contract duration without competition.
Positive Signals
- Critical component for a major national program.
- Ensured continued operation of the Space Shuttle.
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on propulsion systems for launch vehicles. Spending benchmarks for such specialized, mission-critical components are difficult to establish due to their unique nature and limited market.
Small Business Impact
There is no indication that small businesses were involved as subcontractors or partners in this contract. The award was made directly to a large corporation, ATK Launch Systems LLC.
Oversight & Accountability
The contract was managed by NASA. Oversight would have focused on performance, safety, and adherence to the cost-plus award fee structure, but the lack of competition limits the effectiveness of price oversight.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competitive pricing
- Long contract duration
Tags
guided-missile-and-space-vehicle-propuls, national-aeronautics-and-space-administr, ut, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.09 billion to ATK LAUNCH SYSTEMS LLC. SPACE SHUTTLE REUSABLE SOLID ROCKET MOTORS
Who is the contractor on this award?
The obligated recipient is ATK LAUNCH SYSTEMS LLC.
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 $4.09 billion.
What is the period of performance?
Start: 1999-08-19. End: 2013-09-30.
What was the rationale for awarding this contract sole-source, given the significant cost?
The sole-source award was likely due to the highly specialized nature of the reusable solid rocket motors and ATK's unique expertise and existing infrastructure developed from the Space Shuttle program. NASA may have determined that re-competition would be prohibitively expensive or time-consuming, potentially delaying critical missions or requiring significant investment in new capabilities.
How did the Cost Plus Award Fee structure impact overall spending compared to a fixed-price contract?
The Cost Plus Award Fee (CPAF) structure allowed ATK to recover all allowable costs plus a fee that was adjusted based on performance. While intended to incentivize good performance, it inherently carries more risk of cost overruns than a fixed-price contract. Without competitive pressure, the 'award' component might not have been as effective in driving down costs, potentially leading to higher overall spending than a competitively bid fixed-price contract.
What was the long-term impact of this contract on NASA's budget and future propulsion development?
This contract represented a substantial, long-term financial commitment to maintaining the Space Shuttle fleet. The sole-source nature and CPAF structure likely contributed to higher-than-necessary costs. It may have also discouraged the development of alternative, potentially more cost-effective propulsion technologies by locking NASA into a single provider for an extended period.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 9160 NORTH HIGHWAY 83, CORINNE, UT, 84307
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,147,495,686
Exercised Options: $4,147,495,686
Current Obligation: $4,091,578,203
Timeline
Start Date: 1999-08-19
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2017-05-18
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