JWST Integrated Science Instrument Module contract awarded to ATK Space Systems for over $14.6 million
Contract Overview
Contract Amount: $14,643,625 ($14.6M)
Contractor: ATK Space Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2006-03-31
End Date: 2010-12-31
Contract Duration: 1,736 days
Daily Burn Rate: $8.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: JWST INTEGRATED SCIENCE INSTRUMENT MODULE
Place of Performance
Location: MAGNA, SALT LAKE County, UTAH, 84044
State: Utah Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $14.6 million to ATK SPACE SYSTEMS INC. for work described as: JWST INTEGRATED SCIENCE INSTRUMENT MODULE Key points: 1. Contract value represents a significant investment in a critical component of the James Webb Space Telescope. 2. Awarded as a sole-source contract, limiting opportunities for competitive pricing. 3. Performance period spanned over four years, indicating a long-term commitment to development. 4. The contract type (Cost Plus Award Fee) suggests performance incentives were tied to achieving specific milestones. 5. The geographic location of the contractor (Utah) may have implications for regional economic impact. 6. The absence of small business set-asides indicates this was not specifically targeted for smaller enterprises.
Value Assessment
Rating: fair
Benchmarking the value of this specific component is challenging without detailed cost breakdowns and comparisons to similar, highly specialized space instrument modules. The total award amount of over $14.6 million for the Integrated Science Instrument Module (ISIM) for the JWST reflects the complexity and unique nature of the project. Given the sole-source nature and the advanced technology involved, a direct price comparison to commercial or less specialized contracts is not feasible. However, the cost-plus award fee structure implies that the final price could vary based on performance, making a definitive value assessment difficult without post-award performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that ATK Space Systems Inc. was the only bidder considered. This approach is typically employed when a specific contractor possesses unique capabilities, proprietary technology, or when the urgency and nature of the requirement make full and open competition impractical or impossible. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs than might have been achieved otherwise.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the lowest reasonable cost for the services and goods provided.
Public Impact
The primary beneficiaries are the scientists and researchers who will utilize the data from the James Webb Space Telescope, enabling groundbreaking astronomical discoveries. The contract delivered a critical component, the Integrated Science Instrument Module, which houses the telescope's advanced scientific instruments. The geographic impact is primarily centered around the contractor's facilities in Utah, contributing to local employment and economic activity. The project supported a highly skilled workforce in aerospace engineering, advanced manufacturing, and scientific instrument development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Cost-plus award fee contracts can sometimes lead to cost overruns if not managed rigorously.
- The specialized nature of the component means limited alternative providers, increasing reliance on the incumbent.
- Long performance duration (over 4 years) requires sustained oversight to ensure continued value.
- Lack of small business participation means fewer opportunities for smaller, innovative firms in this specific contract.
Positive Signals
- Award to a known entity (ATK Space Systems Inc.) suggests a level of confidence in their capabilities for this critical mission.
- The contract supported the development of a key component for a scientifically significant project (JWST).
- The cost-plus award fee structure, if well-managed, can incentivize high performance and successful delivery of complex objectives.
- The contract duration allowed for focused development and integration of a highly complex instrument module.
Sector Analysis
The aerospace and defense sector, particularly the segment focused on space exploration and instrumentation, is characterized by high barriers to entry, significant R&D investment, and long development cycles. Contracts for components like the JWST's Integrated Science Instrument Module are typically awarded to specialized firms with proven expertise. The market for such highly advanced, custom-built space hardware is limited, often leading to sole-source or limited competition awards. Spending in this area is driven by national scientific and strategic objectives, with significant government investment in programs like JWST.
Small Business Impact
This contract did not include a small business set-aside, nor is there an indication of significant subcontracting specifically to small businesses. The nature of developing highly specialized, cutting-edge space instrumentation often requires large, established prime contractors with extensive resources and experience. This focus on a prime contractor with demonstrated capabilities in advanced aerospace manufacturing means that opportunities for small businesses to directly participate in this specific contract were likely minimal, though they may benefit indirectly through the broader aerospace ecosystem.
Oversight & Accountability
Oversight for this contract would have been primarily managed by NASA's contracting officers and program managers. As a sole-source award for a critical component of a flagship scientific mission, rigorous oversight would be expected to ensure adherence to technical specifications, schedule, and budget. Transparency would be facilitated through NASA's program reporting and potentially through public affairs releases regarding the JWST project. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- James Webb Space Telescope (JWST) Program
- NASA Space Science Missions
- Advanced Space Instrument Development
- Guided Missile and Space Vehicle Manufacturing
Risk Flags
- Sole-source award
- Potential for cost overruns in CPAF contracts
- High technical complexity of space instruments
Tags
nasa, space-exploration, instrument-development, sole-source, cost-plus-award-fee, aerospace, r&d, national-aeronautics-and-space-administration, atk-space-systems-inc, utah, definitive-contract, guided-missile-and-space-vehicle-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $14.6 million to ATK SPACE SYSTEMS INC.. JWST INTEGRATED SCIENCE INSTRUMENT MODULE
Who is the contractor on this award?
The obligated recipient is ATK SPACE 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 $14.6 million.
What is the period of performance?
Start: 2006-03-31. End: 2010-12-31.
What was the specific role and importance of the Integrated Science Instrument Module (ISIM) within the James Webb Space Telescope?
The Integrated Science Instrument Module (ISIM) was the structural backbone that housed the four main scientific instruments of the James Webb Space Telescope (JWST): the Near-Infrared Camera (NIRCam), the Near-Infrared Spectrograph (NIRSpec), the Mid-Infrared Instrument (MIRI), and the Fine Guidance Sensor/Near Infrared Imager and Slitless Spectrograph (FGS/NIRISS). Its primary function was to provide a stable, extremely cold environment for these sensitive instruments to operate optimally. The ISIM ensured precise alignment of the instruments and managed the thermal control necessary to minimize infrared interference, which is crucial for JWST's mission to observe the universe in infrared light. The successful development and integration of the ISIM were critical milestones for the entire JWST project, directly enabling its unprecedented observational capabilities.
How does the 'Cost Plus Award Fee' (CPAF) contract type typically function, and what are its implications for cost control and performance?
A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. Additionally, the contractor can earn an award fee, which is determined by the government based on the contractor's performance against pre-defined criteria. This structure aims to incentivize superior performance by offering additional profit for exceeding expectations. For cost control, the base fee is fixed, but the potential for award fees means the government can withhold or reduce these incentives if performance is subpar. The implication is that while costs are reimbursed, the total contractor compensation is tied to achieving specific performance metrics, encouraging the contractor to focus on quality and timely delivery beyond just meeting minimum requirements. However, effective administration and clear performance metrics are crucial to prevent potential cost growth or disputes over award fee determinations.
Given this was a sole-source contract, what mechanisms might NASA have employed to ensure fair pricing and adequate performance?
Even with a sole-source award, NASA would employ several mechanisms to ensure fair pricing and adequate performance. Firstly, they would conduct a thorough 'should-cost' analysis, estimating what the contract should cost based on historical data, industry benchmarks, and independent cost research, to validate the contractor's proposed price. Secondly, the Cost Plus Award Fee (CPAF) structure itself incentivizes performance through potential award fees, which NASA would manage through rigorous evaluation of contractor milestones and technical achievements. NASA would also maintain strong program oversight, with technical experts monitoring progress, quality, and adherence to specifications. Negotiation of the contract terms, including the fee structure and award criteria, would be critical. Finally, NASA's contracting officers would be responsible for ensuring compliance with all federal acquisition regulations and for actively managing the contractor relationship throughout the contract's lifecycle.
What is the typical track record of ATK Space Systems Inc. (now Northrop Grumman Innovation Systems) in large-scale aerospace projects?
ATK Space Systems Inc., which later became part of Northrop Grumman Innovation Systems, has a long and significant track record in the aerospace and defense industry. Historically, ATK was known for its expertise in solid rocket propulsion, including components for NASA's Space Shuttle and the Ares I rocket. They have been involved in numerous satellite programs, missile systems, and other complex space-related projects. Their involvement in the James Webb Space Telescope program itself, specifically with the ISIM, demonstrates their capability in handling highly advanced and critical space hardware. While specific performance details for every contract are not publicly available, their sustained presence and involvement in major government and commercial space initiatives suggest a generally strong capability in delivering complex aerospace systems.
How does the $14.6 million contract value compare to the overall budget of the James Webb Space Telescope program?
The James Webb Space Telescope (JWST) program has experienced significant cost growth over its development lifecycle. The total estimated cost for the JWST program has been reported to be in the range of $10 billion or more. In this context, the $14.6 million awarded to ATK Space Systems Inc. for the Integrated Science Instrument Module (ISIM) represents a relatively small fraction of the total program cost, approximately 0.15% of a $10 billion budget. While a substantial sum in absolute terms, it reflects the cost of a single, albeit critical, component within a much larger and more complex scientific endeavor. This proportion highlights the immense scale and multifaceted nature of the JWST project, involving numerous contractors and subsystems.
What are the potential risks associated with developing highly specialized scientific instruments for deep space missions?
Developing highly specialized scientific instruments for deep space missions like the JWST involves numerous significant risks. Technical risks are paramount, as these instruments must operate reliably in extreme environments (vacuum, radiation, extreme temperatures) far from Earth, often for decades. This requires novel technologies and materials that may not have been previously tested at scale, increasing the likelihood of unforeseen engineering challenges. Schedule risks are also high due to the complexity of design, manufacturing, testing, and integration, often leading to delays. Cost risks are substantial, as unexpected technical hurdles or the need for redesign can drive up expenses significantly, especially with fixed-price contracts, or lead to cost overruns in cost-reimbursable contracts. Furthermore, the long lead times and the need for highly specialized expertise mean that contractor performance and availability are critical risks. Finally, the scientific objectives themselves can evolve, requiring instrument adaptations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 7812 W 4100 S, MAGNA, UT, 84044
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,428,861
Exercised Options: $15,428,861
Current Obligation: $14,643,625
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-03-31
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2017-10-05
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