NASA awards $1.14B contract for TDRS satellite program, with options for two more spacecraft
Contract Overview
Contract Amount: $1,139,064,815 ($1.1B)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-12-28
End Date: 2026-02-05
Contract Duration: 6,614 days
Daily Burn Rate: $172.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: THIS CONTRACT IS TO DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, SHIP, PROVIDE LAUNCH SUPPORT, CONDUCT ON-ORBIT CHECKOUT OPERATIONS AND PROVIDE SUSTAINING ENGINEERING SUPPORT FOR TWO TRACKING DATA RELAY SATELLITE (TDRS) SPACECRAFT. THE CONTRACT REQUIREMENTS ALSO INCLUDE THE DESIGN, ASSEMBLE, TEST, INSTALL AND VERIFICATION OF MODIFICATIONS TO THE WHITE SANDS COMPLEX NECESSARY TO MAKE THE GROUND TERMINALS FULLY COMPATIBLE WITH THE TDRS K PROGRAM SPACECRAFT DESIGN. THE CONTRACT ALSO INCLUDES OPTIONS FOR TWO ADDITIONAL SPACECRAFT.
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.14 billion to THE BOEING COMPANY for work described as: THIS CONTRACT IS TO DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, SHIP, PROVIDE LAUNCH SUPPORT, CONDUCT ON-ORBIT CHECKOUT OPERATIONS AND PROVIDE SUSTAINING ENGINEERING SUPPORT FOR TWO TRACKING DATA RELAY SATELLITE (TDRS) SPACECRAFT. THE CONTRACT REQUIREMENTS ALSO INCLUDE THE DESIG… Key points: 1. Contract focuses on design, development, and long-term support for critical TDRS satellite infrastructure. 2. Significant investment in space-based communication capabilities for tracking and data relay. 3. Includes ground terminal modifications, indicating a comprehensive approach to system integration. 4. Long contract duration suggests a need for sustained, complex engineering and operational support. 5. Fixed-price incentive contract type aims to balance cost control with performance incentives. 6. Potential for significant contract growth with options for two additional spacecraft.
Value Assessment
Rating: good
The contract value of $1.14 billion for two TDRS spacecraft, including ground system modifications and sustaining engineering, appears reasonable given the complexity and long-term nature of space programs. While direct comparisons are difficult due to the unique nature of satellite systems, the pricing structure, as a fixed-price incentive, suggests an effort to manage costs while encouraging contractor performance. The inclusion of options for additional spacecraft indicates a strategic long-term investment by NASA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The use of full and open competition suggests that NASA sought the best value and technical solution available in the market for this critical program.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions, ensuring that taxpayer funds are used efficiently.
Public Impact
The Tracking and Data Relay Satellite (TDRS) system provides essential communication services for a wide range of NASA missions, including scientific research, Earth observation, and human spaceflight. This contract ensures the continued operation and enhancement of a vital space communication network, supporting ongoing and future space exploration endeavors. The modifications to the White Sands Complex ground terminals will improve compatibility and data throughput, benefiting ground operations and mission control. The sustained engineering support will ensure the long-term reliability and performance of the TDRS constellation, crucial for uninterrupted data flow. The program supports high-tech jobs in the aerospace and engineering sectors, contributing to the national workforce in critical scientific and technological fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term sustainment engineering requirements could lead to cost overruns if not managed effectively.
- Reliance on a single contractor for critical satellite design and support may pose supply chain risks.
- Potential for scope creep with the inclusion of options for additional spacecraft, requiring careful oversight.
- Integration challenges between new spacecraft and existing ground infrastructure could lead to delays or increased costs.
Positive Signals
- Fixed-price incentive contract structure encourages cost efficiency and performance.
- Full and open competition likely secured competitive pricing and a robust technical solution.
- Inclusion of ground system modifications ensures system-wide compatibility and operational readiness.
- Long-term contract duration provides stability and predictability for a critical national asset.
- Options for additional spacecraft demonstrate a strategic commitment to expanding critical infrastructure.
Sector Analysis
The Tracking and Data Relay Satellite (TDRS) program falls within the broader aerospace and defense sector, specifically focusing on satellite manufacturing and space communications infrastructure. This contract represents a significant investment in maintaining and expanding a crucial component of NASA's operational capabilities. The market for satellite design, development, and launch services is highly specialized, with a limited number of prime contractors possessing the necessary expertise and facilities. NASA's spending in this area is benchmarked against other large-scale satellite acquisition programs, both within NASA and by other government agencies like the Department of Defense.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. However, large prime contractors like The Boeing Company are typically required to subcontract a portion of the work to small businesses. The extent of small business participation will depend on Boeing's subcontracting plan and adherence to federal small business utilization goals. The impact on the small business ecosystem will be through these subcontracting opportunities, potentially providing work for specialized aerospace and engineering firms.
Oversight & Accountability
Oversight for this contract is primarily managed by NASA's contracting officers and program management teams. The contract type, Fixed Price Incentive (FPI), includes provisions for performance incentives and cost sharing, which inherently involve oversight of contractor performance and costs. Transparency is facilitated through contract reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, NASA's Office of Inspector General (OIG) typically has oversight over major NASA contracts to ensure efficiency, prevent fraud, and promote accountability.
Related Government Programs
- NASA Space Communications and Navigation (SCaN) Program
- NASA Satellite Acquisition Programs
- Department of Defense Satellite Communications Programs
- National Oceanic and Atmospheric Administration (NOAA) Satellite Programs
- Commercial Satellite Communication Services
Risk Flags
- Long contract duration increases risk of technological obsolescence.
- Potential for cost overruns if performance targets are not met or exceeded.
- Reliance on a single contractor for critical infrastructure.
- Integration complexity between new spacecraft and existing ground systems.
Tags
nasa, space-satellite, tracking-and-data-relay-satellite, aerospace, engineering-services, definitive-contract, fixed-price-incentive, full-and-open-competition, california, large-contract, long-term-support, ground-systems-modification
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.14 billion to THE BOEING COMPANY. THIS CONTRACT IS TO DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, SHIP, PROVIDE LAUNCH SUPPORT, CONDUCT ON-ORBIT CHECKOUT OPERATIONS AND PROVIDE SUSTAINING ENGINEERING SUPPORT FOR TWO TRACKING DATA RELAY SATELLITE (TDRS) SPACECRAFT. THE CONTRACT REQUIREMENTS ALSO INCLUDE THE DESIGN, ASSEMBLE, TEST, INSTALL AND VERIFICATION OF MODIFICATIONS TO THE WHITE SANDS COMPLEX NECESSARY TO MAKE THE GROUND TERMINALS FULLY COMPATIBLE WITH THE TDRS K PROGRAM SPACECRAFT DESIGN. THE CONTRACT ALSO INCLUDES OPTION
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $1.14 billion.
What is the period of performance?
Start: 2007-12-28. End: 2026-02-05.
What is the historical spending trend for the TDRS program prior to this contract award?
Historical spending data for the TDRS program prior to this specific contract award (December 2007) would reveal the cumulative investment in the TDRS constellation and its associated ground systems over time. Analyzing past expenditures would provide context for the scale of the $1.14 billion award, indicating whether it represents a typical investment level, an increase, or a decrease in program funding. This historical perspective is crucial for understanding the long-term financial commitment to maintaining and expanding NASA's space communication capabilities and for assessing the program's overall budget trajectory.
How does the per-unit cost of a TDRS spacecraft compare to similar government or commercial satellite programs?
Benchmarking the per-unit cost of a TDRS spacecraft against similar government or commercial satellite programs is challenging due to the unique specifications and mission requirements of TDRS. TDRS spacecraft are designed for long-duration, high-reliability data relay in orbit, often involving complex payloads and stringent performance standards. While specific per-unit costs are not provided, the $1.14 billion contract for two spacecraft, plus ground modifications and support, suggests a substantial investment per unit. Comparisons would need to account for factors such as satellite size, payload complexity, launch costs (if included), and mission lifespan. Generally, government-funded, highly specialized satellites tend to have higher per-unit costs than commercial satellites due to stricter requirements and extensive testing.
What are the key performance metrics and incentives outlined in the Fixed Price Incentive (FPI) contract?
The Fixed Price Incentive (FPI) contract structure implies that the final price is determined by the contractor's performance against target cost and target profit, with a ceiling price. Key performance metrics likely revolve around technical specifications, schedule adherence, and reliability of the TDRS spacecraft and ground system modifications. Incentives would be tied to achieving or exceeding these metrics, potentially offering the contractor increased profit for early delivery, superior performance, or cost savings below the target. Conversely, the contractor would share in cost overruns above the target cost, up to the ceiling price. Detailed metrics and incentive formulas are typically found in the contract's Statement of Work and pricing clauses.
What is the track record of The Boeing Company in delivering complex satellite systems for NASA or other government agencies?
The Boeing Company has a long and extensive track record in designing, manufacturing, and integrating complex satellite systems for NASA and various government agencies. They have been a major player in numerous satellite programs, including communication, navigation, and scientific satellites. Boeing's experience spans decades and includes delivering systems for programs like the Global Positioning System (GPS) for the U.S. Air Force, various communication satellites, and scientific missions. Their history suggests a capability to handle large-scale, technologically advanced projects. However, like any large contractor, past performance may include both successes and challenges, which would be evaluated during the source selection process for this TDRS contract.
What are the potential risks associated with the long duration (over 18 years) of this contract?
The long duration of this contract, spanning from 2007 to 2026 (over 18 years), presents several potential risks. Technological obsolescence is a significant concern; advancements in satellite technology could make the delivered spacecraft less capable over their operational life. Cost escalation due to inflation or unforeseen technical challenges is another risk, even with a fixed-price incentive structure, as the ceiling price might be reached or exceeded. Contractor performance stability over such an extended period can also be a risk, as personnel changes, company reorganizations, or shifts in strategic focus could impact program execution. Furthermore, maintaining consistent government oversight and program management continuity over nearly two decades requires dedicated resources and institutional knowledge transfer.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: NNG07179419J
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 900 N SEPULVEDA BLVD, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,255,899,177
Exercised Options: $1,255,899,177
Current Obligation: $1,139,064,815
Actual Outlays: $16,818,765
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2007-12-28
Current End Date: 2026-02-05
Potential End Date: 2026-02-05 00:00:00
Last Modified: 2025-04-07
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