NASA's JPSS-1 Mission Spacecraft contract nears completion with over $365M spent on critical satellite systems
Contract Overview
Contract Amount: $365,726,555 ($365.7M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-09-23
End Date: 2021-09-30
Contract Duration: 4,025 days
Daily Burn Rate: $90.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JPSS-1 MISSION SPACECRAFT RAPID III DELIVERY ORDER #3. RAPID III PROVIDES CORE SPACECRAFT SYSTEMS IN SUPPORT OF THE SCIENTIFIC AND TECHNOLOGY DEVELOPMENT GOALS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, GODDARD SPACE FLIGHT CENTER, AND OTHER FEDERAL AGENCIES. THE SCOPE OF WORK INCLUDES DESIGN, BUILD AND TEST, PAYLOAD INTEGRATION AND TEST, LAUNCH VEHICLE INTEGRATION AND SUPPORT AND ON-ORBIT CHECKOUT AND ACCEPTANCE.
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $365.7 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: JPSS-1 MISSION SPACECRAFT RAPID III DELIVERY ORDER #3. RAPID III PROVIDES CORE SPACECRAFT SYSTEMS IN SUPPORT OF THE SCIENTIFIC AND TECHNOLOGY DEVELOPMENT GOALS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, GODDARD SPACE FLIGHT CENTER, AND OTHER FEDERAL AGENCIES. THE SCOPE… Key points: 1. The contract supports vital scientific and technology development for NASA and other federal agencies. 2. Workscope includes design, build, test, integration, and launch support for spacecraft systems. 3. The contract has been active for over a decade, indicating long-term program needs. 4. BAE Systems is the sole contractor, raising questions about sustained competition. 5. The firm fixed-price contract type suggests cost certainty for the government. 6. This represents significant investment in national space and earth observation capabilities.
Value Assessment
Rating: good
The total contract value of over $365 million for a complex spacecraft program spanning more than a decade appears reasonable given the scope of work. Benchmarking against similar large-scale satellite development contracts is challenging due to unique mission requirements and technological complexities. However, the firm fixed-price nature of the contract provides a degree of cost control for NASA. The extended duration suggests a sustained need for these capabilities, and the value reflects the intricate design, manufacturing, and integration processes involved.
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 compete for the work. While the provided data does not specify the number of bids received, the 'full-and-open' designation suggests a competitive process was initiated. The subsequent delivery order structure may influence ongoing competition dynamics for specific taskings within the broader contract.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.
Public Impact
Benefits NASA's Goddard Space Flight Center and potentially other federal agencies with advanced spacecraft capabilities. Delivers core spacecraft systems essential for scientific and technology development missions. Supports national capabilities in space exploration, Earth observation, and scientific research. Implies a need for a skilled workforce in aerospace engineering, manufacturing, and testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential cost overruns if not managed effectively.
- Sole contractor for the core systems may limit future competitive opportunities for innovation.
- Complexity of the technology could introduce unforeseen technical risks and delays.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition at the outset suggests a robust initial bidding process.
- The contract supports critical national scientific and technological objectives.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized and capital-intensive industry. The market is characterized by a limited number of large, experienced contractors capable of undertaking complex space systems development. Spending in this sector is driven by government defense and scientific research initiatives. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each space mission, but large satellite programs typically represent multi-hundred-million-dollar investments.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the highly specialized nature of spacecraft manufacturing, large prime contractors like BAE Systems are typically involved. Subcontracting opportunities for small businesses may exist within the broader supply chain, but direct set-aside analysis is not applicable here. The focus is on large-scale, complex system integration rather than broad small business participation.
Oversight & Accountability
Oversight for this contract is primarily managed by the National Aeronautics and Space Administration (NASA), specifically the Goddard Space Flight Center. NASA employs program management, technical reviews, and contract surveillance to ensure performance and compliance. Transparency is generally maintained through contract awards databases and public reporting of agency spending. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- JPSS Program
- NASA Goddard Space Flight Center Contracts
- Spacecraft Manufacturing Contracts
- National Security Space Programs
- Earth Observation Satellite Development
Risk Flags
- Long contract duration increases risk of obsolescence and delays.
- Sole contractor for core systems may limit future competition.
- Complexity of space technology introduces inherent technical risks.
Tags
nasa, spacecraft-manufacturing, defense-sector, firm-fixed-price, full-and-open-competition, colorado, large-contract, science-and-technology, earth-observation, baesystems
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $365.7 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. JPSS-1 MISSION SPACECRAFT RAPID III DELIVERY ORDER #3. RAPID III PROVIDES CORE SPACECRAFT SYSTEMS IN SUPPORT OF THE SCIENTIFIC AND TECHNOLOGY DEVELOPMENT GOALS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, GODDARD SPACE FLIGHT CENTER, AND OTHER FEDERAL AGENCIES. THE SCOPE OF WORK INCLUDES DESIGN, BUILD AND TEST, PAYLOAD INTEGRATION AND TEST, LAUNCH VEHICLE INTEGRATION AND SUPPORT AND ON-ORBIT CHECKOUT AND ACCEPTANCE.
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 $365.7 million.
What is the period of performance?
Start: 2010-09-23. End: 2021-09-30.
What is the track record of BAE Systems Space & Mission Systems Inc. with NASA on similar large-scale spacecraft projects?
BAE Systems, through its various divisions and acquisitions, has a long history of supporting NASA and other government agencies in space programs. They are known for their expertise in developing and manufacturing complex satellite systems, including payloads, bus structures, and mission-critical components. While specific project details and performance metrics for BAE Systems' past NASA contracts would require deeper investigation into NASA's contract database and historical performance reports, their presence as a prime contractor on a significant program like JPSS-1 indicates a demonstrated capability and a level of trust from the agency. Their track record generally includes delivering sophisticated hardware and integrated systems for scientific, defense, and commercial space applications, often involving firm-fixed-price contracts where performance and cost adherence are key metrics.
How does the per-unit cost of the JPSS-1 mission spacecraft compare to similar Earth observation satellites?
Directly comparing the per-unit cost of the JPSS-1 mission spacecraft is challenging without knowing the exact number of units delivered under this specific delivery order and without detailed cost breakdowns. The total contract value of over $365 million is for the 'RAPID III DELIVERY ORDER #3', which focuses on core spacecraft systems. The JPSS program itself involves multiple satellites and instruments, each with significant development and manufacturing costs. Earth observation satellites vary widely in complexity, sensor capabilities, and mission lifespan, making direct cost-per-unit comparisons difficult. Generally, advanced meteorological satellites like those in the JPSS series, equipped with sophisticated sensors for global data collection, represent multi-hundred-million-dollar investments. Benchmarking would require identifying satellites with comparable technological sophistication, orbital characteristics, and data acquisition capabilities, which are often proprietary or not publicly detailed to that extent.
What are the primary risks associated with the long duration and complexity of this spacecraft development contract?
The primary risks associated with a long-duration, complex spacecraft development contract like JPSS-1 include technological obsolescence, where advancements in technology during the contract period could make the delivered systems less cutting-edge by completion. Schedule delays are also a significant risk, often stemming from technical challenges, integration issues, or supply chain disruptions, which can lead to cost overruns. Cost growth is another major concern, particularly if the contract is not strictly firm-fixed-price or if unforeseen issues require significant additional funding. Furthermore, personnel turnover on a long program can lead to loss of institutional knowledge. For BAE Systems, managing these risks involves robust project management, proactive risk mitigation strategies, strong supplier relationships, and continuous technical oversight from NASA.
How effective has the firm-fixed-price contract type been in managing costs for this program over its lifespan?
The firm-fixed-price (FFP) contract type is designed to provide cost certainty to the government by shifting the risk of cost overruns to the contractor. For the JPSS-1 mission spacecraft contract, the FFP structure suggests that BAE Systems is obligated to deliver the specified scope of work for the agreed-upon price. This contract type is generally effective in controlling costs when the scope of work is well-defined and stable. However, the long duration of this contract (over a decade) and the inherent complexity of spacecraft development can introduce challenges. If significant unforeseen technical issues arise that necessitate changes to the scope or require extensive rework, the FFP nature could put financial pressure on the contractor, potentially leading to disputes or requests for contract modifications. NASA's oversight would be crucial in ensuring that any changes are properly justified and priced.
What is the historical spending pattern for the JPSS program, and how does this delivery order fit within that trend?
The Joint Polar Satellite System (JPSS) is a critical program for NOAA and NASA, focused on providing global environmental data. Historical spending on JPSS has been substantial, reflecting the complexity and long-term nature of developing and launching advanced polar-orbiting satellites. The program encompasses multiple satellites (JPSS-1, JPSS-2, etc.), ground systems, and instruments. The 'RAPID III DELIVERY ORDER #3' for the JPSS-1 mission spacecraft, valued at over $365 million, represents a significant portion of the overall JPSS-1 satellite development cost. This specific order likely covers the bulk of the core spacecraft bus manufacturing, integration, and testing. Spending trends for JPSS would show a ramp-up during the design and manufacturing phases, followed by launch and operational costs. This delivery order fits within the peak spending period for the JPSS-1 satellite's development.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: NNG10207304R
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corp
Address: 1600 COMMERCE ST, BOULDER, CO, 80301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $365,726,555
Exercised Options: $365,726,555
Current Obligation: $365,726,555
Actual Outlays: $2,347,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG10AZ10B
IDV Type: IDC
Timeline
Start Date: 2010-09-23
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2023-04-03
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