NASA's Space Network Ground Segment contract awarded to General Dynamics Mission Systems, Inc. for over $1.24 billion
Contract Overview
Contract Amount: $1,248,395,087 ($1.2B)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-06-21
End Date: 2021-06-30
Contract Duration: 4,027 days
Daily Burn Rate: $310.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE SPACE NETWORK (SN) CONSISTS OF A SPACE SEGMENT COMPRISED OF THE TRACKING AND DATA RELAY SATELLITES (TDRSS), AND A GROUND SEGMENT (SNGS). THE SN PROVIDES THE CAPABILITY FOR GLOBAL SPACE-TO-GROUND TELECOMMUNICATIONS AND TRACKING COVERAGE FOR LOW EARTH ORBIT (LEO) AND NEAR-EARTH SPACEFLIGHT MISSIONS, INCLUDING BOTH ROBOTIC AND HUMAN SPACE FLIGHT. THE SNGS INCLUDES FACILITIES AND SYSTEMS LOCATED AT THE WHITE SANDS COMPLEX (WSC) AT LAS CRUCES, NM THE GUAM REMOTE GROUND TERMINAL (GRGT) AT GUAM AND SPACE NETWORK EXPANSION (SNE) EAST AT BLOSSOM POINT, MD. THE PURPOSE OF THE SGSS PROJECT IS TO IMPLEMENT A MODERN GROUND SEGMENT THAT WILL ENABLE THE SN TO CONTINUE TO DELIVER HIGH QUALITY SERVICES TO THE SN COMMUNITY, MEET STAKEHOLDER REQUIREMENTS, AND SIGNIFICANTLY REDUCE REQUIRED OPERATIONS AND MAINTENANCE RESOURCES.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.25 billion to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THE SPACE NETWORK (SN) CONSISTS OF A SPACE SEGMENT COMPRISED OF THE TRACKING AND DATA RELAY SATELLITES (TDRSS), AND A GROUND SEGMENT (SNGS). THE SN PROVIDES THE CAPABILITY FOR GLOBAL SPACE-TO-GROUND TELECOMMUNICATIONS AND TRACKING COVERAGE FOR LOW EARTH ORBIT (LEO) AND NEAR-EARTH… Key points: 1. The contract supports the Space Network Ground Segment System (SGSS) project, aiming to modernize ground infrastructure for satellite telecommunications. 2. This modernization is crucial for maintaining global space-to-ground telecommunications and tracking for low Earth orbit and near-Earth spaceflight missions. 3. The project involves significant upgrades to ground facilities, including locations in New Mexico, Guam, and Maryland. 4. The contract's duration spans over 11 years, indicating a long-term commitment to space communication infrastructure. 5. The use of a Cost Plus Award Fee contract type suggests incentives for performance and cost control. 6. The contract is categorized under 'All Other Telecommunications', highlighting its specialized nature within the IT sector.
Value Assessment
Rating: good
The total award amount of over $1.24 billion for an 11-year period represents a substantial investment in critical space infrastructure. While specific cost breakdowns are not provided, the Cost Plus Award Fee structure implies that the final cost could vary based on performance. Benchmarking this against similar large-scale government IT infrastructure projects is challenging due to the unique nature of space communications, but the scale suggests a significant but potentially justifiable expenditure for maintaining essential national capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for this significant project. This approach is generally favored for large government contracts as it promotes a wider range of solutions and potentially better pricing through competitive pressure. The number of bidders is not specified, but the full and open nature suggests a robust competition.
Taxpayer Impact: Full and open competition for a contract of this magnitude is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, ultimately leading to better value for public funds invested in critical space infrastructure.
Public Impact
The primary beneficiaries are NASA and other government agencies relying on the Space Network for mission support, including human and robotic spaceflight. The contract delivers essential global space-to-ground telecommunications and tracking services, vital for mission success and safety. The geographic impact includes upgrades to ground facilities in New Mexico, Guam, and Maryland, enhancing national space communication capabilities. The project supports a specialized workforce in telecommunications, satellite operations, and ground system engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 11 years) could lead to cost overruns if not managed effectively.
- Cost Plus Award Fee structure requires careful oversight to ensure performance incentives align with taxpayer interests.
- Reliance on a single contractor for such a critical national asset raises concerns about vendor lock-in and future competition.
- Modernization of aging infrastructure presents inherent technical risks and potential for delays.
- The specialized nature of space telecommunications may limit the pool of qualified contractors for future procurements.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield good value.
- The project aims to significantly reduce required operations and maintenance costs through modernization.
- General Dynamics Mission Systems, Inc. is a well-established defense and aerospace contractor with relevant experience.
- The contract supports critical national infrastructure for space exploration and operations.
- The modernization effort is designed to meet evolving stakeholder requirements and ensure continued high-quality services.
Sector Analysis
This contract falls within the telecommunications and IT infrastructure sector, specifically focusing on specialized satellite ground systems. The market for such services is dominated by a few large aerospace and defense contractors capable of handling complex, high-value government projects. NASA's Space Network is a unique and critical national asset, making this contract essential for maintaining U.S. leadership in space operations. Comparable spending benchmarks are difficult to establish due to the niche nature of space ground segment systems.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Mission Systems, Inc. is a large prime contractor. While there is no direct information on subcontracting plans for small businesses within this specific contract award notice, large prime contractors are often required to meet small business subcontracting goals on federal contracts. The impact on the small business ecosystem would depend on the extent to which General Dynamics utilizes small businesses for specialized services or components related to the SGSS project.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officer and program management. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics and cost expenditures to ensure award fees are justified. Transparency is generally maintained through contract reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed here, NASA's Office of Inspector General typically has oversight over NASA contracts to investigate fraud, waste, and abuse.
Related Government Programs
- NASA Space Communications
- Satellite Ground Systems
- Telecommunications Infrastructure
- Aerospace IT Services
- National Security Space
Risk Flags
- Long-term contract duration
- Cost Plus Award Fee structure
- Critical national infrastructure reliance
- Technological modernization risks
Tags
nasa, space-network, ground-segment, telecommunications, it-infrastructure, general-dynamics-mission-systems, cost-plus-award-fee, full-and-open-competition, definitive-contract, national-aeronautics-and-space-administration, arizona, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.25 billion to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THE SPACE NETWORK (SN) CONSISTS OF A SPACE SEGMENT COMPRISED OF THE TRACKING AND DATA RELAY SATELLITES (TDRSS), AND A GROUND SEGMENT (SNGS). THE SN PROVIDES THE CAPABILITY FOR GLOBAL SPACE-TO-GROUND TELECOMMUNICATIONS AND TRACKING COVERAGE FOR LOW EARTH ORBIT (LEO) AND NEAR-EARTH SPACEFLIGHT MISSIONS, INCLUDING BOTH ROBOTIC AND HUMAN SPACE FLIGHT. THE SNGS INCLUDES FACILITIES AND SYSTEMS LOCATED AT THE WHITE SANDS COMPLEX (WSC) AT LAS CRUCES, NM THE GUAM REMOTE GROUND TERMINAL (GRGT) AT GUAM AND
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS 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 $1.25 billion.
What is the period of performance?
Start: 2010-06-21. End: 2021-06-30.
What is the track record of General Dynamics Mission Systems, Inc. with NASA and similar large-scale IT infrastructure projects?
General Dynamics Mission Systems, Inc. (GDMS) has a long history of supporting NASA and other government agencies with complex systems integration, communication, and IT solutions. They are a major player in the defense and aerospace sectors, known for delivering large-scale projects. GDMS has previously been involved in various aspects of space communication and ground systems, though specific details on past NASA SGSS-related work are not immediately available from this data. Their extensive experience with classified and high-security projects suggests a capability to handle the technical and security demands of NASA's Space Network. However, a deeper dive into their performance history on comparable cost-plus contracts and large infrastructure modernizations would be necessary for a comprehensive assessment of their track record specifically for this project's success.
How does the awarded amount compare to the estimated value or budget for the SGSS project?
The provided data indicates a total award amount of $1,248,395,086.84. However, the data does not explicitly state the initial estimated value or the total budget allocated for the SGSS project. The contract type, Cost Plus Award Fee (CPAF), means the final cost can fluctuate based on performance and incurred costs, up to a ceiling. Without knowing the initial estimate or budget ceiling, it's difficult to definitively state if the awarded amount represents a significant deviation. Typically, awarded amounts for CPAF contracts can be close to or, in some cases, exceed initial estimates if performance is strong and costs are managed effectively within the fee structure. Further analysis would require access to NASA's budget documents and the contract's ceiling.
What are the primary risks associated with modernizing the Space Network Ground Segment?
Modernizing the Space Network Ground Segment (SGSS) involves several key risks. Technical risks include the integration of new technologies with existing legacy systems, potential compatibility issues, and the complexity of ensuring seamless data flow during the transition. Schedule risks are also significant, as large-scale infrastructure projects are prone to delays due to unforeseen technical challenges, contractor performance issues, or changes in requirements. Cost risks are inherent, especially with a Cost Plus Award Fee contract, where actual costs could exceed initial projections if not managed rigorously. Operational risks involve ensuring uninterrupted service to the Space Network community during the modernization phase. Finally, cybersecurity risks are paramount, as the ground segment handles sensitive mission data and requires robust protection against evolving threats.
What is the expected impact of the SGSS modernization on NASA's operational efficiency and cost savings?
The primary objective of the SGSS project is to implement a modern ground segment that will 'significantly reduce required operations and maintenance costs.' While the exact figures for projected savings are not detailed in the provided data, the intent behind modernization is typically to leverage newer, more efficient technologies that require less manual intervention, consume less power, and are easier to maintain. This can lead to reduced staffing needs, lower hardware replacement costs, and improved system reliability, thereby decreasing downtime and associated mission impacts. The success of these cost-saving measures will depend on the effective implementation of the new systems and the realization of anticipated efficiencies over the contract's duration.
How does the 'All Other Telecommunications' (NAICS 517919) classification impact our understanding of this contract's scope?
The NAICS code 517919, 'All Other Telecommunications,' indicates that this contract falls outside the more specific telecommunications categories, such as wired or wireless telecommunications carriers. This classification suggests a highly specialized service, likely involving the integration, operation, or maintenance of unique telecommunications infrastructure not covered by standard industry classifications. For the Space Network Ground Segment, this code accurately reflects the specialized nature of providing global satellite-to-ground communication and tracking services, which involves complex hardware, software, and network management tailored for space missions. It highlights that this is not a typical commercial telecom service but a critical government function requiring unique capabilities.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
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: NNG09283260R
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,316,867,501
Exercised Options: $1,303,866,590
Current Obligation: $1,248,395,087
Actual Outlays: $121,244,271
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-21
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2023-04-12
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