NASA's James Webb Space Telescope Optical Telescope Module Ground Support Equipment contract awarded to L3Harris Technologies for over $1.59 billion
Contract Overview
Contract Amount: $159,025,301 ($159.0M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-10-01
End Date: 2017-01-31
Contract Duration: 2,314 days
Daily Burn Rate: $68.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THIS CONTRACT IS FOR THE OPTICAL TELESCOPE&INTEGRATED SCIENCE INSTRUMENT MODULE (OTIS) GROUND SUPPORT EQUIPMENT (GSE)&TEST PLANNING FOR THE JAMES WEBB SPACE TELESCOPE (JWST). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL AND SERVICES NECESSARY TO DESIGN, ANALYZE, MANUFACTURE, TEST AND DELIVER THE HARDWARE SPECIFIED IN THE CONTRACT. THE CONTRACTOR SHALL ALSO TAKE ON THE LEAD ROLE AND RESPONSIBILITIES AS THE OPTICAL CRYOGENIC TEST DIRECTOR AND THE ASSEMBLY, INTEGRATION AND TEST CHIEF MODELER AS DEFINED IN THE SOW. THE CONTRACTOR SHALL DELIVER DRAWINGS, SPECIFICATIONS, REPORTS, PLANS, MANUALS AND OTHER SPECIFIED DATA IN ACCORDANCE WITH THE DATA REQUIREMENTS DOCUMENT (DRD).
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14606
State: New York Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $159.0 million to L3HARRIS TECHNOLOGIES, INC. for work described as: THIS CONTRACT IS FOR THE OPTICAL TELESCOPE&INTEGRATED SCIENCE INSTRUMENT MODULE (OTIS) GROUND SUPPORT EQUIPMENT (GSE)&TEST PLANNING FOR THE JAMES WEBB SPACE TELESCOPE (JWST). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL AND SERVICES NECESSARY TO DE… Key points: 1. Contract focuses on critical ground support equipment and test planning for the James Webb Space Telescope's Optical Telescope Module. 2. The contractor is responsible for design, analysis, manufacturing, testing, and delivery of specialized hardware. 3. Significant contractor role includes leading Optical Cryogenic Test Director and Assembly, Integration, and Test Chief Modeler responsibilities. 4. Contract type is Cost Plus Award Fee, allowing for performance-based incentives. 5. The duration of the contract is substantial, spanning over 2300 days. 6. This contract represents a significant investment in the successful testing and deployment of a major scientific instrument.
Value Assessment
Rating: fair
The contract value of $1.59 billion for specialized engineering and manufacturing services for a complex scientific instrument like the JWST is substantial. Benchmarking this against similar large-scale, highly specialized aerospace projects is challenging due to the unique nature of the JWST. However, the Cost Plus Award Fee structure suggests an expectation of performance-based value, but the lack of competitive bidding makes a direct price assessment difficult. The extensive scope of work, including lead roles in testing and integration, contributes to the overall cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach is often taken for highly specialized or critical components where only one contractor possesses the necessary expertise, technology, or existing relationship. The lack of competition means that price discovery through market forces was not a factor in this award, potentially leading to higher costs than if multiple bidders had vied for the contract.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects the best possible value for the government.
Public Impact
The primary beneficiaries are NASA and the scientific community, who will utilize the James Webb Space Telescope for groundbreaking astronomical research. Services delivered include the design, manufacturing, testing, and delivery of essential ground support equipment and test planning for the OTIS module. The geographic impact is primarily centered around NASA facilities involved in the JWST program, with potential implications for the aerospace workforce in New York where the contractor is located. The contract supports highly skilled jobs in engineering, manufacturing, and testing within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases cost to taxpayers.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not carefully managed.
- The long duration of the contract requires sustained oversight to ensure continued value and performance.
Positive Signals
- Contractor is responsible for critical testing and integration roles, indicating high confidence in their capabilities.
- Focus on specialized hardware and services for a flagship scientific mission suggests a commitment to quality and precision.
- The award fee component incentivizes contractor performance, potentially leading to better outcomes.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting a major scientific instrument development program. The market for such highly specialized engineering, manufacturing, and testing services is concentrated among a few large aerospace contractors. The spending benchmark for complex scientific instruments and their associated ground support is typically in the hundreds of millions to billions of dollars, reflecting the intricate technology and rigorous testing required.
Small Business Impact
This contract was not competed and does not appear to have a small business set-aside component. Given the specialized nature and large dollar value, it is unlikely that small businesses would be primary awardees, though they may participate as subcontractors to L3Harris Technologies. The impact on the small business ecosystem would depend on subcontracting opportunities offered by the prime contractor.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program management. The Cost Plus Award Fee structure necessitates close monitoring of performance against established criteria to determine award fees. Transparency is generally maintained through contract reporting requirements, but specific details of oversight mechanisms and inspector general jurisdiction would require deeper investigation into NASA's internal processes for this specific contract.
Related Government Programs
- James Webb Space Telescope Program
- NASA Science Mission Directorate
- Aerospace Engineering Services
- Ground Support Equipment Manufacturing
- Optical Systems Development
Risk Flags
- Sole-source award
- High contract value
- Complex technology
- Long contract duration
- Critical mission component
Tags
nasa, james-webb-space-telescope, aerospace, engineering-services, ground-support-equipment, large-contract, sole-source, cost-plus-award-fee, new-york, definitive-contract, science-and-technology, space-exploration
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $159.0 million to L3HARRIS TECHNOLOGIES, INC.. THIS CONTRACT IS FOR THE OPTICAL TELESCOPE&INTEGRATED SCIENCE INSTRUMENT MODULE (OTIS) GROUND SUPPORT EQUIPMENT (GSE)&TEST PLANNING FOR THE JAMES WEBB SPACE TELESCOPE (JWST). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, FACILITIES, EQUIPMENT, MATERIAL AND SERVICES NECESSARY TO DESIGN, ANALYZE, MANUFACTURE, TEST AND DELIVER THE HARDWARE SPECIFIED IN THE CONTRACT. THE CONTRACTOR SHALL ALSO TAKE ON THE LEAD ROLE AND RESPONSIBILITIES AS THE OPTICAL CRYOGENIC TEST DIRECTOR AND THE ASSEMBLY, INTEGRAT
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, 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 $159.0 million.
What is the period of performance?
Start: 2010-10-01. End: 2017-01-31.
What is the track record of L3Harris Technologies in delivering complex aerospace components for NASA or similar scientific missions?
L3Harris Technologies, formed through the merger of L3 Technologies and Harris Corporation, has a long history of providing advanced technology solutions for aerospace and defense. Both predecessor companies have significant experience with NASA programs, including contributions to space telescopes, satellite systems, and other complex scientific instruments. Harris Corporation, for instance, was involved in developing components for the James Webb Space Telescope's scientific instruments. L3 Technologies has a strong background in areas like electro-optical systems and space payloads. Their combined expertise suggests a robust capability to handle the technical demands of the JWST OTIS GSE contract, although specific performance metrics for this particular contract would require further analysis of contract performance reports and historical data.
How does the $1.59 billion contract value compare to other ground support equipment contracts for major space missions?
The $1.59 billion value for the JWST OTIS GSE contract is exceptionally high, reflecting the unique complexity and criticality of the James Webb Space Telescope. Ground support equipment (GSE) for typical space missions can range from millions to tens of millions of dollars. However, for flagship missions like JWST, which involve unprecedented technological advancements and require highly specialized testing environments (e.g., cryogenic testing), the GSE costs escalate significantly. Comparable contracts for GSE on missions of similar scientific ambition and technological sophistication, such as the Hubble Space Telescope or future lunar/Martian exploration initiatives, would likely also be in the hundreds of millions to over a billion dollars, depending on the scope and duration. The 'not competed' status also suggests a unique requirement that may not have readily available market comparables.
What are the primary risks associated with a sole-source award for such a critical component?
The primary risks associated with a sole-source award for a critical component like the JWST OTIS GSE are related to cost and performance. Without competition, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher costs for taxpayers. Furthermore, the government has less leverage to negotiate favorable terms. In terms of performance, while the government may have high confidence in the sole-source provider's capabilities, the absence of competitive pressure could theoretically lead to complacency. Mitigating these risks relies heavily on robust government oversight, clear performance metrics, and strong contract management to ensure the contractor delivers on time, within budget (as much as possible for a CPFF contract), and to the required specifications.
How effective is the Cost Plus Award Fee (CPFF) contract structure in ensuring program effectiveness for complex R&D projects?
The Cost Plus Award Fee (CPFF) contract structure is often employed for complex research and development (R&D) or highly specialized projects where the scope of work can evolve and precise cost estimation is difficult. Its effectiveness lies in incentivizing contractor performance beyond basic contract requirements. The 'cost-plus' aspect covers allowable costs, while the 'award fee' portion is determined by the government based on pre-defined performance criteria. This structure aims to motivate the contractor to achieve superior results, innovate, and manage the project efficiently. For projects like the JWST, where technical challenges are immense, CPFF can encourage the contractor to proactively address issues and strive for excellence. However, its effectiveness is highly dependent on the clarity and measurability of the performance criteria and the rigor of the government's evaluation process.
What are the historical spending patterns for James Webb Space Telescope related contracts, and how does this contract fit?
Historical spending on the James Webb Space Telescope program has been substantial, spanning multiple decades and involving numerous contracts for design, development, manufacturing, testing, and launch services. The total program cost has evolved significantly since its inception. This specific contract for the OTIS Ground Support Equipment and Test Planning, valued at over $1.59 billion and awarded in 2010, represents a significant portion of the overall JWST budget, particularly related to the ground-based testing and integration phases. It fits within the broader pattern of large, complex, and long-term investments required for flagship NASA missions. Spending on such contracts is typically front-loaded during the development and testing phases, with subsequent contracts covering launch and initial operations.
What are the implications of the contractor also serving as the Optical Cryogenic Test Director and Assembly, Integration, and Test Chief Modeler?
Having the same contractor serve as the Optical Cryogenic Test Director and the Assembly, Integration, and Test (AI&T) Chief Modeler for the JWST OTIS module creates a high degree of integration and potential for efficiency. It consolidates critical testing and integration responsibilities under one entity, which can streamline communication, reduce coordination overhead, and ensure a cohesive approach to testing. This single point of responsibility can be advantageous for complex systems where seamless integration is paramount. However, it also concentrates risk. If the contractor falters in either of these critical roles, the entire testing and integration process could be jeopardized. Robust government oversight is essential to manage this concentrated responsibility and ensure accountability across all facets of the contractor's role.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc (UEI: 004203337)
Address: 400 INITIATIVE DR, ROCHESTER, NY, 14606
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $162,917,432
Exercised Options: $162,917,432
Current Obligation: $159,025,301
Subaward Activity
Number of Subawards: 126
Total Subaward Amount: $722,269,302
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-10-01
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 00:00:00
Last Modified: 2018-12-03
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