NASA Awards BAE Systems $100M for OLI-2 Instrument Development
Contract Overview
Contract Amount: $100,006,671 ($100.0M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-12-30
End Date: 2022-02-28
Contract Duration: 2,252 days
Daily Burn Rate: $44.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CL::IGF THIS REQUIREMENT IS FOR THE DEVELOPMENT AND DELIVERY OF THE OPERATIONAL LAND IMAGER 2 (OLI-2) INSTRUMENT. IN ACCORDANCE WITH THE REQUIREMENTS OF THIS DOCUMENT, THE CONTRACT, ALL ASSOCIATED REQUIREMENTS DOCUMENTS, AND THE OTHER ATTACHMENTS AND APPLICABLE DOCUMENTS TO THIS CONTRACT, THE CONTRACTOR SHALL PROVIDE THE EFFORT AND RESOURCES THAT INCLUDE, BUT ARE NOT LIMITED TO, PERSONNEL, SUBJECT MATTER EXPERTISE, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY FOR THE SUCCESSFUL AND ON-TIME IMPLEMENTATION OF THE DESIGN, ANALYSIS, DEVELOPMENT, FABRICATION, ASSEMBLY, INTEGRATION, TEST, ENGINEERING DATA ANALYSES, VERIFICATION, CALIBRATION, QUALIFICATION, AND DELIVERY OF THE OLI-2. THE CONTRACTOR SHALL ALSO PROVIDE THE PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY FOR SUPPORT TO OBSERVATORY I&T, SUPPORT TO MISSION LEVEL ACTIVITIES SUCH AS OBSERVATORY ENVIRONMENTAL TEST, LAUNCH VEHICLE INTEGRATION AND ON-ORBIT COMMISSIONING, AND SPECIAL STUDIES OF THE OLI-2. THE CONTRACTOR SHALL DELIVER TO THE GOVERNMENT AN OLI-2 THAT IS FULLY TESTED, CALIBRATED, AND HAS DEMONSTRATED COMPLIANT AND RELIABLE OPERATION IN ACCORDANCE WITH THE REQUIREMENTS OF THIS CONTRACT.
Place of Performance
Location: INGLEWOOD, LOS ANGELES County, CALIFORNIA, 90301
Plain-Language Summary
National Aeronautics and Space Administration obligated $100.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: IGF::CL::IGF THIS REQUIREMENT IS FOR THE DEVELOPMENT AND DELIVERY OF THE OPERATIONAL LAND IMAGER 2 (OLI-2) INSTRUMENT. IN ACCORDANCE WITH THE REQUIREMENTS OF THIS DOCUMENT, THE CONTRACT, ALL ASSOCIATED REQUIREMENTS DOCUMENTS, AND THE OTHER ATTACHMENTS AND APPLICABLE DOCUMENTS TO … Key points: 1. High-value contract for critical space instrument development. 2. Sole-source award to BAE Systems, limiting competition. 3. Significant taxpayer investment in advanced satellite technology. 4. Potential for cost overruns in complex R&D projects.
Value Assessment
Rating: questionable
The contract value of $100M for the OLI-2 instrument is substantial. Without comparable contract data for similar advanced sensor development, a precise pricing assessment is difficult. The Cost Plus Award Fee structure suggests performance incentives, but the base cost needs careful scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the lack of competitive bidding.
Public Impact
Enhances Earth observation capabilities with the OLI-2 instrument. Supports NASA's ongoing scientific research and data collection missions. Contributes to advancements in space technology and remote sensing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize spending.
- Long contract duration increases risk of cost escalation.
Positive Signals
- Development of critical OLI-2 instrument for scientific missions.
- Award to established aerospace contractor (BAE Systems).
Sector Analysis
This contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this high-tech sector is characterized by long development cycles, significant R&D investment, and often involves specialized, sole-source procurements for unique components.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Large aerospace companies like BAE Systems typically dominate these complex, high-value procurements.
Oversight & Accountability
The contract is a Definitive Contract with a Cost Plus Award Fee structure, managed by NASA. Oversight would focus on performance against award fee criteria and cost control throughout the development and delivery phases.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source procurement limits competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration increases exposure to market and technical risks.
- Complexity of space instrument development presents inherent technical challenges.
Tags
other-guided-missile-and-space-vehicle-p, national-aeronautics-and-space-administr, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $100.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. IGF::CL::IGF THIS REQUIREMENT IS FOR THE DEVELOPMENT AND DELIVERY OF THE OPERATIONAL LAND IMAGER 2 (OLI-2) INSTRUMENT. IN ACCORDANCE WITH THE REQUIREMENTS OF THIS DOCUMENT, THE CONTRACT, ALL ASSOCIATED REQUIREMENTS DOCUMENTS, AND THE OTHER ATTACHMENTS AND APPLICABLE DOCUMENTS TO THIS CONTRACT, THE CONTRACTOR SHALL PROVIDE THE EFFORT AND RESOURCES THAT INCLUDE, BUT ARE NOT LIMITED TO, PERSONNEL, SUBJECT MATTER EXPERTISE, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY FOR THE SUCCESSFUL AND ON-TIM
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 $100.0 million.
What is the period of performance?
Start: 2015-12-30. End: 2022-02-28.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems. NASA would have conducted a price analysis based on historical data, cost estimates, and potentially other available market information to determine fairness and reasonableness, though competitive benchmarking is absent.
What are the key performance metrics and award fee criteria for BAE Systems on this contract?
Key performance metrics likely revolve around the successful design, fabrication, integration, testing, and on-time delivery of the OLI-2 instrument according to stringent technical specifications. Award fee criteria would be tied to achieving these milestones, meeting quality standards, and managing costs effectively, incentivizing superior performance beyond basic contract requirements.
How will NASA ensure cost control and prevent potential overruns given the Cost Plus Award Fee structure?
NASA will likely employ rigorous Earned Value Management (EVM) techniques to track cost and schedule performance. Regular reviews, milestone assessments, and close monitoring of BAE Systems' expenditures against the baseline plan are crucial. The award fee structure itself can be used to incentivize cost efficiency, but careful negotiation and oversight of the fee structure are paramount.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NNG0LI2R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $115,920,964
Exercised Options: $115,920,964
Current Obligation: $100,006,671
Actual Outlays: $11,048,941
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $1,676,509
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-12-30
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2022-08-10
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