NASA's Restore-L refueling mission spacecraft bus contract awarded to L3Harris Technologies for over $139 million

Contract Overview

Contract Amount: $139,065,726 ($139.1M)

Contractor: Lanteris Space LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2016-12-05

End Date: 2027-02-28

Contract Duration: 3,737 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE CONTRACTOR FURNISHES ALL THE NECESSARY PERSONNEL, FACILITIES, SERVICES, EQUIPMENT, AND MATERIALS TO DESIGN, FABRICATE, INTEGRATE, TEST, AND DELIVER THE SPACECRAFT BUS, AND PROVIDE SERVICES SUCH AS INTEGRATION AND TEST OF THE RSV AT GSFC AND PERFORMANCE OF ON-ORBIT ACTIVITIES FOR THE INITIAL RESTORE-L REFUELING CAMPAIGN IN MID-2020. SINCE THE CONTRACTOR IS PROVIDING THE SPACECRAFT BUS, NASA INVOLVEMENT WILL BE TAILORED TO BALANCE THE LEVELS OF OVERSIGHT VS. INSIGHT NEEDED TO ASCERTAIN THE APPROPRIATE LEVEL OF RISK TO THE OVERALL MISSION.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94303

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $139.1 million to LANTERIS SPACE LLC for work described as: THE CONTRACTOR FURNISHES ALL THE NECESSARY PERSONNEL, FACILITIES, SERVICES, EQUIPMENT, AND MATERIALS TO DESIGN, FABRICATE, INTEGRATE, TEST, AND DELIVER THE SPACECRAFT BUS, AND PROVIDE SERVICES SUCH AS INTEGRATION AND TEST OF THE RSV AT GSFC AND PERFORMANCE OF ON-ORBIT ACTIVITIES … Key points: 1. Contract focuses on the design, fabrication, integration, testing, and delivery of the spacecraft bus for the Restore-L mission. 2. NASA's oversight approach balances insight and risk management due to the contractor's comprehensive role in providing the spacecraft bus. 3. The contract is a firm-fixed-price definitive contract, indicating a clear scope and pricing structure. 4. Performance period spans from December 2016 to February 2027, covering significant development and operational phases. 5. The contract is categorized under Guided Missile and Space Vehicle Manufacturing, a specialized sector within aerospace. 6. This award represents a substantial investment in advanced space servicing capabilities.

Value Assessment

Rating: good

The contract value of over $139 million for a complex spacecraft bus and associated services appears reasonable given the scope. Benchmarking against similar, highly specialized spacecraft development contracts is challenging due to unique mission requirements. However, the firm-fixed-price nature suggests that the contractor has assumed significant cost risk, which can be a positive indicator of value if managed effectively. NASA's tailored oversight aims to ensure efficient resource utilization while mitigating mission risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple capable offerors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure that the government receives the best value. The presence of multiple bidders typically drives down costs and encourages innovation. Specific details on the number of bidders are not provided, but the designation indicates a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more efficient allocation of resources and potentially lower overall costs compared to less competitive procurement methods.

Public Impact

The primary beneficiary is NASA, enabling the critical Restore-L mission for in-orbit refueling. Services delivered include the complete spacecraft bus, integration, testing, and on-orbit activities. The mission's success has implications for future space operations, satellite servicing, and debris mitigation. This contract supports highly skilled jobs in the aerospace and defense sector, particularly in spacecraft manufacturing and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized segment of the aerospace industry. This sector is characterized by high barriers to entry, significant R&D investment, and stringent quality and performance requirements. The market is dominated by a few large, experienced contractors capable of undertaking complex space missions. Spending in this area is critical for national security, scientific exploration, and the development of advanced space technologies.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses. Given the specialized nature of spacecraft bus manufacturing, it is likely that the prime contractor, L3Harris Space LLC, will utilize its own facilities and expertise. However, opportunities for small businesses may exist further down the supply chain for specific components or services, though this is not directly evident from the provided data.

Oversight & Accountability

NASA's oversight is described as 'tailored to balance the levels of oversight vs. insight needed to ascertain the appropriate level of risk.' This suggests a flexible approach, likely involving program management reviews, technical interchange meetings, and potentially site visits. Accountability is primarily driven by the firm-fixed-price contract terms and NASA's monitoring of performance against milestones. Transparency is generally maintained through contract awards and reporting, though specific oversight activities are internal.

Related Government Programs

Risk Flags

Tags

nasa, spacecraft-manufacturing, guided-missile-and-space-vehicle-manufacturing, firm-fixed-price, definitive-contract, full-and-open-competition, california, large-contract, aerospace, satellite-servicing

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $139.1 million to LANTERIS SPACE LLC. THE CONTRACTOR FURNISHES ALL THE NECESSARY PERSONNEL, FACILITIES, SERVICES, EQUIPMENT, AND MATERIALS TO DESIGN, FABRICATE, INTEGRATE, TEST, AND DELIVER THE SPACECRAFT BUS, AND PROVIDE SERVICES SUCH AS INTEGRATION AND TEST OF THE RSV AT GSFC AND PERFORMANCE OF ON-ORBIT ACTIVITIES FOR THE INITIAL RESTORE-L REFUELING CAMPAIGN IN MID-2020. SINCE THE CONTRACTOR IS PROVIDING THE SPACECRAFT BUS, NASA INVOLVEMENT WILL BE TAILORED TO BALANCE THE LEVELS OF OVERSIGHT VS. INSIGHT NEEDED TO ASCERTAIN THE AP

Who is the contractor on this award?

The obligated recipient is LANTERIS SPACE LLC.

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 $139.1 million.

What is the period of performance?

Start: 2016-12-05. End: 2027-02-28.

What is L3Harris Space LLC's track record with NASA on similar complex spacecraft development contracts?

L3Harris Space LLC, and its predecessor entities, have a significant history of working with NASA and other government agencies on various space programs. While specific details on their performance for the Restore-L spacecraft bus are not elaborated here, the company is known for its expertise in developing and manufacturing complex space systems, including satellites, payloads, and related technologies. Their experience likely encompasses a range of mission types and technical challenges. NASA's selection of L3Harris for this critical component suggests confidence in their past performance and technical capabilities. A deeper dive into their contract history with NASA would reveal specific project successes, challenges, and overall performance ratings on similar endeavors.

How does the $139 million contract value compare to the estimated cost of developing similar spacecraft buses for other missions?

Benchmarking the $139 million contract value for the Restore-L spacecraft bus against similar contracts is complex due to the unique nature of each mission and spacecraft. Factors such as size, complexity, payload requirements, technological advancements, and mission duration significantly influence development costs. However, for context, the development of sophisticated satellite buses for scientific or national security missions can range from tens of millions to hundreds of millions of dollars. The Restore-L mission's objective of in-orbit refueling is a novel capability, potentially adding to its cost. The firm-fixed-price nature of this contract implies that L3Harris has committed to delivering the bus within this budget, absorbing potential cost overruns, which is a key indicator of value if the scope is met.

What are the primary technical risks associated with the Restore-L spacecraft bus development and how is NASA mitigating them?

The primary technical risks likely revolve around the integration of complex subsystems, ensuring the reliability of novel refueling components, and meeting stringent performance requirements for on-orbit operations. The spacecraft bus must be robust enough to support the refueling mission's unique demands. NASA's mitigation strategy, as indicated, is a 'tailored oversight' approach. This means they are not applying a one-size-fits-all inspection regime but are focusing their insight and oversight efforts on the most critical aspects of the design, fabrication, and testing phases. This likely involves rigorous design reviews, component testing, system integration checks, and performance verification to identify and address potential issues early in the development lifecycle, thereby minimizing the risk to mission success.

What is the expected effectiveness of the Restore-L mission in achieving its refueling objectives, and how does this contract contribute?

The Restore-L mission aims to demonstrate the capability to refuel a satellite in orbit, a critical technology for extending the life of valuable assets and enabling more ambitious space operations. The effectiveness of the mission hinges on the successful design, construction, and operation of the spacecraft bus, which is the core platform for the refueling system. This contract directly addresses the foundational element – the spacecraft bus – ensuring it is built to specifications and integrated with the necessary systems. If the spacecraft bus performs as intended, it will provide a stable and capable platform for the robotic servicing vehicle to execute the refueling task, thereby proving the mission's core objective and paving the way for future operational refueling capabilities.

How has NASA's spending on spacecraft bus development evolved over the past decade, and where does this contract fit in?

NASA's spending on spacecraft bus development has likely fluctuated over the past decade, influenced by the agency's strategic priorities, budget allocations, and the types of missions being pursued. Investments have historically been directed towards flagship science missions, human exploration programs, and technology demonstration initiatives. Contracts for spacecraft buses represent a significant portion of the overall mission cost. The Restore-L contract, valued at over $139 million, fits within the agency's ongoing efforts to develop advanced capabilities in space servicing and robotics. It reflects a commitment to pushing technological boundaries beyond traditional satellite deployment, potentially indicating a strategic shift towards enabling longer-duration missions and more complex in-orbit operations.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNG16572187R

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3825 FABIAN WAY, PALO ALTO, CA, 94303

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $154,211,029

Exercised Options: $154,211,029

Current Obligation: $139,065,726

Actual Outlays: $68,996,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2016-12-05

Current End Date: 2027-02-28

Potential End Date: 2027-02-28 00:00:00

Last Modified: 2026-01-07

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