NASA's Landsat 9 Spacecraft Acquisition: $168M for Core Components, Awarded to Orbital Sciences LLC
Contract Overview
Contract Amount: $168,112,468 ($168.1M)
Contractor: Orbital Sciences LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2016-10-25
End Date: 2022-07-30
Contract Duration: 2,104 days
Daily Burn Rate: $79.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LANDSAT 9 SPACECRAFT. CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE AND DOCUMENTATION.
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $168.1 million to ORBITAL SCIENCES LLC for work described as: LANDSAT 9 SPACECRAFT. CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE AND DOCUMENTATION. Key points: 1. The acquisition focuses on the core spacecraft, hardware, software, and documentation for Landsat 9. 2. Orbital Sciences LLC secured the contract under full and open competition. 3. The contract type is Firm Fixed Price, indicating a defined cost for the deliverables. 4. This spending falls within the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: good
The total award amount of $168.1 million for the core spacecraft appears reasonable given the complexity of space missions. Benchmarking against similar satellite development contracts would provide a more precise assessment, but the fixed-price nature suggests a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple vendors to bid. This competitive process generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this critical Earth observation mission.
Public Impact
Landsat 9 is crucial for monitoring Earth's land resources, providing data for agriculture, forestry, and disaster management. The spacecraft's data supports scientific research and informs policy decisions impacting environmental sustainability. This investment ensures the continuity of the Landsat program, a vital source of long-term global land imaging.
Waste & Efficiency Indicators
Waste Risk Score: 79 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during development.
- Dependence on a single contractor for core spacecraft components could pose a risk if issues emerge.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Full and open competition suggests a robust market evaluation.
- Long-standing Landsat program history indicates proven mission success.
Sector Analysis
This contract falls under the Guided Missile and Space Vehicle Manufacturing sector, which involves highly specialized and technologically advanced production. Spending benchmarks in this sector are difficult to generalize due to the unique nature of each space mission, but the scale of this award is significant for a single spacecraft.
Small Business Impact
The data does not indicate any specific subcontracting or participation by small businesses in this particular contract award. Further analysis would be needed to determine if small businesses were involved in the supply chain or as potential competitors.
Oversight & Accountability
NASA's procurement processes typically involve rigorous oversight, including technical reviews and contract management. The agency's established procedures aim to ensure accountability and successful project execution throughout the contract lifecycle.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for schedule delays in complex space vehicle manufacturing.
- Reliance on a single prime contractor for critical components.
- Technological obsolescence risk for long-duration space missions.
- Geopolitical factors impacting supply chain or international collaboration.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $168.1 million to ORBITAL SCIENCES LLC. LANDSAT 9 SPACECRAFT. CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE AND DOCUMENTATION.
Who is the contractor on this award?
The obligated recipient is ORBITAL SCIENCES 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 $168.1 million.
What is the period of performance?
Start: 2016-10-25. End: 2022-07-30.
What is the projected operational lifespan and data utility of the Landsat 9 spacecraft, and how does this justify the $168 million investment?
The Landsat 9 spacecraft is designed for a minimum five-year operational life, with potential for longer service. Its advanced sensors will provide high-resolution, multispectral imagery crucial for monitoring global land cover changes, agricultural productivity, natural resources, and disaster impacts. The data's continuity with previous Landsat missions allows for long-term trend analysis, making the $168 million investment justifiable for its significant scientific, environmental, and economic benefits over its lifespan.
Given the firm fixed price, what mechanisms are in place to manage scope creep and ensure the contractor delivers the specified core spacecraft components without significant cost increases?
NASA employs stringent contract management and oversight for firm fixed-price contracts. This includes detailed technical specifications, regular progress reviews, and change control processes. Any deviation from the original scope requires formal modification and negotiation, often involving cost adjustments approved by the agency. The contract's success hinges on clear initial requirements and proactive management to prevent scope creep.
How does the performance and reliability of Orbital Sciences LLC in previous space vehicle manufacturing contracts inform NASA's confidence in this award?
NASA's selection of Orbital Sciences LLC likely considered their past performance record, including successful delivery of previous space vehicles and adherence to contract requirements. Agencies typically conduct thorough past performance evaluations as part of the source selection process. While specific details of past contracts are not provided, a favorable assessment of Orbital Sciences' reliability and technical capability would have been a key factor in awarding this significant contract.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 45101 WARP DR, DULLES, VA, 20166
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: $168,112,468
Exercised Options: $168,112,468
Current Obligation: $168,112,468
Actual Outlays: $73,234,337
Subaward Activity
Number of Subawards: 139
Total Subaward Amount: $18,979,948
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG10AZ13B
IDV Type: IDC
Timeline
Start Date: 2016-10-25
Current End Date: 2022-07-30
Potential End Date: 2022-07-30 00:00:00
Last Modified: 2023-03-06
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