NASA's $75.6M Expendable Launch Vehicle Services IDIQ awarded to Orbital Sciences LLC, supporting space missions
Contract Overview
Contract Amount: $75,623,964 ($75.6M)
Contractor: Orbital Sciences LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-09-15
End Date: 2013-10-31
Contract Duration: 2,968 days
Daily Burn Rate: $25.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NASA SMALL EXPENDABLE LAUNCH VEHICLE SERVICES IDIQ
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $75.6 million to ORBITAL SCIENCES LLC for work described as: NASA SMALL EXPENDABLE LAUNCH VEHICLE SERVICES IDIQ Key points: 1. Contract value represents a significant investment in launch capabilities. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of nearly 8 years indicates a long-term need for these services. 4. Awarded to a single contractor, highlighting specialized capabilities or market concentration. 5. The North American Industry Classification System (NAICS) code 336419 points to a niche manufacturing sector. 6. Fixed-price contract type shifts cost risk to the contractor. 7. The contract was awarded by the National Aeronautics and Space Administration (NASA).
Value Assessment
Rating: good
The total award amount of $75.6 million for this IDIQ contract appears reasonable given the nearly 8-year duration and the specialized nature of expendable launch vehicle services. Benchmarking against similar large-scale aerospace contracts is challenging without more specific service details, but the fixed-price nature suggests that cost overruns are primarily the contractor's responsibility. The number of bids received (3) indicates some level of competition, which generally supports fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for these specialized launch services. While three bidders suggest some market interest, it is less than what might be seen in more commoditized sectors, potentially limiting the downward pressure on pricing.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. The presence of three bidders suggests that taxpayers likely benefited from competitive pricing, although the exact savings compared to a sole-source award cannot be quantified without further analysis.
Public Impact
The primary beneficiaries are NASA and its scientific and exploration programs, which rely on expendable launch vehicles for satellite deployment and space missions. Services delivered include the provision of launch vehicles and associated launch services, crucial for placing payloads into orbit. The geographic impact is national, supporting the U.S. space industry and research capabilities. Workforce implications include employment for engineers, technicians, and support staff within the aerospace sector, particularly at Orbital Sciences LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if competition was limited to only a few specialized firms.
- Reliance on a single prime contractor for critical launch services could pose risks if performance issues arise.
- The long contract duration might lead to less frequent opportunities for competitive re-evaluation of pricing and technology.
Positive Signals
- Awarded through full and open competition, suggesting a robust vetting process.
- Fixed-price contract type aligns incentives for cost control with the contractor.
- The contract supports critical national space infrastructure and scientific endeavors.
Sector Analysis
The aerospace manufacturing sector, specifically focusing on guided missile and space vehicle parts and auxiliary equipment, is a highly specialized and capital-intensive industry. This contract falls within the broader defense and space industrial base, characterized by long development cycles, high technological requirements, and significant government procurement. The market size for expendable launch vehicles is influenced by government agency needs (NASA, DoD) and commercial satellite deployment, with competition often concentrated among a few key players.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. The prime contractor, Orbital Sciences LLC, is a large business. While there are no direct set-aside benefits, large prime contractors are often required to have subcontracting plans that include goals for engaging small businesses. The extent to which small businesses will be involved as subcontractors on this IDIQ is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would primarily fall under the National Aeronautics and Space Administration (NASA). As an IDIQ contract, task orders issued against it would be subject to specific reviews and approvals. NASA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract's performance and financial execution. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- NASA Launch Services Program
- Space Launch System (SLS)
- Commercial Resupply Services (CRS)
- National Security Space Launch (NSSL)
Risk Flags
- Potential for schedule delays
- Risk of launch failure
- Vendor dependency due to single awardee
- Long contract duration may not keep pace with technological advancements
Tags
nasa, expendable-launch-vehicle, orbital-sciences-llc, full-and-open-competition, firm-fixed-price, aerospace, space-transportation, virginia, large-contract, multi-year-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $75.6 million to ORBITAL SCIENCES LLC. NASA SMALL EXPENDABLE LAUNCH VEHICLE SERVICES IDIQ
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 $75.6 million.
What is the period of performance?
Start: 2005-09-15. End: 2013-10-31.
What is the historical spending pattern for NASA's expendable launch vehicle services?
Historical spending on NASA's expendable launch vehicle (ELV) services has varied significantly year over year, influenced by mission schedules, the type of payloads being launched, and the specific launch vehicles utilized. NASA has historically relied on a mix of ELVs from different providers for its scientific and Earth observation missions. The agency has also been transitioning some capabilities towards more commercially viable options and larger, more powerful vehicles like the Space Launch System (SLS) for deep space exploration. Analyzing past ELV contracts, including IDIQs like the one awarded to Orbital Sciences, reveals trends in pricing, competition levels, and the evolution of launch technologies. For instance, prior to the widespread availability of rideshare opportunities on larger rockets or the emergence of new commercial launch providers, dedicated ELV contracts represented a substantial portion of NASA's space access budget. Understanding these historical patterns is crucial for assessing the long-term cost-effectiveness and strategic direction of NASA's launch procurement.
How does the pricing of this contract compare to similar NASA launch service contracts?
Directly comparing the pricing of this $75.6 million IDIQ contract to similar NASA launch service contracts is complex without detailed task order information and specific launch vehicle performance data. However, the contract's fixed-price nature suggests that the agreed-upon price per launch or service is set upfront, shifting cost-control risks to Orbital Sciences LLC. NASA's Launch Services Program (LSP) typically procures launch services through competitive processes to ensure fair and reasonable pricing. Benchmarking would involve analyzing the cost per kilogram to orbit for comparable missions launched during the same period, considering factors like launch vehicle class, orbit type (e.g., LEO, GEO, interplanetary), and mission complexity. Given that this was awarded under full and open competition with three bidders, it implies a degree of market validation for the pricing structure. However, without access to the specific pricing details within the IDIQ's task orders, a definitive value-for-money assessment relative to other contracts remains challenging.
What are the key risks associated with this contract for NASA?
Key risks associated with this contract for NASA include potential performance failures of the launch vehicles, which could jeopardize mission objectives and scientific data. Schedule delays are another significant risk, as launch campaigns are complex and susceptible to technical issues, weather, and range availability, potentially impacting NASA's overall mission timelines. Given that Orbital Sciences LLC is the sole awardee under this specific IDIQ, there's a risk of vendor dependency; if Orbital Sciences faces financial difficulties or strategic shifts, NASA's access to these specific launch capabilities could be compromised. Furthermore, while fixed-price contracts mitigate cost overrun risks for NASA, they can incentivize the contractor to cut corners on quality or safety if not rigorously overseen, although the stringent safety and reliability requirements in the aerospace industry typically mitigate this. Finally, the long duration of the contract (nearly 8 years) means that technological advancements in launch systems could potentially render the contracted vehicles less competitive or efficient over time.
What is the track record of Orbital Sciences LLC in fulfilling NASA launch contracts?
Orbital Sciences LLC (now part of Northrop Grumman Innovation Systems) has a substantial track record with NASA, particularly in providing launch services for scientific missions and cargo resupply to the International Space Station (ISS). They have successfully launched numerous missions using their Pegasus, Taurus, and Minotaur rocket families. Their experience includes deploying small to medium-sized satellites into various orbits. While they have a generally strong performance history, like any launch provider, they have encountered occasional setbacks, including launch failures (e.g., the Antares failure in 2014, though this was a different vehicle than typically associated with ELV IDIQs). NASA's selection of Orbital Sciences for this IDIQ, especially under full and open competition, indicates confidence in their capabilities and past performance. Their ability to consistently meet mission requirements, adhere to schedules, and manage costs has been a critical factor in their long-standing relationship with the agency.
How does this contract contribute to NASA's broader strategic goals in space exploration and science?
This contract directly supports NASA's strategic goals by providing essential launch capabilities for a variety of missions. Expendable launch vehicles (ELVs) are crucial for deploying scientific satellites that conduct Earth observation, study the cosmos, and support space physics research. They are also vital for placing payloads into specific orbits that might not be feasible or cost-effective with larger, reusable launch systems. By securing these services through a competitive IDIQ, NASA ensures it has reliable access to space for its diverse scientific portfolio, enabling the collection of critical data and advancing our understanding of the universe. Furthermore, supporting domestic launch providers like Orbital Sciences contributes to maintaining the U.S. industrial base for space technologies, which is a national security and economic imperative.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 21839 ATLANTIC BLVD, DULLES, VA, 20166
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,000,000,000
Exercised Options: $75,623,964
Current Obligation: $75,623,964
Timeline
Start Date: 2005-09-15
Current End Date: 2013-10-31
Potential End Date: 2013-10-31 00:00:00
Last Modified: 2017-07-20
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