NASA's $372.6M Optical Telescope Contract for WFIRST Telescope Faces Limited Competition
Contract Overview
Contract Amount: $372,589,497 ($372.6M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2018-11-30
End Date: 2027-01-31
Contract Duration: 2,984 days
Daily Burn Rate: $124.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: OPTICAL TELESCOPE ASSEMBLY (OTA) THIS CONTRACT PROVIDES FOR ALL EFFORTS AND RESPONSIBILITIES FOR THE PERSONNEL, SERVICES, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY TO BUILD, REFURBISH, OR MODIFY THE OTA AS REQUIRED TO MEET THE WIDE FIELD INFRARED SURVEY TELESCOPE (WFIRST) PERFORMANCE REQUIREMENTS.
Place of Performance
Location: ROCHESTER, MONROE County, NEW YORK, 14606
State: New York Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $372.6 million to L3HARRIS TECHNOLOGIES, INC. for work described as: OPTICAL TELESCOPE ASSEMBLY (OTA) THIS CONTRACT PROVIDES FOR ALL EFFORTS AND RESPONSIBILITIES FOR THE PERSONNEL, SERVICES, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY TO BUILD, REFURBISH, OR MODIFY THE OTA AS REQUIRED TO MEET THE WIDE FIELD INFRARED SURVEY TELESCOPE (WFIRST) PE… Key points: 1. The contract's value of $372.6 million is significant for specialized optical instrument manufacturing. 2. L3Harris Technologies is the sole awardee, indicating a lack of broad competition. 3. The 'Cost Plus Award Fee' structure may incentivize performance but can lead to cost overruns. 4. This contract falls within the 'Optical Instrument and Lens Manufacturing' sector, crucial for scientific research.
Value Assessment
Rating: questionable
The $372.6 million award for the Optical Telescope Assembly (OTA) is substantial. Benchmarking is difficult without specific contract details, but the 'Cost Plus Award Fee' structure suggests potential for costs to exceed initial estimates if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning L3Harris Technologies was the only entity considered. This limits price discovery and potentially reduces the government's ability to secure the best possible price through competitive bidding.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best value for their investment in this critical space telescope component.
Public Impact
The Wide Field Infrared Survey Telescope (WFIRST) is a major scientific initiative, and delays or cost overruns in its components could impact research timelines. The sole-source nature of this contract may set a precedent for future procurements of highly specialized components. Investment in advanced optical technology for space exploration has broader implications for technological advancement and national prestige.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long performance period (2027)
Positive Signals
- Critical component for major scientific mission
- Experienced contractor (L3Harris)
Sector Analysis
This contract is within the Optical Instrument and Lens Manufacturing sector, which is highly specialized and often involves significant R&D investment. Spending in this area is driven by national security and scientific exploration priorities.
Small Business Impact
The contract was awarded to L3Harris Technologies, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
The 'Cost Plus Award Fee' structure requires robust oversight from NASA to ensure performance targets are met and costs are managed effectively. The long duration of the contract necessitates ongoing monitoring of progress and expenditures.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type carries inherent cost overrun risk.
- Long contract duration increases exposure to changing requirements or economic conditions.
- Potential for performance issues impacting a high-priority scientific mission.
- Lack of small business participation.
Tags
optical-instrument-and-lens-manufacturin, national-aeronautics-and-space-administr, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $372.6 million to L3HARRIS TECHNOLOGIES, INC.. OPTICAL TELESCOPE ASSEMBLY (OTA) THIS CONTRACT PROVIDES FOR ALL EFFORTS AND RESPONSIBILITIES FOR THE PERSONNEL, SERVICES, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY TO BUILD, REFURBISH, OR MODIFY THE OTA AS REQUIRED TO MEET THE WIDE FIELD INFRARED SURVEY TELESCOPE (WFIRST) PERFORMANCE REQUIREMENTS.
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 $372.6 million.
What is the period of performance?
Start: 2018-11-30. End: 2027-01-31.
What specific technical capabilities made L3Harris Technologies the sole source for this critical telescope component?
The sole-source nature of this contract suggests that L3Harris Technologies likely possesses unique, highly specialized expertise and proprietary technology essential for building the Optical Telescope Assembly (OTA) to meet the stringent performance requirements of the WFIRST mission. This could include advanced manufacturing processes, specialized materials, or patented designs that are not readily available from other contractors, justifying the non-competitive award.
How will NASA mitigate the risks associated with a 'Cost Plus Award Fee' contract to ensure cost control?
NASA will likely implement rigorous oversight mechanisms, including detailed cost tracking, regular performance reviews, and clearly defined award fee criteria tied to specific technical and schedule milestones. Independent cost estimates and audits may also be employed. The agency will need to ensure that the award fee structure incentivizes efficiency and cost-consciousness without encouraging unnecessary spending.
What is the potential impact on the WFIRST mission timeline and scientific objectives if cost overruns or performance issues arise?
Cost overruns could divert funds from other critical aspects of the WFIRST mission or other NASA projects, potentially leading to budget constraints. Performance issues with the OTA could cause significant delays in the mission's launch schedule, impacting the scientific community's access to valuable observational data and potentially affecting the achievement of key scientific objectives outlined for WFIRST.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NNG17599401R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 400 INITIATIVE DR, ROCHESTER, NY, 14606
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $378,907,168
Exercised Options: $378,907,168
Current Obligation: $372,589,497
Actual Outlays: $332,426,689
Subaward Activity
Number of Subawards: 251
Total Subaward Amount: $26,134,729
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-11-30
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-02-20
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