NASA awards $44.3M contract to General Atomics for spacecraft development and mission operations
Contract Overview
Contract Amount: $44,338,789 ($44.3M)
Contractor: General Atomics
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2020-07-06
End Date: 2026-10-27
Contract Duration: 2,304 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TO PROVIDE SPACECRAFT DEVELOPMENT & TEST OBSERVATORY I&T OBSERVATORY TESTING SHIPMENT TO THE LAUNCH SITE SUPPORT OF LAUNCH OPERATIONS ON-ORBIT PERFORMANCE VERIFICATION OPERATION OF MISSION OPERATIONS CENTER, 3 YEARS MISSION OPS&DECOMMISSIONING.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
National Aeronautics and Space Administration obligated $44.3 million to GENERAL ATOMICS for work described as: TO PROVIDE SPACECRAFT DEVELOPMENT & TEST OBSERVATORY I&T OBSERVATORY TESTING SHIPMENT TO THE LAUNCH SITE SUPPORT OF LAUNCH OPERATIONS ON-ORBIT PERFORMANCE VERIFICATION OPERATION OF MISSION OPERATIONS CENTER, 3 YEARS MISSION OPS&DECOMMISSIONING. Key points: 1. Contract focuses on critical spacecraft development, testing, launch support, and long-term mission operations. 2. Full and open competition suggests a robust market for these specialized services. 3. Definitive contract type with firm fixed price indicates clear cost expectations. 4. Duration of over 6 years highlights the long-term nature of space missions. 5. Contractor General Atomics has a significant role in the aerospace and defense sector. 6. Geographic focus on California for contract performance.
Value Assessment
Rating: good
The contract value of $44.3 million over approximately 6 years appears reasonable for comprehensive spacecraft development, testing, launch support, and extended mission operations. Benchmarking against similar complex space system development contracts is challenging due to unique mission requirements, but the firm fixed-price structure provides cost certainty. The number of bidders (3) suggests a competitive but specialized market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Three bids were received, suggesting a competitive landscape for this specialized service. The level of competition is generally positive for price discovery and ensuring the government receives competitive pricing.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for funds expended on this critical space mission.
Public Impact
The primary beneficiaries are NASA and the scientific community, who will receive a functional spacecraft and its operational support. Services delivered include spacecraft development, rigorous testing, shipment to launch site, launch operations support, on-orbit performance verification, and mission operations. Geographic impact is primarily in California where the contractor is located, and potentially at the launch site. Workforce implications include skilled engineers, technicians, and mission operations personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise during development or operations.
- Dependence on a single contractor for critical mission phases could pose a risk if performance issues emerge.
Positive Signals
- Firm fixed-price contract provides cost control and predictability.
- Full and open competition suggests a healthy market and potential for innovation.
- Long-term contract duration allows for sustained focus and expertise development.
Sector Analysis
The contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized and technologically advanced area of the aerospace industry. This sector is characterized by high R&D investment, stringent quality control, and long development cycles. Spending in this sector is often driven by government defense and space exploration initiatives, with significant investment required for complex systems like spacecraft.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While General Atomics is a large business, there may be opportunities for small businesses to participate as subcontractors, depending on the specific needs and subcontracting plans outlined in the contract.
Oversight & Accountability
Oversight will likely be conducted by NASA's contracting officers and program managers, ensuring adherence to contract terms and performance milestones. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract awards databases, though specific performance details may be sensitive.
Related Government Programs
- Space Launch Services
- Satellite Development
- Mission Operations Support
- Aerospace Engineering Services
Risk Flags
- Potential for technical challenges during development.
- Risk of schedule delays impacting mission objectives.
- Dependence on contractor's long-term operational capability.
Tags
nasa, spacecraft-development, mission-operations, general-atomics, california, firm-fixed-price, full-and-open-competition, definitive-contract, guided-missile-and-space-vehicle-manufacturing, aerospace, r&d
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $44.3 million to GENERAL ATOMICS. TO PROVIDE SPACECRAFT DEVELOPMENT & TEST OBSERVATORY I&T OBSERVATORY TESTING SHIPMENT TO THE LAUNCH SITE SUPPORT OF LAUNCH OPERATIONS ON-ORBIT PERFORMANCE VERIFICATION OPERATION OF MISSION OPERATIONS CENTER, 3 YEARS MISSION OPS&DECOMMISSIONING.
Who is the contractor on this award?
The obligated recipient is GENERAL ATOMICS.
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 $44.3 million.
What is the period of performance?
Start: 2020-07-06. End: 2026-10-27.
What is General Atomics' track record with NASA on similar spacecraft development contracts?
General Atomics has a history of working with government agencies, including NASA, on various aerospace and defense projects. While specific details on prior spacecraft development contracts with NASA may require deeper research into contract databases, the company is known for its work in areas such as unmanned aerial systems, advanced materials, and power systems. Their experience in complex engineering and manufacturing suggests a capability to undertake such projects. A thorough review would involve examining past performance evaluations and any reported issues on previous NASA contracts to assess their reliability and expertise in spacecraft development and mission operations.
How does the $44.3 million contract value compare to similar spacecraft development and mission operations contracts?
Comparing the $44.3 million contract value requires careful consideration of the scope and duration. This contract covers development, testing, launch support, and over six years of mission operations. Smaller, simpler satellite projects might cost less, while highly complex, multi-year scientific missions or large constellations could easily exceed this figure. For instance, NASA's Mars missions or large Earth observation satellites often involve hundreds of millions of dollars. Given the comprehensive nature of this contract, including long-term operations, $44.3 million appears to be within a reasonable range for a single spacecraft system, though specific technological complexity and mission objectives would be key differentiators.
What are the primary risks associated with this contract for NASA?
The primary risks for NASA in this contract include technical risks related to the successful development and on-orbit performance of the spacecraft, potential schedule delays impacting launch windows or mission timelines, and cost risks if unforeseen issues lead to contract modifications or overruns, despite the firm fixed-price structure. Operational risks, such as mission control failures or unexpected degradation of spacecraft components, also pose a threat to mission success. Furthermore, contractor performance issues or a lack of adequate technical expertise could jeopardize the entire mission. Robust oversight and contingency planning are crucial to mitigate these risks.
How effective is the firm fixed-price contract type in managing costs for this project?
The firm fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined and technical risks are understood. It places the primary cost risk on the contractor, incentivizing them to control expenses and deliver within the agreed-upon price. For a project involving spacecraft development and operations, FFP provides NASA with significant cost certainty. However, if unforeseen technical challenges or scope changes arise, contractors may seek equitable adjustments, potentially increasing the overall cost. The success of FFP here depends on the contractor's ability to accurately estimate costs and manage risks throughout the contract lifecycle.
What is the historical spending trend for spacecraft development and mission operations by NASA?
NASA's historical spending on spacecraft development and mission operations has been substantial and varies significantly based on the complexity and ambition of its programs. Major initiatives like the James Webb Space Telescope, Mars rovers (e.g., Perseverance), and various Earth observation satellites represent multi-billion dollar investments over many years. Smaller satellite missions or CubeSats typically cost in the millions. The agency consistently allocates significant portions of its budget to developing new space assets and ensuring their long-term operational success, reflecting the high cost and long-term commitment inherent in space exploration and scientific research.
What are the implications of having only 3 bidders for this contract?
Having three bidders for this contract suggests a specialized market where the number of capable companies is limited. While three bidders indicate some level of competition, it is less than what might be seen in broader service categories. This could mean that prices might be higher than if there were a larger pool of competitors, as the winning contractor may have less pressure to offer the absolute lowest price. However, it also suggests that the bidders are likely highly qualified and experienced in this niche area, potentially leading to better technical solutions and reduced risk of contractor failure. NASA's evaluation process would need to carefully balance price against technical merit.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC20R0009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Diazyme Laboratories, Inc.
Address: 3550 GENERAL ATOMICS CT, SAN DIEGO, CA, 92121
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: $48,013,210
Exercised Options: $44,338,789
Current Obligation: $44,338,789
Actual Outlays: $30,392,807
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $29,193,382
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-06
Current End Date: 2026-10-27
Potential End Date: 2026-10-27 00:00:00
Last Modified: 2026-04-09
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