NASA's SWFO-L1 Spacecraft Contract Awarded to BAE Systems for $104M, Facing Limited Competition

Contract Overview

Contract Amount: $104,047,006 ($104.0M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2020-06-25

End Date: 2026-06-30

Contract Duration: 2,196 days

Daily Burn Rate: $47.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPACE WEATHER FOLLOW ON - LAGRANGE 1 (SWFO-L1) SPACECRAFT

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $104.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: SPACE WEATHER FOLLOW ON - LAGRANGE 1 (SWFO-L1) SPACECRAFT Key points: 1. The contract for the SWFO-L1 spacecraft is a significant investment in space weather monitoring capabilities. 2. BAE Systems, a major defense contractor, secured this award, indicating a concentrated market for such specialized services. 3. The firm fixed-price contract structure aims to control costs, but the limited competition raises potential value concerns. 4. This spending falls within the broader context of national security and scientific research investments in space technology.

Value Assessment

Rating: fair

The $104 million contract price for the SWFO-L1 spacecraft appears reasonable given the complexity and specialized nature of space missions. However, without more granular data on similar spacecraft development contracts, a precise benchmark is difficult to establish. The firm fixed-price nature suggests an effort to contain costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific awardee, BAE Systems, suggests that the pool of qualified bidders for highly specialized space hardware may be limited, potentially impacting the ultimate competitiveness.

Taxpayer Impact: Taxpayers benefit from enhanced space weather prediction capabilities, crucial for protecting critical infrastructure and ensuring mission safety. The competitive award process aims to secure the best value for this investment.

Public Impact

Improved forecasting of solar flares and geomagnetic storms, protecting satellites and ground-based infrastructure. Advancement of scientific understanding of space weather phenomena. Support for NASA's mission objectives in space exploration and Earth observation. Potential for spin-off technologies benefiting commercial and civilian sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited number of qualified bidders for highly specialized space systems.
  • Potential for cost overruns if unforeseen technical challenges arise.
  • Dependence on a single contractor for critical space weather monitoring hardware.

Positive Signals

  • Firm fixed-price contract to control costs.
  • Awarded under full and open competition.
  • Enhances critical national capability for space weather prediction.
  • Supports NASA's strategic space science goals.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on satellite and spacecraft manufacturing. Spending in this area is driven by national security, scientific research, and commercial space interests. Benchmarks for similar complex spacecraft development can vary widely based on mission scope and technological requirements.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Large, complex projects like spacecraft development often require the resources and expertise of major aerospace corporations, potentially limiting opportunities for smaller firms in this specific instance.

Oversight & Accountability

NASA's procurement processes are subject to oversight from the Government Accountability Office (GAO) and congressional committees. The agency employs internal review mechanisms to ensure compliance and accountability throughout the contract lifecycle, particularly for high-value, critical missions.

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 limited competition in future follow-on phases.
  • Complexity of space hardware development introduces inherent technical risks.
  • Dependence on a single prime contractor for a critical national asset.
  • Cybersecurity risks associated with connected space systems.

Tags

guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, co, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $104.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. SPACE WEATHER FOLLOW ON - LAGRANGE 1 (SWFO-L1) SPACECRAFT

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS 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 $104.0 million.

What is the period of performance?

Start: 2020-06-25. End: 2026-06-30.

What is the projected return on investment for the SWFO-L1 mission in terms of economic impact or risk mitigation?

The SWFO-L1 mission's return on investment is primarily measured by its ability to mitigate risks associated with space weather events. By providing timely and accurate data, it helps protect billions of dollars in satellite assets, critical communication networks, power grids, and aviation systems from disruption. Quantifying the exact economic return is challenging but is expected to far exceed the contract cost through avoided damages and operational continuity.

What are the key technical risks associated with the SWFO-L1 spacecraft development and how are they being managed?

Key technical risks include the reliability of novel sensor technology, integration challenges with existing space infrastructure, and the harsh space environment's impact on components. BAE Systems likely employs rigorous testing, redundancy in critical systems, and phased development with milestone reviews to manage these risks. NASA's oversight will focus on adherence to stringent quality control and performance verification throughout the build and testing phases.

How effectively does the firm fixed-price contract structure ensure value for money given the potential for unforeseen technical challenges in space hardware development?

The firm fixed-price (FFP) structure aims to ensure value by shifting cost overrun risk to the contractor, incentivizing efficient performance. However, for highly complex, cutting-edge projects like spacecraft, FFP can sometimes lead to contractors cutting corners on quality or scope if unforeseen issues arise, or demanding costly change orders. NASA's robust contract management and technical oversight are crucial to ensuring the contractor delivers the specified quality and functionality within the fixed price.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided 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

Solicitation ID: 80GSFC20R0003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 1600 COMMERCE ST, BOULDER, CO, 80301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $114,259,961

Exercised Options: $114,259,961

Current Obligation: $104,047,006

Actual Outlays: $95,881,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG10AZ10B

IDV Type: IDC

Timeline

Start Date: 2020-06-25

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2026-03-24

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