NASA's ICESat-2 Mission Operations contract awarded to Northrop Grumman for $27.4M over 4 years
Contract Overview
Contract Amount: $27,384,214 ($27.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-02-14
End Date: 2026-11-14
Contract Duration: 1,734 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ICE, CLOUD, AND LAND ELEVATION-2 (ICESAT-2) MISSION OPERATIONS CENTER (MOC) SUPPORT CENTER CONTRACT - PROVIDE HIGHLY SPECIALIZED ENGINEERING SERVICES FOR MISSION OPERATIONS SUPPORT TO MEET ICESAT-2 SCIENCE OBJECTIVES.
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ICE, CLOUD, AND LAND ELEVATION-2 (ICESAT-2) MISSION OPERATIONS CENTER (MOC) SUPPORT CENTER CONTRACT - PROVIDE HIGHLY SPECIALIZED ENGINEERING SERVICES FOR MISSION OPERATIONS SUPPORT TO MEET ICESAT-2 SCIENCE OBJECTIVES. Key points: 1. Contract provides specialized engineering services for mission operations, crucial for ICESat-2 science objectives. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Long-term contract duration suggests a need for sustained, specialized support. 4. Focus on mission operations highlights the importance of reliable data collection for climate research. 5. Contract value appears moderate for a mission-critical, long-duration support role.
Value Assessment
Rating: fair
The contract's value of $27.4 million over approximately 4.5 years for specialized mission operations support appears reasonable given the critical nature of the ICESat-2 mission. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or alternative providers. The cost-plus award fee structure incentivizes performance but also carries inherent risks of cost overruns if not managed tightly. Comparisons to similar mission operations contracts are limited due to the specialized nature of ICESat-2's scientific objectives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Northrop Grumman Systems Corporation, was considered. This approach is typically used when a unique capability or specialized expertise is required that cannot be met by multiple sources. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited. The justification for a sole-source award would need to demonstrate why other qualified contractors could not fulfill the requirement.
Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive pressure to drive down costs. The sole-source nature limits opportunities for new entrants and potentially entrenches incumbent providers.
Public Impact
The primary beneficiaries are NASA and the scientific community, who rely on the ICESat-2 mission for critical Earth observation data. Services delivered include highly specialized engineering support for mission operations, ensuring the satellite functions correctly and collects data. The geographic impact is global, as ICESat-2 collects data on ice sheets, glaciers, and sea ice, crucial for understanding climate change worldwide. Workforce implications include the employment of highly skilled engineers and technical personnel required for complex space mission operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Cost-plus award fee structure can lead to cost overruns if not rigorously managed.
- Lack of transparency in the procurement process due to sole-source nature.
Positive Signals
- Contract ensures continuity of critical mission operations for a vital climate science instrument.
- Northrop Grumman's established expertise likely ensures high-quality technical support.
- Long-term contract provides stability for essential mission functions.
Sector Analysis
The Earth observation satellite market is a significant segment within the aerospace and defense sector. Contracts for mission operations and support are essential for the longevity and scientific return of these complex instruments. While specific market size data for mission operations centers is not readily available, the overall spending on space-based Earth observation is substantial, driven by increasing demand for climate data, environmental monitoring, and disaster management. This contract fits within the broader ecosystem of supporting government-funded scientific missions.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Northrop Grumman, is a large aerospace corporation. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a direct set-aside means small businesses are unlikely to be the primary recipients of this particular award, though they may participate as subcontractors.
Oversight & Accountability
Oversight for this contract will primarily fall under NASA's contracting officer and program management. The cost-plus award fee structure implies performance metrics that will be monitored to determine award fees. Transparency is limited due to the sole-source nature of the award. NASA's Office of Inspector General (OIG) would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- ICESat-2 Mission Operations
- NASA Earth Science Missions
- Satellite Operations Support
- Aerospace Engineering Services
Risk Flags
- Sole-source award may limit cost-effectiveness.
- Potential for cost overruns under CPAF structure.
- Reliance on a single contractor for critical operations.
Tags
nasa, icesat-2, mission-operations, sole-source, cost-plus-award-fee, engineering-services, earth-observation, aerospace, science-mission, northrop-grumman, virginia, definitive-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ICE, CLOUD, AND LAND ELEVATION-2 (ICESAT-2) MISSION OPERATIONS CENTER (MOC) SUPPORT CENTER CONTRACT - PROVIDE HIGHLY SPECIALIZED ENGINEERING SERVICES FOR MISSION OPERATIONS SUPPORT TO MEET ICESAT-2 SCIENCE OBJECTIVES.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
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 $27.4 million.
What is the period of performance?
Start: 2022-02-14. End: 2026-11-14.
What is the specific justification for awarding this contract on a sole-source basis to Northrop Grumman Systems Corporation?
The provided data indicates the contract was 'NOT COMPETED' and awarded on a 'SOLE-SOURCE' basis. Typically, sole-source awards are justified when a unique capability, specialized expertise, or proprietary technology is required that only one vendor can provide. For NASA's ICESat-2 Mission Operations Center (MOC) Support, this could stem from Northrop Grumman's prior involvement in the satellite's development, unique operational knowledge, or specialized tools and processes essential for its continued functioning. A formal justification document, usually available through federal procurement databases like SAM.gov, would detail the specific reasons why full and open competition was not feasible or advantageous for this requirement. Without this documentation, the precise rationale remains speculative, but it likely centers on the highly specialized and potentially proprietary nature of the required engineering services for maintaining the ICESat-2 mission.
How does the 'Cost Plus Award Fee' (CPAF) contract type influence cost control and performance for this mission-critical support?
The Cost Plus Award Fee (CPAF) contract type aims to balance cost control with performance incentives for complex projects where the exact costs are difficult to predict. Under CPAF, the contractor is reimbursed for allowable costs incurred, plus a fee that is composed of a base amount (often fixed) and an award amount. The award amount is determined based on the government's evaluation of the contractor's performance against pre-defined criteria. For the ICESat-2 MOC Support contract, this means Northrop Grumman is incentivized to perform exceptionally well to maximize its fee. However, it also requires robust government oversight to ensure costs are reasonable and that the performance criteria are objective and effectively measured. If not managed diligently, the 'cost plus' aspect can still lead to higher-than-expected expenditures, while the 'award fee' component relies heavily on the government's ability to accurately assess and reward superior performance.
What are the potential risks associated with a long-term (nearly 4.5 years) sole-source contract for mission-critical operations?
A long-term, sole-source contract for mission-critical operations like the ICESat-2 MOC Support presents several risks. Firstly, the lack of competition over an extended period can lead to complacency and reduced pressure on the contractor to innovate or optimize costs, potentially resulting in inflated prices or suboptimal service delivery compared to a competitive environment. Secondly, the government becomes heavily reliant on a single provider, increasing vulnerability if the contractor faces financial instability, operational issues, or decides to exit the market. Thirdly, without periodic re-competition, the government may miss opportunities to leverage advancements in technology or alternative service models that could improve efficiency or reduce costs. Finally, the extended duration without competitive benchmarking makes it harder to assess whether the pricing remains fair and reasonable throughout the contract's life.
How does the specialized nature of ICESat-2's mission operations support compare to broader telecommunications or IT support contracts?
The ICESat-2 Mission Operations Center (MOC) Support contract is distinct from typical telecommunications or IT support contracts due to its highly specialized focus on a specific scientific satellite mission. While general IT contracts might cover network management, software development, or hardware maintenance across various systems, this contract involves deep domain expertise in orbital mechanics, satellite subsystems, ground station communication protocols, data processing pipelines, and the specific scientific objectives of ICESat-2 (e.g., laser altimetry for ice sheet monitoring). The 'All Other Telecommunications' NAICS code (517919) is broad, but the actual work is far more specialized than standard telecom services. This requires engineers with unique knowledge of the ICESat-2 spacecraft and its scientific payload, making it less susceptible to standard market comparisons and often necessitating specialized, sometimes sole-source, procurement approaches.
What is the historical spending pattern for ICESat-2 mission operations support, and how does this contract fit within it?
Historical spending data specifically for ICESat-2 mission operations support prior to this contract is not detailed in the provided information. However, NASA typically funds mission operations over the lifespan of a satellite, which can extend for many years. The current contract, valued at approximately $27.4 million and running from February 2022 to November 2026 (a duration of about 4.75 years), represents a significant but likely recurring investment in maintaining the operational capability of the ICESat-2 spacecraft. Given that ICESat-2 was launched in 2018, this contract likely follows earlier operational support phases. NASA's overall budget for Earth science missions includes substantial allocations for operations, and this contract fits within that framework as essential expenditure to achieve the mission's scientific goals and maximize the return on the initial satellite investment.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 80GSFC21R0011
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $30,330,101
Exercised Options: $30,330,101
Current Obligation: $27,384,214
Actual Outlays: $23,229,421
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $2,749,532
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-02-14
Current End Date: 2026-11-14
Potential End Date: 2026-11-14 00:00:00
Last Modified: 2026-04-03
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