NASA's James Webb Space Telescope Phase E Operations contract awarded to Northrop Grumman for $238M
Contract Overview
Contract Amount: $23,834,651 ($23.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2022-12-25
End Date: 2027-06-24
Contract Duration: 1,642 days
Daily Burn Rate: $14.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE CONTRACTOR WILL PROVIDE THE PRODUCTS AND SERVICES TO SUPPORT THE JAMES WEBB SPACE TELESCOPE PHASE E OPERATIONS AND SUSTAINMENT.
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
National Aeronautics and Space Administration obligated $23.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE CONTRACTOR WILL PROVIDE THE PRODUCTS AND SERVICES TO SUPPORT THE JAMES WEBB SPACE TELESCOPE PHASE E OPERATIONS AND SUSTAINMENT. Key points: 1. Contract focuses on sustaining and operating the James Webb Space Telescope (JWST) during its Phase E. 2. The contract value of $238 million over approximately 4 years indicates significant investment in long-term space exploration. 3. As a sole-source award, it bypasses competitive bidding, raising questions about optimal price discovery. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not closely managed. 5. Northrop Grumman's extensive experience with complex aerospace projects positions them as a capable contractor for JWST. 6. The Research and Development NAICS code suggests a focus on scientific advancement and technological innovation. 7. The contract duration of over 4 years allows for sustained operational support critical for scientific missions.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to the unique nature of the James Webb Space Telescope and its operational requirements. However, the $238 million award over approximately four years for sustaining and operating such a complex scientific instrument suggests a significant investment. Without comparable sole-source contracts for similar-scale space telescope operations, a direct value-for-money assessment is difficult. The CPFF contract type carries inherent risks of cost escalation, necessitating robust oversight to ensure the fixed fee remains reasonable and the overall costs are controlled.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when a single contractor possesses unique capabilities or has a critical role in a program's development and sustainment, as is often the case with highly specialized aerospace projects like the JWST. The lack of competition means that NASA did not benefit from the price reductions and innovation that can arise from a competitive bidding process.
Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to drive down costs. While the contractor's expertise is crucial, the government must rely heavily on negotiation and oversight to ensure a fair price and prevent potential overspending.
Public Impact
The primary beneficiaries are the scientific community and the public, who will gain access to unprecedented astronomical data and discoveries from the JWST. The contract ensures the continued operation and sustainment of the James Webb Space Telescope, enabling its ongoing scientific mission. The geographic impact is global, as the data collected by JWST will be accessible to researchers worldwide. Workforce implications include the employment of highly skilled engineers, scientists, and technicians involved in space telescope operations and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive price discovery.
- Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed diligently.
- High complexity of JWST operations may lead to unforeseen costs.
- Dependence on a single contractor for critical mission sustainment poses a risk.
Positive Signals
- Northrop Grumman has extensive experience with complex aerospace and defense projects.
- The contract duration ensures continuity of operations for a vital scientific instrument.
- Focus on Phase E operations indicates a commitment to the long-term scientific return of the JWST investment.
- The contract supports a flagship scientific mission with significant potential for groundbreaking discoveries.
Sector Analysis
The aerospace industry, particularly the segment focused on space exploration and satellite operations, is characterized by high barriers to entry, significant R&D investment, and long program lifecycles. This contract falls within the domain of advanced research and development, specifically supporting the operational phase of a major scientific instrument. Comparable spending benchmarks are difficult to establish due to the unique nature of the JWST, but investments in large-scale space missions and their sustainment typically run into hundreds of millions or billions of dollars over their lifetimes.
Small Business Impact
This contract does not appear to involve a small business set-aside, as indicated by the prime contractor being Northrop Grumman Systems Corporation. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The focus on specialized operations for a major scientific instrument may limit opportunities for broad small business participation, though specific technical components could potentially be subcontracted.
Oversight & Accountability
Oversight for this contract will likely be managed by NASA's contracting officers and program management teams, who are responsible for monitoring performance, costs, and adherence to contract terms. Given the critical nature of the JWST, robust oversight mechanisms, including regular reviews and reporting requirements, are expected. Transparency will be facilitated through NASA's public communications regarding the telescope's mission progress and scientific findings. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- James Webb Space Telescope Program
- NASA Science Mission Directorate
- Space Telescope Science Institute Operations
- NASA Research and Development Contracts
- Aerospace Engineering Services
Risk Flags
- Sole-source award may limit cost efficiencies.
- CPFF contract type carries inherent cost overrun risk.
- High technical complexity requires continuous, robust oversight.
Tags
nasa, space-telescope, research-and-development, northrop-grumman, sole-source, cost-plus-fixed-fee, operations-and-sustainment, california, large-contract, aerospace, science, astronomy
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $23.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE CONTRACTOR WILL PROVIDE THE PRODUCTS AND SERVICES TO SUPPORT THE JAMES WEBB SPACE TELESCOPE PHASE E OPERATIONS AND SUSTAINMENT.
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 $23.8 million.
What is the period of performance?
Start: 2022-12-25. End: 2027-06-24.
What is Northrop Grumman's track record with NASA on similar large-scale space projects?
Northrop Grumman has a long and extensive history of working with NASA on major space programs. They were the prime contractor for the James Webb Space Telescope itself, responsible for its design, construction, and testing. This deep involvement provides them with unparalleled institutional knowledge of the telescope's systems and operational requirements. Their experience also extends to other significant NASA missions, including the Hubble Space Telescope (servicing and instrument upgrades) and various satellite programs. This established relationship and proven capability are key factors often considered in sole-source awards for complex, ongoing missions where continuity and specialized expertise are paramount.
How does the $238 million contract value compare to the overall cost of the JWST program?
The James Webb Space Telescope program has a total estimated cost that significantly exceeds $238 million. Initial estimates placed the total program cost at around $8.8 billion, with subsequent increases due to development delays and complexities. The $238 million awarded to Northrop Grumman covers Phase E operations and sustainment, which is a crucial but distinct phase from the initial design, development, and launch. This operational funding is essential for the telescope's scientific mission longevity and represents a substantial, but proportional, investment in realizing the full scientific potential of the multi-billion dollar instrument.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for space telescope operations?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts. Because the government agrees to reimburse all allowable costs plus a fixed fee, there's a potential for cost overruns if the contractor doesn't manage resources efficiently. For a complex operation like the JWST, unforeseen technical challenges or environmental factors could lead to increased costs. NASA's role is to mitigate this risk through stringent oversight, detailed cost tracking, performance metrics, and ensuring the fixed fee itself is reasonable and reflects the scope of work and contractor's profit margin.
What specific services does 'Phase E operations and sustainment' entail for the JWST?
Phase E operations and sustainment for the James Webb Space Telescope encompass all activities required to keep the telescope functioning optimally and collecting scientific data after its commissioning phase. This includes routine monitoring of the telescope's health and status, commanding the spacecraft, managing its orbit, maintaining its complex scientific instruments, processing and archiving the vast amounts of data collected, and performing necessary software updates. It also involves troubleshooting any anomalies or issues that may arise, ensuring the longevity and scientific productivity of the observatory throughout its planned mission lifetime.
Given this is a sole-source contract, what mechanisms are in place to ensure fair pricing and prevent contractor overreach?
In sole-source procurements, especially for critical national assets like the JWST, NASA employs several mechanisms to ensure fair pricing and prevent contractor overreach. These include rigorous cost realism analyses, where NASA independently evaluates the contractor's proposed costs to determine if they are realistic and achievable. They also conduct thorough negotiations on the fixed fee component of the CPFF contract to ensure it is appropriate for the level of risk and effort involved. Furthermore, continuous performance monitoring, audits, and strong program management oversight are crucial to track expenditures, verify progress, and ensure the contractor is meeting all contractual obligations efficiently and effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: LTR52022
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
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: $30,719,992
Exercised Options: $30,719,992
Current Obligation: $23,834,651
Actual Outlays: $20,369,066
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,036,626
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-12-25
Current End Date: 2027-06-24
Potential End Date: 2027-06-24 00:00:00
Last Modified: 2026-01-26
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