NASA awards $133.6M contract for GEOXO Sounder Instrument to BAE Systems, spanning over 7 years
Contract Overview
Contract Amount: $133,618,605 ($133.6M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-09-12
End Date: 2050-10-31
Contract Duration: 9,911 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: GEOXO SOUNDER INSTRUMENT
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $133.6 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: GEOXO SOUNDER INSTRUMENT Key points: 1. Contract value appears reasonable given the long duration and specialized nature of the instrument. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Long contract duration (over 7 years) introduces performance and technological obsolescence risks. 4. The contract is for a critical component of NASA's Earth observation program, highlighting its strategic importance. 5. BAE Systems is a major defense and aerospace contractor with relevant experience. 6. The contract type (Cost Plus Award Fee) incentivizes performance but requires robust oversight.
Value Assessment
Rating: good
The $133.6 million award for the GEOXO Sounder Instrument appears to be within a reasonable range for a complex, long-term scientific instrument development and production contract. While direct comparisons are difficult without knowing the exact technical specifications and development challenges, similar large-scale aerospace instrument contracts often run into tens or hundreds of millions of dollars. The Cost Plus Award Fee (CPAF) structure allows for flexibility in managing development costs while incentivizing contractor performance, which can be a good value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This process is designed to foster a competitive environment, which typically leads to more favorable pricing and innovative solutions for the government. The presence of two bidders suggests a moderate level of competition for this specialized requirement.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value for its investment.
Public Impact
This contract directly supports NASA's Earth science mission, contributing to a better understanding of Earth's weather and climate. The GEOXO Sounder Instrument will provide crucial data for weather forecasting and climate modeling. The primary beneficiaries are the scientific community, weather agencies, and the public through improved weather predictions. The contract is expected to support specialized engineering and manufacturing jobs within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (9911 days) increases the risk of cost overruns due to unforeseen technical challenges or inflation.
- Cost Plus Award Fee (CPAF) contracts require diligent oversight to ensure award fees are earned based on objective performance metrics and not just effort.
- Potential for scope creep over the extended period of performance, requiring strict change control.
- Technological obsolescence is a risk for instruments developed over such a long timeframe.
- Reliance on a single contractor for a critical instrument necessitates strong government oversight and contingency planning.
Positive Signals
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- BAE Systems has a strong track record in aerospace and defense, indicating technical capability.
- The CPAF structure incentivizes the contractor to meet or exceed performance expectations.
- The contract is for a critical scientific instrument, aligning with NASA's core mission objectives.
- The long duration allows for sustained focus and development of a highly complex system.
Sector Analysis
The aerospace industry is characterized by high R&D costs, long development cycles, and significant government procurement. Contracts for scientific instruments like the GEOXO Sounder are a vital part of this sector, often involving specialized engineering and manufacturing capabilities. The market for such instruments is typically dominated by a few large, experienced contractors. NASA's spending in this area is crucial for advancing scientific knowledge and maintaining technological leadership.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the specialized nature and large value of the GEOXO Sounder Instrument, it is likely that the prime contractor, BAE Systems, will be responsible for managing subcontracting opportunities. Analysis would be needed to determine if BAE Systems has a robust subcontracting plan that includes small businesses, which is often a requirement in large federal contracts.
Oversight & Accountability
The Cost Plus Award Fee (CPAF) contract type necessitates strong government oversight to ensure that award fees are justified by contractor performance against established metrics. NASA's contracting officers and technical representatives will be responsible for monitoring progress, costs, and performance. Transparency is generally maintained through contract reporting requirements. The Inspector General's office may conduct audits or investigations if performance or cost issues arise.
Related Government Programs
- NASA Earth Observing System
- Geostationary Extended Observations (GeoXO)
- Satellite Instrument Development Contracts
- Aerospace Engineering Services
Risk Flags
- Long contract duration
- Cost Plus Award Fee structure
- Potential for technological obsolescence
- Single source for critical instrument
Tags
nasa, space-and-mission-systems, geox, sounder-instrument, definitive-contract, cost-plus-award-fee, full-and-open-competition, engineering-services, colorado, large-contract, rd, weather-forecasting
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $133.6 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. GEOXO SOUNDER INSTRUMENT
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 $133.6 million.
What is the period of performance?
Start: 2023-09-12. End: 2050-10-31.
What is the specific technical capability of the GEOXO Sounder Instrument and its importance to NASA's mission?
The GEOXO Sounder Instrument is a critical component of NASA's next-generation geostationary weather satellite system, designed to provide advanced atmospheric sounding data. Its primary function is to measure temperature and moisture profiles in the atmosphere with unprecedented detail and frequency. This data is vital for improving short-term weather forecasts, tracking severe weather events like hurricanes and thunderstorms, and understanding long-term climate trends. The instrument's advanced capabilities will enable meteorologists to detect subtle atmospheric changes, leading to more accurate predictions and earlier warnings for hazardous weather, thereby enhancing public safety and supporting economic activities reliant on weather forecasts.
How does the Cost Plus Award Fee (CPAF) structure influence contractor behavior and government oversight for this contract?
The Cost Plus Award Fee (CPAF) structure is designed to provide flexibility in managing costs for complex projects while incentivizing superior performance. Under CPAF, the contractor is reimbursed for allowable costs plus a fee that consists of a fixed base amount and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria and metrics, evaluated by the government. This structure encourages BAE Systems to not only control costs but also to exceed performance expectations in areas such as technical achievement, schedule adherence, and quality. For the government, it necessitates robust oversight to ensure that award fees are objectively assessed and only granted when performance warrants, preventing potential overpayment and ensuring mission success.
What are the potential risks associated with the long contract duration (over 7 years) for the GEOXO Sounder Instrument?
The extended performance period of over 7 years (9911 days) for the GEOXO Sounder Instrument introduces several significant risks. Firstly, there is an increased likelihood of cost growth due to inflation, unforeseen technical challenges that may arise during development and integration, or necessary design modifications. Secondly, the rapid pace of technological advancement in aerospace means that the instrument's technology could become partially or fully obsolete by the time it is fully deployed or operational, potentially impacting its long-term effectiveness. Thirdly, managing such a long-term contract requires sustained government oversight and contractor commitment, increasing the administrative burden and the potential for performance degradation over time if not actively managed. Finally, the extended timeline increases the exposure to geopolitical or programmatic shifts within NASA that could alter requirements or funding.
How does the 'full and open competition' impact the value proposition for taxpayers on this $133.6M contract?
Awarding the $133.6 million contract for the GEOXO Sounder Instrument under 'full and open competition' is a significant positive indicator for taxpayer value. This procurement method ensures that all responsible sources were permitted to submit a bid, fostering a competitive environment. Competition typically drives down prices as contractors vie for the contract by offering their best value proposals. It also encourages innovation and efficiency, as bidders seek to differentiate themselves through technical solutions and cost-effectiveness. For taxpayers, this means that NASA is more likely to have secured the instrument at a fair and reasonable price, leveraging market forces to achieve the best possible outcome for the investment, rather than potentially overpaying in a less competitive scenario.
What is BAE Systems' track record with similar large-scale aerospace instrument contracts for government agencies?
BAE Systems Space & Mission Systems Inc. has a substantial track record in developing and producing complex systems for aerospace and defense applications, including scientific instruments and satellite components for government agencies. While specific details on comparable NASA instrument contracts require deeper investigation, the company's broad experience encompasses areas like spacecraft subsystems, sensor technology, and mission support. Their portfolio often includes work on high-value, technologically advanced projects. NASA typically vets contractors thoroughly for such critical missions, suggesting that BAE Systems possesses the requisite technical expertise, quality control processes, and program management capabilities to successfully execute this GEOXO Sounder Instrument contract, based on their established presence in the sector.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC22R0055
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 1600 COMMERCE ST UNIT 1, BOULDER, CO, 80301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $549,863,959
Exercised Options: $386,837,539
Current Obligation: $133,618,605
Actual Outlays: $90,847,873
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $104,064
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-12
Current End Date: 2050-10-31
Potential End Date: 2050-10-31 00:00:00
Last Modified: 2026-03-25
More Contracts from BAE Systems Space & Mission Systems Inc.
- Weather System Follow-On - Microwave - System Design of Satellite With Microwave Radiometer and Sensor — $528.5M (Department of Defense)
- Engineering Services and Development Leading to the Delivery of the Omps Protoflight Model and Support — $479.0M (National Aeronautics and Space Administration)
- Jpss-1 Mission Spacecraft Rapid III Delivery Order #3. Rapid III Provides Core Spacecraft Systems in Support of the Scientific and Technology Development Goals of the National Aeronautics and Space Administration, Goddard Space Flight Center, and Other Federal Agencies. the Scope of Work Includes Design, Build and Test, Payload Integration and Test, Launch Vehicle Integration and Support and On-Orbit Checkout and Acceptance — $365.7M (National Aeronautics and Space Administration)
- THE Woma Requirement WAS Issued AS a Full and Open Competitive Procurement to Design, Analyze, Develop, Fabricate, Integrate, Test, and Evaluate the Wide Field Instrument (WFI) Opto-Mechanical Assembly (woma) for the Wide Field Infrared Survey Telescope (wfirst) Mission. in Addition, IT Defines the Tasks Necessary to Support the Subsequent Integration, Test, Evaluation, and Validation of the WFI. IT Defines the Post-Delivery Support to Payload and Observatory Integration and Test, and to Pre-Launch, Launch and Commissioning Activities AT the Mission Operations Center (MOC) and to Supply and Maintain the Instrument Ground Support Equipment (GSE) — $307.9M (National Aeronautics and Space Administration)
- National Aeronautical&space Administration (nasa) and the Goddard Space Flight Center (gsfc) HAS a Requirement for the Continuation of the Global Precipitation Measurement (GPM) Microwave Imager (GMI) Instrument. the GMI Instrument IS a 13 Channel Radiometer Whose Core Science Measures the Earth S Atmospheric Moisture Within 10.65 GHZ Through 183 GHZ of the Microwave Spectrum — $233.7M (National Aeronautics and Space Administration)
View all BAE Systems Space & Mission Systems Inc. federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →