NASA Awards $50M GEOXO Contract to BAE Systems for Ocean Color Instrument
Contract Overview
Contract Amount: $50,000,000 ($50.0M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-05-23
End Date: 2049-11-01
Contract Duration: 9,293 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: GEOXO OCEAN COLOR INSTRUMENT IMPLEMENTATION CONTRACT
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $50.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: GEOXO OCEAN COLOR INSTRUMENT IMPLEMENTATION CONTRACT Key points: 1. Contract awarded to BAE Systems for a significant ocean color instrument. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, spanning over 25 years. 4. The award value is $50 million, with potential for adjustments. 5. The sector is primarily related to space and defense manufacturing.
Value Assessment
Rating: fair
The contract value of $50 million over a long duration requires careful monitoring. Benchmarking against similar complex instrument development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing structure (Cost Plus Award Fee) allows for flexibility and potential cost overruns if not managed tightly.
Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The Cost Plus Award Fee structure necessitates strong oversight to ensure costs remain reasonable and performance targets are met.
Public Impact
Enhances Earth observation capabilities for climate and environmental monitoring. Supports scientific research and data collection for NASA's missions. Potential for technological advancements in remote sensing. Long-term contract ensures continuity of critical data. Impacts the aerospace and defense industry supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost escalation.
- Cost Plus Award Fee structure requires robust oversight.
- Potential for scope creep over the multi-year period.
Positive Signals
- Awarded through full and open competition.
- Supports critical scientific and environmental monitoring.
- Significant investment in advanced technology.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space-based instrumentation. Spending in this area is driven by national priorities for Earth observation, scientific research, and national security. Benchmarks are highly variable based on instrument complexity and mission scope.
Small Business Impact
The data indicates the prime contractor is BAE Systems, a large aerospace and defense company. There is no explicit information on small business subcontracting in the provided data, which warrants further investigation to ensure opportunities for small businesses.
Oversight & Accountability
The Cost Plus Award Fee (CPA F) contract type necessitates strong government oversight to ensure performance objectives are met and costs are controlled. NASA's program management and contract administration teams will be crucial in monitoring progress and managing award fees.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long-term contract duration increases risk of cost overruns.
- Cost Plus Award Fee structure requires intensive oversight.
- Potential for technological obsolescence over 25 years.
- Dependency on a single large contractor for a critical instrument.
- Complexity of managing a multi-decade space mission contract.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $50.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. GEOXO OCEAN COLOR INSTRUMENT IMPLEMENTATION CONTRACT
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 $50.0 million.
What is the period of performance?
Start: 2024-05-23. End: 2049-11-01.
What specific performance metrics will be used to determine award fees for BAE Systems under this contract?
Award fees are typically tied to achieving specific technical milestones, schedule adherence, and cost control targets. For the GEOXO instrument, NASA will likely define metrics related to sensor performance, data quality, system reliability, and timely delivery of components and final product. Detailed performance work statements and evaluation criteria are essential for effective oversight and fair fee determination.
How will NASA ensure cost reasonableness throughout the 25-year contract lifecycle, given the Cost Plus Award Fee structure?
NASA will employ rigorous contract administration, including regular audits, cost reviews, and performance monitoring. They will compare actual costs against negotiated budgets and industry benchmarks. The award fee structure itself incentivizes cost efficiency, but NASA must actively manage the 'cost' component by scrutinizing expenditures and ensuring they are allowable, allocable, and reasonable in relation to the work performed and performance achieved.
What is the potential impact of technological obsolescence on an instrument designed for a 25-year operational lifespan?
A 25-year lifespan for a space-based instrument presents a significant risk of technological obsolescence. NASA will need to incorporate provisions for technology refresh, upgrades, or maintenance strategies within the contract. This could involve modular design principles, software updates, or even potential mid-life refurbishment plans to ensure the instrument remains effective and relevant throughout its extended operational period.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
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: 80GSFC23R0014
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
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: $458,868,690
Exercised Options: $371,230,243
Current Obligation: $50,000,000
Actual Outlays: $37,239,042
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $3,819,830
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-05-23
Current End Date: 2049-11-01
Potential End Date: 2049-11-01 00:00:00
Last Modified: 2025-07-31
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