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: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTSpace 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

More Contracts from BAE Systems Space & Mission Systems Inc.

View all BAE Systems Space & Mission Systems Inc. federal contracts →

Other National Aeronautics and Space Administration Contracts

View all National Aeronautics and Space Administration contracts →

Explore Related Government Spending