NASA awards Raytheon $138M for Landis flight instrument units and comprehensive support services
Contract Overview
Contract Amount: $138,000,000 ($138.0M)
Contractor: Raytheon Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-06-27
End Date: 2031-03-10
Contract Duration: 2,447 days
Daily Burn Rate: $56.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: PROVIDE THREE LANDIS FLIGHT INSTRUMENT UNITS AND RELATED SERVICES, INCLUDING THE DESIGN, ENGINEERING ANALYSES, DEVELOPMENT, FABRICATION, INTEGRATION, ALGORITHM DEVELOPMENT, TEST, EVALUATION, DELIVERY, AND SUPPORT FOR THE LANDIS
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $138.0 million to RAYTHEON COMPANY for work described as: PROVIDE THREE LANDIS FLIGHT INSTRUMENT UNITS AND RELATED SERVICES, INCLUDING THE DESIGN, ENGINEERING ANALYSES, DEVELOPMENT, FABRICATION, INTEGRATION, ALGORITHM DEVELOPMENT, TEST, EVALUATION, DELIVERY, AND SUPPORT FOR THE LANDIS Key points: 1. Contract focuses on advanced flight instrument development and long-term support, indicating a need for specialized capabilities. 2. The cost-plus-award-fee structure incentivizes performance while allowing for flexibility in research and development. 3. Full and open competition suggests a robust market for these specialized services, potentially leading to competitive pricing. 4. The contract duration of over 6 years highlights the long-term nature of the Landis program and its critical role. 5. NASA's investment in this R&D area aligns with broader trends in aerospace technology advancement.
Value Assessment
Rating: good
The contract value of $138 million for specialized flight instrument units and services over approximately 6.7 years appears reasonable given the scope of work, which includes design, engineering, development, fabrication, integration, testing, and ongoing support. Benchmarking against similar complex aerospace R&D contracts is challenging without more specific details on the technology's novelty and scale. However, the cost-plus-award-fee (CPAF) pricing structure is typical for R&D efforts where final costs can be uncertain, allowing for contractor incentive based on performance targets.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a healthy competitive environment for this specialized area of aerospace R&D. This level of competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and technological solutions for NASA's Landis program, potentially reducing overall program costs.
Public Impact
The primary beneficiaries are NASA and its scientific missions requiring advanced flight instrumentation for data collection and analysis. Services delivered include the complete lifecycle of flight instrument development, from initial design to long-term operational support. The geographic impact is primarily centered around NASA's research facilities and the contractor's operational sites, with potential for broader scientific application. Workforce implications include highly skilled engineers, scientists, technicians, and support staff involved in advanced aerospace technology development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus contracts, especially in complex R&D.
- Long contract duration could lead to scope creep or evolving requirements that may impact final cost.
- Dependence on a single contractor for critical flight instrument development and support.
Positive Signals
- Full and open competition suggests a competitive market and potential for value.
- Cost-plus-award-fee structure incentivizes contractor performance and efficiency.
- Clear definition of services from design through support indicates a comprehensive approach.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development for advanced flight instrumentation. The market for such specialized components is characterized by high barriers to entry due to technical expertise, stringent quality requirements, and long development cycles. NASA's spending in this area is crucial for maintaining its technological edge in space exploration and Earth science observation. Comparable spending benchmarks would typically involve other large-scale aerospace R&D programs or procurements of complex scientific instruments for space missions.
Small Business Impact
The contract data indicates that small business participation is not explicitly detailed as a set-aside. Given the nature of the work and the prime contractor, it is likely that Raytheon Company will engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will be managed by the National Aeronautics and Space Administration (NASA). Accountability measures are embedded within the Cost Plus Award Fee (CPAF) structure, which links contractor payment to performance objectives. Transparency is expected through regular reporting requirements and contract milestones. NASA's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Space Science Missions
- Advanced Aerospace Technology Development
- Flight Instrument Research and Development
- Aerospace Engineering Services
Risk Flags
- Cost Overrun Risk
- Performance Uncertainty in R&D
- Long-Term Support Dependency
Tags
nasa, raytheon-company, research-and-development, flight-instruments, aerospace, california, cost-plus-award-fee, full-and-open-competition, definitive-contract, large-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $138.0 million to RAYTHEON COMPANY. PROVIDE THREE LANDIS FLIGHT INSTRUMENT UNITS AND RELATED SERVICES, INCLUDING THE DESIGN, ENGINEERING ANALYSES, DEVELOPMENT, FABRICATION, INTEGRATION, ALGORITHM DEVELOPMENT, TEST, EVALUATION, DELIVERY, AND SUPPORT FOR THE LANDIS
Who is the contractor on this award?
The obligated recipient is RAYTHEON COMPANY.
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 $138.0 million.
What is the period of performance?
Start: 2024-06-27. End: 2031-03-10.
What is the historical performance of Raytheon Company with NASA on similar R&D contracts?
Raytheon Company, now RTX, has a long-standing and extensive history of contracting with NASA across various programs, including significant contributions to space exploration, satellite technology, and scientific instrumentation. Their performance on similar R&D contracts has generally been robust, marked by the delivery of complex systems and technologies. However, like any large defense and aerospace contractor, there have been instances of contract challenges or performance reviews on specific projects. A detailed review of Raytheon's past performance ratings and any disputes with NASA on comparable R&D efforts would provide a more precise understanding of their track record for this specific Landis instrument contract. This would involve examining past performance metrics, award fee determinations, and any corrective actions taken.
How does the $138 million contract value compare to similar flight instrument development contracts awarded by NASA or other agencies?
The $138 million contract value for the Landis flight instrument units and services is substantial, reflecting the complexity and long-term nature of the development and support required. Benchmarking this against similar contracts is challenging without precise technical specifications and scope comparisons. However, major space agencies like NASA, ESA, and JAXA often award contracts in the tens to hundreds of millions of dollars for sophisticated scientific payloads and instruments designed for space missions. For instance, instruments for flagship missions like the James Webb Space Telescope or Mars rovers involved development costs in the hundreds of millions. The value here appears to be within the expected range for a comprehensive, multi-year development and support program for advanced flight hardware, especially considering the inclusion of design, engineering, fabrication, integration, testing, and long-term support.
What are the primary risks associated with the Cost Plus Award Fee (CPAF) contract type for this R&D effort?
The primary risks associated with the Cost Plus Award Fee (CPAF) contract type for this R&D effort revolve around cost control and potential for overruns. While CPAF incentivizes performance through award fees, the government still bears the risk of the base cost. If the contractor's costs exceed estimates, the government pays the actual costs incurred, plus a potential award fee if performance targets are met. This structure can lead to less price certainty compared to fixed-price contracts. For NASA, the risk is that the final cost could be significantly higher than initially projected if development challenges arise or if the contractor's cost management is suboptimal. Effective oversight and clear performance metrics are crucial to mitigate these risks and ensure value for money.
What is the expected impact of the Landis flight instrument units on NASA's scientific research capabilities?
The Landis flight instrument units are expected to significantly enhance NASA's scientific research capabilities by providing advanced tools for data acquisition and analysis in specific physical, engineering, or life sciences domains. The exact impact depends on the specific scientific objectives of the Landis program, which are not detailed in the provided data. However, new generations of flight instruments typically enable higher resolution, greater sensitivity, novel measurement techniques, or the ability to operate in previously inaccessible environments. This could lead to breakthroughs in understanding complex phenomena, improving predictive models, or advancing technological applications. The long-term support aspect ensures that these capabilities remain operational and effective throughout the instrument's intended lifespan, maximizing the scientific return on investment.
How does NASA ensure accountability and transparency in a multi-year R&D contract like this one?
NASA ensures accountability and transparency in multi-year R&D contracts through a combination of contractual mechanisms and oversight processes. Accountability is built into the CPAF structure, where contractor performance against defined metrics directly influences payment. Regular progress reports, milestone reviews, and technical interchange meetings are mandated to track development progress and identify potential issues early. Transparency is fostered through the availability of contract information (within appropriate security and proprietary limits) and the oversight role of NASA's program management and potentially its Inspector General. Furthermore, the competitive nature of the initial award process contributes to transparency by demonstrating that the selection was based on merit and value. NASA's internal review boards and quality assurance processes also play a critical role in ensuring adherence to standards and objectives.
What are the potential implications of the 2031 end date for the Landis program's future technological roadmap?
The 2031 end date for the Landis program implies that the developed flight instrument units and associated support are intended to be operational and relevant for at least the next seven years. This timeframe suggests that the technology is considered state-of-the-art for the near to mid-term future within its specific scientific domain. The contract's duration also indicates NASA's commitment to leveraging these instruments for a significant period, likely aligning with planned mission schedules or research objectives. Looking beyond 2031, the data and experience gained from the Landis program will inform the development of next-generation instruments, potentially pushing the boundaries of technological capabilities further and shaping NASA's future research roadmap in related fields.
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 › Natural Resources and Environment R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC22R0038
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp
Address: 2000 E EL SEGUNDO BLVD, EL SEGUNDO, CA, 90245
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: $506,665,495
Exercised Options: $398,861,677
Current Obligation: $138,000,000
Actual Outlays: $89,384,399
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $9,946,062
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-27
Current End Date: 2031-03-10
Potential End Date: 2037-03-10 00:00:00
Last Modified: 2026-01-30
More Contracts from Raytheon Company
- Federal Contract — $5.7B (Department of Defense)
- TEN Fire Units for Qatar — $5.6B (Department of Defense)
- GPS Advanced Control Segment (OCX) Phase B Blocks 1 and 2 — $4.5B (Department of Defense)
- An/Spy-6(v) Hardware Production — $3.3B (Department of Defense)
- Predominant - Patriot UAE — $3.0B (Department of Defense)
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 →