NASA awards $313M contract for Artemis program's Extravehicular Activity Services to Axiom Space Inc

Contract Overview

Contract Amount: $312,942,401 ($312.9M)

Contractor: Axiom Space Inc

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2022-09-08

End Date: 2028-06-02

Contract Duration: 2,094 days

Daily Burn Rate: $149.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EXPLORATION EXTRAVEHICULAR ACTIVITY SERVICE (XEVAS) ARTEMIS PROGRAM

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $312.9 million to AXIOM SPACE INC for work described as: EXPLORATION EXTRAVEHICULAR ACTIVITY SERVICE (XEVAS) ARTEMIS PROGRAM Key points: 1. Contract aims to provide critical spacesuit services for Artemis missions, supporting lunar exploration. 2. Axiom Space Inc. is a relatively new player in the space industry, raising questions about long-term performance. 3. The contract's fixed-price nature aims to control costs, but potential for cost overruns exists. 4. Competition was full and open, suggesting a potentially competitive bidding process. 5. The contract duration of nearly 6 years indicates a significant commitment to these services. 6. Geographic impact is primarily in Texas, where Axiom Space is headquartered.

Value Assessment

Rating: fair

The contract value of $313 million for Extravehicular Activity Services (XEVAS) for the Artemis program is substantial. Benchmarking this against similar, highly specialized space exploration contracts is challenging due to the unique nature of lunar EVA capabilities. However, the fixed-price contract type suggests an attempt to manage costs upfront. The value needs to be assessed against the successful delivery of complex, life-critical hardware and services for multiple Artemis missions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. With two bids received, the level of competition appears moderate. This suggests that while the market for such specialized services is not saturated, there was at least some interest from potential providers, which can contribute to price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to innovation from the awarded contractor to justify their bid.

Public Impact

Astronauts performing lunar surface operations during Artemis missions will directly benefit from the services provided. The contract will enable the development, production, and support of advanced spacesuits and related equipment. The primary geographic impact is in Texas, where Axiom Space Inc. is based, potentially creating jobs and economic activity. The success of the Artemis program, including potential scientific discoveries and technological advancements, is indirectly supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Axiom Space Inc. is a relatively new company, and its track record in delivering large-scale, mission-critical space hardware is still developing.
  • The complexity of developing and maintaining spacesuits for lunar environments presents inherent technical risks.
  • Dependence on a single contractor for such a critical component of the Artemis program could pose a risk if performance issues arise.

Positive Signals

  • The contract is awarded under full and open competition, suggesting a potentially robust selection process.
  • The firm fixed-price contract type provides cost certainty for NASA, assuming performance requirements are met.
  • Axiom Space has secured significant private investment and has experienced aerospace personnel, indicating capability.

Sector Analysis

The contract falls within the aerospace and defense sector, specifically focusing on space exploration hardware and services. This sector is characterized by high R&D investment, long development cycles, and stringent quality and safety requirements. The market for advanced EVA systems is limited to a few specialized companies. NASA's spending in this area is crucial for enabling its ambitious exploration goals, such as returning humans to the Moon.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of Extravehicular Activity Services, it is unlikely that small businesses would be the primary awardees for the prime contract. However, Axiom Space Inc. may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem within the aerospace industry.

Oversight & Accountability

Oversight will be managed by NASA's contracting officers and program managers responsible for the Artemis program. Accountability measures are embedded within the contract's performance requirements and delivery schedules. Transparency is expected through NASA's public reporting on the Artemis program's progress. The Inspector General's office would have jurisdiction in cases of fraud, waste, or abuse.

Related Government Programs

  • Artemis Program
  • Human Spaceflight
  • Space Exploration
  • Spacesuit Development
  • NASA Contracts

Risk Flags

  • Contractor performance risk due to company's relative newness.
  • Technical complexity and potential for development delays.
  • Dependence on a single contractor for critical mission hardware.

Tags

nasa, artemis-program, extravehicular-activity-services, axiom-space-inc, firm-fixed-price, full-and-open-competition, space-exploration, human-spaceflight, defense-industrial-base, texas, delivery-order, spacesuit-manufacturing

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $312.9 million to AXIOM SPACE INC. EXPLORATION EXTRAVEHICULAR ACTIVITY SERVICE (XEVAS) ARTEMIS PROGRAM

Who is the contractor on this award?

The obligated recipient is AXIOM SPACE 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 $312.9 million.

What is the period of performance?

Start: 2022-09-08. End: 2028-06-02.

What is Axiom Space Inc.'s track record with NASA or other government agencies for similar large-scale projects?

Axiom Space Inc. is a relatively new entity, founded in 2016. While it has secured significant private funding and has ambitious plans, including its own commercial space station, its track record with NASA for large-scale, mission-critical hardware development and delivery is still emerging. This Artemis EVA contract represents a significant undertaking for the company. Their experience is more focused on design, development, and initial testing phases for advanced systems, rather than extensive operational deployment on government programs of this magnitude. NASA's award suggests confidence in their capabilities, but it is a key area to monitor for performance.

How does the per-unit cost of these spacesuits compare to previous NASA EVA programs?

Direct per-unit cost comparisons are difficult due to the unique nature of the Artemis program's requirements and the evolving technology. Previous NASA EVA suits, like those used on the Space Shuttle or ISS, were developed over different timeframes with different technological constraints and cost structures. The XEVAS contract is a firm fixed-price award for a suite of services including design, development, production, and sustainment of multiple flight-capable suits and associated hardware. The total contract value of $313 million over several years, covering multiple suits and extensive support, needs to be evaluated holistically rather than through a simple per-suit cost, which is not explicitly detailed in the provided data.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include technical challenges in developing advanced lunar EVA capabilities, potential schedule delays, and contractor performance issues, especially given Axiom Space's relative newness in executing contracts of this scale. Mitigation strategies likely involve rigorous NASA oversight, phased development reviews, performance metrics tied to payment, and the firm fixed-price nature of the contract incentivizing the contractor to manage costs and schedules. NASA's selection process would have also assessed Axiom's technical approach and management plans to identify and address potential risks upfront.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specialized contract?

The 'full and open competition' strategy is generally the most effective for ensuring value for money, as it allows the widest possible pool of qualified vendors to bid. For specialized contracts like EVA services, the number of capable bidders might be limited. However, even with a moderate number of bids (two in this case), the process encourages competitive pricing and innovation. The government can select the offer that represents the best overall value, considering technical merit, past performance, and price. The success in achieving value for money will ultimately depend on the thoroughness of the evaluation process and the clarity of the requirements.

What is the historical spending trend for Extravehicular Activity (EVA) services by NASA?

Historical spending on EVA services by NASA has varied significantly depending on program needs and technological advancements. During the Space Shuttle era, significant investments were made in developing and maintaining the Extravehicular Mobility Units (EMUs). The International Space Station (ISS) program also required ongoing support and upgrades for its EMUs. While specific aggregate spending figures for EVA services across all historical programs are not readily available in this dataset, it's understood that these are high-cost, technologically intensive systems. The Artemis program's focus on lunar surface operations necessitates new, more advanced capabilities, justifying substantial investment, as seen with the $313 million XEVAS contract.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENTLEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1290 HERCULES AVE STE 120, HOUSTON, TX, 77058

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $451,632,329

Exercised Options: $451,632,329

Current Obligation: $312,942,401

Actual Outlays: $225,279,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 80JSC022DA022

IDV Type: IDC

Timeline

Start Date: 2022-09-08

Current End Date: 2028-06-02

Potential End Date: 2028-06-02 00:00:00

Last Modified: 2026-03-30

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