NASA's $1.55B Space Launch System Mobile Launcher 2 contract awarded to Bechtel National, Inc
Contract Overview
Contract Amount: $1,550,689,354 ($1.6B)
Contractor: Bechtel National, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-07-01
End Date: 2026-06-05
Contract Duration: 2,531 days
Daily Burn Rate: $612.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: DESIGN AND CONSTRUCTION OF THE NASA SPACE LAUNCH SYSTEM (SLS) MOBILE LAUNCHER 2 (ML2).
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.55 billion to BECHTEL NATIONAL, INC. for work described as: DESIGN AND CONSTRUCTION OF THE NASA SPACE LAUNCH SYSTEM (SLS) MOBILE LAUNCHER 2 (ML2). Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Cost-plus award fee contract type allows for flexibility but requires strong oversight. 3. Significant investment in critical infrastructure for future space exploration missions. 4. Long duration of the contract (2531 days) indicates a complex, multi-year project. 5. Project located in Virginia, potentially impacting the local economy and workforce. 6. No small business set-aside, raising questions about broader economic inclusion.
Value Assessment
Rating: fair
The contract value of $1.55 billion for the design and construction of a mobile launcher is substantial. Benchmarking this against similar large-scale, specialized construction projects is challenging due to the unique nature of space launch infrastructure. The cost-plus award fee structure means the final cost could deviate from the initial estimate, making a precise value-for-money assessment difficult without further performance data. However, the scale of the project suggests significant engineering and construction expertise is required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. With 3 bidders identified, this suggests a reasonable level of competition for a highly specialized project. The competitive process is intended to drive fair pricing and ensure the government receives the best value. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.
Taxpayer Impact: A competitive award process for such a large contract is generally favorable for taxpayers, as it aims to secure the most cost-effective solution and prevent price gouging.
Public Impact
Benefits NASA's Artemis program and future deep space exploration initiatives. Delivers critical infrastructure for launching the Space Launch System (SLS) rocket. Geographic impact primarily in Virginia, with potential for job creation in the region. Requires a skilled workforce in specialized engineering, construction, and project management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure necessitates vigilant oversight to manage costs effectively.
- Long contract duration increases the risk of cost overruns due to unforeseen challenges.
- Lack of small business set-aside may limit opportunities for smaller firms in this large project.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contractor (Bechtel National, Inc.) has extensive experience in large-scale infrastructure projects.
- Project is critical for NASA's long-term space exploration goals, suggesting strategic importance.
Sector Analysis
The aerospace and defense construction sector is characterized by highly specialized, large-scale projects often involving government contracts. This contract for the NASA Space Launch System (SLS) Mobile Launcher 2 falls squarely within this domain. The market for such infrastructure is limited to a few highly capable firms due to the stringent technical requirements and security considerations. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of space launch facilities, but investments in major defense or aerospace manufacturing facilities can offer some context.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses within the provided data. This means that opportunities for small businesses to participate in this significant project may be limited, potentially concentrated in lower-tier supply chains or support services. The absence of a small business focus could mean less direct economic benefit to the small business ecosystem surrounding this large federal investment.
Oversight & Accountability
The oversight for this Cost Plus Award Fee (CPAF) contract will be crucial. NASA's contracting officers and technical representatives will need to closely monitor performance, costs, and adherence to award fee criteria. The contract's long duration and complexity necessitate robust project management and regular reporting. While specific Inspector General (IG) involvement isn't detailed, major NASA projects typically fall under the purview of the NASA OIG for audits and investigations to ensure accountability and prevent fraud, waste, and abuse.
Related Government Programs
- NASA Space Launch System (SLS)
- Mobile Launcher Program
- NASA Artemis Program
- Aerospace Infrastructure Development
- Large-Scale Construction Contracts
Risk Flags
- Cost Overrun Risk
- Schedule Delay Risk
- Technical Complexity Risk
- Contractor Performance Risk
- Safety Risk
Tags
construction, nasa, space-exploration, large-contract, virginia, definitive-contract, cost-plus-award-fee, full-and-open-competition, aerospace, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.55 billion to BECHTEL NATIONAL, INC.. DESIGN AND CONSTRUCTION OF THE NASA SPACE LAUNCH SYSTEM (SLS) MOBILE LAUNCHER 2 (ML2).
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $1.55 billion.
What is the period of performance?
Start: 2019-07-01. End: 2026-06-05.
What is Bechtel National, Inc.'s track record with large-scale NASA or aerospace infrastructure projects?
Bechtel National, Inc. has a significant history of undertaking complex, large-scale engineering and construction projects, including those for government and defense clients. While specific details on their past NASA projects are not provided here, their general reputation suggests they possess the capabilities required for such endeavors. Their portfolio often includes major industrial facilities, infrastructure development, and government support services. A deeper dive into their past performance on similar projects, particularly those involving critical infrastructure with stringent safety and technical requirements, would be necessary for a comprehensive assessment of their suitability and past success rates.
How does the cost-plus award fee (CPAF) structure compare to other contract types for similar projects, and what are the implications for cost control?
The Cost-Plus Award Fee (CPAF) contract type is often used for complex projects where the scope may evolve or where performance incentives are desired. Unlike fixed-price contracts, CPAF allows the contractor to recover allowable costs plus a fee that is composed of a base fee and an award amount determined by the government based on performance against defined criteria. This structure can encourage contractor performance and innovation. However, it also requires robust government oversight to ensure costs are reasonable and that the award fee is justified. Compared to Cost Plus Fixed Fee (CPFF), CPAF offers more incentive for performance but can lead to higher final costs if not managed carefully. For taxpayers, the risk lies in potentially higher final costs if performance metrics are not rigorously evaluated or if the base fee is excessive.
What are the primary risks associated with the construction of a new mobile launcher, and how are they being mitigated?
Primary risks in constructing a new mobile launcher include technical complexity, integration challenges with the launch vehicle, schedule delays, cost overruns, and safety during construction and future operations. Technical risks involve ensuring the structural integrity, power systems, and fluid/gas handling systems meet extreme requirements. Integration risks arise from coordinating the launcher's design and construction with the evolving Space Launch System (SLS) rocket. Schedule and cost risks are inherent in large, multi-year projects subject to potential design changes or unforeseen site conditions. Safety risks are paramount given the hazardous materials and high-energy systems involved. Mitigation strategies typically involve detailed design reviews, phased construction, rigorous testing, strong project management, contingency planning, and experienced contractor selection.
What is the historical spending pattern for NASA's mobile launcher programs, and how does this contract compare?
Historical spending on NASA's mobile launcher programs, particularly for the Space Launch System (SLS), has been substantial. The first Mobile Launcher (ML-1), used for the Space Launch System (SLS) Block 1 and Block 1B configurations, underwent significant upgrades and modifications, incurring considerable costs over its development and sustainment lifecycle. While exact historical figures for ML-1's total development and upgrade costs are complex to isolate, they represent a significant investment. The $1.55 billion awarded for ML-2 indicates a comparable, if not greater, level of investment, reflecting the ongoing commitment to the SLS program and its future iterations, potentially including more advanced capabilities or longer-term operational needs.
What are the potential workforce implications in Virginia resulting from this large construction contract?
This $1.55 billion contract is expected to generate significant employment opportunities in Virginia, particularly in specialized fields. The construction and engineering required for a mobile launcher demand a skilled workforce, including project managers, engineers (structural, mechanical, electrical), skilled tradespeople (welders, electricians, pipefitters), safety officers, and administrative support staff. The duration of the project suggests sustained job creation over several years. This influx of high-skill, high-wage jobs can have a positive ripple effect on the local economy, potentially boosting demand for housing, services, and local businesses. However, it may also lead to increased competition for skilled labor in the region.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: 80KSC018R0032
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc.
Address: 12021 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,583,975,214
Exercised Options: $1,583,975,214
Current Obligation: $1,550,689,354
Actual Outlays: $1,386,031,587
Subaward Activity
Number of Subawards: 212
Total Subaward Amount: $96,360,155
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-07-01
Current End Date: 2026-06-05
Potential End Date: 2026-06-05 00:00:00
Last Modified: 2026-03-02
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