NASA awards $46.3M contract to Northrop Grumman for lunar lander development, focusing on risk mitigation

Contract Overview

Contract Amount: $46,280,283 ($46.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-09-27

End Date: 2023-08-11

Contract Duration: 683 days

Daily Burn Rate: $67.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS.

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $46.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS. Key points: 1. Contract aims to mature lunar lander concepts through design and risk reduction. 2. Focus on trade studies and joint working groups suggests a collaborative development approach. 3. The contract duration of 683 days indicates a significant, multi-phase development effort. 4. Northrop Grumman's selection highlights their role in advancing lunar exploration technology. 5. Research and Development in Physical, Engineering, and Life Sciences is a key sector for this award. 6. The definitive contract type suggests a clear scope of work for the development phase.

Value Assessment

Rating: good

The contract value of $46.3 million for a lunar lander concept development effort appears reasonable given the complexity and R&D nature of the work. Benchmarking against similar advanced technology development contracts, especially in the aerospace sector, would provide further context. However, the focus on risk mitigation and design trade studies suggests a critical early-stage investment that could prevent more costly issues later in development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable offerors had the opportunity to bid. The presence of 7 bidders suggests a healthy level of interest and competition for this critical space technology development. This competitive environment is expected to drive innovation and potentially lead to more cost-effective solutions for NASA.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors strive to offer the best value and price.

Public Impact

Benefits NASA's Artemis program by advancing capabilities for sustainable lunar presence. Delivers critical design and risk reduction for a future lunar lander system. Supports the development of advanced aerospace technologies with potential commercial applications. Impacts the aerospace engineering workforce through specialized research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if unforeseen technical challenges arise during development.
  • Dependency on a single contractor for a critical component of lunar exploration.
  • Risk of schedule delays impacting broader program timelines.

Positive Signals

  • Clear focus on risk mitigation aims to reduce future development costs and complexities.
  • Competitive award process suggests a strong initial value proposition.
  • Northrop Grumman's established expertise in aerospace systems provides a positive signal for successful execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace industry, a significant segment of this sector, is characterized by high R&D investment, long development cycles, and substantial government funding. Comparable spending benchmarks in advanced aerospace R&D can vary widely, but contracts of this magnitude are typical for maturing complex systems like lunar landers.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the advanced nature of lunar lander development, it is likely that prime contractors will engage subcontractors, potentially including small businesses, for specialized components or services. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

NASA's contract oversight mechanisms, including program management reviews, technical evaluations, and financial audits, are expected to monitor this contract. The agency's Inspector General may also conduct audits to ensure accountability and prevent fraud. Transparency is generally maintained through contract award announcements and reporting, though specific development details may be proprietary.

Related Government Programs

  • Artemis Program
  • Lunar Exploration Initiatives
  • Space Technology Development
  • Advanced Propulsion Systems
  • Aerospace Research and Development

Risk Flags

  • Technology Readiness Level (TRL) uncertainty
  • Long-term sustainment viability
  • Integration with other Artemis elements

Tags

research-and-development, nasa, northrop-grumman-systems-corporation, virginia, definitive-contract, firm-fixed-price, full-and-open-competition, lunar-lander, space-exploration, advanced-technology

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $46.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

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 $46.3 million.

What is the period of performance?

Start: 2021-09-27. End: 2023-08-11.

What is Northrop Grumman's track record with NASA on similar complex development contracts?

Northrop Grumman has a long-standing relationship with NASA, contributing to numerous space exploration and science missions. They have a significant history in developing large-scale aerospace systems, including spacecraft, launch vehicles, and satellite technology. For instance, they were a key contractor for the James Webb Space Telescope and have been involved in various lunar and deep space probe developments. Their experience with NASA spans decades, encompassing complex R&D, manufacturing, and integration efforts. This extensive background suggests a strong understanding of NASA's requirements, processes, and quality standards, positioning them as a capable partner for the lunar lander development effort. Past performance reviews and specific project outcomes would offer more granular insights into their success rates and ability to manage cost and schedule on similar endeavors.

How does the $46.3 million value compare to other lunar lander development contracts?

The $46.3 million award for concept development and risk mitigation of a lunar lander is a significant investment, but it is likely on the lower end for a full development program. Early-stage R&D contracts, focusing on design, trade studies, and risk reduction, typically precede larger, multi-year contracts for hardware fabrication, testing, and mission operations. For context, NASA's Commercial Lunar Payload Services (CLPS) initiative has awarded contracts for lander delivery services that can range from tens to hundreds of millions of dollars, depending on payload and mission complexity. More comprehensive lander development programs, especially those involving human-rated systems, can easily run into billions of dollars over their lifecycle. Therefore, this $46.3 million contract represents a crucial foundational phase, investing in the critical early work needed to ensure the feasibility and reduce the risks of more extensive future development.

What are the primary risks associated with this lunar lander development contract?

The primary risks associated with this lunar lander development contract are multifaceted, stemming from the inherent challenges of space exploration and advanced technology development. Technical risks include unforeseen engineering hurdles in designing a reliable and efficient lander capable of operating in the harsh lunar environment, such as extreme temperatures, radiation, and lunar dust. Schedule risks are also significant, as complex R&D projects are prone to delays due to design iterations, testing challenges, or supply chain issues. Cost risks involve potential budget overruns if development proves more complex or time-consuming than initially estimated, or if new requirements emerge. Furthermore, there are integration risks, ensuring the lander is compatible with launch vehicles and other mission elements. Finally, operational risks related to the lander's performance and longevity on the lunar surface are a key concern that this contract aims to mitigate.

What is the expected effectiveness of this contract in achieving NASA's lunar exploration goals?

This contract is expected to be highly effective in laying the groundwork for NASA's broader lunar exploration goals, particularly those related to establishing a sustainable presence on the Moon. By focusing on concept development, design trade studies, and crucial risk mitigation activities, it directly addresses the foundational technical challenges that could otherwise derail future, more expensive phases of lander development. Successful completion should result in a more mature, well-understood lander design with identified and reduced risks, increasing the probability of success for subsequent hardware development and flight missions. This early-stage investment is critical for ensuring that future landers are reliable, cost-effective, and capable of meeting the scientific and operational objectives of programs like Artemis, ultimately contributing to long-term lunar exploration and utilization.

How has NASA's spending on lunar lander development evolved over the past five years?

NASA's spending on lunar lander development has seen a significant resurgence and strategic shift over the past five years, largely driven by the Artemis program's objectives. Prior to this period, major lunar lander development efforts were less prominent following the end of the Apollo program. However, with the renewed focus on returning humans to the Moon and establishing a sustained presence, NASA has increased investment through various avenues. This includes direct R&D contracts for lander technologies, partnerships with commercial entities via the Commercial Lunar Payload Services (CLPS) initiative, and funding for foundational research in areas like propulsion, power, and life support systems relevant to landers. While specific aggregate spending figures fluctuate annually based on program milestones and appropriations, the overall trend indicates a substantial and growing commitment to developing diverse lunar lander capabilities, ranging from robotic science missions to human-rated descent vehicles.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNH19ZCQ001K

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 45101 WARP DR, DULLES, VA, 20166

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

Financial Breakdown

Contract Ceiling: $126,408,519

Exercised Options: $46,280,283

Current Obligation: $46,280,283

Actual Outlays: $46,280,283

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $606,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2021-09-27

Current End Date: 2023-08-11

Potential End Date: 2024-09-30 00:00:00

Last Modified: 2024-09-06

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