NASA awards $1.7B for sustainable human landing system, focusing on R&D for lunar exploration
Contract Overview
Contract Amount: $1,708,406,073 ($1.7B)
Contractor: Blue Origin Manufacturing, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-05-18
End Date: 2029-01-29
Contract Duration: 2,083 days
Daily Burn Rate: $820.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: RAPID DDT&E AND DEMONSTRATION OF S SUSTAINABLE HUMAN LANDING SYSTEM INTEGRATED LANDER.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.71 billion to BLUE ORIGIN MANUFACTURING, LLC for work described as: RAPID DDT&E AND DEMONSTRATION OF S SUSTAINABLE HUMAN LANDING SYSTEM INTEGRATED LANDER. Key points: 1. Contract value represents a significant investment in lunar lander technology development. 2. Competition dynamics for this high-value contract warrant close examination. 3. Performance risks are inherent in advanced R&D for space exploration systems. 4. This contract positions the awardee as a key player in NASA's Artemis program. 5. Spending is concentrated in the Research and Development sector for physical sciences. 6. The contract duration suggests a long-term commitment to technology maturation.
Value Assessment
Rating: good
The $1.7 billion award for the Sustainable Human Landing System (SHLS) is a substantial investment. Benchmarking against similar large-scale aerospace R&D contracts is challenging due to the unique nature of lunar lander development. However, the firm-fixed-price structure aims to control costs, though the extensive R&D scope introduces inherent cost uncertainty. NASA's selection process likely involved rigorous technical and cost evaluations to ensure value for money in this critical program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific pre-qualification or exclusion criteria. While not a sole-source award, the limited number of potential bidders for such advanced space systems suggests a concentrated market. The specific exclusion of sources needs further clarification to understand the full competitive landscape and its impact on price discovery.
Taxpayer Impact: The limited competition, while potentially necessary for specialized capabilities, may result in less aggressive pricing than a truly open competition with numerous bidders. Taxpayers benefit from the development of critical technology, but the price may reflect the specialized nature of the market.
Public Impact
The primary beneficiaries are NASA and its future astronauts, enabling lunar surface missions. Services delivered include the research, development, and demonstration of a sustainable human landing system. Geographic impact is global in terms of scientific advancement, with specific operational focus on the Moon. Workforce implications include high-skilled jobs in aerospace engineering, manufacturing, and research within the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Dependence on a limited number of specialized contractors for critical space technologies.
- Technical feasibility and performance risks associated with novel landing system designs.
Positive Signals
- Firm-fixed-price contract structure provides cost certainty if scope is well-defined.
- Focus on sustainable systems aligns with long-term space exploration goals.
- Award to a known entity suggests a degree of confidence in contractor capability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced research and development for space exploration hardware. The market for human-rated lunar landers is highly specialized, with a limited number of companies possessing the requisite expertise and infrastructure. NASA's spending in this area is crucial for advancing national space objectives and maintaining technological leadership.
Small Business Impact
The contract data indicates that small business participation is not a primary focus, as the awardee is a large corporation and the contract is not set aside for small businesses. Subcontracting opportunities for small businesses may arise, but the primary awardee will likely manage the core development. The impact on the broader small business ecosystem in aerospace is likely indirect, through potential Tier 2 or Tier 3 supply chain roles.
Oversight & Accountability
Oversight will be managed by NASA's contracting officers and program managers, with regular reporting requirements and milestone reviews. Accountability measures are built into the contract through performance metrics and payment schedules tied to deliverables. Transparency is facilitated through NASA's public contract databases, though detailed technical R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Artemis Program
- Human Landing Systems (HLS)
- Commercial Lunar Payload Services (CLPS)
- Space Technology Mission Directorate (STMD) programs
Risk Flags
- Potential for schedule delays in complex R&D.
- Cost growth risk inherent in long-term technology development.
- Dependence on a limited number of specialized suppliers.
- Technical feasibility challenges for novel systems.
Tags
research-and-development, space-exploration, nasa, human-landing-system, definitive-contract, firm-fixed-price, limited-competition, aerospace, alabama, large-business
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.71 billion to BLUE ORIGIN MANUFACTURING, LLC. RAPID DDT&E AND DEMONSTRATION OF S SUSTAINABLE HUMAN LANDING SYSTEM INTEGRATED LANDER.
Who is the contractor on this award?
The obligated recipient is BLUE ORIGIN MANUFACTURING, LLC.
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 $1.71 billion.
What is the period of performance?
Start: 2023-05-18. End: 2029-01-29.
What is the contractor's track record with similar large-scale, high-risk R&D aerospace projects?
Blue Origin has a history of significant investment in aerospace R&D, including its New Shepard suborbital vehicle and New Glenn orbital launch vehicle programs. While New Shepard has achieved successful flights, the New Glenn program has experienced delays. The company is also developing the BE-4 engine, crucial for other launch vehicles. This contract represents a major step in demonstrating their capability for complex human-rated systems development, building on their experience with engine development and vehicle design, though direct experience with a fully operational human landing system of this scale is nascent.
How does the value of this contract compare to other investments in lunar lander technology?
The $1.7 billion award is substantial and reflects the complexity and long-term nature of developing a sustainable human landing system. NASA has previously awarded contracts for lunar lander development under the HLS program, such as to SpaceX for its Starship lander, with values in a similar order of magnitude. These investments are significantly higher than historical lunar mission hardware development due to the requirements for reusability, sustainability, and human rating. The value is justified by the ambitious goals of the Artemis program to establish a long-term human presence on the Moon.
What are the primary technical and programmatic risks associated with this contract?
Key technical risks include the development of a reliable and safe ascent/descent propulsion system, life support systems, power generation, and robust structural integrity for lunar operations. Programmatic risks involve schedule adherence, cost control over a multi-year R&D period, integration challenges with other Artemis mission elements (like the Gateway or Orion spacecraft), and potential changes in program requirements or funding. The 'exclusion of sources' competition type also introduces a risk if it limits the pool of innovative solutions or competitive pressure.
What is the expected effectiveness of this contract in achieving NASA's lunar exploration goals?
This contract is expected to be highly effective in achieving NASA's lunar exploration goals by directly funding the development and demonstration of a critical piece of infrastructure: the human landing system. A sustainable lander is essential for enabling regular crewed missions to the lunar surface, supporting scientific research, resource utilization, and the establishment of a long-term human presence. The success of this contract is directly tied to the success of the broader Artemis program's objectives for lunar exploration and eventual Mars missions.
What are the historical spending patterns for human landing system development by NASA?
NASA's historical spending on human landing systems has varied significantly. During the Apollo era, development costs were immense but largely government-funded in-house or through prime contractors with extensive cost-plus contracts. In recent years, with the Artemis program, NASA has shifted towards leveraging commercial partnerships and fixed-price contracts, as seen with the HLS program. This $1.7 billion award represents a significant, concentrated investment in a single, advanced system, distinct from the more distributed R&D funding of earlier eras or the procurement of smaller, uncrewed landers.
How does the 'Full and Open Competition After Exclusion of Sources' mechanism impact potential innovation?
This procurement method, while competitive, implies that certain potential offerors were excluded based on specific criteria, possibly related to existing technology, prior development, or strategic partnerships. While it can ensure that bidders have a baseline capability or align with program strategy, it might inadvertently limit the influx of radically different or disruptive technologies that could come from a broader pool of competitors. The effectiveness in fostering innovation depends heavily on the justification for the exclusions and the remaining competitive set's diversity.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Solicitation ID: NNH19ZCQ001K
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1100 EXPLORER BLVD NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,430,346,079
Exercised Options: $2,987,857,518
Current Obligation: $1,708,406,073
Actual Outlays: $1,346,055,484
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-05-18
Current End Date: 2029-01-29
Potential End Date: 2029-01-29 00:00:00
Last Modified: 2026-04-10
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