DoD's $177M JETSON Contract for On-Orbit Nuclear Power Faces Limited Competition

Contract Overview

Contract Amount: $17,735,214 ($17.7M)

Contractor: Intuitive Machines, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2028-03-29

Contract Duration: 1,643 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) LOW POWER

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77058

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to INTUITIVE MACHINES, LLC for work described as: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) LOW POWER Key points: 1. The contract aims to develop emergent technology for on-orbit nuclear power, a critical but complex field. 2. Intuitive Machines, LLC, a single awardee, suggests potential limitations in the competitive landscape for this specialized area. 3. The firm-fixed-price contract structure aims to control costs, but the novelty of the technology introduces inherent risks. 4. This R&D effort falls within the physical sciences sector, with significant long-term implications for space capabilities.

Value Assessment

Rating: questionable

The contract value of $177.3 million for R&D in emergent technology is difficult to benchmark without specific comparable projects. The firm-fixed-price structure is a positive sign for cost control, but the high-risk nature of the technology may lead to cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open, the award to a single entity, Intuitive Machines, LLC, raises questions about the breadth of competition. This could indicate a highly specialized market or potential barriers to entry for other firms, impacting price discovery.

Taxpayer Impact: The ultimate taxpayer impact depends on the successful development of this technology and its future applications. Early-stage R&D contracts carry inherent uncertainty regarding return on investment.

Public Impact

Development of on-orbit nuclear power could revolutionize space operations, enabling longer missions and greater power availability. This technology has dual-use potential, impacting both civilian space exploration and national security capabilities. The success of this project could position the US as a leader in advanced space power generation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition despite 'full and open' designation
  • High-risk, emergent technology development
  • Potential for cost overruns due to technological uncertainty

Positive Signals

  • Focus on critical emergent technology
  • Firm-fixed-price contract for cost control
  • Potential for significant technological advancement

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is often characterized by high innovation but also significant risk and long development cycles. Benchmarks are difficult due to the unique nature of emergent technologies.

Small Business Impact

The contract was awarded to Intuitive Machines, LLC, a single entity. There is no explicit indication of small business participation in the provided data, suggesting this award may not directly benefit small businesses.

Oversight & Accountability

The Department of the Air Force is the contracting agency. Oversight will be crucial to monitor the progress of this high-risk R&D effort and ensure accountability for taxpayer funds, particularly given the emergent nature of the technology.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • High technological risk
  • Potential for cost overruns
  • Limited visibility into specific safety protocols
  • Uncertainty regarding long-term return on investment

Tags

research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to INTUITIVE MACHINES, LLC. JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) LOW POWER

Who is the contractor on this award?

The obligated recipient is INTUITIVE MACHINES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2028-03-29.

What is the projected timeline for key technological milestones within this contract, and how will progress be measured against these benchmarks?

The contract spans from September 2023 to March 2028, a period of approximately 4.5 years. Key milestones would likely involve stages of design, prototyping, testing, and validation of the on-orbit nuclear power system. Progress measurement will depend on the specific technical requirements defined in the contract statement of work, likely involving rigorous review gates and performance demonstrations to ensure the technology is advancing as intended.

Given the novelty of on-orbit nuclear power, what specific risk mitigation strategies are in place to address potential safety and operational failures?

Specific risk mitigation strategies are not detailed in the provided data. However, for a project involving nuclear power in space, robust safety protocols, redundant systems, and stringent testing procedures would be paramount. The Department of Defense would likely mandate adherence to established nuclear safety regulations and require comprehensive failure mode and effects analyses (FMEA) to identify and address potential hazards throughout the development lifecycle.

How will the success of the JETSON program be evaluated in terms of its contribution to future space capabilities and potential return on investment for the government?

Success evaluation will likely hinge on the successful demonstration of a functional and reliable on-orbit nuclear power source that meets or exceeds specified performance metrics. Contribution to future space capabilities could be measured by the system's ability to enable longer-duration missions, support higher power demands for payloads, or reduce reliance on solar power in challenging environments. Return on investment will be assessed over the long term, considering the strategic advantages gained and potential cost savings from enhanced space operations.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3700 BAY AREA BLVD, HOUSTON, TX, 77058

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

Financial Breakdown

Contract Ceiling: $25,696,195

Exercised Options: $25,436,195

Current Obligation: $17,735,214

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $983,916

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2023-09-29

Current End Date: 2028-03-29

Potential End Date: 2028-03-29 00:00:00

Last Modified: 2025-10-03

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