NASA's $2.5B Astronomy Contract with AURA Faces Scrutiny Over Long Duration and Limited Competition
Contract Overview
Contract Amount: $2,511,478,245 ($2.5B)
Contractor: Association of Universities for Research in Astronomy, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1987-09-15
End Date: 2026-06-30
Contract Duration: 14,168 days
Daily Burn Rate: $177.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT INCLUDE THE FINAL SERVICING MISSION AND SUBSEQUENT OPERATIONS THROUGH END-OF-MISSION. THESE ACTIVITIES INCLUDE: A. SCIENCE PROGRAM IMPLEMENTATION INCLUDING: MISSION PLANNING SUPPORT, SCIENCE PROGRAM DEFINITION SUPPORT, MANAGEMENT OF THE PROPOSAL SELECTION, TIME ALLOCATION, AND GRANT AWARD COMMITTEE PROCESSES, AND SCIENCE COMMUNITY OUTREACH. B. ROUTINE SCIENCE OPERATIONS INCLUDING: PROPOSAL GENERATION AND RECEIPT, OBSERVATION PLANNING AND SCHEDULING, UPDATING INSTRUMENT HANDBOOKS, OBSERVING AND USER SUPPORT, DATA PROCESSING AND PRODUCT GENERATION, ARCHIVAL AND DATA DISTRIBUTION SERVICES, CALIBRATION ASSISTANCE AND DATA ANALYSIS, ANOMALY INVESTIGATION SUPPORT, USER GRANT ADMINISTRATION, OBSERVER ASSISTANCE AND ENGINEERING OPERATIONS SUPPORT. C. GROUND SYSTEM SUSTAINING ENGINEERING INCLUDING: SCIENCE OPERATION SYSTEM MAINTENANCE, INFRASTRUCTURE ADMINISTRATION AND SUPPORT, AND DOCUMENTATION MAINTENANCE D. SERVICING MISSION SUPPORT INCLUDING: PREPARATION AND EXECUTION OF THE OBSERVATORY VERIFICATION PROGRAM, INSTRUMENT DEVELOPMENT SUPPORT, AND OPTICAL ALIGNMENT TESTING SUPPORT E. GENERATION OF PERFORMANCE, SCIENCE RETURN, AND OTHER PERTINENT INFORMATIONAL REPORTS TO THE HSTP F. ASTRONOMICAL COMMUNITY AND GENERAL PUBLIC/EDUCATIONAL OUTREACH G. SPECIAL PROJECTS INCLUDING ORIGINS FORUM AND INDEPENDENT RESEARCH THIS CONTRACT INCLUDES AN ADDITIONAL TWO-YEAR PERIOD AFTER THE END OF HST'S SCIENCE-MISSION. THIS EXTRA TIME FOLLOWING THE CESSATION OF SCIENTIFIC OBSERVATIONS IS FOR TWO YEARS OF FOLLOW-ON ARCHIVAL RESEARCH. DURING THE FINAL TWO YEARS OF THE CONTRACT, ARCHIVAL OPERATIONS AND MAINTENANCE, AN ARCHIVAL RESEARCH PROPOSAL SELECTION PROCESS AND ASSOCIATED GRANT ADMINISTRATION, AND A PUBLIC OUTREACH PROGRAM WILL CONTINUE. DATA ANALYSIS SOFTWARE WILL ALSO BE MAINTAINED BUT AT A LOWER LEVEL OF SUPPORT SUCH THAT ONLY MODEST ENHANCEMENTS MAY STILL BE MADE. CONTINUING SUPPORT WILL ALSO INCLUDE THE COORDINATION OF DATA ANALYSIS SOFTWARE THAT IS PRODUCED BY THE ASTRONOMICAL COMMUNITY. ORIG PSC AR20
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21218
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.51 billion to ASSOCIATION OF UNIVERSITIES FOR RESEARCH IN ASTRONOMY, INC. for work described as: THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT INCLUDE THE FINAL SERVICING MISSION AND SUBSEQUENT OPERATIONS THROUGH END-OF-MISSION. THESE ACTIVITIES INCLUDE: A. SCIENCE PROGRAM IMPLEMENTATION INCLUDING: MISSION PLANNING SUPPORT, SCIENCE PROGRAM DEFINITION SUPPORT, MANAGEMENT OF T… Key points: 1. The contract, awarded to Association of Universities for Research in Astronomy, Inc. (AURA), spans nearly four decades, raising questions about sustained value and potential for cost overruns. 2. While the contract type is Cost Plus Incentive Fee, the lack of explicit competition raises concerns about price discovery and ensuring the best value for taxpayers. 3. The primary activities focus on science program implementation and routine operations, including data processing and user support, which are critical for NASA's research objectives. 4. The absence of small business participation is noted, potentially limiting opportunities for smaller, innovative firms in this specialized sector.
Value Assessment
Rating: questionable
The contract's duration of over 30 years (from 1987 to 2026) makes direct pricing comparisons difficult. The Cost Plus Incentive Fee structure suggests an attempt to control costs, but the extended period may obscure true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the long duration and specialized nature of the work may have limited the number of actual bidders, potentially impacting the competitive pressure on pricing over time.
Taxpayer Impact: The extended duration and cost-plus nature of the contract warrant close monitoring to ensure taxpayer funds are used efficiently and effectively over the long term.
Public Impact
The contract supports critical scientific research in astronomy, contributing to advancements in space science and our understanding of the universe. Long-term contracts like this can provide stability for research institutions and personnel, fostering expertise and consistent progress. The extensive data processing and user support services ensure that valuable scientific data is accessible and usable by the broader research community.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration raises concerns about long-term cost-effectiveness and potential for scope creep.
- Lack of explicit small business participation may limit broader economic impact and innovation.
- Cost Plus Incentive Fee contracts can be complex to manage and may not always guarantee the most competitive pricing over extended periods.
Positive Signals
- Supports critical scientific research and development in astronomy.
- Awarded through full and open competition, indicating an initial effort to secure competitive pricing.
- Provides essential operational support for scientific missions and data dissemination.
Sector Analysis
This contract falls within the Research and Development sector, specifically supporting scientific operations and program implementation for astronomy. Spending benchmarks in this area are highly variable, depending on the scale and duration of specific scientific endeavors.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests that the prime contractor, AURA, is likely a large research institution, and opportunities for small business subcontracting may have been limited or not explicitly sought.
Oversight & Accountability
The contract's extensive duration and complex scope necessitate robust oversight from NASA to ensure performance objectives are met, costs are controlled, and the contract remains aligned with evolving scientific priorities. Regular reviews and performance assessments are crucial.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Extended contract duration (over 30 years)
- Cost Plus Incentive Fee contract type
- No reported small business participation
- Specialized nature of scientific support services
Tags
optical-instrument-and-lens-manufacturin, national-aeronautics-and-space-administr, md, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.51 billion to ASSOCIATION OF UNIVERSITIES FOR RESEARCH IN ASTRONOMY, INC.. THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT INCLUDE THE FINAL SERVICING MISSION AND SUBSEQUENT OPERATIONS THROUGH END-OF-MISSION. THESE ACTIVITIES INCLUDE: A. SCIENCE PROGRAM IMPLEMENTATION INCLUDING: MISSION PLANNING SUPPORT, SCIENCE PROGRAM DEFINITION SUPPORT, MANAGEMENT OF THE PROPOSAL SELECTION, TIME ALLOCATION, AND GRANT AWARD COMMITTEE PROCESSES, AND SCIENCE COMMUNITY OUTREACH. B. ROUTINE SCIENCE OPERATIONS INCLUDING: PROPOSAL GENERATION AND RECEIPT, OBSERVATION PLANNING AND SCHEDULING,
Who is the contractor on this award?
The obligated recipient is ASSOCIATION OF UNIVERSITIES FOR RESEARCH IN ASTRONOMY, 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 $2.51 billion.
What is the period of performance?
Start: 1987-09-15. End: 2026-06-30.
How has the cost-plus-incentive-fee structure influenced the overall cost and efficiency of this long-term astronomy support contract?
The Cost Plus Incentive Fee (CPIF) structure aims to incentivize the contractor to meet cost, performance, and schedule targets by sharing cost savings or overruns with the government. For this long-term contract, CPIF likely provided flexibility in managing evolving research needs while encouraging efficiency. However, without detailed cost performance data, it's difficult to definitively assess its impact on overall cost-effectiveness compared to other contract types over such an extended period.
What are the primary risks associated with the nearly four-decade duration of this contract, and how are they being mitigated?
The primary risks include potential cost overruns due to inflation and changing technological requirements, decreased contractor motivation over time, and the possibility of the contract becoming misaligned with current scientific priorities. Mitigation strategies likely involve rigorous performance monitoring, regular contract reviews, potential modifications to scope or objectives, and strong government oversight to ensure continued relevance and value.
Given the specialized nature of the work, what is the likelihood that future competitions for similar astronomy support services could yield better value or innovation?
The likelihood depends on market evolution and NASA's strategic approach. While AURA has established expertise, future competitions could introduce new players or foster innovation if requirements are clearly defined and the market demonstrates capacity. However, the highly specialized and long-term nature of this work might favor incumbent expertise, potentially limiting the scope for disruptive innovation in the short to medium term.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: RFP5-18349
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 3700 SAN MARTIN DR, BALTIMORE, MD, 21218
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,579,386,626
Exercised Options: $2,579,376,626
Current Obligation: $2,511,478,245
Actual Outlays: $481,166,279
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $43,992
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1987-09-15
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-18
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