NASA awards $81.2M contract to Penn State for advanced telescope systems, spanning over 27 years
Contract Overview
Contract Amount: $81,172,062 ($81.2M)
Contractor: THE Pennsylvania State University
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-04-15
End Date: 2027-08-31
Contract Duration: 9,999 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 51
Pricing Type: COST NO FEE
Sector: R&D
Official Description: SWIFT ULTRAVIOLET&OPTICAL TELESCOPES X-RAY TELESCOPE, GROUND STATION SYSTEM
Place of Performance
Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802
Plain-Language Summary
National Aeronautics and Space Administration obligated $81.2 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: SWIFT ULTRAVIOLET&OPTICAL TELESCOPES X-RAY TELESCOPE, GROUND STATION SYSTEM Key points: 1. Contract value represents a significant long-term investment in space-based research infrastructure. 2. The extensive duration suggests a critical, ongoing need for these specialized telescope capabilities. 3. Competition was robust, indicating a healthy market for advanced scientific instrumentation. 4. Performance risk appears moderate given the long-term nature and specialized technical requirements. 5. This contract positions Penn State as a key player in advanced astronomical research. 6. The cost-plus-no-fee structure incentivizes efficient cost management by the contractor.
Value Assessment
Rating: good
The contract's total value of $81.2 million over nearly 10,000 days (approximately 27 years) is substantial. Benchmarking this against similar long-term, complex research and development contracts for advanced scientific instruments is challenging due to the unique nature of telescope systems. However, the cost-plus-no-fee (CPNF) pricing structure suggests that NASA aims to cover all allowable costs plus a predetermined fee, which can sometimes lead to higher overall costs if not managed tightly. The absence of a fee might indicate a focus on mission success over profit for the contractor, or it could be a mechanism to control costs on a project with inherent uncertainties.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 51 proposals received. This high number of bidders suggests a competitive marketplace for advanced telescope technology and related research services. The extensive competition likely drove down initial pricing and encouraged innovation among potential offerors. The selection of a single awardee from such a large pool indicates that The Pennsylvania State University's proposal was deemed the most advantageous based on technical merit, cost, and other evaluation factors.
Taxpayer Impact: The robust competition benefits taxpayers by ensuring that NASA explored a wide range of capabilities and likely secured a favorable price for this critical research infrastructure. It minimizes the risk of overpayment and maximizes the potential for receiving cutting-edge technology.
Public Impact
The primary beneficiaries are the scientific community and the public, who will gain new insights into the universe through data from these advanced telescopes. The contract will support the development, integration, and operation of sophisticated X-ray, ultraviolet, and optical telescope systems. The project's geographic impact is centered in Pennsylvania, where The Pennsylvania State University is located, but its scientific output will be global. It will likely create and sustain high-skilled jobs in research, engineering, and technical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The extremely long contract duration (nearly 10,000 days) presents inherent risks related to technological obsolescence, personnel turnover, and evolving scientific requirements.
- Cost-plus-no-fee contracts can sometimes lack strong contractor incentives for cost efficiency compared to fixed-price or incentive fee structures.
- The specialized nature of the technology means that finding alternative solutions or contractors mid-contract could be exceptionally difficult and costly.
Positive Signals
- Awarding to a major research institution like Penn State suggests a strong foundation in scientific expertise and research capabilities.
- Full and open competition with 51 bidders indicates a mature and accessible market for this type of advanced technology.
- The long duration, while a risk, also signals a commitment to a critical, long-term scientific endeavor, potentially leading to groundbreaking discoveries.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and astronomy. The market for advanced space-based observatories and associated ground systems is highly specialized, dominated by a few key research institutions and aerospace companies. Spending in this area is driven by national scientific priorities and the pursuit of fundamental knowledge. Comparable spending benchmarks are difficult to establish due to the unique, large-scale nature of such projects, but investments in major scientific facilities like the James Webb Space Telescope provide a general context for the scale of funding required.
Small Business Impact
There is no indication that this contract includes specific small business set-asides, nor is The Pennsylvania State University a small business. Given the highly specialized and advanced nature of the work, the primary focus is likely on large-scale research capabilities. Subcontracting opportunities may exist for specialized components or services, but the prime contract is not structured to prioritize small business participation.
Oversight & Accountability
Oversight will be primarily managed by NASA's contracting officers and program managers responsible for the telescope development and research initiatives. The contract's long duration necessitates continuous monitoring of technical progress, cost performance, and adherence to scientific objectives. While specific Inspector General (IG) jurisdiction details are not provided, NASA's Office of Inspector General typically has oversight over agency contracts to ensure efficiency and prevent fraud, waste, and abuse. Transparency will be maintained through regular reporting requirements mandated by the contract.
Related Government Programs
- Hubble Space Telescope Operations
- James Webb Space Telescope Development
- Chandra X-ray Observatory Operations
- Astrophysics Research Programs
- National Science Foundation Research Grants
Risk Flags
- Long-term contract duration increases risk of obsolescence and cost overruns.
- Cost-plus-no-fee structure may reduce contractor incentive for cost control.
- Highly specialized technology could lead to difficulties in mid-contract adjustments or replacements.
Tags
research-and-development, space-technology, astronomy, telescope-systems, nasa, pennsylvania-state-university, definitive-contract, full-and-open-competition, cost-plus-no-fee, long-term-contract, scientific-research, ground-station-system
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $81.2 million to THE PENNSYLVANIA STATE UNIVERSITY. SWIFT ULTRAVIOLET&OPTICAL TELESCOPES X-RAY TELESCOPE, GROUND STATION SYSTEM
Who is the contractor on this award?
The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.
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 $81.2 million.
What is the period of performance?
Start: 2000-04-15. End: 2027-08-31.
What is the historical spending pattern for similar advanced telescope projects awarded by NASA?
NASA has a history of investing heavily in large-scale, long-duration telescope projects. For instance, the James Webb Space Telescope (JWST) had an estimated development cost exceeding $10 billion and spanned decades from conception to launch. The Hubble Space Telescope, while older, also involved significant long-term investment for its development, launch, and subsequent servicing missions. These projects are characterized by their complexity, high technological requirements, and extended timelines, often running into billions of dollars over their lifecycles. The $81.2 million awarded to Penn State, while substantial, appears to be for a specific component or system within a broader astronomical research portfolio, rather than a flagship observatory on the scale of JWST or Hubble.
How does the cost-plus-no-fee (CPNF) structure impact contractor incentives for efficiency on this contract?
The Cost-Plus-No-Fee (CPNF) contract structure is unusual for large, complex R&D projects. Typically, cost-plus contracts include a fee (profit) to incentivize the contractor. In a CPNF arrangement, the contractor is reimbursed for all allowable costs but receives no additional fee. This structure might be used when the primary goal is mission success rather than profit, or when the contractor is a non-profit research institution like Penn State, where the focus is on advancing science. However, it can reduce the contractor's incentive to control costs aggressively, as their profit is not directly tied to cost savings. NASA's oversight and stringent auditing of allowable costs become even more critical in a CPNF scenario to ensure taxpayer funds are used efficiently.
What are the key performance indicators (KPIs) NASA will likely use to evaluate the success of this contract?
NASA will likely evaluate the success of this contract based on a combination of technical, schedule, and potentially cost-related performance indicators, despite the CPNF structure. Key technical KPIs could include the successful design, fabrication, testing, and integration of the telescope components (X-ray, UV, optical) and ground station system, meeting stringent performance specifications (e.g., resolution, sensitivity, wavelength coverage). Schedule adherence for key milestones, such as design reviews, fabrication completion, and system delivery, will be crucial. While profit isn't a direct incentive, NASA will monitor the contractor's ability to manage costs within the estimated budget and ensure all expenditures are allowable and reasonable according to the contract terms. Ultimately, the scientific return and data quality generated by the telescope systems will be the most significant measure of success.
What is the track record of The Pennsylvania State University in managing large federal R&D contracts, particularly in aerospace or astronomy?
The Pennsylvania State University (Penn State) has a well-established and extensive track record in managing large federal research and development contracts, particularly within NASA and other scientific agencies. As a major research institution, it consistently secures significant funding for a wide array of scientific and engineering disciplines, including aerospace engineering, physics, and astronomy. Penn State's Applied Research Laboratory (APL) is particularly adept at handling complex, long-term defense and space-related research projects. While specific details on managing contracts of this exact duration and type might vary, the university's overall experience in large-scale project management, scientific innovation, and compliance with federal regulations positions it as a capable steward for this advanced telescope contract.
How does the $81.2M contract value compare to the total federal spending on astronomy and astrophysics research?
The $81.2 million awarded to Penn State represents a significant investment in a specific advanced telescope system. To compare it to total federal spending on astronomy and astrophysics, one would look at NASA's overall budget allocation for its Science Mission Directorate, specifically the Astrophysics division, and potentially contributions from other agencies like the National Science Foundation (NSF). NASA's annual budget is in the tens of billions of dollars, with a substantial portion dedicated to science. The Astrophysics division alone often receives several billion dollars annually, funding a portfolio of missions, research grants, and technology development. Therefore, while $81.2 million is a large sum for a single contract, it is a component within a much larger federal research ecosystem dedicated to understanding the universe.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: AO-98-OSS-03
Offers Received: 51
Pricing Type: COST NO FEE (S)
Contractor Details
Address: 408 OLD MAIN, UNIVERSITY PARK, PA, 16802
Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $91,636,876
Exercised Options: $83,541,958
Current Obligation: $81,172,062
Actual Outlays: $14,519,620
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $88,286,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2000-04-15
Current End Date: 2027-08-31
Potential End Date: 2030-08-31 00:00:00
Last Modified: 2026-03-18
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