NASA's $196M ATMS Instrument Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $195,868,008 ($195.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-04-15
End Date: 2017-02-16
Contract Duration: 5,786 days
Daily Burn Rate: $33.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: THIS STATEMENT OF WORK (SOW) PROVIDES FOR THE ACQUISITION OF THE ADVANCED TECHNOLOGY MICROWAVE SOUNDER (ATMS) METEOROLOGICAL FLIGHT INSTRUMENTS FOR USE ON BOARD THE NPOESS PREPARATORY PROJECT (NPP) SPACECRAFT AND THE NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATELLITE SYSTEM (NPOESS). THE CONTRACTOR SHALL PROVIDE: PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY FOR DESIGN, ANALYSIS, DEVELOPMENT, FABRICATION, ASSEMBLY, TESTING, CALIBRATION, QUALIFICATION, ACCEPTANCE, STORAGE, STORAGE TESTING, AND SUPPORT FOR SPACECRAFT INTEGRATION OF ATMS INSTRUMENTS. VARIOUS ANALYTICAL MODELS AND TEST MODELS ARE REQUIRED. THE EFFORT INCLUDES GROUND SUPPORT EQUIPMENT AND TEST AND CALIBRATION EQUIPMENT. IT ALSO INCLUDES A CRITICAL DESIGN REVIEW (CDR) AND DELTA CDR ( CDR), INSTRUMENT DELIVERY, STORAGE, POST-DELIVERY BENCH TESTING, SPACECRAFT INTEGRATION SUPPORT AND TESTING, PRE-LAUNCH AND POST-LAUNCH SUPPORT. REPORTING, REVIEWS, AND DOCUMENTATION OF ALL ASPECTS OF THE PROGRAM ARE REQUIRED.
Place of Performance
Location: AZUSA, LOS ANGELES County, CALIFORNIA, 91702
Plain-Language Summary
National Aeronautics and Space Administration obligated $195.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THIS STATEMENT OF WORK (SOW) PROVIDES FOR THE ACQUISITION OF THE ADVANCED TECHNOLOGY MICROWAVE SOUNDER (ATMS) METEOROLOGICAL FLIGHT INSTRUMENTS FOR USE ON BOARD THE NPOESS PREPARATORY PROJECT (NPP) SPACECRAFT AND THE NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATELLITE SYS… Key points: 1. The contract focuses on acquiring advanced meteorological instruments for critical satellite missions. 2. Northrop Grumman, a major aerospace contractor, secured this award. 3. The acquisition method was full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to cost overruns if not managed carefully. 5. The sector is R&D, indicating investment in scientific and technological advancement.
Value Assessment
Rating: fair
The total award value is $195,868,007.89. Without specific per-unit cost data for the ATMS instruments or comparable contracts for similar advanced satellite payloads, a precise pricing assessment is difficult. However, the scale of the contract suggests significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within the Cost Plus Award Fee structure would influence the final cost.
Taxpayer Impact: The competitive nature of the award is intended to optimize taxpayer value for these critical scientific instruments. However, the Cost Plus Award Fee structure requires careful oversight to ensure costs remain controlled.
Public Impact
Ensures the continuity of vital environmental monitoring capabilities for weather forecasting and climate research. Supports national security and public safety through improved meteorological data. Represents a significant investment in advanced aerospace technology and scientific research. The long duration of the contract (over 16 years) indicates a long-term commitment to the program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can be susceptible to cost growth if performance incentives are not tightly managed.
- The long contract duration may present risks related to technological obsolescence or changing program requirements.
- Lack of specific per-unit cost data makes detailed value assessment challenging.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Supports critical scientific and operational missions for environmental monitoring.
- Involves a major aerospace contractor with established capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and innovation, often involving complex, long-term projects with high upfront costs and significant potential for future benefits.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation and does not mention any small business participation. Large prime contractors often subcontract portions of their work, but direct awards to small businesses are not evident here.
Oversight & Accountability
The Cost Plus Award Fee contract type necessitates robust oversight from NASA to ensure the contractor meets performance objectives and manages costs effectively. Regular reviews and audits would be critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Long contract duration may lead to obsolescence or scope creep.
- Lack of transparency on specific performance metrics for award fee determination.
- No explicit mention of small business subcontracting goals or achievements.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $195.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THIS STATEMENT OF WORK (SOW) PROVIDES FOR THE ACQUISITION OF THE ADVANCED TECHNOLOGY MICROWAVE SOUNDER (ATMS) METEOROLOGICAL FLIGHT INSTRUMENTS FOR USE ON BOARD THE NPOESS PREPARATORY PROJECT (NPP) SPACECRAFT AND THE NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATELLITE SYSTEM (NPOESS). THE CONTRACTOR SHALL PROVIDE: PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES NECESSARY FOR DESIGN, ANALYSIS, DEVELOPMENT, FABRICATION, ASSEMBLY, TESTING, CALIBRATION, QUALIFICATION, ACCEPTANCE, STORAGE, ST
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 $195.9 million.
What is the period of performance?
Start: 2001-04-15. End: 2017-02-16.
What was the final cost of the contract, considering the award fee structure, and how did it compare to the initial target cost?
The provided data shows the total award value as $195,868,007.89. Without knowing the initial target cost or the specific performance metrics that determined the award fee, it's impossible to definitively state the final cost relative to the target. Cost Plus Award Fee contracts aim to incentivize performance, but the final expenditure can vary based on achieved milestones and negotiated fee structures.
What were the key performance indicators (KPIs) used to determine the award fee for Northrop Grumman on this contract?
The specific Key Performance Indicators (KPIs) used to determine the award fee are not detailed in the provided data. Typically, for complex aerospace procurements like this, KPIs would likely include factors such as meeting technical specifications, adhering to schedule milestones, ensuring instrument reliability and performance, and successful integration with the spacecraft. NASA's oversight would involve rigorous evaluation against these criteria.
How does the per-unit cost of the ATMS instruments compare to similar meteorological instruments acquired by other government agencies or international partners?
A direct per-unit cost comparison is not feasible with the provided data. The contract value represents the total acquisition for multiple instruments and associated support over a long period. To benchmark, one would need detailed cost breakdowns for individual ATMS units and comparable data from other agencies for similar advanced satellite payloads, which is not available here.
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
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1100 W HOLLYVALE ST, AZUSA, CA, 91702
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $198,392,940
Exercised Options: $198,392,940
Current Obligation: $195,868,008
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2001-04-15
Current End Date: 2017-02-16
Potential End Date: 2017-02-16 00:00:00
Last Modified: 2024-09-06
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