NASA's James Webb Space Telescope contract awarded to Northrop Grumman for $4.34B, spanning over 19 years
Contract Overview
Contract Amount: $4,345,585,999 ($4.3B)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-01
End Date: 2022-12-25
Contract Duration: 7,025 days
Daily Burn Rate: $618.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: THE JAMES WEBB SPACE TELESCOPE (JWST) PHASE 2 OBSERVATORY CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING THE SPACECRAFT, THE OPTICAL TELESCOPE ELEMENT (OTE), PORTIONS OF THE INTEGRATED SCIENCE INSTRUMENT MODULE (ISIM), OBSERVATORY AND SYSTEM INTEGRATION AND TEST (I&T), OBSERVATORY VERIFICATION, OBSERVATORY COMMISSIONING, ASSOCIATED SYSTEMS ENGINEERING, AND THE GROUND AND LAUNCH SUPPORT EQUIPMENT NECESSARY TO DEVELOP AND LAUNCH THE JWST OBSERVATORY.
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.35 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE JAMES WEBB SPACE TELESCOPE (JWST) PHASE 2 OBSERVATORY CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING THE SPACECRAFT, THE OPTICAL TELESCOPE ELEMENT (OTE), PORTIONS OF THE INTEGRATED SCIENCE INSTRUMENT MODULE (ISIM), OBSERVATORY AND SYSTEM INTEGRATION AND TEST (I&T), OBSERVATORY… Key points: 1. The JWST contract represents a significant investment in space exploration technology. 2. Northrop Grumman, a major aerospace contractor, secured this large-scale project. 3. The contract's long duration and complexity present inherent risks. 4. Spending falls within the high-end of major aerospace and defense sector projects.
Value Assessment
Rating: questionable
The contract's final cost significantly exceeded initial estimates, raising concerns about cost control and forecasting accuracy. Benchmarking is difficult due to the unique nature of the project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the extended duration and evolving scope may have impacted price discovery over time.
Taxpayer Impact: Taxpayer funds are heavily invested in this scientific endeavor, with the final cost impacting the overall federal budget for science and technology.
Public Impact
Enables groundbreaking astronomical research and understanding of the universe. Represents a major technological achievement in space observation capabilities. Potential for significant scientific discoveries and public engagement. Long-term investment in national scientific leadership and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns
- Schedule delays
- Technical complexity
- Long contract duration
Positive Signals
- Cutting-edge scientific instrument
- International collaboration potential
- Significant technological advancement
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, characterized by high R&D investment, long development cycles, and significant government funding. Benchmarks are typically in the billions for projects of this scale.
Small Business Impact
The contract was awarded to a large prime contractor, Northrop Grumman. There is no explicit indication of significant direct subcontracting to small businesses within the provided data, though they may be involved further down the supply chain.
Oversight & Accountability
The contract's extensive duration and complexity necessitate robust oversight from NASA to manage costs, schedule, and technical performance. Regular reviews and reporting are crucial for accountability.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Significant cost overruns
- Extended contract duration
- High technical complexity
- Potential for schedule slippage
- Reliance on a single prime contractor for core components
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.35 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE JAMES WEBB SPACE TELESCOPE (JWST) PHASE 2 OBSERVATORY CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING THE SPACECRAFT, THE OPTICAL TELESCOPE ELEMENT (OTE), PORTIONS OF THE INTEGRATED SCIENCE INSTRUMENT MODULE (ISIM), OBSERVATORY AND SYSTEM INTEGRATION AND TEST (I&T), OBSERVATORY VERIFICATION, OBSERVATORY COMMISSIONING, ASSOCIATED SYSTEMS ENGINEERING, AND THE GROUND AND LAUNCH SUPPORT EQUIPMENT NECESSARY TO DEVELOP AND LAUNCH THE JWST OBSERVATORY.
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 $4.35 billion.
What is the period of performance?
Start: 2003-10-01. End: 2022-12-25.
What was the primary driver for the significant cost increase from initial estimates to the final award amount?
The substantial cost increase was likely driven by a combination of factors including evolving scientific requirements, unforeseen technical challenges during development, extended program duration, and the inherent complexity of integrating advanced technologies for a mission of this magnitude. Detailed analysis of change orders and scope adjustments would be needed for a precise breakdown.
How effectively did the full and open competition process ensure the best value for taxpayer dollars given the final cost?
While full and open competition is designed to foster the best value, the significant cost growth suggests that either the initial cost estimates were overly optimistic, or unforeseen challenges significantly impacted the project's financial trajectory post-award. The long-term nature of the contract also means that initial competitive pricing may not fully account for later-stage complexities and risks.
What are the key performance indicators (KPIs) used by NASA to measure the success and effectiveness of this contract beyond just mission completion?
Beyond mission completion, NASA likely tracks KPIs related to scientific return (e.g., number and impact of discoveries), operational efficiency of the telescope, adherence to safety and reliability standards, and potentially the technological advancements spurred by the project. Cost and schedule performance, while critical, are often evaluated against the unique challenges of such a pioneering endeavor.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $4,346,435,437
Exercised Options: $4,346,435,437
Current Obligation: $4,345,585,999
Actual Outlays: $519,338,589
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2003-10-01
Current End Date: 2022-12-25
Potential End Date: 2022-12-25 00:00:00
Last Modified: 2024-04-17
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