NASA's Boeing ISS Contract Exceeds $22.4 Billion, Facing Limited Competition
Contract Overview
Contract Amount: $22,408,572,987 ($22.4B)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1993-11-15
End Date: 2026-09-30
Contract Duration: 12,007 days
Daily Burn Rate: $1.9M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: INTERNATIONAL SPACE STATION
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $22.41 billion to THE BOEING COMPANY for work described as: INTERNATIONAL SPACE STATION Key points: 1. Significant spending on the International Space Station (ISS) program, totaling over $22.4 billion. 2. Boeing holds the primary contract, indicating a lack of robust competition for this critical program. 3. The contract's duration and cost structure warrant scrutiny for potential cost overruns and value. 4. Spending in the Guided Missile and Space Vehicle Manufacturing sector is substantial, with ISS being a major component.
Value Assessment
Rating: questionable
The total award value of $22.4 billion over a long period suggests a high cost. Benchmarking against similar large-scale, long-term space programs is difficult due to the unique nature of the ISS, but the lack of competition raises concerns about price discovery and potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This significantly restricts price discovery and may lead to higher costs for taxpayers as there is no competitive pressure to drive down prices or improve efficiency.
Taxpayer Impact: The extensive, non-competed nature of this contract likely results in a higher cost to taxpayers than if it had undergone a full and open competition.
Public Impact
The International Space Station is a flagship program with global implications for scientific research and international cooperation. Continued funding for the ISS impacts NASA's budget allocation for other critical space exploration and research initiatives. The long-term commitment to the ISS raises questions about future space infrastructure and the transition to commercial space stations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High total contract value
- Long contract duration
- Cost-plus contract type
Positive Signals
- Critical national asset (ISS)
- Long-standing program with established operations
Sector Analysis
Spending in the Guided Missile and Space Vehicle Manufacturing sector is characterized by large, complex, and long-term contracts. The ISS program represents a significant portion of this sector's expenditure, with benchmarks often difficult to establish due to the unique, high-risk nature of space missions.
Small Business Impact
The provided data does not indicate any specific subcontracting to small businesses for this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
NASA's oversight of such a large and complex program is crucial. The cost-plus award fee structure suggests performance incentives, but the lack of competition necessitates rigorous monitoring to ensure cost control and program effectiveness.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source/limited competition raises cost concerns.
- High total contract value over an extended period.
- Cost-plus contract type can incentivize spending.
- Long duration may not reflect current needs or technological advancements.
- Lack of transparency in pricing due to non-competitive award.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $22.41 billion to THE BOEING COMPANY. INTERNATIONAL SPACE STATION
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $22.41 billion.
What is the period of performance?
Start: 1993-11-15. End: 2026-09-30.
What is the projected cost per year for the ISS program under this contract, and how does it compare to historical spending or other major space initiatives?
The total award value is $22.4 billion over approximately 12,007 days (from 1993 to 2026), averaging roughly $1.86 million per day or $679 million per year. This figure needs to be contextualized against the ISS's operational complexity and scientific output. Direct comparisons are challenging due to the unique scale and purpose of the ISS.
Given the 'NOT COMPETED' status, what mechanisms are in place to ensure Boeing is not overcharging NASA and that costs are managed effectively?
NASA employs various oversight mechanisms, including contract performance reviews, audits, and the cost-plus award fee structure which incentivizes performance and cost control. However, the absence of competition inherently limits the agency's leverage in price negotiations and cost validation.
What is the long-term strategy for the ISS beyond 2026, and how will this contract's structure influence the transition to future space platforms or commercial alternatives?
The current contract focuses on operations through September 2026. NASA is exploring options for extending ISS operations and is also fostering the development of commercial space stations. The significant investment in the current contract may influence the pace and nature of this transition, potentially creating dependencies.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 3700 BAY AREA BLVD, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,747,038,729
Exercised Options: $22,436,262,092
Current Obligation: $22,408,572,987
Actual Outlays: $2,565,939,858
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 1993-11-15
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-14
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