NASA's James Webb Space Telescope contract nears $1.5B, spanning formulation through post-launch science operations

Contract Overview

Contract Amount: $1,500,047,143 ($1.5B)

Contractor: Association of Universities for Research in Astronomy, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2003-10-01

End Date: 2027-06-25

Contract Duration: 8,668 days

Daily Burn Rate: $173.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT SPAN THE MAJOR PHASES OF THE MISSION BEGINNING WITH FORMULATION THROUGH DEVELOPMENT AND TESTING, AND ENDING ONE YEAR AFTER LAUNCH WITH THE INITIATION OF THE JAMES WEBB SPACE TELESCOPE (JWST) SCIENCE PROGRAM. THESE MAJOR ACTIVITIES ARE SEPARATED INTO THE BASELINE PROGRAM AND SPECIAL STUDIES. THE BASELINE PROGRAM INCLUDES: A. MISSION REQUIREMENTS ANALYSIS AND OBSERVATORY/MISSION DESIGN SUPPORT INCLUDING: TRADESTUDY GENERATION, SCIENCE AND OPERATIONS IMPACT ANALYSIS, SCIENCE SYSTEMS ENGINEERING SUPPORT, AND DESIGN REFERENCE MISSION ANALYSIS. B. GROUND SEGMENT DEVELOPMENT, TESTING, MAINTENANCE AND OPERATIONS INCLUDING: OPERATIONS SUPPORT OF SI, FGS, ISIM, AND OBSERVATORY INTEGRATION AND TEST (I&T), MISSION SIMULATIONS, AND DOCUMENTATION MAINTENANCE, AS WELL AS LOW COST OPERATIONS CONCEPTS. C. SCIENCE PROGRAM IMPLEMENTATION INCLUDING: MISSION PLANNING SUPPORT, SCIENCE PROGRAM DEFINITION SUPPORT, PROPOSAL MANAGEMENT AND USER GRANT ADMINISTRATION, OBSERVER ASSISTANCE, SCIENCE COMMUNITY OUTREACH, AND STAFF RESEARCH. D. COMMISSIONING PERIOD AND ROUTINE SCIENCE OPERATIONS INCLUDING: PROPOSAL GENERATION, OBSERVATION PLANNING AND SCHEDULING, OBSERVING AND USER SUPPORT, DATA PROCESSING AND PRODUCT GENERATION, ARCHIVAL AND DATA DISTRIBUTION SERVICES, CALIBRATION ASSISTANCE AND DATA ANALYSIS, AND ENGINEERING OPERATIONS SUPPORT. E. FLIGHT OPERATIONS INCLUDING: SUBSYSTEM (INCLUDING INSTRUMENTS) HEALTH AND SAFETY MONITORING, COMMAND GENERATION AND UPLOAD, SCHEDULE EXECUTION ASSURANCE, TRENDING, AND ANOMALY INVESTIGATION. F. SUPPORT AND EXECUTION OF THE ON-ORBIT COMMISSIONING PROGRAM. G. GENERATION OF PERFORMANCE, SCIENCE RETURN, AND OTHER PERTINENT INFORMATIONAL REPORTS TO THE JWST PROJECT. H. ASTRONOMICAL COMMUNITY AND GENERAL PUBLIC/EDUCATIONAL OUTREACH. EXAMPLES OF SPECIAL PROJECT ACTIVITIES MAY INCLUDE: A. FOLLOW-ON MISSION STUDIES. B. ENGINEERING NECESSARY TO RESPOND TO NEW JWST PROJECT TASKS.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21218

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.50 billion to ASSOCIATION OF UNIVERSITIES FOR RESEARCH IN ASTRONOMY, INC. for work described as: THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT SPAN THE MAJOR PHASES OF THE MISSION BEGINNING WITH FORMULATION THROUGH DEVELOPMENT AND TESTING, AND ENDING ONE YEAR AFTER LAUNCH WITH THE INITIATION OF THE JAMES WEBB SPACE TELESCOPE (JWST) SCIENCE PROGRAM. THESE MAJOR ACTIVITIES ARE… Key points: 1. Contract covers the full lifecycle of the JWST mission, from initial design to one year post-launch science operations. 2. Significant investment in research and development for a complex, high-profile scientific instrument. 3. Long duration of the contract (over 20 years) suggests a sustained, multi-phase project. 4. The 'Cost No Fee' contract type indicates that the government reimburses the contractor for allowable costs, with no fee or profit. 5. The primary contractor is an association of universities, suggesting a research-focused entity managing a large-scale project. 6. The contract is a definitive contract, typically used for complex projects with a defined scope.

Value Assessment

Rating: fair

The 'Cost No Fee' contract type is often used for research and development where costs are difficult to predict and profit is not the primary driver. While it ensures the government covers necessary expenses, it offers less incentive for cost efficiency compared to fixed-price contracts. Benchmarking value is challenging without detailed cost breakdowns and comparisons to similar large-scale scientific instrument development projects, which are rare. The total obligated amount of $1.5 billion over its extended period reflects the immense complexity and scope of the JWST.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This is common for highly specialized, large-scale scientific endeavors where a specific entity possesses unique expertise or has been integral to the project's development from its inception. The lack of competition means there was no opportunity for price discovery through a bidding process, and the government relied on negotiation with the selected contractor.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not benefit from competitive pricing, potentially leading to a higher overall cost than if multiple bidders had vied for the contract.

Public Impact

The primary beneficiary is the scientific community, which gains access to the JWST for groundbreaking astronomical research. The contract enables the delivery of advanced scientific observation capabilities, pushing the boundaries of space exploration. The geographic impact is global, as the data and discoveries from JWST will be shared internationally. Workforce implications include highly skilled scientists, engineers, and technicians involved in the development, operation, and data analysis of the telescope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have limited cost-saving opportunities.
The 'Cost No Fee' structure might reduce contractor incentives for strict cost control.
Long contract duration increases exposure to potential cost overruns or scope creep over time.

Positive Signals

Contract awarded to an association of universities, suggesting a focus on scientific mission over profit.
Comprehensive scope covers the entire mission lifecycle, ensuring continuity of operations.
The contract supports a flagship scientific instrument with immense potential for discovery.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences and engineering. The market for developing and managing such large-scale, complex scientific instruments is highly specialized, with few entities possessing the requisite expertise. Comparable spending benchmarks are difficult to establish due to the unique nature of the JWST, but it represents a significant investment in cutting-edge scientific infrastructure, akin to major physics experiments or space missions.

Small Business Impact

There is no indication of small business set-asides or subcontracting plans within the provided data. Given the specialized nature of the JWST project and the primary contractor being an association of universities, it is likely that any small business involvement would be through specific technical subcontracts rather than broad set-aside goals. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract is managed by NASA, the awarding agency. As a large, complex, and high-profile project, it is subject to significant internal and potentially external oversight, including reviews by NASA's Office of Inspector General and potentially congressional committees. Transparency is expected to be high due to the public interest in the JWST, though detailed cost breakdowns may be proprietary.

Related Government Programs

Hubble Space Telescope Operations
NASA Science Mission Directorate Programs
Large Hadron Collider (LHC) Research
Other NASA Space Science Missions

Risk Flags

Sole-source award lacks competitive pricing.
Cost-reimbursement contract ('Cost No Fee') may reduce cost control incentives.
Long contract duration increases risk of cost escalation and scope creep.
Complexity of the JWST project presents inherent technical and schedule risks.

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.50 billion to ASSOCIATION OF UNIVERSITIES FOR RESEARCH IN ASTRONOMY, INC.. THE PRIMARY ACTIVITIES COVERED BY THIS EFFORT SPAN THE MAJOR PHASES OF THE MISSION BEGINNING WITH FORMULATION THROUGH DEVELOPMENT AND TESTING, AND ENDING ONE YEAR AFTER LAUNCH WITH THE INITIATION OF THE JAMES WEBB SPACE TELESCOPE (JWST) SCIENCE PROGRAM. THESE MAJOR ACTIVITIES ARE SEPARATED INTO THE BASELINE PROGRAM AND SPECIAL STUDIES. THE BASELINE PROGRAM INCLUDES: A. MISSION REQUIREMENTS ANALYSIS AND OBSERVATORY/MISSION DESIGN SUPPORT INCLUDING: TRADESTUDY GENERATION, SCIENCE AND OPERATIONS IM

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 $1.50 billion.

What is the period of performance?

Start: 2003-10-01. End: 2027-06-25.

What is the historical spending trend for the James Webb Space Telescope (JWST) program under this contract?

The provided data indicates a total obligated amount of $1,500,047,143.12 for this contract, with a start date of October 1, 2003, and an estimated end date of June 25, 2027. This long duration suggests a phased approach to spending. While specific annual or quarterly spending figures are not available in this snippet, the total amount reflects a significant, sustained investment over more than two decades. The contract covers the entire lifecycle, from formulation and development through testing and one year of post-launch science operations, implying that spending would have been concentrated during the development and testing phases and would continue, albeit potentially at a different rate, during the operational phase.

How does the 'Cost No Fee' contract type impact contractor performance and cost control for the JWST?

A 'Cost No Fee' (CNF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred in performing the contract, but receives no fee or profit. This structure is typically used for research and development efforts where the scope is uncertain or when the government wants to ensure the contractor is solely focused on achieving the technical objectives without the profit motive influencing decisions. For the JWST, this means the Association of Universities for Research in Astronomy, Inc. (AURA) is incentivized to perform the work and incur necessary costs to achieve the mission's scientific goals, rather than maximizing profit. However, it can reduce the contractor's incentive for aggressive cost control, as they are assured reimbursement for allowable expenses. Oversight by NASA is therefore critical to ensure costs remain reasonable and necessary.

What are the key risks associated with a sole-source, long-duration contract for a complex project like the JWST?

Sole-source contracts for complex, long-duration projects like the JWST carry several inherent risks. Firstly, the lack of competition means the government does not benefit from price discovery through a bidding process, potentially leading to a higher cost than a competed contract. Secondly, the long duration (over 20 years in this case) increases the risk of cost overruns due to unforeseen technical challenges, inflation, or changes in requirements. Without competitive pressure, there's also a reduced incentive for the contractor to innovate on cost-saving measures. Furthermore, a sole-source award can create vendor lock-in, making it difficult and costly to switch providers if performance issues arise. Robust oversight and clear contract management are essential to mitigate these risks.

What is the significance of the 'Association of Universities for Research in Astronomy, Inc.' as the primary contractor for the JWST?

The selection of the Association of Universities for Research in Astronomy, Inc. (AURA) as the primary contractor for the JWST signifies a strategic choice to leverage deep scientific expertise and a consortium-based approach for a highly complex research and development project. AURA is a non-profit consortium of leading universities and research institutions, dedicated to operating ground- and space-based astronomy facilities. This structure allows NASA to tap into a broad base of scientific knowledge and technical talent from across the academic community. It suggests the primary focus is on achieving the scientific mission objectives rather than maximizing profit, aligning with the 'Cost No Fee' contract type. This model is common for large-scale scientific endeavors where the expertise is distributed and collaboration is key.

How does the scope of this contract, covering formulation through post-launch operations, compare to typical R&D contracts?

This contract's scope is exceptionally broad, encompassing the entire lifecycle of a major scientific instrument, from initial concept and design (formulation) through development, testing, launch, and extending one year into its operational science phase. This is significantly more comprehensive than many R&D contracts, which often focus on a specific phase, such as basic research, prototype development, or initial testing. The inclusion of post-launch operations support is particularly noteworthy, ensuring continuity and maximizing the scientific return on investment. This end-to-end approach is characteristic of large, flagship government projects where managing the entire lifecycle under a single, long-term agreement is deemed more efficient and effective for such a complex and integrated system.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

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: $1,792,383,329

Exercised Options: $1,792,383,329

Current Obligation: $1,500,047,143

Actual Outlays: $749,626,644

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $76,736

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline