NASA's $1.1B Near Earth Networks Services Contract Awarded to Honeywell Technology Solutions Inc
Contract Overview
Contract Amount: $1,095,544,578 ($1.1B)
Contractor: Honeywell Technology Solutions Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-09
End Date: 2011-04-08
Contract Duration: 2,738 days
Daily Burn Rate: $400.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: NASA GODDARD SPACE FLIGHT CENTER S (GSFC) GOAL FOR THE NEAR EARTH NETWORKS SERVICES CONTRACT (NENS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING NENS SERVICES. IN ORDER TO SUPPORT THIS GOAL, THE NENS CONTRACTOR SHALL PROVIDE THE AGENCY WITH SERVICES THAT ARE HIGHLY RELIABLE AND AFFORDABLE AND CONTRIBUTE TO THE SAFE OPERATION OF THE MISSION. THE CONTRACTOR SHALL IMPLEMENT A SAFETY, HEALTH, AND MISSION ASSURANCE PROGRAM THAT PROVIDES A SAFE AND HEALTHY WORK ENVIRONMENT, MINIMIZES PROGRAM RISK, AND MAXIMIZES NASA MISSION SUCCESS.
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.10 billion to HONEYWELL TECHNOLOGY SOLUTIONS INC. for work described as: NASA GODDARD SPACE FLIGHT CENTER S (GSFC) GOAL FOR THE NEAR EARTH NETWORKS SERVICES CONTRACT (NENS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING NENS SERVICES. IN ORDER TO SUPPORT THIS GOAL, THE NENS CONTRACTOR SHALL PROVIDE THE AGENCY WITH SERVICES THAT ARE HIGHLY RELIA… Key points: 1. Contract aims for mission success through reliable and affordable services. 2. Focus on safety, health, and mission assurance to minimize risk. 3. Honeywell Technology Solutions Inc. is the sole awardee. 4. The contract spans over 7 years, indicating long-term support needs.
Value Assessment
Rating: good
The contract value of $1.1 billion over approximately 7 years suggests a significant investment in critical space communication infrastructure. Benchmarking against similar large-scale telecommunications and IT support contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing and optimal value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential space network services.
Public Impact
Ensures continuous communication for NASA missions in near-Earth space. Supports the safety and success of scientific and exploratory space endeavors. Contributes to the advancement of space technology and research. Provides a stable platform for critical data transmission from space assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in a Cost Plus Award Fee structure.
- Dependence on a single contractor for critical network services.
- Scope creep could increase the final contract cost beyond initial estimates.
Positive Signals
- Clear objective of mission success and risk mitigation.
- Long-term contract provides stability for essential services.
- Awarded through full and open competition, suggesting value.
Sector Analysis
This contract falls within the telecommunications and IT services sector, supporting critical infrastructure for space operations. Spending in this area is essential for government agencies reliant on continuous data flow and mission control.
Small Business Impact
The data indicates that small business participation was not a primary focus or requirement for this specific contract, as it was awarded to a large corporation and does not list small business set-asides.
Oversight & Accountability
The contract includes provisions for a Safety, Health, and Mission Assurance Program, suggesting a degree of oversight. However, the effectiveness of this oversight and accountability mechanisms would require further review of performance reports and audits.
Related Government Programs
- Other Telecommunications
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Award Fee structure.
- Sole awardee for critical services.
- Long contract duration.
- Potential for vendor lock-in.
- Dependence on contractor's safety and assurance programs.
Tags
other-telecommunications, national-aeronautics-and-space-administr, md, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.10 billion to HONEYWELL TECHNOLOGY SOLUTIONS INC.. NASA GODDARD SPACE FLIGHT CENTER S (GSFC) GOAL FOR THE NEAR EARTH NETWORKS SERVICES CONTRACT (NENS) IS TO ENABLE MISSION SUCCESS FOR EVERY CUSTOMER USING NENS SERVICES. IN ORDER TO SUPPORT THIS GOAL, THE NENS CONTRACTOR SHALL PROVIDE THE AGENCY WITH SERVICES THAT ARE HIGHLY RELIABLE AND AFFORDABLE AND CONTRIBUTE TO THE SAFE OPERATION OF THE MISSION. THE CONTRACTOR SHALL IMPLEMENT A SAFETY, HEALTH, AND MISSION ASSURANCE PROGRAM THAT PROVIDES A SAFE AND HEALTHY WORK ENVIRONMENT, MINIMIZES PROGRAM
Who is the contractor on this award?
The obligated recipient is HONEYWELL TECHNOLOGY SOLUTIONS 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 $1.10 billion.
What is the period of performance?
Start: 2003-10-09. End: 2011-04-08.
How effectively did the Cost Plus Award Fee structure incentivize performance and cost control for Honeywell?
The Cost Plus Award Fee (CPAF) structure allows for reimbursement of allowable costs plus an award fee based on performance. To assess effectiveness, one would need to examine the award fee criteria, the contractor's performance against those criteria, and the total cost incurred versus projected. Without specific performance metrics and award fee payouts, it's difficult to definitively state how well it controlled costs or incentivized superior performance beyond meeting baseline requirements.
What are the primary risks associated with relying on a single contractor for such critical space network services?
The primary risks include vendor lock-in, potential for service disruptions if the contractor faces financial or operational issues, and reduced leverage for NASA in future negotiations. A single point of failure could jeopardize mission continuity. Mitigation strategies might involve robust service level agreements, contingency planning, and regular performance monitoring to ensure the contractor maintains high standards and financial stability.
To what extent did the 'full and open competition' process ensure optimal value and innovation for NASA's NENS?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer competitive pricing and innovative solutions. The extent to which it achieved optimal value depends on the number and quality of bids received, the evaluation criteria used, and the final negotiated price. While the process itself is a positive indicator, a detailed review of the solicitation, proposals, and award decision would be needed to confirm the degree of value and innovation achieved.
Industry Classification
NAICS: Information › Other Telecommunications › Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 7515 MISSION DR., LANHAM SEABROOK, MD, 20706
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,168,128,904
Exercised Options: $1,168,128,904
Current Obligation: $1,095,544,578
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2003-10-09
Current End Date: 2011-04-08
Potential End Date: 2011-04-08 00:00:00
Last Modified: 2025-06-17
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