NASA awards $479M contract for OMPS protoflight model and support to BAE Systems
Contract Overview
Contract Amount: $478,985,183 ($479.0M)
Contractor: BAE Systems Space & Mission Systems Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-09-10
End Date: 2029-11-10
Contract Duration: 7,001 days
Daily Burn Rate: $68.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE OMPS PROTOFLIGHT MODEL AND SUPPORT.
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $479.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE OMPS PROTOFLIGHT MODEL AND SUPPORT. Key points: 1. Contract awarded for engineering services and development of the OMPS protoflight model. 2. BAE Systems is the sole contractor for this significant NASA initiative. 3. The contract spans over a decade, indicating a long-term need for these services. 4. The award type is Cost Plus Award Fee, suggesting performance incentives. 5. The contract is for engineering services and development, crucial for space missions. 6. The North American Industry Classification System (NAICS) code is 334511, related to instrument manufacturing.
Value Assessment
Rating: fair
The total contract value is $478,985,182.65. Without specific benchmarks for OMPS protoflight model development or comparable engineering services contracts, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for incentive payments based on performance, which can drive efficiency but also introduces potential for higher costs if not managed effectively. The duration of the contract (over 10 years) suggests a substantial and ongoing need, but also necessitates careful monitoring of costs throughout its lifecycle.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when the nature of the work makes competition impractical or not in the government's best interest. The lack of competition means that NASA did not benefit from potentially lower prices or innovative solutions that might have emerged from a competitive bidding process.
Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government relied on negotiation and oversight to ensure fair pricing.
Public Impact
The primary beneficiary is NASA, which will receive the OMPS protoflight model and associated support. This contract supports the development of critical components for Earth observation missions. The geographic impact is primarily at the contractor's facilities and NASA's operational sites. The contract supports specialized engineering and technical workforce within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing advantages for taxpayers.
- Cost Plus Award Fee structure requires robust oversight to manage performance and costs effectively.
- Long contract duration necessitates continuous monitoring for scope creep and cost overruns.
Positive Signals
- Contract supports a critical component for Earth observation, aligning with NASA's scientific mission.
- BAE Systems is a known entity in space and defense, suggesting established capabilities.
- The CPAF structure includes award fees, incentivizing contractor performance.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the development of instruments for space-based Earth observation. The market for such specialized engineering services is characterized by high technical barriers to entry and a limited number of qualified contractors. NASA's spending in this area is driven by its scientific and exploratory missions, often involving complex, long-term projects requiring unique expertise.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, BAE Systems, is a large corporation. There is no explicit information regarding subcontracting plans for small businesses within the provided data, which could represent missed opportunities for small business participation in this significant federal contract.
Oversight & Accountability
Oversight for this contract would primarily reside with NASA's contracting officers and program managers. As a Cost Plus Award Fee contract, performance metrics and cost controls are crucial elements of oversight. NASA's Inspector General may also conduct audits or investigations to ensure compliance and prevent fraud, waste, and abuse. Transparency is facilitated through contract awards databases, but detailed performance reporting is typically internal.
Related Government Programs
- NASA Earth Science Missions
- Satellite Development Programs
- Aerospace Engineering Services
- Space Instrument Manufacturing
Risk Flags
- Sole-source award may limit cost savings.
- CPAF requires diligent oversight to ensure value for money.
- Long contract duration increases risk of cost escalation.
Tags
nasa, aerospace, engineering-services, earth-observation, sole-source, cost-plus-award-fee, large-contract, space-systems, instrument-manufacturing, baesystems, colorado, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $479.0 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE OMPS PROTOFLIGHT MODEL AND SUPPORT.
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS SPACE & MISSION SYSTEMS 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 $479.0 million.
What is the period of performance?
Start: 2010-09-10. End: 2029-11-10.
What is the historical spending by NASA on similar engineering services for Earth observation instruments?
Analyzing historical spending by NASA on similar engineering services for Earth observation instruments requires access to detailed contract databases and budget allocations over several fiscal years. While the provided data focuses on a single contract, a comprehensive review would involve identifying all contracts awarded for the development, manufacturing, and support of space-based instruments for Earth science missions. This would include examining spending trends, average contract values, and the distribution of awards among different contractors. Such an analysis would help contextualize the $479 million awarded to BAE Systems, determining if it aligns with historical investment levels or represents a significant deviation. It would also reveal patterns in contract types (e.g., fixed-price vs. cost-plus) and competition levels for comparable projects, providing a richer understanding of NASA's procurement strategies in this domain.
How does the Cost Plus Award Fee (CPAF) structure typically impact the final cost compared to other contract types for similar projects?
The Cost Plus Award Fee (CPAF) structure allows the contractor to recover all allowable costs plus a fixed fee, with the potential for an additional award fee based on meeting or exceeding performance objectives. Compared to Firm-Fixed-Price (FFP) contracts, CPAF generally offers less cost certainty for the government, as the final price can exceed initial estimates if performance is exceptional. However, it provides more flexibility for complex projects where the scope may evolve or is not fully defined at the outset, unlike FFP. Compared to Cost Plus Incentive Fee (CPIF), CPAF places more emphasis on subjective performance evaluations for the award fee component, while CPIF typically ties incentive fees more directly to quantifiable cost, schedule, or performance targets. For projects like the OMPS protoflight model, where technical challenges and innovation are key, CPAF can incentivize high performance but requires rigorous oversight to prevent cost overruns and ensure the award fees are justified.
What are the specific performance objectives tied to the award fee for BAE Systems on this contract?
The specific performance objectives tied to the award fee for BAE Systems on this NASA contract are not detailed in the provided summary data. Typically, for a Cost Plus Award Fee (CPAF) contract, these objectives are outlined in the contract's Performance Work Statement (PWS) or a separate Award Fee Plan. They often relate to factors such as meeting technical milestones, adhering to schedule, quality of deliverables, system reliability, innovation, and overall program management effectiveness. NASA contracting officers would periodically evaluate BAE Systems' performance against these pre-defined criteria to determine the amount of award fee, if any, to be granted. Without access to the full contract documentation, the precise metrics and evaluation process remain undisclosed.
What is BAE Systems' track record with NASA on similar large-scale engineering and development contracts?
BAE Systems has a significant track record with NASA and other government agencies in providing engineering services, space systems, and mission support. While specific details on their performance for the OMPS protoflight model contract are not yet available due to its ongoing nature, the company is a major defense and aerospace contractor with extensive experience in complex projects. Their history includes work on various satellite programs, instrument development, and space mission operations. A thorough assessment of their track record would involve reviewing past NASA contract performance evaluations, any past performance issues or commendations, and their success in delivering similar complex systems on time and within budget. This contract's long duration and sole-source nature suggest NASA has confidence in BAE Systems' capabilities, likely based on prior positive experiences or unique qualifications.
How does the $479 million contract value compare to the overall NASA budget for Earth science missions?
To compare the $479 million contract value to NASA's overall budget for Earth science missions, one would need to consult NASA's annual budget justifications and appropriations data. NASA's Earth Science Division typically receives a significant portion of the agency's budget, funding a variety of missions, research activities, and technology development. The $479 million represents a substantial investment, likely covering a significant portion of the development and production costs for the OMPS protoflight model and its support over its multi-year duration. A detailed comparison would involve identifying the total allocated funds for Earth science in the relevant fiscal years and determining what percentage this single contract represents. This context is crucial for understanding the relative scale and importance of this contract within NASA's broader Earth observation strategy.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: JPSS
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ball Corporation
Address: 1600 COMMERCE ST, BOULDER, CO, 80301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $491,516,031
Exercised Options: $491,516,031
Current Obligation: $478,985,183
Actual Outlays: $141,576,739
Subaward Activity
Number of Subawards: 97
Total Subaward Amount: $23,164,991
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-10
Current End Date: 2029-11-10
Potential End Date: 2029-11-10 00:00:00
Last Modified: 2026-03-31
More Contracts from BAE Systems Space & Mission Systems Inc.
- Weather System Follow-On - Microwave - System Design of Satellite With Microwave Radiometer and Sensor — $528.5M (Department of Defense)
- Jpss-1 Mission Spacecraft Rapid III Delivery Order #3. Rapid III Provides Core Spacecraft Systems in Support of the Scientific and Technology Development Goals of the National Aeronautics and Space Administration, Goddard Space Flight Center, and Other Federal Agencies. the Scope of Work Includes Design, Build and Test, Payload Integration and Test, Launch Vehicle Integration and Support and On-Orbit Checkout and Acceptance — $365.7M (National Aeronautics and Space Administration)
- THE Woma Requirement WAS Issued AS a Full and Open Competitive Procurement to Design, Analyze, Develop, Fabricate, Integrate, Test, and Evaluate the Wide Field Instrument (WFI) Opto-Mechanical Assembly (woma) for the Wide Field Infrared Survey Telescope (wfirst) Mission. in Addition, IT Defines the Tasks Necessary to Support the Subsequent Integration, Test, Evaluation, and Validation of the WFI. IT Defines the Post-Delivery Support to Payload and Observatory Integration and Test, and to Pre-Launch, Launch and Commissioning Activities AT the Mission Operations Center (MOC) and to Supply and Maintain the Instrument Ground Support Equipment (GSE) — $307.9M (National Aeronautics and Space Administration)
- National Aeronautical&space Administration (nasa) and the Goddard Space Flight Center (gsfc) HAS a Requirement for the Continuation of the Global Precipitation Measurement (GPM) Microwave Imager (GMI) Instrument. the GMI Instrument IS a 13 Channel Radiometer Whose Core Science Measures the Earth S Atmospheric Moisture Within 10.65 GHZ Through 183 GHZ of the Microwave Spectrum — $233.7M (National Aeronautics and Space Administration)
- Rapid Spacecraft Acquisition Master Contract — $209.5M (National Aeronautics and Space Administration)
View all BAE Systems Space & Mission Systems Inc. federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →