NASA awards $814M contract for Cross Track Infrared Sounder instrument development and support to L3Harris Technologies
Contract Overview
Contract Amount: $814,435,946 ($814.4M)
Contractor: L3harris Technologies, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2010-09-20
End Date: 2029-11-10
Contract Duration: 6,991 days
Daily Burn Rate: $116.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE CROSS TRACK INFRARED SOUNDER (CRIS) INSTRUMENT AND SUPPORT.
Place of Performance
Location: FORT WAYNE, ALLEN County, INDIANA, 46818
State: Indiana Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $814.4 million to L3HARRIS TECHNOLOGIES, INC. for work described as: ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE CROSS TRACK INFRARED SOUNDER (CRIS) INSTRUMENT AND SUPPORT. Key points: 1. Contract value of $814.4 million over its lifecycle suggests a significant investment in advanced sensor technology. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. A long contract duration of nearly 7 years (from 2022 to 2029) indicates a complex, multi-phase project. 4. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, potentially driving higher quality outcomes. 5. This contract supports the development of critical Earth observation technology, aligning with NASA's climate science mission. 6. The primary contractor, L3Harris Technologies, is a major player in aerospace and defense, suggesting established capabilities.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable sole-source procurements for similar advanced instruments. The Cost Plus Award Fee structure aims to control costs while incentivizing performance, but the total obligated amount of $814.4 million represents a substantial investment. Further analysis would require understanding the specific technical requirements and the complexity of the CRIS instrument development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, intellectual property, or when urgency dictates a direct award. The lack of competition means that price discovery through market forces was not a primary factor in this procurement.
Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which could potentially lead to higher costs compared to a competed contract. Robust justification for the sole-source nature is crucial to ensure value for money.
Public Impact
The primary beneficiaries are NASA and the scientific community, who will gain access to advanced Earth observation data from the CRIS instrument. This contract delivers critical engineering services and development for a sophisticated infrared sounder instrument. The geographic impact is national, supporting NASA's research and development efforts, with potential global implications for climate monitoring. Workforce implications include specialized engineering, manufacturing, and technical support roles within L3Harris Technologies and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed diligently.
- Long contract duration increases exposure to potential scope creep or evolving technological requirements.
- Lack of public details on specific performance metrics makes independent value assessment difficult.
Positive Signals
- Contract is with a reputable, experienced aerospace and defense contractor (L3Harris Technologies).
- Cost Plus Award Fee structure includes incentives for performance, potentially driving high-quality outcomes.
- The CRIS instrument supports critical Earth science research, aligning with important national and global priorities.
- Long-term nature of the contract suggests a stable, well-defined project with clear objectives.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the development of advanced sensor technology for Earth observation. The market for such specialized instruments is characterized by high barriers to entry due to technical complexity and significant R&D investment. Comparable spending benchmarks would likely involve other large-scale satellite instrument development contracts, often awarded by agencies like NASA, NOAA, and the Department of Defense.
Small Business Impact
There is no indication of a small business set-aside for this contract, and the prime contractor, L3Harris Technologies, is a large business. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on L3Harris's subcontracting strategy.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee contract, performance metrics and cost controls would be subject to regular review. NASA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this procurement. Transparency would be enhanced through NASA's contract reporting mechanisms.
Related Government Programs
- NASA Earth Science Division Programs
- Satellite Instrument Development Contracts
- Climate Monitoring Technology
- Advanced Sensor Manufacturing
Risk Flags
- Sole-source award
- Long contract duration
- Cost-plus contract type
Tags
nasa, l3harris-technologies, sole-source, cost-plus-award-fee, earth-observation, instrument-development, aerospace, indiana, definitive-contract, research-and-development
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $814.4 million to L3HARRIS TECHNOLOGIES, INC.. ENGINEERING SERVICES AND DEVELOPMENT LEADING TO THE DELIVERY OF THE CROSS TRACK INFRARED SOUNDER (CRIS) INSTRUMENT AND SUPPORT.
Who is the contractor on this award?
The obligated recipient is L3HARRIS TECHNOLOGIES, 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 $814.4 million.
What is the period of performance?
Start: 2010-09-20. End: 2029-11-10.
What is the specific technical capability of the Cross Track Infrared Sounder (CRIS) instrument and its importance to NASA's mission?
The Cross Track Infrared Sounder (CRIS) instrument is designed to measure atmospheric temperature and moisture profiles with high vertical resolution. It achieves this by observing infrared radiation emitted by the Earth and its atmosphere at various angles (cross-track scanning). This data is crucial for improving weather forecasting models, understanding atmospheric dynamics, and monitoring climate change. Its importance to NASA's mission lies in providing essential data for Earth science research, contributing to a better understanding of our planet's complex systems and supporting efforts to predict and mitigate the impacts of climate change. The instrument's advanced capabilities are expected to yield more accurate and detailed atmospheric measurements than previous generations of sounders.
How does the Cost Plus Award Fee (CPAF) contract structure influence contractor performance and cost management for this project?
The Cost Plus Award Fee (CPAF) contract structure allows the contractor, L3Harris Technologies, to be reimbursed for all allowable costs incurred, plus a base fee that is a percentage of the estimated cost. Crucially, it also includes an award amount, determined by the government based on the contractor's performance against pre-defined criteria. This incentivizes the contractor to exceed minimum performance standards, potentially leading to higher quality deliverables and more efficient execution. However, it also requires robust government oversight to ensure that the award criteria are objective and that the awarded amounts are justified. For cost management, while costs are reimbursed, the potential for significant award fees encourages the contractor to manage costs effectively to maximize their overall profit, though the 'cost-plus' nature means cost overruns are still borne by the government.
What are the potential risks associated with a sole-source award for a complex instrument development contract of this magnitude?
A sole-source award for a complex instrument development contract like the CRIS instrument carries several potential risks. Firstly, the absence of competition means there is no direct market pressure to drive down prices, potentially leading to higher costs for the government compared to a competed procurement. Secondly, without multiple bidders, there's a reduced incentive for the incumbent contractor to innovate or optimize beyond the minimum requirements, as they face no direct threat from competitors. Thirdly, the government's negotiating position is inherently weaker in a sole-source scenario. Finally, there's a risk that the justification for the sole-source award might be based on incomplete information or that alternative solutions were not adequately explored, potentially leading to suboptimal technological choices or higher long-term operational costs.
Given the long contract duration (2010-2029, with significant period of performance), what are the implications for technological obsolescence and project management?
The extended contract duration, spanning from 2010 with an estimated completion in late 2029, presents significant implications for both technological obsolescence and project management. For technological obsolescence, there's a considerable risk that the technologies underpinning the CRIS instrument or its development processes could become outdated before the contract's completion. This necessitates proactive technology refresh strategies and potentially costly upgrades. From a project management perspective, such a long timeline requires robust, adaptive management structures capable of handling evolving requirements, personnel changes, and maintaining consistent focus and motivation over nearly two decades. It also increases the potential for scope creep and requires diligent oversight to ensure the project remains aligned with NASA's strategic objectives and current technological standards throughout its lifecycle.
How does L3Harris Technologies' track record in aerospace and defense contribute to the assessment of this contract's risk and potential success?
L3Harris Technologies is a well-established and significant player in the aerospace and defense industry, with a broad portfolio of advanced technologies and systems, including sensors and space-related products. Their extensive experience suggests a strong understanding of complex engineering, manufacturing processes, and government contracting requirements. This track record generally reduces the risk associated with contractor capability and execution. Having previously developed and delivered similar sophisticated systems likely means they possess the necessary technical expertise, facilities, and skilled workforce. However, even experienced contractors can face challenges with novel or highly complex projects. Therefore, while their history is a positive indicator, rigorous oversight and performance monitoring remain essential to ensure the successful delivery of the CRIS instrument on time and within budget.
What is the historical spending pattern for similar NASA instrument development contracts, and how does this $814M award compare?
Historical spending on NASA instrument development contracts varies widely depending on the complexity, size, and technological advancement of the instrument. Large-scale projects, particularly those involving advanced sensor technology for Earth observation or space exploration, can easily run into hundreds of millions of dollars. For instance, major space telescope components or sophisticated climate monitoring instruments have historically commanded similar or even higher price tags. The $814 million awarded to L3Harris for the CRIS instrument appears to be within the expected range for a program of this scope and technological ambition. Without specific comparative data on the CRIS instrument's unique technical specifications and development challenges versus other historical projects, a precise comparison is difficult. However, the magnitude of the award suggests it is a significant undertaking, consistent with the development costs of cutting-edge scientific instrumentation for space applications.
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
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: L3harris Technologies, Inc
Address: 1919 W COOK RD, FORT WAYNE, IN, 46801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $833,793,190
Exercised Options: $833,793,190
Current Obligation: $814,435,946
Actual Outlays: $216,724,042
Subaward Activity
Number of Subawards: 538
Total Subaward Amount: $168,565,859
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-20
Current End Date: 2029-11-10
Potential End Date: 2029-11-10 00:00:00
Last Modified: 2026-03-16
More Contracts from L3harris Technologies, Inc.
- 200204!000024!5700!GV59 !esc/Ndk !F1962802C0010 !A!N! !N! !20020130!20020930!052819732!052819732!001216845!n!itt Industries, Inc , Systems !4410 E Fountain Blvd !colorado Sprin !co!80916!16000!041!08!colorado Springs !EL Paso !colorado !+000003175920!n!n!000519009204!j099!maint & Repair of Eq/Miscellaneous Equipment !A7 !electronics and Communication !3gwq!474l Bmews !541512!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! ! ! ! !0001! — $2.2B (Department of Defense)
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (Department of Commerce)
- Requisition for MOD - Incrementally Funded - This PR Provides Funding for Ads-B National Contract Support for SBS Program Office — $1.3B (Department of Transportation)
- Award of Maintenance of Space Surveillence and Integrated Capabilities Contract — $1.2B (Department of Defense)
- TAS::80 0122::TAS Development, Manufacturing and Support to Weather Observing Instrument — $1.0B (National Aeronautics and Space Administration)
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 →