NASA's James Webb Space Telescope Optics System Contract Exceeds $66M, Awarded Sole-Source

Contract Overview

Contract Amount: $66,236,642 ($66.2M)

Contractor: BAE Systems Space & Mission Systems Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2013-09-04

End Date: 2023-06-30

Contract Duration: 3,586 days

Daily Burn Rate: $18.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF THE AFT OPTICS SYSTEM(AOS) SOURCE PLATE ASSEMBLY (ASPA); TINSLEY CLOSEOUT, OPTICAL INTEGRATION AND TESTING; AND SPECIAL STUDIES, FOR THE JAMES WEBB SPACE TELESCOPE. THE CONTRACTOR SHALL DESIGN, DEVELOP, FABRICATE, ASSEMBLE, INTEGRATE, AND TEST THE HARDWARE DESCRIBED IN THE STATEMENT OF WORK (SOW). THE HARDWARE, IF USED INSIDE A VACUUM CHAMBER OR IS ATTACHED TO, OR CONTROLS FLIGHT HARDWARE, MUST COMPLY WITH THE REQUIREMENTS IN THE SOW. FOR NON-HARDWARE SUPPORT ASPECTS OF THIS EFFORT, THE CONTRACTOR S SHALL PROVIDE THE SYSTEMS ENGINEERING; EXPERT PERSONNEL; TRAVEL; REPORTS AND DOCUMENTATION; SOFTWARE OR SOFTWARE CHANGES; GROUND SUPPORT EQUIPMENT INTEGRATION, OPERATIONS AND MODIFICATION DEFINITION, NECESSARY TO ACCOMPLISH THE EFFORT. THE CONTRACTOR SHALL MANAGE ALL ASPECTS OF THIS CONTRACT EFFORT TO ENSURE THAT THE CONTRACT REQUIREMENTS ARE MET OR EXCEEDED.

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80301

State: Colorado Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $66.2 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC. for work described as: IGF::OT::IGF THE AFT OPTICS SYSTEM(AOS) SOURCE PLATE ASSEMBLY (ASPA); TINSLEY CLOSEOUT, OPTICAL INTEGRATION AND TESTING; AND SPECIAL STUDIES, FOR THE JAMES WEBB SPACE TELESCOPE. THE CONTRACTOR SHALL DESIGN, DEVELOP, FABRICATE, ASSEMBLE, INTEGRATE, AND TEST THE HARDWARE DESCRIBED … Key points: 1. The contract supports critical components for the James Webb Space Telescope, including the Optics System Source Plate Assembly. 2. BAE Systems Space & Mission Systems Inc. is the sole contractor, indicating a lack of competition for this specialized work. 3. The contract spans nearly a decade, highlighting the long-term nature of space exploration projects. 4. The total value of $66.2 million underscores the significant investment in advanced space technology.

Value Assessment

Rating: questionable

Pricing for specialized space hardware and engineering services can be difficult to benchmark without detailed cost breakdowns. The cost-plus-fixed-fee structure allows for flexibility but can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning there was no open competition. This is often justified for highly specialized or proprietary technologies, but it limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.

Public Impact

Ensures the continued development and functionality of the James Webb Space Telescope, a flagship scientific instrument. Supports advanced engineering and manufacturing capabilities within the aerospace sector. The long duration of the contract implies ongoing reliance on BAE Systems for critical JWST components and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing.
  • Cost-plus-fixed-fee contract type can lead to cost escalation.
  • Long contract duration may indicate potential for scope creep or evolving requirements.

Positive Signals

  • Supports a high-priority national scientific endeavor (JWST).
  • Contractor has specialized expertise for this unique project.
  • Definitive contract provides a clear scope for the duration.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending in this area is often characterized by high R&D costs, specialized labor, and long project lifecycles, with significant government investment.

Small Business Impact

There is no indication of small business participation in this sole-source award. The nature of such specialized contracts often favors large, established prime contractors.

Oversight & Accountability

The contract is managed by NASA, a federal agency with established oversight mechanisms. However, the sole-source nature and cost-plus contract type warrant close monitoring to ensure cost efficiency and adherence to scope.

Related Government Programs

  • Engineering Services
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Sole-source award limits competitive pricing.
  • Cost-plus-fixed-fee contract type can lead to cost escalation.
  • Lack of small business participation.
  • Long contract duration increases risk of scope creep.
  • Potential for technical challenges in specialized space hardware.

Tags

engineering-services, national-aeronautics-and-space-administr, co, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $66.2 million to BAE SYSTEMS SPACE & MISSION SYSTEMS INC.. IGF::OT::IGF THE AFT OPTICS SYSTEM(AOS) SOURCE PLATE ASSEMBLY (ASPA); TINSLEY CLOSEOUT, OPTICAL INTEGRATION AND TESTING; AND SPECIAL STUDIES, FOR THE JAMES WEBB SPACE TELESCOPE. THE CONTRACTOR SHALL DESIGN, DEVELOP, FABRICATE, ASSEMBLE, INTEGRATE, AND TEST THE HARDWARE DESCRIBED IN THE STATEMENT OF WORK (SOW). THE HARDWARE, IF USED INSIDE A VACUUM CHAMBER OR IS ATTACHED TO, OR CONTROLS FLIGHT HARDWARE, MUST COMPLY WITH THE REQUIREMENTS IN THE SOW. FOR NON-HARDWARE SUPPORT ASPECTS OF THIS EFFORT,

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 $66.2 million.

What is the period of performance?

Start: 2013-09-04. End: 2023-06-30.

What specific technical capabilities make BAE Systems the sole source for this critical JWST component, and how were these capabilities validated?

The justification for a sole-source award typically rests on unique technical expertise, proprietary technology, or the inability of other firms to meet stringent performance requirements within the project's timeline. NASA would have conducted a thorough review to validate BAE Systems' unique qualifications for designing, developing, and fabricating the Optics System Source Plate Assembly and related components for the James Webb Space Telescope, ensuring no other source could fulfill the requirement without significant delay or cost.

How does NASA ensure cost control and prevent overruns in this cost-plus-fixed-fee contract, given the lack of competition?

NASA employs several strategies to manage cost-plus-fixed-fee contracts, especially sole-source awards. This includes rigorous baseline cost management, detailed performance metrics, regular audits, and milestone-based payments. The agency likely has dedicated program managers and financial analysts closely scrutinizing expenditures, ensuring they align with the fixed fee and the defined scope of work to mitigate potential cost escalations.

What is the long-term plan for maintaining and potentially upgrading the Optics System Source Plate Assembly, and does this contract adequately address future needs?

The current contract focuses on design, development, fabrication, assembly, integration, and testing through June 2023. Long-term sustainment and potential upgrades for the JWST are typically addressed through separate, subsequent contracts or task orders. NASA's planning would include provisions for obsolescence management and future modifications, ensuring the telescope's operational longevity and scientific capability.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: NNG13453948R

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $66,361,364

Exercised Options: $66,361,364

Current Obligation: $66,236,642

Actual Outlays: $20,248,413

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $149,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2013-09-04

Current End Date: 2023-06-30

Potential End Date: 2023-06-30 00:00:00

Last Modified: 2024-09-30

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