Northrop Grumman awarded $570M for JPSS-2 spacecraft, a critical component for weather monitoring
Contract Overview
Contract Amount: $569,524,472 ($569.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2015-03-30
End Date: 2028-04-30
Contract Duration: 4,780 days
Daily Burn Rate: $119.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JOINT POLAR SATELLITE SYSTEM-2 SPACECRAFT. GD-300HP CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE, SOURCE CODE, MAINTENANCE SYSTEM AND DOCUMENTATION FOR THE JPSS-2 SPACECRAFT MISSION.
Place of Performance
Location: GILBERT, MARICOPA County, ARIZONA, 85233
State: Arizona Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $569.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JOINT POLAR SATELLITE SYSTEM-2 SPACECRAFT. GD-300HP CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE, SOURCE CODE, MAINTENANCE SYSTEM AND DOCUMENTATION FOR THE JPSS-2 SPACECRAFT MISSION. Key points: 1. The contract represents a significant investment in advanced weather satellite technology. 2. Competition dynamics for such specialized spacecraft are typically limited due to high technical barriers. 3. Performance risks are inherent in complex space missions, requiring robust oversight. 4. This contract positions the US as a leader in global environmental monitoring. 5. The firm-fixed-price structure aims to control costs for this long-term project. 6. The spacecraft's development is crucial for maintaining continuity of vital weather data.
Value Assessment
Rating: good
The total award of $569.5 million for the JPSS-2 spacecraft appears reasonable given the complexity and specialized nature of the project. Benchmarking against similar, highly technical satellite development contracts is challenging due to unique specifications. However, the firm-fixed-price contract type suggests an effort to establish cost certainty. The value is assessed in the context of the critical national infrastructure it supports, providing continuity for essential weather data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. While specific details on the number of bidders are not provided, the 'full and open' designation suggests a competitive process. This level of competition is generally expected to drive better pricing and innovation for complex procurements.
Taxpayer Impact: A competitive award process for this critical satellite system helps ensure taxpayer funds are used efficiently and that the government receives the best possible value for its investment in national weather monitoring capabilities.
Public Impact
The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and the public, who rely on accurate weather forecasts and climate data. The contract delivers a core spacecraft essential for the Joint Polar Satellite System, ensuring the continuity of vital environmental monitoring. The geographic impact is global, as the data collected by JPSS satellites informs weather predictions and climate studies worldwide. The project supports a highly skilled workforce in the aerospace and defense sectors, particularly in Arizona where the contractor is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of space missions introduces inherent schedule and technical risks.
- Long-duration contracts require sustained oversight to ensure performance and cost control.
- Reliance on a single contractor for core spacecraft development can concentrate risk.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a robust selection process.
- The project supports a critical national capability for weather forecasting and climate monitoring.
Sector Analysis
The Guided Missile and Space Vehicle Manufacturing sector is characterized by high technological barriers to entry, significant R&D investment, and long development cycles. Contracts like this are crucial for national security and scientific advancement. The market is dominated by a few large, specialized aerospace companies. This contract fits within the broader trend of government investment in space-based observation systems for environmental and defense purposes.
Small Business Impact
There is no indication of small business set-asides for this specific contract, which is typical for large, complex spacecraft development requiring specialized expertise. However, Northrop Grumman, as the prime contractor, is expected to engage small businesses for subcontracting opportunities, contributing to the broader small business ecosystem within the aerospace supply chain.
Oversight & Accountability
Oversight for this contract is managed by the National Aeronautics and Space Administration (NASA), likely involving program managers, contracting officers, and technical experts. Accountability is ensured through contract milestones, performance reviews, and adherence to the firm-fixed-price terms. Transparency is facilitated through NASA's public reporting and the contract's classification under full and open competition.
Related Government Programs
- Joint Polar Satellite System (JPSS)
- Geostationary Operational Environmental Satellite (GOES) Program
- NASA Space Launch System (SLS)
- National Polar-orbiting Operational Environmental Satellite System (NPOESS)
Risk Flags
- High-risk, complex technology development
- Long-duration contract with extended performance period
- Potential for schedule slippage in space programs
- Reliance on specialized contractor expertise
Tags
spacecraft-manufacturing, weather-monitoring, national-aeronautics-and-space-administration, northrop-grumman-systems-corporation, firm-fixed-price, full-and-open-competition, arizona, guided-missile-and-space-vehicle-manufacturing, large-contract, long-term-project, science-and-technology, environmental-monitoring
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $569.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JOINT POLAR SATELLITE SYSTEM-2 SPACECRAFT. GD-300HP CORE SPACECRAFT INCLUDING ALL ASSOCIATED HARDWARE, SOFTWARE, SOURCE CODE, MAINTENANCE SYSTEM AND DOCUMENTATION FOR THE JPSS-2 SPACECRAFT MISSION.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
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 $569.5 million.
What is the period of performance?
Start: 2015-03-30. End: 2028-04-30.
What is the track record of Northrop Grumman Systems Corporation in delivering complex spacecraft on schedule and within budget?
Northrop Grumman Systems Corporation has a long and established history in aerospace and defense, including the development and production of numerous spacecraft for government and commercial clients. They have been involved in various satellite programs, including those for weather monitoring, defense, and scientific research. While specific performance metrics for all past projects are not detailed here, the company's extensive experience suggests a capacity to handle complex space missions. However, like many large aerospace projects, past programs may have experienced schedule adjustments or cost fluctuations. A thorough review of their specific performance on similar NASA or NOAA satellite contracts would provide a more precise assessment of their track record for this particular type of procurement.
How does the $569.5 million cost for the JPSS-2 spacecraft compare to similar satellite development contracts?
Directly comparing the $569.5 million cost of the JPSS-2 spacecraft to similar contracts is challenging due to the unique technical specifications, mission requirements, and development complexities inherent in each satellite program. However, the cost appears to be within the expected range for advanced, national-level polar-orbiting weather satellites. For context, previous generations of polar-orbiting satellites, such as those under the NPOESS program, also involved costs in the hundreds of millions of dollars. The firm-fixed-price nature of this contract aims to provide cost certainty, which is a positive indicator for value, assuming the scope remains controlled. Benchmarking would ideally involve comparing cost per kilogram, complexity of instruments, and mission duration against comparable programs.
What are the primary risks associated with the development and deployment of the JPSS-2 spacecraft, and how are they being mitigated?
The primary risks associated with the JPSS-2 spacecraft development include technical challenges in integrating complex systems, potential schedule delays due to unforeseen issues, and the inherent risks of space deployment. Mitigation strategies typically involve rigorous testing and validation at each stage of development, robust project management with clear milestones, and contingency planning for potential setbacks. The firm-fixed-price contract structure incentivizes the contractor to manage costs effectively. NASA's oversight, including regular reviews and inspections, plays a crucial role in identifying and addressing risks proactively throughout the project lifecycle to ensure mission success.
How effective is the Joint Polar Satellite System (JPSS) program in providing continuity of essential weather data?
The Joint Polar Satellite System (JPSS) program is designed to ensure the continuity of critical weather data from polar-orbiting satellites, which are essential for accurate forecasting and climate monitoring. JPSS satellites provide a global view of the Earth's atmosphere, oceans, and land, collecting data on temperature, humidity, clouds, and other vital parameters. The program's success is crucial for maintaining the high accuracy of weather forecasts, particularly for severe weather events. By building upon the legacy of previous polar-orbiting satellite systems, JPSS aims to provide an uninterrupted flow of data, thereby enhancing our understanding of weather patterns and climate change.
What has been the historical spending trend for the Joint Polar Satellite System (JPSS) program and related satellite initiatives?
Historical spending on the Joint Polar Satellite System (JPSS) and its predecessor programs, such as the National Polar-orbiting Operational Environmental Satellite System (NPOESS), has been substantial, reflecting the high cost of developing and launching complex space-based observation systems. Over the years, these programs have seen significant investments, often spanning multiple budget cycles and involving billions of dollars. Funding levels can fluctuate based on program phase (development, launch, operations), technological advancements, and evolving mission requirements. The total lifecycle cost for such programs is a critical consideration for budget planning and justification, highlighting the long-term commitment required for maintaining a robust polar-orbiting satellite constellation.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 45101 WARP DR, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $607,512,489
Exercised Options: $607,512,489
Current Obligation: $569,524,472
Actual Outlays: $334,868,833
Subaward Activity
Number of Subawards: 267
Total Subaward Amount: $47,389,961
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG10AZ13B
IDV Type: IDC
Timeline
Start Date: 2015-03-30
Current End Date: 2028-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2025-12-09
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