Northrop Grumman awarded $1.57B contract for R&D, building on ISS and space exploration success

Contract Overview

Contract Amount: $1,573,710,341 ($1.6B)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2015-09-03

End Date: 2029-05-31

Contract Duration: 5,019 days

Daily Burn Rate: $313.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 34

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: IGF::OT::IGF NEXTSTEP NRA AWARD. THIS NEXTSTEP CONTRACT BUILDS UPON THE SUCCESS OF COMMERCIAL ORBITAL TRANSPORTATION SERVICES SPACE ACT AGREEMENT DEVELOPMENT PROGRAM AND AN EXISTING INTERNATIONAL SPACE STATION (ISS) COMMERCIAL RESUPPLY SERVICES (CRS) CONTRACT. ORBITAL HAS SUCCESSFULLY TRANSITIONED FROM COTS TO THE CRS PROGRAM, FLYING THREE VERY SUCCESSFUL PRESSURIZED CARGO RESUPPLY MISSIONS TO THE ISS, USING THE CYGNUS SPACECRAFT. ORBITAL ALSO SUCCESSFULLY DEVELOPED SPACECRAFT FOR SOLAR SYSTEM EXPLORATION TO INCLUDE THE CURRENTLY OPERATIONAL DAWN MISSION. THIS MISSION WAS LAUNCHED IN SEPTEMBER 2007, COMPLETED ITS RENDEZVOUS MISSION AT VESTA IN JULY 2012 AND IS EN ROUTE TO CERES IN EARLY 2015. WITH SPACE AGENCY BUDGETS CONTINUING TO BE TIGHT, EXPLORATION PLANS NEED TO EMPHASIZE EVOLUTION OF EXISTING SYSTEMS, WHERE COST AND SCHEDULE IS BETTER CONTROLLED, AND DEVELOPMENT RISK REDUCED. SPECIFICALLY, ELEMENTS OF THE CURRENT ISS, INCLUDING CYGNUS, CAN BE EVOLVED TO SUPPORT MORE DISTANT SPACE DESTINATIONS. TO SUPPORT THESE ENDEAVORS, ORBITAL CONTRIBUTES TO THE DEVELOPMENT AND PRODUCT IMPROVEMENT OF CYGNUS AND TO NEXTSTEP ACTIVITIES AND HAVE INVESTED IN THE COTS CRS PUBLIC-PRIVATE PARTNERSHIP ENDEAVOR. ORBITAL'S EXPLORATION AUGMENTATION MODULE (BAM) ARCHITECTURE USES A MODULAR, BUILDING BLOCK APPROACH THAT LEVERAGES THE CYGNUS SPACECRAFT TO EXPAND CISLUNAR AND LONG DURATION DEEP SPACE TRANSIT HABITATION CAPABILITIES AND TECHNOLOGIES CRITICAL TO NASAS LONG-TERM EXPLORATION GOALS. ORBITALS ARCHITECTURE CONCEPT BLENDS IN-PRODUCTION HARDWARE WITH ADAPTATION, EVOLUTION, PLANNING, AND FORWARD THINKING. CYGNUS WILL SERVE AS A MODULAR HABITAT AND TEST PLATFORM FOR QUALIFYING TECHNOLOGIES IN A DISTANT RETROGRADE ORBIT (DRO) OR IN A LOW EARTH ORBIT (LEO), EITHER WHILE ATTACHED TO THE ISS OR AS A FREE-FLYER. USING THE EXISTING, OPERATIONAL CYGNUS TO PERFORM THESE MISSIONS HAS THE ADVANTAGE OF DECREASING OVERALL DEVELOPMENT TIME AND COSTS, AND FREEING UP RESOURCES THAT WOULD BE SPENT ON DEVELOPING A SPACECRAFT TO FOCUS ON CULTIVATING MISSION ENABLING TECHNOLOGIES. THE GOAL IS TO HAVE A CYGNUS DERIVED EAM DEPLOYED IN CISLUNAR SPACE BEFORE 2020. THIS SPACECRAFT WILL BE THE FIRST BUILDING BLOCK IN SUPPORTING BOTH COMMERCIAL MARKETS AND GOVERNMENT OBJECTIVES. THE PROPOSED EFFORT FOR THIS NEXTSTEP BAA PHASE I, INVOLVES DEFINING AN EAM ARCHITECTURE AND CONCEPT OF OPERATIONS (CONOPS) THAT ADDRESSES COMMERCIAL MARKETS AND NASA EXPLORATION OBJECTIVES, TECHNOLOGY MATURATION PLANNING AND INFRASTRUCTURE DEVELOPMENT, AND TO IDENTIFY TECHNOLOGIES THAT CAN BE IMPLEMENTED AND DEMONSTRATED IN THE ISSILEO ENVIRONMENT WITHIN THE NEXT THREE YEARS. TO MATURE HABITATION TECHNOLOGIES, THE CONTRACTOR WILL IDENTIFY STATE OF THE ART (SOA) TECHNOLOGIES ACROSS NASA TECHNOLOGY AREAS (TAS) DEFINED IN THE NASA TECHNOLOGY ROADMAP. FOCUS WILL BE ON MATURATION OF THE FOLLOWING TECHNOLOGIES ENVIRONMENTAL CONTROL AND LIFE SUPPORT SYSTEMS ENVIRONMENTAL MONITORING SAFETY AND EMERGENCY RESPONSE AND HABITATION THERMAL CONTROL SYSTEMS AUTONOMOUS HABITATION SYSTEMS NAVIGATION SYSTEMS MANAGEMENT DOCKING AND CAPTURE MECHANISMS AND DEPLOYABLE HABITATION ELEMENTS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $1.57 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF NEXTSTEP NRA AWARD. THIS NEXTSTEP CONTRACT BUILDS UPON THE SUCCESS OF COMMERCIAL ORBITAL TRANSPORTATION SERVICES SPACE ACT AGREEMENT DEVELOPMENT PROGRAM AND AN EXISTING INTERNATIONAL SPACE STATION (ISS) COMMERCIAL RESUPPLY SERVICES (CRS) CONTRACT. ORBITAL HAS SUCCES… Key points: 1. Contract leverages prior successful programs like COTS and CRS, indicating a proven track record. 2. Focus on R&D in physical, engineering, and life sciences, with a specific emphasis on space exploration. 3. The contract's duration and cost-plus award fee structure suggest potential for evolving requirements and performance incentives. 4. Orbital's demonstrated success with Cygnus spacecraft and deep space missions like Dawn provides strong performance context. 5. The award falls within the R&D sector, aligning with NASA's strategic goals for space exploration and scientific advancement. 6. Potential for follow-on work or expansion given the foundational nature of the research and development.

Value Assessment

Rating: good

The contract value of $1.57 billion over its period of performance appears reasonable given the scope of advanced R&D in space exploration. Benchmarking against similar large-scale NASA R&D contracts for spacecraft development and mission operations would provide further context. The cost-plus award fee (CPAF) structure incentivizes performance, but requires careful monitoring to ensure cost efficiency and value for money. The historical success of Orbital's previous programs suggests a good foundation for achieving the contract's objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair pricing and innovation. This approach is generally favored for significant R&D efforts to ensure the best possible solution is selected.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive environment, which typically leads to more favorable pricing and higher quality services. It ensures that taxpayer funds are used efficiently by selecting the most capable and cost-effective provider.

Public Impact

Benefits NASA and the broader scientific community through advancements in space exploration technology and research. Services delivered include research and development for spacecraft and related technologies, building on existing programs. Geographic impact is primarily national, supporting U.S. leadership in space, with potential for international collaboration. Workforce implications include highly skilled jobs in aerospace engineering, research, and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Cost-plus award fee contracts can sometimes lead to cost overruns if not managed tightly.
• The long duration of the contract (over 13 years) presents risks related to technological obsolescence or shifting program priorities.
• Reliance on previous program successes may not fully account for novel challenges in new R&D areas.

Positive Signals

• Leverages proven technologies and operational experience from successful COTS and CRS programs.
• Demonstrated success in deep space missions (Dawn) indicates strong capability for complex R&D.
• The award builds upon existing infrastructure and expertise, potentially reducing ramp-up time and initial costs.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, with a strong emphasis on space exploration. The aerospace industry is characterized by high R&D investment, long development cycles, and significant government funding. Comparable spending benchmarks would include other large NASA R&D contracts for spacecraft, propulsion systems, and scientific instrumentation. The market size for space R&D is substantial, driven by national space agencies and a growing commercial space sector.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large prime contract for advanced R&D, it is likely that Northrop Grumman will engage subcontractors, potentially including small businesses, to fulfill various aspects of the work. The extent of small business subcontracting will depend on the specific requirements and the company's subcontracting plan.

Oversight & Accountability

Oversight for this contract will be provided by NASA, likely through program management offices and contracting officers. The cost-plus award fee structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and that costs are reasonable and allocable. Transparency will be maintained through regular reporting requirements and contract reviews. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

• Commercial Orbital Transportation Services (COTS)
• Commercial Resupply Services (CRS)
• International Space Station (ISS) Programs
• Solar System Exploration Programs
• Dawn Mission

Risk Flags

• Cost Overrun Potential
• Schedule Slippage Risk
• Technological Obsolescence
• Performance Measurement Complexity

Tags

r-and-d, space-exploration, nasa, northrop-grumman, definitive-contract, cost-plus-award-fee, full-and-open-competition, virginia, research-and-development-in-the-physical-engineering-and-life-sciences-except-biotechnology, large-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $1.57 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF NEXTSTEP NRA AWARD. THIS NEXTSTEP CONTRACT BUILDS UPON THE SUCCESS OF COMMERCIAL ORBITAL TRANSPORTATION SERVICES SPACE ACT AGREEMENT DEVELOPMENT PROGRAM AND AN EXISTING INTERNATIONAL SPACE STATION (ISS) COMMERCIAL RESUPPLY SERVICES (CRS) CONTRACT. ORBITAL HAS SUCCESSFULLY TRANSITIONED FROM COTS TO THE CRS PROGRAM, FLYING THREE VERY SUCCESSFUL PRESSURIZED CARGO RESUPPLY MISSIONS TO THE ISS, USING THE CYGNUS SPACECRAFT. ORBITAL ALSO SUCCESSFULLY DEVELOPED SPACECRAFT FOR SOLAR SYSTEM

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 $1.57 billion.

What is the period of performance?

Start: 2015-09-03. End: 2029-05-31.

What is Northrop Grumman's track record with NASA on similar R&D contracts?

Northrop Grumman, through its Orbital ATK division (acquired by Northrop Grumman), has a strong track record with NASA, particularly in cargo resupply and space exploration. They successfully transitioned from the Commercial Orbital Transportation Services (COTS) program to the Commercial Resupply Services (CRS) program, completing multiple successful pressurized cargo resupply missions to the International Space Station (ISS) using their Cygnus spacecraft. Furthermore, they developed spacecraft for deep space exploration, notably the Dawn mission, which achieved significant milestones in exploring the asteroid Vesta and is en route to Ceres. This history demonstrates a capability to manage complex R&D projects, meet mission objectives, and operate within NASA's program frameworks.

How does the $1.57 billion contract value compare to similar NASA R&D efforts?

The $1.57 billion contract value for this R&D effort is substantial, reflecting the complexity and long-term nature of space exploration technology development. To benchmark this value, one would compare it to other major NASA R&D contracts for spacecraft development, advanced propulsion systems, or scientific mission payloads. For instance, contracts for developing new human-rated spacecraft or major scientific observatories often fall into the hundreds of millions to billions of dollars range. Given the contract's focus on building upon existing successful programs and potentially developing next-generation capabilities, the value appears commensurate with the scope, though a detailed comparison would require access to specific contract data for similar endeavors.

What are the primary risks associated with this contract?

The primary risks associated with this contract include technological hurdles inherent in advanced R&D, potential cost overruns due to the cost-plus award fee structure, and schedule delays. The long performance period (ending in 2029) also introduces risks related to evolving technological landscapes, shifting program priorities within NASA, and potential personnel turnover. Furthermore, the reliance on previous program successes, while a positive indicator, might not fully mitigate unforeseen challenges in new research areas. Effective risk management by NASA and Northrop Grumman will be crucial to address these potential issues.

How effective is the Cost Plus Award Fee (CPAF) structure for this type of R&D?

The Cost Plus Award Fee (CPAF) structure is often employed for R&D contracts where the scope of work may evolve or where performance outcomes are critical and can be objectively measured. For this contract, CPAF incentivizes Northrop Grumman to perform well by offering potential award fees based on achieving specific performance criteria, while also covering allowable costs. This structure can be effective in driving innovation and high performance in complex R&D environments. However, it requires rigorous oversight from NASA to ensure that award fees are earned based on genuine performance improvements and that costs remain controlled, preventing potential overspending.

What is the historical spending pattern for R&D in space exploration by NASA?

NASA's historical spending on R&D for space exploration has been a significant portion of its overall budget, fluctuating based on national priorities and major program initiatives. Historically, large investments have been made in areas such as human spaceflight (e.g., Apollo, Space Shuttle, ISS, Artemis), robotic exploration (e.g., Mars rovers, deep space probes), and aeronautics research. Funding for R&D in physical, engineering, and life sciences related to space has consistently been a core component. The trend has often been towards developing more advanced, cost-effective, and sustainable technologies, including those enabling commercial space activities, as seen with programs like COTS and CRS.

What are the implications of building upon existing ISS and COTS/CRS contracts?

Building upon existing ISS and COTS/CRS contracts implies a strategic approach by NASA to leverage proven capabilities and infrastructure. This reduces the need for developing entirely new systems from scratch, potentially saving time and taxpayer money. It allows Northrop Grumman to utilize existing expertise, hardware (like the Cygnus spacecraft), and operational knowledge. This continuity can accelerate progress in new R&D areas by providing a stable foundation, but it also necessitates careful management to ensure that the new R&D efforts are truly innovative and not merely incremental extensions of past work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNH15ZCQ001K

Offers Received: 34

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 45101 WARP DRIVE, 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: $2,001,207,555

Exercised Options: $1,880,334,464

Current Obligation: $1,573,710,341

Actual Outlays: $1,422,791,276

Subaward Activity

Number of Subawards: 441

Total Subaward Amount: $412,947,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2015-09-03

Current End Date: 2029-05-31

Potential End Date: 2029-05-31 00:00:00

Last Modified: 2026-04-10

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