NASA Awards $45.9M Contract to Northrop Grumman for CEV System Design
Contract Overview
Contract Amount: $45,918,550 ($45.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-07-11
End Date: 2006-10-31
Contract Duration: 477 days
Daily Burn Rate: $96.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PHASE I DEFINITION AND DESIGN ACTIVITIES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) SYSTEM
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
National Aeronautics and Space Administration obligated $45.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PHASE I DEFINITION AND DESIGN ACTIVITIES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) SYSTEM Key points: 1. Contract awarded for crucial Phase I definition and design of the Crew Exploration Vehicle (CEV) system. 2. Northrop Grumman, a major aerospace player, secured the contract. 3. The contract value of $45.9M represents a significant investment in space exploration technology. 4. Competition was conducted after exclusion of sources, raising questions about price discovery. 5. The sector is Research and Development, specifically in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract value of $45.9M for Phase I design activities is difficult to benchmark without specific details on the scope of work and deliverables. However, for a complex system like the CEV, this amount appears reasonable for initial definition and design.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was intended, specific criteria or circumstances led to the exclusion of some potential bidders, potentially impacting the full range of price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for advanced aerospace research and development, aiming for future technological advancements in space exploration.
Public Impact
Investment in the future of human spaceflight and exploration. Potential for technological spin-offs benefiting other industries. Supports high-skilled jobs in the aerospace sector. Contributes to national scientific and technological leadership.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Contract type (Cost Plus Fixed Fee) can incentivize cost overruns.
Positive Signals
- Addresses a critical need for the Crew Exploration Vehicle.
- Awarded to a reputable and experienced contractor.
- Significant investment in R&D for future capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be subject to long development cycles and uncertain outcomes. Benchmarks are difficult without specific project scope.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large-scale, complex system development contracts.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), a federal agency with established oversight mechanisms for research and development contracts. The PDR (Preliminary Design Review) milestone indicates a structured review process.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Limited competition may have resulted in suboptimal pricing.
- Cost Plus Fixed Fee contract type carries risk of cost overruns.
- Exclusion of sources requires further justification for transparency.
- Lack of small business participation noted.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $45.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PHASE I DEFINITION AND DESIGN ACTIVITIES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) 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 $45.9 million.
What is the period of performance?
Start: 2005-07-11. End: 2006-10-31.
What specific criteria led to the exclusion of sources in the competition, and how did this impact the final negotiated price?
The exclusion of sources suggests that only a limited number of contractors met specific technical, capability, or security requirements for the CEV system's initial design phase. This limited competition could potentially lead to less aggressive pricing than a fully open competition, as the agency may have had fewer options to compare bids against. Further analysis would require access to the justification for exclusion.
What are the projected cost risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?
CPFF contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, it doesn't directly cap total project cost. For R&D, where requirements can evolve and unforeseen challenges arise, this structure might lead to costs exceeding initial estimates if not rigorously managed and monitored by the agency.
How will the success of this Phase I design directly translate into tangible benefits or advancements for NASA's exploration goals?
The success of this Phase I design is foundational for the entire CEV program. A well-defined and robust PDR will ensure the system architecture meets mission requirements, reduces technical risks in subsequent phases, and provides a clear roadmap for development. This directly impacts NASA's ability to achieve its exploration goals by establishing a reliable and capable vehicle for future missions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: ONE HORNET WAY, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,466,684
Exercised Options: $52,658,762
Current Obligation: $45,918,550
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-07-11
Current End Date: 2006-10-31
Potential End Date: 2006-10-31 00:00:00
Last Modified: 2020-02-27
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation 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 →