Boeing's Commercial Crew Program contract valued at $2.7B aims to transport NASA astronauts to the ISS
Contract Overview
Contract Amount: $27,075,119 ($27.1M)
Contractor: THE Boeing Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2017-05-12
End Date: 2020-12-30
Contract Duration: 1,328 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW TO AND FROM THE ISS, IN ACCORDANCE WITH THE DESIGN REFERENCE MISSIONS AND NASA'S CERTIFICATION STANDARDS AND REQUIREMENTS. CERTIFICATION OF THE CTS WILL BE DETERMINED BY NASA. NASA PLANS TO ISSUE TASK ORDERS FOR POST CERTIFICATION MISSIONS (PCM) TO AND FROM ISS THAT INCLUDE GROUND, LAUNCH, LIFEBOAT, ON-ORBIT, RETURN AND RECOVERY OPERATIONS. THE MINIMUM QUANTITY OF MISSIONS TO BE ORDERED IS TWO (2) AND THE MAXIMUM POTENTIAL QUANTITY OF MISSIONS WHICH MAY BE ORDERED IS SIX (6). IN ADDITION, NASA MAY ISSUE TASK ORDERS FOR SPECIAL STUDIES USED FOR RISK REDUCTION AND OTHER PURPOSES RELATED TO THE CTS. NASA CERTIFICATION UNDER CLIN 001 IS COMPLETE WHEN THE CONTRACTOR'S CREW TRANSPORTATION SYSTEM (CTS) HAS MET NASA'S REQUIREMENTS FOR SAFELY TRANSPORTING CREW TO AND FROM THE INTERNATIONAL SPACE STATION (ISS) IN ACCORDANCE WITH DOCUMENTS IDENTIFIED IN SECTION C.1, SPECIFICATIONS/STATEMENT OF WORK. SUBCLINS 001A AND 001B, IDENTIFIED IN TABLE B.3, DDTE/CERTIFICATION SUBCLINS, ARE DELIVERY MILESTONES THAT REPRESENT COMPLETION OF REQUIRED WORK NECESSARY TO ACHIEVE NASA CERTIFICATION. DELIVERY PAYMENT FOR THE ISS DESIGN CERTIFICATION REVIEW (DCR) FOR THE CREWED FLIGHT TO THE ISS INCLUDES ALL WORK UNDER THIS CLIN THAT OCCURS FROM THE CONTRACT EFFECTIVE DATE THROUGH THE ISS DCR COMPLETION. THE DELIVERY PAYMENT FOR THE CERTIFICATION REVIEW (CR) WILL INCLUDE ALL WORK THAT OCCURS FROM THE ISS DCR DELIVERY DATE THROUGH THE END OF THE DDTE/CERTIFICATION CLIN 001. IN ACCORDANCE WITH CLAUSE C.1, SPECIFICATION/STATEMENT OF WORK, THE TASK ORDERING PROCEDURES AND OTHER TERMS AND CONDITIONS IN THE CONTRACT, THE CONTRACTING OFFICER MAY ISSUE POST CERTIFICATION MISSION (PCM) TASK ORDERS. THE CONTRACTOR SHALL USE THE MISSION PRICING RATES SHOWN IN TABLE B.4.1, POST CERTIFICATION MISSION PRICES. THE PER MISSION PRICES ARE FOR A SINGLE ORDER AT THE PRICE STATED PER THE CALENDAR YEAR (CY) BASED ON THE NUMBER OF MISSIONS ORDERED. CTS FULL MISSION CAPABILITY PRICES SHALL BE BASED ON (1) FULFILLMENT OF THE DESIGN REFERENCE MISSION TO THE ISS FOUND IN CCT-DRM-1110, CREW TRANSPORTATION SYSTEM DESIGN REFERENCE MISSIONS, ATTACHMENT J-03, CONTRACT PERFORMANCE WORK STATEMENT, AND OTHER TERMS AND CONDITIONS IN THE CONTRACT AND (2) ALL INHERENT CTS CAPABILITIES THAT ARE WITHIN THE PROPOSED MISSION PRICES. IN ACCORDANCE WITH ATTACHMENT J-03, CONTRACT PERFORMANCE WORK STATEMENT, THE TASK ORDERING PROCEDURES AND OTHER TERMS AND CONDITIONS IN THE CONTRACT, THE CONTRACTOR SHALL PERFORM SPECIAL STUDIES, TEST AND ANALYSES, AS INITIATED BY WRITTEN DIRECTION FROM THE CONTRACTING OFFICER.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $27.1 million to THE BOEING COMPANY for work described as: IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW… Key points: 1. Contract focuses on developing and certifying a crew transportation system for ISS missions. 2. Potential for up to six post-certification missions, indicating significant long-term operational scope. 3. Firm Fixed Price contract type suggests cost certainty for NASA, but may limit contractor flexibility. 4. The contract is a key component of NASA's strategy to utilize commercial services for human spaceflight. 5. Geographic focus on Florida highlights the state's role in the U.S. space industry.
Value Assessment
Rating: good
The total contract value of $2.7 billion for the Commercial Crew Transportation Capability (CCTCAP) contract appears substantial, reflecting the complexity and criticality of developing a human-rated spaceflight system. Benchmarking this against other large-scale aerospace development programs is challenging due to the unique nature of commercial crew transport. However, given the scope, which includes design, development, testing, certification, and potential post-certification missions, the pricing seems aligned with industry norms for such high-risk, high-reward endeavors. The firm-fixed-price structure aims to control costs for NASA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The specific number of bidders is not detailed here, but the 'full and open' designation suggests a competitive process was intended to yield the best value. This approach typically fosters innovation and price discovery among potential providers.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages multiple companies to offer competitive bids, potentially driving down costs and improving service offerings.
Public Impact
Benefits NASA by providing a reliable and cost-effective means for transporting astronauts to the International Space Station. Enables continued U.S. presence and operational capability on the ISS. Supports the development of a commercial spaceflight industry, fostering innovation and economic growth. Creates high-skilled jobs in aerospace engineering, manufacturing, and operations within Florida. Ensures the safety and well-being of astronauts through certified transportation systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if development challenges arise, despite the fixed-price nature.
- Dependence on a single contractor (Boeing) for critical crew transport could pose a risk if performance issues emerge.
- Certification process complexity could lead to schedule delays.
- Reliance on commercial providers for human spaceflight introduces new operational and safety considerations.
Positive Signals
- Leverages commercial innovation to reduce NASA's long-term reliance on government-owned and operated systems.
- Firm Fixed Price contract provides cost predictability for NASA.
- Focus on certification ensures a high standard of safety for astronaut transport.
- Potential for multiple post-certification missions indicates a robust and sustainable operational plan.
Sector Analysis
The Commercial Crew Program (CCP) falls within the Guided Missile and Space Vehicle Manufacturing sector. This sector is characterized by high R&D investment, stringent regulatory requirements, and long development cycles. The market is dominated by a few large aerospace corporations capable of undertaking such complex projects. This contract represents a significant investment in the commercialization of space, aligning with broader trends of public-private partnerships in space exploration and utilization.
Small Business Impact
While this contract is with a major aerospace prime contractor, Boeing, the nature of developing and certifying a human-rated spacecraft typically involves extensive subcontracting. It is likely that numerous small businesses specializing in various components, software, testing, or support services will be involved in the supply chain. However, the contract itself does not appear to be a small business set-aside, and the primary focus is on the prime contractor's capabilities.
Oversight & Accountability
Oversight for this contract is managed by NASA, which has established rigorous review processes for the design, development, testing, and certification phases. The agency's Safety and Mission Assurance organization plays a critical role in ensuring compliance with safety standards. Transparency is maintained through public program updates and reporting, although specific details of internal reviews may be proprietary. Inspector General jurisdiction would apply to any instances of fraud, waste, or abuse.
Related Government Programs
- Commercial Resupply Services (CRS)
- International Space Station (ISS) Operations
- Space Launch System (SLS)
- Orion Spacecraft Program
Risk Flags
- Technical Risk
- Schedule Delay Risk
- Cost Overrun Potential
- Safety Certification Challenges
Tags
space-transportation, nasa, commercial-crew, iss, firm-fixed-price, full-and-open-competition, aerospace, guided-missile-and-space-vehicle-manufacturing, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.1 million to THE BOEING COMPANY. IGF::OT::IGF THE COMMERCIAL CREW PROGRAM (CCP) COMMERCIAL CREW TRANSPORTATION CAPABILITY (CCTCAP) CONTRACT WILL PROVIDE COMPLETION OF THE DESIGN, DEVELOPMENT, TEST, EVALUATION, AND CERTIFICATION OF AN INTEGRATED CREW TRANSPORTATION SYSTEM (CTS) CAPABLE OF TRANSPORTING NASA CREW TO AND FROM THE ISS, IN ACCORDANCE WITH THE DESIGN REFERENCE MISSIONS AND NASA'S CERTIFICATION STANDARDS AND REQUIREMENTS. CERTIFICATION OF THE CTS WILL BE DETERMINED BY NASA. NASA PLANS TO ISSUE TASK ORDERS FOR POST
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $27.1 million.
What is the period of performance?
Start: 2017-05-12. End: 2020-12-30.
What is the historical performance of The Boeing Company on large, complex government aerospace contracts?
The Boeing Company has a long and extensive history of delivering complex aerospace systems for government agencies, including NASA and the Department of Defense. They have been a primary contractor for numerous space programs, including the International Space Station itself, and various military aircraft and missile systems. While generally successful, Boeing has also faced challenges and scrutiny on some large programs, such as the T-7A Red Hawk trainer aircraft development, which experienced delays and cost increases. For the Commercial Crew Program, Boeing's performance is critical, and NASA closely monitors their progress through regular reviews and milestones. Their track record suggests a high capability but also highlights the inherent risks in developing cutting-edge aerospace technology.
How does the cost per mission compare to previous NASA crewed missions or alternative approaches?
Directly comparing the cost per mission for Boeing's Commercial Crew Transportation Capability (CCTCAP) contract to historical NASA crewed missions is complex due to differing program structures and objectives. Historically, NASA's Space Shuttle program involved significant infrastructure and operational costs spread across many missions. The CCTCAP contract aims for a more streamlined, commercial approach. While the total contract value is $2.7 billion, the number of missions is variable (2 to 6 post-certification). If six missions are flown, the average cost per mission would be around $450 million. This is intended to be more cost-effective than the Shuttle program's final operational costs, which were estimated to be significantly higher on a per-mission basis when all associated program costs were factored in. Furthermore, the CCTCAP aims to provide a more sustainable and potentially lower long-term cost model by fostering a commercial market.
What are the primary technical risks associated with the Commercial Crew Program?
The primary technical risks associated with the Commercial Crew Program, particularly for Boeing's CST-100 Starliner, include the successful development and certification of the crew capsule's life support systems, the propulsion system (including the abort engines), the heat shield for re-entry, and the overall software integration for autonomous operations and docking. Ensuring the reliability of these systems for human transport is paramount. Past issues, such as the uncrewed Orbital Flight Test (OFT) anomalies involving service module thrusters and a software error affecting docking, highlight the complexity and potential for unforeseen technical challenges. NASA's rigorous certification process is designed to identify and mitigate these risks before crewed flights commence, but the inherent complexity of spaceflight means residual risks remain.
What is the projected impact of this contract on the future of commercial spaceflight?
This contract is a cornerstone in the broader strategy to commercialize spaceflight, moving beyond government-led development to leveraging private sector innovation and investment. By demonstrating the viability of commercial crew transportation to low Earth orbit, it paves the way for future commercial space stations, orbital tourism, and potentially even lunar or Martian missions utilizing commercial services. The success of the Commercial Crew Program encourages further private investment in space technologies and infrastructure. It shifts NASA's role from operator to customer and facilitator, allowing the agency to focus on deep space exploration while relying on commercial partners for LEO access. This model is expected to drive down costs and increase access to space over the long term.
How has NASA's approach to procuring spaceflight services evolved with contracts like CCTCAP?
NASA's approach has significantly evolved from the traditional government-managed, in-house development model (like the Apollo and Space Shuttle programs) towards a more commercial, service-based procurement strategy. With contracts like CCTCAP, NASA acts as a customer, defining requirements and safety standards, but relies on commercial companies to design, build, and operate the transportation systems. This 'buy versus build' approach aims to foster competition, drive innovation, reduce program management overhead for NASA, and potentially lower costs through economies of scale and market forces. This shift is evident not only in crewed transportation but also in cargo resupply (CRS) and other space services, reflecting a broader agency strategy to partner with industry for routine space access.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3700 BAY AREA BLVD, HOUSTON, TX, 77058
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: $27,075,119
Exercised Options: $27,075,119
Current Obligation: $27,075,119
Actual Outlays: $6,600,277
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $6,408,356
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNK14MA75C
IDV Type: IDC
Timeline
Start Date: 2017-05-12
Current End Date: 2020-12-30
Potential End Date: 2020-12-30 00:00:00
Last Modified: 2025-05-30
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