NASA's CERES FM6 Instrument Contract Awarded to Northrop Grumman for $63.76 Million
Contract Overview
Contract Amount: $63,751,656 ($63.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-12-23
End Date: 2023-08-22
Contract Duration: 5,355 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: CLOUDS AND THE EARTH'S RADIANT ENERGY SYSTEMS (CERES) FLIGHT MODEL 6 (FM6) INSTRUMENT
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
National Aeronautics and Space Administration obligated $63.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CLOUDS AND THE EARTH'S RADIANT ENERGY SYSTEMS (CERES) FLIGHT MODEL 6 (FM6) INSTRUMENT Key points: 1. The contract for the CERES FM6 instrument represents a significant investment in Earth science research. 2. Northrop Grumman Systems Corporation is the sole awardee, indicating a non-competitive procurement. 3. The contract duration is substantial, spanning over 14 years, suggesting a long-term project. 4. The R&D sector focus highlights investment in understanding physical and engineering sciences. 5. The cost-plus-award-fee contract type allows for flexibility but requires careful oversight.
Value Assessment
Rating: fair
The $63.76 million award for the CERES FM6 instrument appears to be within a reasonable range for complex scientific instruments of this nature, though direct comparable contract data is limited. The cost-plus-award-fee structure suggests potential for cost overruns if not managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. The sole-source nature suggests a specific capability or existing relationship was prioritized over exploring competitive options.
Taxpayer Impact: The lack of competition may result in a higher overall cost to taxpayers compared to a competitively bid contract.
Public Impact
Enhances understanding of Earth's climate and energy balance through advanced satellite instrumentation. Supports long-term climate monitoring and research crucial for policy decisions. Represents a significant federal investment in scientific research and development. The instrument's data will contribute to global climate models and predictions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus-award-fee structure
- Long contract duration
Positive Signals
- Investment in critical climate research
- Experienced contractor
- Long-term project commitment
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to Earth observation. Spending in this area is critical for advancing scientific understanding and addressing global challenges like climate change.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The prime contractor, Northrop Grumman, is a large aerospace and defense company.
Oversight & Accountability
The cost-plus-award-fee contract type necessitates robust oversight from NASA to ensure performance objectives are met and costs are managed effectively. Regular reviews and audits would be crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source procurement limits competition and potentially increases cost.
- Cost-plus-award-fee structure requires diligent oversight to control spending.
- Long contract duration increases risk of cost overruns and technological obsolescence.
- Lack of transparency regarding specific performance metrics for award fee.
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 $63.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CLOUDS AND THE EARTH'S RADIANT ENERGY SYSTEMS (CERES) FLIGHT MODEL 6 (FM6) INSTRUMENT
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 $63.8 million.
What is the period of performance?
Start: 2008-12-23. End: 2023-08-22.
What specific technological advancements does CERES FM6 offer compared to previous instruments, and how does this justify the sole-source award?
The CERES FM6 instrument is designed to provide enhanced measurements of Earth's radiant energy system, crucial for improving climate models. While specific technological advancements are not detailed in the provided data, the sole-source award suggests that NASA may have determined Northrop Grumman possessed unique capabilities or proprietary technology essential for this particular mission, potentially related to sensor design, calibration, or integration with existing satellite platforms.
What are the key performance metrics NASA will use to evaluate Northrop Grumman under the 'award fee' component of this contract, and how will these impact the final cost?
The 'award fee' component is tied to specific performance metrics defined in the contract, likely including timely delivery, adherence to technical specifications, instrument performance in testing, and overall project management. NASA's evaluation of Northrop Grumman against these metrics will determine the amount of award fee earned, directly impacting the total contract cost. A high level of performance could lead to the maximum award fee, while subpar performance would result in a reduced or zero award fee.
Given the 14-year duration, what are the potential risks associated with technological obsolescence or changes in scientific requirements for the CERES FM6 instrument?
A 14-year project timeline presents risks of technological obsolescence, where newer, more efficient technologies emerge during development or deployment. Additionally, scientific understanding of Earth's climate systems may evolve, potentially altering the specific requirements for the instrument's data. NASA's oversight would need to incorporate flexibility and adaptation strategies to mitigate these risks, possibly through phased reviews and potential contract modifications if significant changes are warranted.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
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: $68,014,537
Exercised Options: $64,885,146
Current Obligation: $63,751,656
Actual Outlays: $482,521
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-12-23
Current End Date: 2023-08-22
Potential End Date: 2023-08-22 00:00:00
Last Modified: 2024-08-06
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