Contract Reforms Applied in the Smallsat competition

The challenge for the Smallsat contracting process was to streamline NASA management, cut costs, prepare commercial and scientific payloads, demonstrate low-cost on-orbit operations, and produce working spacecraft in 24 months or less.

The Smallsat contracting process implements all of the "faster, better, cheaper" NASA contracting reforms, while shifting the emphasis of the project from government research to industry-ready commercial applications.

Highlights include:

* Smallsat uses the integrated product development team approach. Industry bidders organized competitive teams, drawing from established industry leaders, small businesses, disadvantaged businesses, government laboratories and academia;

* Three to four NASA managers will oversee both projects, setting performance standards, and allowing industry to integrate a top-to-bottom program, from design, test and integration, through launch and on-orbit operations for one year;

* Time from the final contract solicitation, or "request for proposal" to contract award was 70 days -- instead of six months or more through traditional contracting methods;

* No performance fees will be awarded unless on-orbit performance objectives are met;

* If schedules slip or cost overruns occur, the industry will see a dollar-for-dollar reduction in performance fees;

* Base fees are eliminated-- performance is the sole standard for contractor fees;

* Performance requirements are set up front -- the small NASA program office will work with the industry team to minimize formal reviews and unnecessary paperwork, while still preserving close oversight of the team effort on a daily basis;

* Performance requirements and measurable milestones are set at each program stage:

-- spacecraft design, test and integration;

-- payload instrument development;

-- payload integration into the spacecraft structure;

-- successful launch;

-- demonstrated on-orbit performance for spacecraft and payload operations.

Contract negotiations, proposal evaluation and selection of the winning teams were conducted simultaneously, eliminating time-consuming contract negotiations following the contract award -- another departure from NASA operations of the past.