scope:

Description of Driving Event:

The Tracking and Data Relay Satellite (TDRS) project entered into a firm fixed price contractual agreement to procure three spacecraft as part of the NASA replenishment program of the existing fleet. This contract contains performance penalties based upon any number of failed non-operational services after launch and checkout through years 1 to 8 on orbit. The contract also specifies that NASA is responsible for the provision of the launch vehicle, an Atlas IIA as "government furnished equipment." As a result, the government is responsible for providing the Atlas IIA under a separate contract and thus became responsible for the launch and delivery to orbit. The effect of this dual contract approach was to create a built in ambiguity reducing NASA's ability to make the TDRS contractor accountable for on orbit spacecraft performance and for NASA to enforce the performance penalties. The contract requires that NASA is responsible for the safe delivery of the spacecraft on orbit and failure of the launch represents a total loss of mission to NASA.