NASA awards $877M to Lockheed Martin for HST flight systems and servicing over 12 years
Contract Overview
Contract Amount: $876,874,552 ($876.9M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-10-15
End Date: 2011-06-30
Contract Duration: 4,276 days
Daily Burn Rate: $205.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: HST FLIGHT SYSTEMS & SERVICING SUPPORT
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $876.9 million to LOCKHEED MARTIN CORP for work described as: HST FLIGHT SYSTEMS & SERVICING SUPPORT Key points: 1. Contract value represents significant long-term investment in a high-profile scientific asset. 2. Sole provider for critical Hubble Space Telescope (HST) support suggests limited alternatives. 3. Long contract duration (12 years) may indicate stable, ongoing needs but also potential for cost overruns. 4. Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 5. Contract awarded to a single, established aerospace prime contractor. 6. Focus on specialized space vehicle manufacturing highlights a niche but vital sector.
Value Assessment
Rating: fair
The total contract value of $877 million over 12 years averages approximately $73 million annually. Benchmarking this against similar long-term, highly specialized support contracts for major scientific instruments is challenging due to the unique nature of the Hubble Space Telescope. However, the Cost Plus Award Fee (CPAF) structure, while common for complex R&D and support, can lead to costs exceeding initial estimates if not rigorously managed. The absence of readily available comparable contract data makes a definitive value-for-money assessment difficult without deeper analysis of performance metrics and award fee payouts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the specific number of bidders and the details of the competitive process are not provided in the summary data. For highly specialized services like HST support, the pool of qualified bidders may be limited despite open competition, potentially impacting the intensity of price discovery.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, the specialized nature of the work might limit the number of truly competitive bids, potentially influencing the final price.
Public Impact
The Hubble Space Telescope (HST) itself, a cornerstone of astronomical research. Astronomers and researchers worldwide who rely on HST data for scientific discovery. The advancement of space science and our understanding of the universe. The aerospace industry, particularly in specialized space vehicle manufacturing and support. Potential for highly skilled jobs in engineering, maintenance, and operations related to space missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term nature of the contract (12 years) increases the risk of cost escalation over time.
- Cost Plus Award Fee (CPAF) contract type requires robust oversight to ensure cost control and prevent contractor overspending.
- Sole reliance on one contractor for critical HST support creates a single point of failure risk.
- Limited public data on specific performance metrics and award fee criteria makes independent value assessment difficult.
Positive Signals
- Awarded through full and open competition, suggesting an effort to achieve competitive pricing.
- Contractor (Lockheed Martin) is a major aerospace firm with extensive experience in space systems.
- Long duration indicates a stable, ongoing need for critical scientific infrastructure support.
- Focus on servicing and support for a high-value scientific asset like the HST.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on space vehicle manufacturing and support services. The market for such specialized services is characterized by high barriers to entry due to technological complexity, stringent quality requirements, and significant capital investment. Spending in this area is driven by government investment in scientific research, national security, and space exploration. Comparable spending benchmarks would typically involve other major space programs or satellite servicing contracts, which are often large, long-term, and awarded to a limited number of prime contractors.
Small Business Impact
The provided data indicates that small business participation (ss and sb flags) was not a specific set-aside requirement for this contract. As a large prime contract awarded to a major aerospace corporation, the primary impact on small businesses would likely be through subcontracting opportunities. It is common for large prime contractors to utilize small businesses for specialized components or services, but the extent of this contract's subcontracting to small businesses is not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPAF) contract, NASA would be responsible for monitoring contractor performance against defined metrics, determining award fee payouts, and ensuring adherence to contract terms. Transparency is typically managed through contract reporting requirements and public contract databases, though detailed performance data may be limited. NASA's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Hubble Space Telescope Operations
- Space Science Missions
- Satellite Servicing Programs
- NASA Research and Development Contracts
- Guided Missile and Space Vehicle Manufacturing
Risk Flags
- Long contract duration
- Cost Plus Award Fee structure
- Sole source provider for critical asset
- Limited public performance data
Tags
nasa, lockheed-martin-corp, hubble-space-telescope, flight-systems-servicing, definitive-contract, cost-plus-award-fee, full-and-open-competition, aerospace, space-vehicle-manufacturing, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $876.9 million to LOCKHEED MARTIN CORP. HST FLIGHT SYSTEMS & SERVICING SUPPORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $876.9 million.
What is the period of performance?
Start: 1999-10-15. End: 2011-06-30.
What is Lockheed Martin's track record with NASA and similar space support contracts?
Lockheed Martin Corporation is a major aerospace and defense contractor with a long history of working with NASA and other government agencies on complex space programs. They have been involved in numerous satellite programs, space shuttle components, and deep space missions. Their experience includes design, manufacturing, integration, and sustainment of space systems. For instance, they were a key contractor for the James Webb Space Telescope's development and have supported various other NASA science missions. Their extensive portfolio suggests a strong capability in handling large, technically demanding contracts like the HST support, though specific performance metrics on past contracts would be needed for a comprehensive assessment.
How does the $877 million contract value compare to other long-term space support contracts?
The $877 million total contract value, spread over 12 years, averages approximately $73 million annually. This figure is substantial but needs context within the specialized realm of major space telescope servicing. For comparison, the operational costs and servicing missions for other large space observatories, like the James Webb Space Telescope (JWST), also run into hundreds of millions or billions of dollars over their lifespans, encompassing development, launch, and ongoing operations. However, direct comparisons are difficult as HST support is unique. Contracts for satellite servicing or maintenance of other complex government assets might offer some benchmarks, but the scientific mission and operational lifespan of the HST make it a distinct category.
What are the primary risks associated with a 12-year Cost Plus Award Fee (CPAF) contract for critical space systems?
A 12-year Cost Plus Award Fee (CPAF) contract for critical space systems like the Hubble Space Telescope presents several risks. Firstly, the long duration increases the potential for cost growth due to inflation, unforeseen technical challenges, or changes in program scope. CPAF contracts incentivize performance but can lead to higher overall costs compared to fixed-price contracts if not managed meticulously. NASA must maintain rigorous oversight to ensure that award fees are justified by exceptional performance and that costs remain reasonable. Secondly, relying on a single contractor for such a critical asset introduces a single point of failure risk; any performance issues or financial instability with Lockheed Martin could jeopardize HST operations. Finally, the complexity of the technology and the specialized nature of the work mean that transitioning to a different contractor mid-term would be exceptionally difficult and costly.
How effective has Lockheed Martin been in managing the Hubble Space Telescope's flight systems and servicing?
Assessing the specific effectiveness of Lockheed Martin's management of the Hubble Space Telescope's flight systems and servicing under this contract requires detailed performance data, which is not publicly available in this summary. However, the continued operation and scientific productivity of the HST over many years, including critical servicing missions that extended its life and capabilities, suggest a generally effective partnership. Lockheed Martin, as a prime contractor, would be responsible for integrating components, managing logistics for servicing missions, and ensuring the overall health of the telescope's systems. The longevity and scientific output of the HST are indirect indicators of successful support, but a formal evaluation would need access to NASA's performance reviews and award fee determinations.
What are the historical spending patterns for Hubble Space Telescope support and servicing?
The $876.8 million awarded under this definitive contract from 1999 to 2011 represents a significant portion of the Hubble Space Telescope's lifecycle costs, specifically for flight systems and servicing. Prior to this contract, NASA would have incurred costs related to HST's development, launch, and initial operations. Subsequent to this contract's end date (June 2011), NASA has continued to fund HST operations and potential future servicing or upgrades through other appropriations and contracts. Analyzing historical spending requires looking at NASA's overall budget allocations for HST across its entire operational history, including research, development, launch, operations, and servicing missions, which collectively amount to billions of dollars over three decades.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY BLDG 157, SUNNYVALE, CA, 94089
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,162,424,484
Exercised Options: $1,162,424,484
Current Obligation: $876,874,552
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1999-10-15
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2017-10-05
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