DoD Awards $209M for 10 Space Vehicles to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $209,022,212 ($209.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-08-31
End Date: 2026-02-28
Contract Duration: 2,007 days
Daily Burn Rate: $104.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: SPACE TRANSPORT LAYER TRANCHE 0 (QTY 10 SPACE VEHICLES)
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $209.0 million to LOCKHEED MARTIN CORP for work described as: SPACE TRANSPORT LAYER TRANCHE 0 (QTY 10 SPACE VEHICLES) Key points: 1. Significant investment in space-based capabilities by the Department of Defense. 2. Lockheed Martin, a major defense contractor, secured this contract. 3. The contract falls under Research and Development for physical and engineering sciences. 4. Full and open competition was utilized, suggesting a robust price discovery process.
Value Assessment
Rating: good
The total award of $209 million for 10 space vehicles averages $20.9 million per vehicle. This pricing needs to be benchmarked against similar, recent space vehicle procurements to fully assess value.
Cost Per Unit: $20,902,221.19
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This competitive environment is expected to drive more favorable pricing and innovation.
Taxpayer Impact: Taxpayer funds are being used for advanced space technology development, with the competitive award aiming for efficient use of these resources.
Public Impact
Enhances national security through advanced space-based assets. Supports technological advancement in the aerospace and defense sector. Potential for spin-off technologies benefiting commercial space applications. Creates high-skilled jobs in research, development, and manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2020-2026) may lead to cost overruns if not managed tightly.
- Reliance on a single contractor (Lockheed Martin) for this tranche could pose future supply chain risks.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Firm Fixed Price contract type provides cost certainty for the government.
- Focus on R&D suggests investment in cutting-edge capabilities.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development for space systems. Spending in this area is critical for national security and technological leadership, with significant government investment typical for advanced platforms.
Small Business Impact
While the prime contractor is Lockheed Martin, a large corporation, the contract's R&D nature may involve subcontracting opportunities for small businesses in specialized technology areas. Further analysis would be needed to confirm SMB participation.
Oversight & Accountability
The Department of the Air Force is the contracting agency, responsible for oversight. The firm fixed price contract type provides a degree of cost control, but ongoing monitoring of performance and adherence to R&D milestones is crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long-term contract duration increases risk of scope creep and cost escalation.
- Potential for technological obsolescence if R&D timelines are not met or market evolves rapidly.
- Dependence on a single large prime contractor may limit future flexibility.
- Classification of specific capabilities may hinder independent cost and performance analysis.
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $209.0 million to LOCKHEED MARTIN CORP. SPACE TRANSPORT LAYER TRANCHE 0 (QTY 10 SPACE VEHICLES)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $209.0 million.
What is the period of performance?
Start: 2020-08-31. End: 2026-02-28.
What is the specific technological advancement this R&D contract aims to achieve, and how does it align with current and future defense strategies?
The contract focuses on developing 'SPACE TRANSPORT LAYER TRANCHE 0' space vehicles. While specific details are likely classified, this suggests an investment in next-generation satellite communication or data relay capabilities critical for maintaining battlefield awareness and command and control in contested environments. Its alignment with defense strategies would hinge on its contribution to network modernization and resilient space architectures.
How does the per-unit cost of $20.9 million compare to industry benchmarks for similar advanced space vehicles, considering the R&D component?
Benchmarking this per-unit cost requires detailed comparison with contracts for comparable space vehicles, factoring in the R&D intensity. Early-stage R&D vehicles are typically more expensive due to innovation and lower production volumes. A fair assessment would involve comparing against other 'Tranche 0' or initial production runs of similar classified or unclassified systems, considering technological sophistication and mission requirements.
What are the key performance indicators (KPIs) and milestones for this contract, and how will their achievement be measured to ensure effectiveness and taxpayer value?
Key performance indicators and milestones would likely focus on successful design, integration, testing, and launch readiness of the space vehicles. Effectiveness will be measured against the government's defined requirements for capability, reliability, and performance in the operational environment. The firm fixed price structure incentivizes the contractor to meet these KPIs efficiently, with oversight ensuring adherence to schedule and technical specifications.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085020R0001
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $209,022,212
Exercised Options: $209,022,212
Current Obligation: $209,022,212
Actual Outlays: $73,734,493
Subaward Activity
Number of Subawards: 143
Total Subaward Amount: $105,699,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-31
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-16
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