NASA awards $115M for 2nd Gen RLV System Engineering to Lockheed Martin, focusing on R&D
Contract Overview
Contract Amount: $115,078,653 ($115.1M)
Contractor: Lockheed Martin Commercial Launch Services, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2001-05-21
End Date: 2006-07-23
Contract Duration: 1,889 days
Daily Burn Rate: $60.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 123
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SECOND GENETATION RLV SYSTEM ENGINEERING AND ARCHITECTURE DEFINITION/RISK REDUCTION FOR TECH.
Place of Performance
Location: LITTLETON, JEFFERSON County, COLORADO, 80127
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $115.1 million to LOCKHEED MARTIN COMMERCIAL LAUNCH SERVICES, INC. for work described as: SECOND GENETATION RLV SYSTEM ENGINEERING AND ARCHITECTURE DEFINITION/RISK REDUCTION FOR TECH. Key points: 1. Significant investment in advanced rocket technology development. 2. Sole awardee suggests potential for limited competition or specialized expertise. 3. Focus on risk reduction indicates a complex and potentially high-risk project. 4. R&D sector spending aligns with NASA's mission for space exploration.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific performance metrics and comparable R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as full and open, the single awardee, Lockheed Martin, might indicate a highly specialized requirement or a competitive process that favored one bidder significantly. Price discovery may have been influenced by the complexity of the R&D.
Taxpayer Impact: Taxpayer funds are directed towards cutting-edge aerospace research, aiming for future technological advancements and potential cost savings in space launches.
Public Impact
Advancement of reusable launch vehicle technology for future space missions. Potential for job creation in the aerospace engineering and manufacturing sectors. Long-term implications for the cost and accessibility of space exploration. National security implications through advanced aerospace capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost overruns due to R&D complexity
- Technical feasibility risks
- Limited competition impact on price
Positive Signals
- Potential for groundbreaking technological innovation
- Strengthening of US aerospace leadership
- Development of critical infrastructure for space access
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced engineering for aerospace. Spending benchmarks for such specialized R&D are highly variable, but $115M represents a substantial commitment to a single project.
Small Business Impact
The contract was awarded to Lockheed Martin Commercial Launch Services, Inc., a large corporation. There is no indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting.
Oversight & Accountability
NASA's oversight mechanisms would be crucial for managing the Cost Plus Award Fee structure, ensuring that performance targets are met and costs are controlled. The duration and complexity of the project necessitate robust accountability measures.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost overruns
- Technical failure
- Schedule delays
- Limited contractor innovation
- Dependency on a single contractor
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, co, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $115.1 million to LOCKHEED MARTIN COMMERCIAL LAUNCH SERVICES, INC.. SECOND GENETATION RLV SYSTEM ENGINEERING AND ARCHITECTURE DEFINITION/RISK REDUCTION FOR TECH.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN COMMERCIAL LAUNCH SERVICES, INC..
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 $115.1 million.
What is the period of performance?
Start: 2001-05-21. End: 2006-07-23.
What specific performance metrics will be used to evaluate Lockheed Martin's success in the risk reduction phase, and how will these influence the award fee?
The contract likely outlines specific technical milestones, system performance targets, and risk mitigation achievements. The award fee would be tied to exceeding these predefined metrics, incentivizing Lockheed Martin to deliver superior results in engineering and risk reduction for the RLV system.
Given the 'full and open' competition designation, what factors led to a single awardee, and how does this impact the government's ability to secure the best possible price?
A single award despite 'full and open' competition suggests either a highly specialized requirement that only Lockheed Martin could meet, or a competitive process where their proposal was overwhelmingly superior. This could limit price negotiation leverage for the government, though the Cost Plus Award Fee structure aims to incentivize performance.
How will the success of this R&D project translate into tangible benefits for future NASA missions and the broader aerospace industry?
Successful completion of this project is expected to yield more reliable, potentially lower-cost reusable launch vehicles. This would enable more frequent and ambitious space missions, reduce operational expenses for NASA, and foster innovation within the commercial space sector, potentially leading to new market opportunities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 123
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 12999 DEER CREEK CANYON ROAD, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $124,376,907
Exercised Options: $122,914,547
Current Obligation: $115,078,653
Timeline
Start Date: 2001-05-21
Current End Date: 2006-07-23
Potential End Date: 2006-07-23 00:00:00
Last Modified: 2009-06-17
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