NASA's $406M ISS Cargo Mission Contract to Lockheed Martin: A 7-Year R&D Endeavor
Contract Overview
Contract Amount: $406,201,242 ($406.2M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-11-05
End Date: 2011-09-30
Contract Duration: 2,886 days
Daily Burn Rate: $140.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ISS CARGO MISSION CONTRACT (CMC)
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $406.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ISS CARGO MISSION CONTRACT (CMC) Key points: 1. This contract focused on research and development, indicating a long-term investment in scientific advancement. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract type, Cost Plus Award Fee, incentivizes performance while managing costs. 4. With a duration of nearly 8 years, this represents a significant commitment to the International Space Station program. 5. The contractor, Lockheed Martin, is a major player in the aerospace and defense sector. 6. The contract's value of over $400 million underscores the substantial resources allocated to this mission.
Value Assessment
Rating: good
Benchmarking the value of this specific contract is challenging due to its R&D focus and long duration. However, the Cost Plus Award Fee structure suggests an attempt to balance cost control with performance incentives. Comparing it to similar long-term, complex R&D contracts for space exploration would provide a more accurate assessment of value for money. The total award amount of over $400 million over nearly eight years indicates a significant investment, which is typical for major space infrastructure and research programs.
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. This competitive process is generally expected to lead to better pricing and innovation. The presence of two bids suggests a reasonable level of competition for this specialized R&D contract.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services or research delivered.
Public Impact
The primary beneficiaries are NASA and the scientific community, who gain access to critical cargo resupply and research capabilities for the International Space Station. This contract supported ongoing research and development activities aboard the ISS, contributing to scientific discovery and technological advancement. The geographic impact is global, with the ISS orbiting the Earth, but the primary operational and research activities are centered at NASA facilities and in space. Workforce implications include highly skilled engineers, scientists, and technicians involved in space mission operations and research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term R&D contracts can be subject to scope creep and cost overruns if not managed meticulously.
- Reliance on a single contractor for such a critical, long-duration mission may present risks if the contractor faces financial or operational challenges.
Positive Signals
- The Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
- Full and open competition suggests a thorough vetting process and potential for competitive pricing.
- Lockheed Martin's established presence in the aerospace sector indicates significant experience and capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, as indicated by the NAICS code 541710. The aerospace industry, a significant segment of this sector, involves substantial government spending on complex R&D projects. Comparable spending benchmarks would involve other large-scale, long-duration R&D contracts for space exploration, satellite development, or advanced technology research programs.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D contract awarded to a major aerospace corporation, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's performance requirements. The focus is on specialized capabilities typically held by large prime contractors.
Oversight & Accountability
Oversight for this contract would primarily fall under NASA's contracting officers and program management. The Cost Plus Award Fee structure implies performance metrics and award criteria that are monitored to determine incentive payments. Transparency would be managed through NASA's reporting mechanisms for federal contracts. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- International Space Station Operations
- Space Exploration R&D
- Aerospace Technology Development
- NASA Research Grants
Risk Flags
- Long contract duration increases risk of technological obsolescence and performance variability.
- Cost Plus Award Fee contracts require careful monitoring of performance criteria to ensure value.
- Sole reliance on a single prime contractor for critical mission support can pose systemic risks.
Tags
nasa, iss, cargo-mission, lockheed-martin, research-and-development, definitive-contract, cost-plus-award-fee, full-and-open-competition, aerospace, texas, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $406.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ISS CARGO MISSION CONTRACT (CMC)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
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 $406.2 million.
What is the period of performance?
Start: 2003-11-05. End: 2011-09-30.
What was the specific nature of the R&D conducted under this contract?
The contract, identified as the ISS Cargo Mission Contract (CMC), was awarded to Lockheed Martin Integrated Systems, LLC, for research and development activities related to the International Space Station (ISS). While the specific R&D projects are not detailed in the provided data, such contracts typically involve developing, testing, and implementing technologies and methodologies for cargo resupply, scientific experimentation support, and operational enhancements for the ISS. This could encompass areas like advanced life support systems, new research apparatus, improved payload integration, or innovative mission planning and execution strategies. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541710) further suggests a broad scope of scientific and technical inquiry.
How does the Cost Plus Award Fee (CPAF) structure typically function in contracts like this?
The Cost Plus Award Fee (CPAF) contract type is a hybrid structure designed to incentivize contractor performance while managing costs. Under CPAF, the contractor is reimbursed for all allowable costs incurred during the performance of the contract. In addition to cost reimbursement, the contractor has the opportunity to earn an award fee, which is determined by the government based on the contractor's performance against pre-defined criteria and objectives. These criteria are often subjective and related to factors like technical achievement, schedule adherence, and management effectiveness. The government's determination of the award fee is typically made periodically, and the contractor receives the fee if their performance meets or exceeds the established standards. This structure aims to motivate contractors to go beyond minimum requirements and achieve superior results, while still providing a framework for cost control.
What are the potential risks associated with a long-duration contract like this (2886 days)?
Long-duration contracts, such as this 2886-day (approximately 7.9 years) ISS Cargo Mission Contract, present several potential risks. Firstly, technological obsolescence is a concern; the technologies and research objectives defined at the outset may become outdated over such an extended period, requiring costly modifications or scope adjustments. Secondly, contractor performance can fluctuate; maintaining consistent high performance over nearly eight years can be challenging, and issues may arise with personnel turnover, management stability, or evolving corporate priorities. Thirdly, cost estimation and control become more complex; unforeseen economic factors, inflation, or unexpected technical hurdles can lead to cost overruns. Finally, the government's strategic objectives or budget priorities might shift during the contract's life, potentially impacting the program's continuation or scope, leading to contract disputes or termination.
How does the 'full and open competition' impact the value and innovation for this contract?
Awarding the ISS Cargo Mission Contract (CMC) under 'full and open competition' is intended to maximize value and foster innovation. This procurement method allows all responsible sources, regardless of size or type, to submit a bid, thereby broadening the potential pool of qualified contractors. The increased number of bidders typically leads to a more competitive environment, which can drive down prices and encourage contractors to offer their most innovative solutions to win the contract. For a complex R&D contract like this, competition can spur the development of novel approaches to cargo delivery, research support, and mission operations, ultimately benefiting NASA's scientific and exploration goals. The presence of two bidders, as indicated, suggests a level of competition was achieved, though more bidders generally correlate with stronger price discovery.
What is the significance of Lockheed Martin being the contractor for this ISS contract?
Lockheed Martin Integrated Systems, LLC, is a major defense and aerospace contractor with extensive experience in space systems, satellite development, and complex mission support. Their selection as the contractor for the ISS Cargo Mission Contract signifies NASA's reliance on established industry leaders for critical, long-term space programs. Lockheed Martin's track record in managing large-scale, technologically advanced projects suggests they possess the necessary expertise, infrastructure, and personnel to execute the demanding requirements of supporting the ISS. This choice reflects a strategic decision by NASA to partner with a contractor known for its capabilities in space exploration and R&D, likely ensuring a high level of technical proficiency and program stability, albeit potentially at a premium cost compared to less experienced firms.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 9BG38280PA
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 595 GEMINI AVE, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $433,328,577
Exercised Options: $415,122,097
Current Obligation: $406,201,242
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2003-11-05
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2020-02-27
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