NASA's $24.8M Gulfstream II Simulation Support Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $24,847,390 ($24.8M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2006-01-01
End Date: 2011-09-30
Contract Duration: 2,098 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SIMULATION SUPORT SERVICES ON THE GULFSGTREAM II AIRCRAFT, MODIFIED TO A SHUTTLE TRAINING AIRCRAFT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $24.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SIMULATION SUPORT SERVICES ON THE GULFSGTREAM II AIRCRAFT, MODIFIED TO A SHUTTLE TRAINING AIRCRAFT Key points: 1. Contract awarded to Lockheed Martin Services, LLC for simulation support of Gulfstream II aircraft. 2. The contract, valued at $24.8 million, spans over 8 years. 3. This contract falls under 'Other Support Activities for Air Transportation' (PSC ND). 4. The award was made under full and open competition. 5. The contract type is Cost Plus Award Fee (CPAF).
Value Assessment
Rating: good
The contract value of $24.8M over 8 years suggests a moderate annual spend. Benchmarking against similar simulation support contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in simulation support services.
Public Impact
Ensures continued operational readiness for critical training aircraft. Supports NASA's astronaut training programs. Maintains specialized aircraft for shuttle program transition. Contributes to the efficiency of flight training operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPAF contract type.
- Dependence on a single contractor for critical support.
Positive Signals
- Full and open competition ensures market leverage.
- Long-term contract provides stability for training operations.
Sector Analysis
This contract is within the aerospace and defense sector, specifically supporting aviation training. Spending benchmarks for similar simulation and training services can vary widely based on aircraft type and complexity.
Small Business Impact
The awardee, Lockheed Martin Services, LLC, is a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
NASA's procurement processes are subject to federal oversight. The use of CPAF requires careful monitoring of performance and costs to ensure accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Contract duration is lengthy (over 8 years).
- Contract type is Cost Plus Award Fee (CPAF).
- No small business participation noted.
- Potential for cost creep over contract life.
Tags
other-support-activities-for-air-transpo, national-aeronautics-and-space-administr, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $24.8 million to LOCKHEED MARTIN SERVICES, LLC. SIMULATION SUPORT SERVICES ON THE GULFSGTREAM II AIRCRAFT, MODIFIED TO A SHUTTLE TRAINING AIRCRAFT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, 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 $24.8 million.
What is the period of performance?
Start: 2006-01-01. End: 2011-09-30.
What was the basis for the award fee structure, and how was performance measured to determine the award fee?
The basis for the award fee structure would typically involve predefined performance metrics related to the quality, timeliness, and effectiveness of the simulation support services. NASA would have established specific criteria and evaluation methods to assess Lockheed Martin's performance against these metrics, directly influencing the amount of award fee earned.
What are the risks associated with the long duration of this contract and the CPAF structure?
A long contract duration increases the risk of price escalation and potential obsolescence of technology or training methods. The CPAF structure, while incentivizing performance, carries a risk of contractor manipulation to maximize fees, potentially leading to higher overall costs if not rigorously overseen.
How effectively did the full and open competition process ensure optimal value for the taxpayer in this specific instance?
Full and open competition generally maximizes value by fostering a competitive environment. However, the ultimate effectiveness depends on the number and capability of bidders, the clarity of the solicitation, and the negotiation process. Without detailed bid data, it's difficult to definitively assess the optimal value achieved.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNJ05127153R
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: TWO CORPORATE PLAZA, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,172,286
Exercised Options: $27,875,462
Current Obligation: $24,847,390
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2006-01-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2026-03-04
More Contracts from Lockheed Martin Services, LLC
- Management and Operation of Y-12 Plant and Other Programs — $20.6B (Department of Energy)
- Dafis UDO Reconstruct W/O Advance — $3.8B (Department of Transportation)
- TAS::75 0511::TAS — $990.7M (Department of Health and Human Services)
- Seat/Science Engineering,Analysis, and Test — $983.9M (National Aeronautics and Space Administration)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Department of Commerce)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →