NASA's Space Shuttle External Tank Project: $195.7M Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $195,657,993 ($195.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-27
End Date: 2009-06-30
Contract Duration: 2,073 days
Daily Burn Rate: $94.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SPACE SHUTTLE EXTERNAL TANK PROJECT UNDER THIS CONSOLIDATION, REPLACES NNM04AA06C
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
National Aeronautics and Space Administration obligated $195.7 million to LOCKHEED MARTIN CORP for work described as: SPACE SHUTTLE EXTERNAL TANK PROJECT UNDER THIS CONSOLIDATION, REPLACES NNM04AA06C Key points: 1. The contract, valued at $195.7 million, is for the Space Shuttle External Tank Project. 2. Lockheed Martin Corporation is the sole awardee, indicating a lack of competition. 3. The contract duration is 2073 days, ending in June 2009. 4. The NAICS code 561210 suggests Facilities Support Services.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which offers limited incentive for cost control. Without a competitive bidding process, it's difficult to assess if the $195.7 million price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning there was no open bidding process. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about whether taxpayer funds were used efficiently.
Public Impact
Significant taxpayer investment in a critical space program component. Potential for cost overruns due to sole-source award. Impact on the aerospace industry's competitive landscape. Long-term implications for NASA's operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus-no-fee contract type may not incentivize cost efficiency.
- Lack of transparency in the award process.
Positive Signals
- Supports a critical component of the Space Shuttle program.
- Awarded to a major aerospace contractor with established expertise.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to space exploration infrastructure. Spending benchmarks in this sector are highly variable due to the specialized nature of projects and significant R&D costs.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to Lockheed Martin Corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight would focus on ensuring the necessity and cost-effectiveness of the contract.
Related Government Programs
- Facilities Support Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award
- Cost-plus-no-fee contract type
- Lack of competition
- Potential for cost overruns
- Limited transparency in award justification
Tags
facilities-support-services, national-aeronautics-and-space-administr, la, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $195.7 million to LOCKHEED MARTIN CORP. SPACE SHUTTLE EXTERNAL TANK PROJECT UNDER THIS CONSOLIDATION, REPLACES NNM04AA06C
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 $195.7 million.
What is the period of performance?
Start: 2003-10-27. End: 2009-06-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation would be required to understand the specific rationale behind this decision.
What are the potential risks associated with a sole-source, cost-plus-no-fee contract for a project of this magnitude?
Sole-source contracts eliminate competitive pressure, potentially leading to inflated prices and reduced innovation. A cost-plus-no-fee structure means the contractor is reimbursed for all allowable costs plus a fixed fee, but without an incentive fee tied to performance or cost savings, there's less motivation to control expenses, increasing the risk of cost overruns for the government.
How does this contract contribute to the overall effectiveness and value of the Space Shuttle program?
The external tank is a critical component of the Space Shuttle, essential for launch. While the contract ensures the supply of this vital part, the lack of competition and the cost-plus-no-fee structure raise questions about the overall value and cost-effectiveness achieved for the taxpayer, despite its contribution to program functionality.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 13800 OLD GENTILLY ROAD, NEW ORLEANS, LA, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $204,871,610
Exercised Options: $204,871,610
Current Obligation: $195,657,993
Timeline
Start Date: 2003-10-27
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2013-03-27
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