NASA Awards $363M Contract to Lockheed Martin for 3 GEOXO Spacecraft
Contract Overview
Contract Amount: $363,374,601 ($363.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2024-07-01
End Date: 2048-06-30
Contract Duration: 8,765 days
Daily Burn Rate: $41.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: DESIGN BUILD AND DELIVER 3 GEOXO SPACECRAFT
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $363.4 million to LOCKHEED MARTIN CORP for work described as: DESIGN BUILD AND DELIVER 3 GEOXO SPACECRAFT Key points: 1. Significant investment in space technology development. 2. Sole awardee is a major aerospace contractor. 3. Long-term contract duration raises questions about flexibility. 4. Focus on guided missile and space vehicle manufacturing sector.
Value Assessment
Rating: fair
The contract value of $363.4 million for three GEOXO spacecraft appears substantial. Benchmarking against similar complex spacecraft development contracts is difficult without more detailed specifications, but the cost-plus award fee structure suggests potential for cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific details of the competition and how price was determined are not fully elaborated, leaving room for potential price discovery inefficiencies.
Taxpayer Impact: Taxpayer funds are being allocated for advanced space exploration and technology, with the potential for significant scientific and technological returns. The cost-plus award fee structure necessitates careful oversight to ensure value for money.
Public Impact
Advances NASA's capabilities in Earth observation and space science. Supports the development of critical space infrastructure. Potential for spin-off technologies benefiting other sectors. Long-term commitment to a specific technology pathway.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure can incentivize higher costs.
- Long contract duration may not adapt to evolving technology.
- Limited insight into specific performance metrics and award criteria.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical NASA mission requirement.
- Contractor has extensive experience in space vehicle manufacturing.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-cost, high-innovation area. Spending benchmarks are difficult to establish due to the unique nature of spacecraft development, but this represents a significant investment in advanced aerospace capabilities.
Small Business Impact
The contract was awarded to Lockheed Martin Corp, a large prime contractor. There is no explicit indication of small business participation in this award announcement, suggesting potential limited opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract is managed by NASA, a federal agency with established oversight mechanisms. The cost-plus award fee structure requires diligent monitoring of costs and performance to ensure accountability and prevent unnecessary expenditures.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost-plus award fee can lead to cost overruns.
- Long contract duration may limit adaptability to new technologies.
- Potential for limited small business subcontracting.
- Complexity of spacecraft development introduces inherent risks.
- Dependence on a single contractor for critical assets.
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $363.4 million to LOCKHEED MARTIN CORP. DESIGN BUILD AND DELIVER 3 GEOXO SPACECRAFT
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 $363.4 million.
What is the period of performance?
Start: 2024-07-01. End: 2048-06-30.
What specific technological advancements are expected from these GEOXO spacecraft, and how do they align with NASA's long-term strategic goals?
The GEOXO spacecraft are intended to enhance Earth observation capabilities, providing critical data for climate monitoring, weather forecasting, and disaster management. These advancements align with NASA's strategic goals of understanding Earth as a system and improving life on our home planet. The specific technological innovations will likely focus on improved sensor technology, data processing, and mission longevity.
How will NASA ensure that the cost-plus award fee structure effectively controls costs and incentivizes performance, given the long duration of the contract?
NASA will implement rigorous oversight through regular performance reviews, cost audits, and milestone tracking. The award fee criteria will be clearly defined and tied to specific, measurable performance objectives. For the long duration, phased reviews and potential contract modifications will be crucial to adapt to technological changes and ensure continued cost control and performance incentives.
What is the anticipated return on investment for taxpayers from the development and deployment of these GEOXO spacecraft, beyond scientific data?
Beyond scientific data, the return on investment includes advancements in satellite technology with potential commercial applications, fostering innovation in the aerospace industry, and supporting national security interests through enhanced Earth observation. Furthermore, improved climate and weather data can lead to better resource management and disaster preparedness, yielding significant economic benefits.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 80GSFC23R0010
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,279,447,443
Exercised Options: $1,764,328,806
Current Obligation: $363,374,601
Actual Outlays: $128,554,950
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $54,396,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-07-01
Current End Date: 2048-06-30
Potential End Date: 2048-06-30 00:00:00
Last Modified: 2026-01-26
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