Lockheed Martin awarded $69.7M R&D contract for cryogenic system performance demonstration by NASA
Contract Overview
Contract Amount: $69,721,101 ($69.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-08-06
End Date: 2026-04-03
Contract Duration: 1,701 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 73
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TIPPING POINT CRYOGENIC DEMONSTRATION MISSION (CDM) DELIVER GROUND AND MISSION DATA TO CHARACTERIZE FULL-SCALE CRYOGENIC INTEGRATED SYSTEM PERFORMANCE.
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $69.7 million to LOCKHEED MARTIN CORP for work described as: TIPPING POINT CRYOGENIC DEMONSTRATION MISSION (CDM) DELIVER GROUND AND MISSION DATA TO CHARACTERIZE FULL-SCALE CRYOGENIC INTEGRATED SYSTEM PERFORMANCE. Key points: 1. Contract focuses on characterizing full-scale cryogenic integrated system performance. 2. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 3. The contract is a definitive contract with a firm fixed price. 4. Performance period spans from August 2021 to April 2026. 5. The contract was awarded under full and open competition. 6. The contractor, Lockheed Martin Corp, has a significant presence in the aerospace sector.
Value Assessment
Rating: good
The contract value of $69.7 million for a multi-year R&D effort appears reasonable given the scope of characterizing full-scale cryogenic integrated system performance. Benchmarking against similar complex R&D contracts for advanced aerospace systems would provide further context, but the firm fixed-price structure suggests a degree of cost certainty for NASA. The duration of the contract (over 1700 days) is typical for such developmental projects.
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 had the opportunity to submit proposals. This competitive process is expected to drive better pricing and innovation. The number of bids received (73) suggests robust interest and a healthy competitive environment for this type of advanced research and development.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and higher quality outcomes.
Public Impact
This contract directly benefits NASA's research and development capabilities in cryogenic systems. The services delivered will characterize the performance of cryogenic integrated systems, crucial for future space missions. The geographic impact is primarily associated with Lockheed Martin's operations in Colorado. The contract supports highly skilled technical and engineering workforce in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise in cryogenic system development.
- Dependence on a single contractor for critical R&D may limit alternative solutions.
- Long contract duration increases exposure to evolving technological landscapes.
Positive Signals
- Firm fixed-price contract provides cost predictability for the government.
- Full and open competition suggests a competitive award process.
- The contractor, Lockheed Martin, is a well-established entity with extensive experience in aerospace R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace industry, where Lockheed Martin is a major player, heavily relies on advancements in cryogenic technology for propulsion and life support systems in space exploration. Comparable spending benchmarks for large-scale R&D projects in aerospace can range from tens to hundreds of millions of dollars, depending on complexity and technological novelty.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses as subcontractors on broader projects.
Oversight & Accountability
NASA's contract oversight mechanisms are expected to be in place, including regular performance reviews and milestone tracking. The firm fixed-price nature of the contract provides a degree of financial accountability. Transparency is generally maintained through contract award announcements and public reporting, though specific details of technical progress may be proprietary.
Related Government Programs
- NASA Space Technology Mission Directorate
- Advanced Propulsion Research
- Cryogenic Fluid Management Research
- Aerospace Systems Development
Risk Flags
- Technical complexity of cryogenic systems
- Long contract duration
- Potential for cost overruns despite FFP structure
- Dependence on contractor's specific expertise
Tags
research-and-development, nasa, lockheed-martin-corp, colorado, definitive-contract, firm-fixed-price, full-and-open-competition, aerospace, cryogenics, space-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $69.7 million to LOCKHEED MARTIN CORP. TIPPING POINT CRYOGENIC DEMONSTRATION MISSION (CDM) DELIVER GROUND AND MISSION DATA TO CHARACTERIZE FULL-SCALE CRYOGENIC INTEGRATED SYSTEM PERFORMANCE.
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 $69.7 million.
What is the period of performance?
Start: 2021-08-06. End: 2026-04-03.
What is Lockheed Martin's track record with NASA on similar cryogenic research contracts?
Lockheed Martin Corporation has a long-standing and extensive track record of working with NASA on a wide array of complex aerospace projects, including those involving advanced propulsion and life support systems. While specific details on past cryogenic research contracts are not provided in this data snippet, the company's history includes significant contributions to space exploration programs, such as the Orion spacecraft and various satellite development initiatives. Their experience in handling large-scale, high-value research and development contracts for NASA suggests a strong capability to manage the Tipping Point Cryogenic Demonstration Mission. Further analysis would involve reviewing NASA's contract databases for prior awards to Lockheed Martin specifically related to cryogenic technologies and assessing their performance history on those contracts, including any reported issues or successes.
How does the $69.7 million contract value compare to similar cryogenic R&D efforts?
The $69.7 million contract value for the Tipping Point Cryogenic Demonstration Mission (CDM) is a significant investment, typical for advanced R&D in specialized fields like cryogenic systems for space applications. To benchmark this value, one would need to compare it against other NASA or Department of Defense contracts for similar research and development efforts. For instance, contracts focused on developing new rocket engine components, advanced thermal management systems, or long-duration cryogenic fuel storage solutions could serve as comparators. The scope of characterizing 'full-scale cryogenic integrated system performance' suggests a comprehensive testing and validation phase, which inherently requires substantial funding. Without access to a database of comparable contracts, it's difficult to definitively state if this value is high or low, but it aligns with the expected cost of developing and testing cutting-edge aerospace technology.
What are the primary risks associated with this cryogenic R&D contract?
The primary risks associated with this cryogenic R&D contract are technical and programmatic. Technically, cryogenic systems are inherently complex, involving extremely low temperatures and high pressures, which can lead to challenges in material science, sealing, insulation, and fluid management. Unexpected difficulties in achieving desired performance metrics or ensuring system reliability under operational conditions could lead to delays and cost overruns. Programmatically, the long duration of the contract (over 1700 days) increases the risk of technological obsolescence or shifts in mission priorities. Furthermore, reliance on a single contractor, even a capable one like Lockheed Martin, carries a risk if unforeseen issues arise that are unique to their approach or capabilities. Effective risk mitigation will depend on robust project management, clear performance metrics, and proactive problem-solving by both NASA and the contractor.
How effective is the firm fixed-price contract type in managing costs for this R&D project?
The firm fixed-price (FFP) contract type is generally considered effective in managing costs for R&D projects where the scope of work is well-defined and the risks are understood. For this contract, the FFP structure places the primary cost risk on the contractor, Lockheed Martin. This incentivizes the contractor to control costs and manage resources efficiently to maximize profit. NASA benefits from cost certainty, as the total price is fixed, barring any contract modifications. However, for highly exploratory R&D where the technical path is uncertain, an FFP contract can sometimes lead contractors to be overly conservative, potentially stifling innovation, or to include significant contingencies in their pricing, making the initial price higher. Given the goal of characterizing 'full-scale cryogenic integrated system performance,' the scope appears sufficiently defined for an FFP to be appropriate, encouraging efficient execution within the agreed-upon budget.
What is the historical spending pattern for cryogenic research at NASA?
Historical spending patterns for cryogenic research at NASA have varied significantly over the years, often tied to specific mission objectives and technological advancements. Major investments have been made during periods of intensive space exploration development, such as the Apollo program, the Space Shuttle program, and more recently, in support of programs like the James Webb Space Telescope and future Mars missions that require advanced cryogenic cooling. Funding for cryogenic research can be distributed across various directorates, including Science, Human Exploration and Operations, and Space Technology. While specific aggregate figures for 'cryogenic research' are not readily available without deep dives into NASA's budget archives, it's understood that such specialized R&D is a consistent, albeit often fluctuating, component of NASA's overall research and development budget, driven by the evolving needs of space science and exploration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
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: 80HQTR20NOA01-20STMD_001
Offers Received: 73
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,721,101
Exercised Options: $69,721,101
Current Obligation: $69,721,101
Actual Outlays: $62,721,101
Subaward Activity
Number of Subawards: 157
Total Subaward Amount: $27,812,347
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-06
Current End Date: 2026-04-03
Potential End Date: 2026-04-03 00:00:00
Last Modified: 2026-04-03
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
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 →