NASA awards $50.5M to Lockheed Martin for lunar lander development, focusing on risk mitigation

Contract Overview

Contract Amount: $50,521,689 ($50.5M)

Contractor: Lockheed Martin Corp

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2021-09-27

End Date: 2024-08-08

Contract Duration: 1,046 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS.

Place of Performance

Location: LITTLETON, DOUGLAS County, COLORADO, 80125

State: Colorado Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $50.5 million to LOCKHEED MARTIN CORP for work described as: THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS. Key points: 1. Contract focuses on crucial risk reduction for sustainable lunar lander concepts. 2. The award leverages research and development in physical, engineering, and life sciences. 3. A firm-fixed-price structure aims to control costs for this R&D effort. 4. The duration of over 1000 days suggests a complex, multi-phase development process. 5. This contract supports NASA's broader Artemis program goals for lunar exploration.

Value Assessment

Rating: good

The contract value of $50.5 million for a multi-year R&D effort in advanced space technology appears reasonable. Benchmarking against similar complex R&D contracts in the aerospace sector suggests this is within expected ranges for concept development and risk mitigation. The firm-fixed-price structure provides cost certainty for NASA, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 7 bidders suggests a healthy level of interest and competition for this significant NASA contract. This competitive process is expected to drive innovation and ensure fair pricing.

Taxpayer Impact: A competitive award process benefits taxpayers by fostering a more efficient allocation of resources and potentially leading to lower overall development costs for critical space technologies.

Public Impact

Benefits NASA's long-term goals for sustainable lunar presence and exploration. Delivers advanced research and development for critical lunar lander technologies. Supports the development of technologies that could underpin future space missions. Potential for workforce implications in specialized aerospace engineering and research fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Risk mitigation is critical; any failure in this phase could significantly delay lunar missions.
  • Dependence on a single contractor for a critical development phase carries inherent risks.

Positive Signals

  • Firm-fixed-price contract provides cost control and predictability for NASA.
  • Full and open competition suggests a robust selection process.
  • Focus on risk reduction is a proactive approach to complex development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace industry, a significant segment of this sector, is characterized by high R&D investment and long development cycles. Comparable spending benchmarks for advanced concept development and risk mitigation in space exploration can range from tens to hundreds of millions of dollars, depending on the complexity and scope.

Small Business Impact

The data indicates 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 unless Lockheed Martin voluntarily includes them in its supply chain.

Oversight & Accountability

NASA's internal oversight mechanisms, including program management reviews and technical evaluations, will be crucial for monitoring progress and ensuring adherence to contract requirements. The Inspector General's office provides an external layer of accountability for federal spending. Transparency is facilitated through contract award databases and public reporting.

Related Government Programs

  • Artemis Program
  • Lunar Exploration Initiatives
  • Space Technology Development
  • Advanced Propulsion Systems Research

Risk Flags

  • Technology Readiness Level (TRL) uncertainty for novel components.
  • Integration risks between different subsystems.
  • Performance degradation in extreme lunar environment.
  • Potential for cost overruns despite fixed-price structure if scope creep occurs.

Tags

research-and-development, space-exploration, nasa, lockheed-martin, lunar-lander, firm-fixed-price, full-and-open-competition, definitive-contract, colorado, aerospace, risk-mitigation

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $50.5 million to LOCKHEED MARTIN CORP. THIS HLS EFFORT FURTHER DEVELOPS SUSTAINING LUNAR LANDER CONCEPT DEVELOPMENT THROUGH DESIGN, TRADE STUDIES AND JOINT WORKING GROUPS AND PERFORM RISK MITIGATION ACTIVITIES TO REDUCE SUSTAINABLE LUNAR LANDER DEVELOPMENT RISKS.

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 $50.5 million.

What is the period of performance?

Start: 2021-09-27. End: 2024-08-08.

What is Lockheed Martin's track record with NASA on similar lunar or space exploration development contracts?

Lockheed Martin has a long and extensive history of working with NASA on major space exploration programs, including the Orion spacecraft for the Artemis program, the James Webb Space Telescope, and numerous other satellite and deep space missions. Their experience spans design, development, manufacturing, and integration of complex space systems. While specific details on lunar lander development contracts are proprietary, their established expertise in handling large-scale, high-risk space R&D projects for NASA suggests a strong capability to execute this current contract effectively. Past performance reviews and contract close-outs with NASA would provide a more granular assessment of their success rates and adherence to schedule and budget on prior, comparable efforts.

How does the $50.5 million value compare to other lunar lander development contracts or similar R&D efforts?

The $50.5 million award for concept development and risk mitigation for a sustainable lunar lander is a significant but not exceptionally large sum within the context of advanced aerospace R&D. Development of complex systems like lunar landers can cost hundreds of millions, or even billions, over their lifecycle. This specific contract appears to focus on the earlier, foundational stages of design, trade studies, and risk reduction. Comparing it to other contracts requires careful consideration of scope; for instance, contracts for the actual construction and testing of a flight-ready lander would be substantially larger. However, for a multi-year R&D effort aimed at de-risking a critical technology, this value is consistent with industry benchmarks for similar high-stakes government R&D projects.

What are the primary risks associated with this lunar lander development effort, and how does the contract aim to mitigate them?

The primary risks in developing a sustainable lunar lander typically involve technological maturity, integration challenges, operational reliability in the harsh lunar environment, power and propulsion systems, and landing precision. This contract specifically targets risk mitigation through design, trade studies, and joint working groups. The 'trade studies' likely involve evaluating different technological approaches, materials, and system architectures to identify the most viable and reliable options. 'Joint working groups' suggest collaboration between NASA and Lockheed Martin experts to tackle complex problems. By addressing these risks early in the development cycle, the contract aims to prevent costly redesigns, delays, and potential mission failures in later stages, thereby increasing the probability of successful lunar landings and sustained presence.

What is the expected timeline for the key milestones within this contract, and how does it align with NASA's broader lunar exploration goals?

The contract has a duration of approximately 1046 days, spanning from September 27, 2021, to August 8, 2024. This timeframe suggests a phased approach to concept development and risk mitigation. Key milestones would likely include the completion of initial design reviews, critical trade studies, technology maturation assessments, and final risk reduction reports. This timeline appears to align with NASA's Artemis program objectives, which aim for sustained lunar exploration in the mid-to-late 2020s. Completing the risk mitigation phase by mid-2024 would position the program to move into more detailed design and hardware development phases, crucial for meeting the ambitious goals of returning humans to the Moon and establishing a long-term presence.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) apply to this lunar lander contract?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' is highly applicable to this contract. Developing a sustainable lunar lander inherently involves significant research and development across multiple engineering disciplines, including mechanical, aerospace, electrical, and materials engineering. The physical sciences are fundamental to understanding lunar environmental conditions (e.g., radiation, temperature extremes, regolith properties) and their impact on lander design. Engineering sciences are applied to design, simulate, and test the lander's systems, such as propulsion, guidance, navigation, control, and structural integrity. While life sciences might seem less directly involved, understanding human factors and life support integration for future crewed missions could also fall under this broad classification if considered in the context of the lander's overall mission architecture.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNH19ZCQ001K

Offers Received: 7

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: $141,659,073

Exercised Options: $50,521,689

Current Obligation: $50,521,689

Actual Outlays: $50,521,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2021-09-27

Current End Date: 2024-08-08

Potential End Date: 2024-09-30 00:00:00

Last Modified: 2024-10-31

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