DoD's $33.7M JETSON contract to Lockheed Martin for on-orbit nuclear power research awarded via full and open competition

Contract Overview

Contract Amount: $33,743,301 ($33.7M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2024-12-23

Contract Duration: 451 days

Daily Burn Rate: $74.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) HIGH POWER

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to LOCKHEED MARTIN CORP for work described as: JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) HIGH POWER Key points: 1. Contract focuses on advanced research and development in a critical emerging technology area. 2. Full and open competition suggests a broad market search, potentially leading to competitive pricing. 3. The definitive contract type indicates a long-term agreement for services or supplies. 4. Research and Development in Physical, Engineering, and Life Sciences is a high-risk, high-reward sector. 5. The contract duration of 451 days allows for substantial progress on complex research objectives. 6. Awarded by the Department of the Air Force, aligning with strategic defense modernization goals.

Value Assessment

Rating: good

The contract value of $33.7 million for a 451-day research and development effort appears reasonable given the specialized nature of on-orbit nuclear power technology. Benchmarking is difficult due to the emergent nature of this field, but the cost-plus-fixed-fee structure allows for flexibility while incentivizing efficient performance. The number of bidders (3) suggests a competitive but focused field for this niche technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. Three bids were received, suggesting a healthy level of interest and capability within the market for this specialized research. The competitive process is expected to have driven a more favorable price for the government compared to a sole-source award.

Taxpayer Impact: Taxpayers benefit from the government's ability to solicit proposals from a wide range of qualified contractors, ensuring that the most innovative and cost-effective solutions are considered for this advanced technology development.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will gain insights into advanced on-orbit nuclear power capabilities. This contract supports research and development activities crucial for future space-based power generation and defense applications. The geographic impact is primarily within New Mexico, where the contractor's operations are based. Workforce implications include employment for highly skilled scientists, engineers, and technicians in the aerospace and R&D sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The emergent nature of on-orbit nuclear power technology presents inherent technical risks and potential safety concerns that require rigorous oversight.
Reliance on a single large contractor, even with competition, could lead to dependency and potential price increases in future phases.
The long-term development timeline for such advanced technologies means that initial investments may not yield immediate returns.

Positive Signals

Awarding to a well-established defense contractor like Lockheed Martin suggests a strong track record in complex project execution.
The use of full and open competition indicates a commitment to exploring the best available technological solutions.
Focus on R&D in a strategic area like space-based power aligns with national security objectives and technological advancement.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to space applications. The market for on-orbit nuclear power is nascent but holds significant potential for defense, scientific exploration, and commercial space activities. Comparable spending benchmarks are scarce due to the novelty, but R&D contracts of this magnitude are typical for exploring cutting-edge technologies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Lockheed Martin is a large prime contractor, and while they may engage small businesses as subcontractors, the primary award is not directed towards small business participation. Further analysis would be needed to determine the extent of small business subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, though specific technical details of the research may be sensitive.

Related Government Programs

Advanced Space Technology Research
Nuclear Propulsion Research
Department of Defense Research and Development Programs
Space Systems Development
Emerging Technology Investments

Risk Flags

Emergent Technology Risk
Nuclear Safety Concerns
Long-Term R&D Investment
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to LOCKHEED MARTIN CORP. JOINT EMERGENT TECHNOLOGY SUPPLYING ON-ORBIT NUCLEAR POWER (JETSON) HIGH POWER

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2023-09-29. End: 2024-12-23.

What is Lockheed Martin's track record with similar advanced R&D contracts for the Department of Defense?

Lockheed Martin is a major defense contractor with extensive experience in complex research and development projects for the DoD, including advanced aerospace systems, satellite technology, and propulsion research. They have a history of managing large-scale, high-risk R&D efforts. While specific details on 'on-orbit nuclear power' contracts are proprietary, their portfolio includes numerous projects involving cutting-edge technologies and long development cycles. Their performance on previous contracts, often measured by meeting milestones, staying within budget (adjusted for scope changes), and delivering functional prototypes or research outcomes, would be a key indicator of their capability for the JETSON program. Government contract databases and performance reviews (e.g., CPARS) would provide more granular insights into their past performance.

How does the $33.7 million value compare to other R&D contracts for advanced space technologies?

The $33.7 million contract value for the JETSON program is a significant investment, but it falls within the typical range for advanced research and development efforts in specialized fields like space-based nuclear power. Contracts for developing novel technologies, especially those with high technical risk and long lead times, often require substantial funding. For context, other DoD R&D contracts for advanced aerospace systems, satellite development, or next-generation propulsion can range from tens to hundreds of millions of dollars over their lifecycle. The value here reflects the early-stage, exploratory nature of the research. Without more specific benchmarks for 'on-orbit nuclear power' R&D, which is a nascent field, this figure appears commensurate with the complexity and strategic importance of the objective.

What are the primary technical and programmatic risks associated with this contract?

The primary technical risks revolve around the fundamental challenges of developing and safely operating nuclear power systems in space. This includes ensuring reactor stability, managing heat dissipation, shielding against radiation, and developing reliable control systems under extreme conditions. Programmatic risks include potential cost overruns due to unforeseen technical hurdles, schedule delays inherent in cutting-edge R&D, and the possibility that the technology may not prove feasible or scalable within the projected timelines and budget. Furthermore, regulatory and safety approvals for nuclear materials in space add another layer of complexity and potential risk. The cost-plus-fixed-fee contract type, while offering flexibility, also carries a risk of cost growth if not managed diligently.

What is the expected effectiveness of this contract in advancing on-orbit nuclear power capabilities?

This contract is expected to be effective in advancing on-orbit nuclear power capabilities by funding critical early-stage research and development activities. The focus on 'emergent technology' suggests that the goal is to explore fundamental principles, assess feasibility, and potentially develop initial prototypes or key components. Success will likely be measured by the achievement of specific research milestones, such as demonstrating core reactor concepts, validating material performance in simulated space environments, or developing advanced safety protocols. While this single contract may not result in a fully operational system, it is a crucial step in laying the groundwork for future, larger-scale development efforts, potentially paving the way for more robust and sustainable power sources in space.

How does historical spending on similar R&D initiatives inform the assessment of this contract?

Historical spending on advanced R&D, particularly in areas like space systems and novel energy sources, indicates that such endeavors are long-term, capital-intensive, and carry significant risk. Past programs have shown that breakthroughs require sustained investment over many years, often involving multiple contract phases and iterative development. For instance, the development of nuclear power for terrestrial use spanned decades and involved substantial government funding. While direct historical spending on 'on-orbit nuclear power' is limited due to its novelty, spending on related fields like advanced nuclear reactor research, space propulsion systems (e.g., ion drives, nuclear thermal propulsion), and satellite power systems provides context. This suggests that the $33.7 million is an initial investment, and future funding will likely be necessary to realize operational capabilities.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $130,049,826

Exercised Options: $33,743,301

Current Obligation: $33,743,301

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $16,153,677

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline