NASA's $12.5M PAD ABORT DEMONSTRATOR contract awarded to Lockheed Martin for R&D services
Contract Overview
Contract Amount: $12,504,739 ($12.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2003-10-01
End Date: 2004-03-31
Contract Duration: 182 days
Daily Burn Rate: $68.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: PAD ABORT DEMONSTRATOR
Place of Performance
Location: LITTLETON, ARAPAHOE County, COLORADO, 80120
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $12.5 million to LOCKHEED MARTIN CORPORATION for work described as: PAD ABORT DEMONSTRATOR Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration was relatively short at 182 days. 3. Cost Plus Award Fee (CPA) contract type can incentivize performance but may lead to higher costs if not managed closely. 4. The contract was awarded to a single vendor, Lockheed Martin Corporation. 5. The NAICS code 541710 indicates research and development in physical, engineering, and life sciences. 6. The contract was awarded by the National Aeronautics and Space Administration (NASA).
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging due to its age and specialized nature. The Cost Plus Award Fee (CPA) structure means the final cost could vary based on performance, making direct price comparisons difficult without knowing the award fee achieved. However, the total award amount of $12.5 million for a 6-month R&D project in aerospace is within a plausible range for such specialized work, though detailed cost breakdowns are not available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a competitive environment for this specific R&D project. A healthy number of bidders generally supports price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended on this research and development effort.
Public Impact
This contract supports advancements in aerospace technology through research and development. The primary beneficiary is NASA, which gains insights and potential technological solutions for its missions. The geographic impact is likely concentrated in areas where Lockheed Martin conducts its R&D activities. The contract supports highly skilled jobs in the engineering and scientific sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPA contract type requires diligent oversight to ensure cost control and prevent potential overruns.
- Limited public information on the specific R&D outcomes makes it difficult to assess the full value realization.
- The short duration might indicate a focused, milestone-driven project, but could also suggest potential scope limitations.
Positive Signals
- Awarded through full and open competition, indicating a fair and accessible bidding process.
- The contract was awarded to a major aerospace contractor with a track record in R&D.
- The project falls under NASA's purview, suggesting alignment with national space exploration and research goals.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, as indicated by NAICS code 541710. This sector is characterized by innovation and often involves significant investment in specialized knowledge and facilities. Comparable spending in aerospace R&D can vary widely depending on the project's scope and technological complexity, but contracts in the tens of millions for specialized demonstrators are not uncommon.
Small Business Impact
There is no indication that this contract included specific small business set-asides. As a large contract awarded to a major defense contractor, the primary focus was likely on specialized capabilities. However, Lockheed Martin, like many large prime contractors, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would have been managed by the National Aeronautics and Space Administration (NASA). As a Cost Plus Award Fee (CPA) contract, performance metrics and award fee determinations would be key areas of oversight. Transparency is generally high for government contracts, with award details publicly available, but specific internal oversight processes and Inspector General involvement details are not provided.
Related Government Programs
- Aerospace Research and Development
- Demonstration Projects
- NASA Procurement
- Cost Plus Award Fee Contracts
Risk Flags
- Contract awarded using Cost Plus Award Fee structure, requiring careful performance monitoring.
- Limited duration may indicate a focused scope or potential for follow-on work.
- Specific technical details and outcomes of the R&D are not publicly detailed.
Tags
research-and-development, aerospace, nasa, lockheed-martin-corporation, cost-plus-award-fee, full-and-open-competition, demonstrator-project, physical-engineering-life-sciences, colorado, united-states
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $12.5 million to LOCKHEED MARTIN CORPORATION. PAD ABORT DEMONSTRATOR
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
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 $12.5 million.
What is the period of performance?
Start: 2003-10-01. End: 2004-03-31.
What was the specific purpose and scope of the PAD ABORT DEMONSTRATOR project?
The PAD ABORT DEMONSTRATOR project, awarded to Lockheed Martin Corporation by NASA, was a research and development effort. While the exact technical specifications are not detailed in the provided data, the name suggests a focus on developing or demonstrating technology related to a 'pad abort' system. Such systems are critical safety features for human spaceflight, designed to quickly propel a crew capsule away from the launch pad in the event of an emergency during ignition. The contract's R&D nature implies that it likely involved design, analysis, prototyping, and potentially testing of components or integrated systems for such a demonstrator.
How does the $12.5 million award amount compare to similar R&D contracts for aerospace demonstrators?
Comparing the $12.5 million award for the PAD ABORT DEMONSTRATOR is difficult without more specific context on the project's technological maturity and scope. However, R&D contracts for aerospace demonstrators can range significantly. Simpler component demonstrations might cost less, while complex, integrated system demonstrators, especially those involving advanced materials, propulsion, or control systems, can easily reach tens or even hundreds of millions of dollars. Given the 6-month duration and the nature of a 'demonstrator,' $12.5 million appears to be a moderate investment for a specialized R&D effort within the aerospace sector, likely focused on proving a specific concept or technology.
What are the implications of using a Cost Plus Award Fee (CPA) contract type for this project?
The Cost Plus Award Fee (CPA) contract type used for the PAD ABORT DEMONSTRATOR means that Lockheed Martin would be reimbursed for allowable costs incurred, plus a fee that consists of a fixed base amount and an award amount. The award amount is determined based on the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to perform well and achieve specific objectives, potentially leading to better outcomes than a simple cost-plus contract. However, it also requires robust government oversight to establish fair performance metrics and evaluate them objectively. For taxpayers, the CPA structure carries a risk of higher total costs if the award fee criteria are not tightly managed or if performance targets are not challenging enough, while also offering the potential for enhanced project success.
What was Lockheed Martin's track record with NASA for similar R&D projects at the time of award?
At the time of the award in October 2003, Lockheed Martin Corporation was a well-established and major aerospace and defense contractor with extensive experience working with NASA on various research and development projects. They had a long history of developing complex systems, including spacecraft, launch vehicles, and related technologies. While specific details of their R&D contract history with NASA for demonstrator projects prior to 2003 are not provided here, their position as a leading industry player suggests they possessed the necessary technical expertise, facilities, and management capabilities to undertake such a project successfully. NASA typically awards significant R&D contracts to contractors with proven performance and a strong understanding of space exploration requirements.
How did the competition level (5 bidders) influence the outcome for this specific contract?
Having five bidders for the PAD ABORT DEMONSTRATOR contract indicates a healthy level of competition for this specific R&D opportunity. A competitive environment generally pressures bidders to offer more attractive pricing and demonstrate superior technical approaches to win the contract. For NASA, this means they likely received a range of proposals with varying technical solutions and cost estimates, allowing them to select the best overall value. The presence of multiple bidders suggests that the market for this type of aerospace R&D was sufficiently robust, and that potential competitors were aware of and interested in the opportunity, which is beneficial for ensuring fair pricing and innovation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 4820 E DRY CREEK ROAD, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,383,428
Exercised Options: $26,151,784
Current Obligation: $12,504,739
Timeline
Start Date: 2003-10-01
Current End Date: 2004-03-31
Potential End Date: 2004-03-31 00:00:00
Last Modified: 2011-10-14
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