NASA's $984M SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST contract to Lockheed Martin Services, LLC, awarded in 2000, concluded in 2006
Contract Overview
Contract Amount: $983,884,421 ($983.9M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2000-09-27
End Date: 2006-06-16
Contract Duration: 2,088 days
Daily Burn Rate: $471.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $983.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST Key points: 1. The contract aimed to provide critical research and development services in physical, engineering, and life sciences. 2. Awarded under full and open competition, it suggests a robust market for these specialized services. 3. The definitive contract type indicates a long-term agreement with defined terms. 4. The cost-plus award fee structure incentivizes contractor performance while managing costs. 5. The contract's duration of 2088 days highlights the extensive nature of the R&D effort. 6. The significant award value points to the importance of these scientific and engineering analyses for NASA's missions.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its age and specialized nature. The total award of over $983 million over approximately six years suggests a substantial investment in R&D. Without specific performance metrics or comparable contracts from the same period, a precise value-for-money assessment is difficult. However, the cost-plus award fee structure implies an effort to align contractor incentives with NASA's objectives, which can be a positive indicator if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that NASA sought proposals from all responsible sources but may have had specific exclusions or justifications for certain approaches. The fact that it was competed suggests multiple entities were capable of performing the required R&D services. The level of competition, while not explicitly detailed by the number of bidders, likely contributed to price discovery and ensured NASA received proposals from a range of qualified contractors.
Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient market and potentially leading to better pricing and service delivery compared to sole-source awards.
Public Impact
NASA's research and development initiatives benefited directly from the scientific engineering, analysis, and testing services provided. The contract supported advancements in physical, engineering, and life sciences, crucial for space exploration and scientific discovery. The geographic impact is primarily centered around NASA's operational and research facilities, likely in Texas where the contractor was based. The contract supported a specialized workforce of scientists, engineers, and technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus award fee structure can lead to cost overruns if not rigorously managed and monitored by the agency.
- The long duration of the contract might present challenges in adapting to evolving technological needs or scientific priorities over time.
- The specific details of the 'exclusion of sources' in the full and open competition are not provided, which could obscure potential limitations in the competitive landscape.
Positive Signals
- The contract was awarded through full and open competition, indicating a broad market engagement.
- The use of a cost-plus award fee structure aims to incentivize contractor performance and efficiency.
- The significant investment suggests a high priority placed on the R&D services by NASA.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D sector is characterized by innovation, long-term investment, and often involves complex scientific and technical challenges. Comparable spending benchmarks would typically involve other large-scale R&D contracts awarded by government agencies or major private sector entities in aerospace, defense, or scientific research. The market size for such specialized R&D services is substantial, driven by national priorities in science, technology, and exploration.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a small business set-aside. Large prime contractors typically manage their own subcontracting plans, which may or may not involve small businesses, but this is not explicitly detailed in the summary data.
Oversight & Accountability
Oversight for this contract would have been managed by NASA's contracting officers and program managers. The cost-plus award fee structure necessitates close monitoring of costs and performance to ensure the award fees are justified. Transparency would be dependent on NASA's internal reporting and any public disclosures made regarding the contract's progress and outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- NASA Research and Development Contracts
- Aerospace Engineering Services
- Scientific Research and Analysis
- Space Exploration Technology Development
Risk Flags
- Long contract duration may lead to scope creep or evolving requirements.
- Cost-plus award fee requires diligent oversight to prevent overspending.
- Specialized R&D services can be subject to technological shifts.
- Competition details ('after exclusion of sources') warrant further investigation.
Tags
nasa, research-and-development, science-engineering-analysis-and-test, lockheed-martin-services-llc, definitive-contract, cost-plus-award-fee, full-and-open-competition, texas, large-contract, historical-contract, 2000s
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $983.9 million to LOCKHEED MARTIN SERVICES, LLC. SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
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 $983.9 million.
What is the period of performance?
Start: 2000-09-27. End: 2006-06-16.
What was the specific nature of the 'SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST' services provided under this contract?
The contract title 'SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST' suggests a broad scope of work encompassing scientific research, engineering design and development, detailed analysis of technical data, and rigorous testing of systems or components. Given it was awarded by NASA, these services likely supported various aspects of space exploration, aeronautics research, or the development and validation of spaceflight technologies. The specific deliverables would have been detailed in the contract's statement of work, outlining the precise scientific and engineering challenges NASA aimed to address through this engagement with Lockheed Martin Services, LLC.
How does the $983.88 million award value compare to similar NASA R&D contracts from the early 2000s?
The $983.88 million award value for the SEAT/SCIENCE ENGINEERING,ANALYSIS, AND TEST contract is substantial, reflecting a significant investment by NASA in research and development during the period of 2000-2006. To provide a precise comparison, one would need to analyze NASA's contract spending database for similar R&D procurements awarded within that timeframe. However, generally speaking, contracts of this magnitude were typical for major system development, advanced research initiatives, or long-term scientific endeavors undertaken by NASA. It indicates a high-priority program requiring extensive resources and expertise.
What were the key performance indicators (KPIs) or metrics used to determine the 'award fee' for Lockheed Martin Services, LLC?
The contract utilized a 'Cost Plus Award Fee' (CPAF) structure. In a CPAF contract, the contractor is reimbursed for allowable costs and receives a fixed fee plus an award fee. The award fee is determined by the government based on the contractor's performance against pre-defined criteria and objectives outlined in the contract's Performance Evaluation Plan (PEP). While the specific KPIs for this NASA contract are not detailed in the provided summary, typical metrics for R&D services could include meeting technical milestones, achieving performance targets, adhering to schedules, managing costs effectively, quality of deliverables, and overall innovation or problem-solving effectiveness. NASA's contracting officer would have evaluated Lockheed Martin's performance against these criteria to determine the amount of the award fee.
What is the significance of the contract being a 'Definitive Contract' awarded in 2000?
A 'Definitive Contract' is a fixed-price or cost-reimbursement contract that, when signed, becomes a binding agreement between the parties. It is typically used for substantial procurements with clearly defined requirements. Awarded in 2000 and ending in 2006, this definitive contract signifies a long-term commitment by NASA to Lockheed Martin Services, LLC, for the specified R&D services. The duration (2088 days, approximately 5.7 years) is consistent with the nature of complex research and development projects that require sustained effort and investment over multiple years to achieve their objectives.
Were there any notable risks or challenges associated with this contract, given its scope and duration?
Given the contract's scope in scientific engineering, analysis, and testing, and its long duration (over five years), several risks are inherent. These include the potential for technological obsolescence if research directions shifted, difficulties in managing evolving requirements over such an extended period, and the complexities of accurately forecasting and controlling costs within a CPAF structure. Ensuring consistent quality and performance from the contractor throughout the contract lifecycle would also be a key challenge. Furthermore, the 'full and open competition after exclusion of sources' might imply specific technical or programmatic constraints that could limit the pool of potential bidders or introduce unique risks related to those exclusions.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: TWO CORPORATE PLAZA, HOUSTON, TX, 77058
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $252,456,636
Exercised Options: $267,721,636
Current Obligation: $983,884,421
Actual Outlays: $2,475,721
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2000-09-27
Current End Date: 2006-06-16
Potential End Date: 2006-06-16 00:00:00
Last Modified: 2024-06-13
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