NASA's $325.9M contract for Solar Ultraviolet Imager instrument awarded to Lockheed Martin

Contract Overview

Contract Amount: $325,884,715 ($325.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-09-24

End Date: 2039-04-30

Contract Duration: 11,541 days

Daily Burn Rate: $28.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TAS::80 0114::TAS SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT. THIS CONTRACT IS FOR THE DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, EVALUATE AND SUPPORT LAUNCH OF THE SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT THE SATELLITE OPERATIONS CONTROL CENTER (SOCC). THE SUVI IS CLASSIFIED AS A NON-PRIMARY INSTRUMENT ON THE GOES-R SATELLITE AND HAS A RISK CLASSIFICATION OF B. THE SUVI INSTRUMENT PROVIDES A BROADBAND IMAGING IN THE EXTREME ULTRAVIOLET WAVELENGTH RANGE TO MONITOR THE ENTIRE DYNAMIC RANGE OF SOLAR FEATURES, FROM CORONAL HOLES TO FLARES, AS WELL AS THE ESTIMATE OF TEMPERATURE AND EMISSION MEASURE. THESE DATA ARE USED FOR GEOMAGNETIC STORM FORECASTS AND FORECASTS OF SOLAR ENERGETIC PARTICLE EVENTS RELATED TO FLARES. THE CONTRACTOR SHALL PROVIDE THE PERSONNEL, MATERIALS, FACILITIES AND OTHER RESOURCES TO DESIGN, DEVELOP, DELIVER AND SUPPORT UNDER THE BASIC CONTRACT: A) PARTS AND MATERIALS FOR 4 FLIGHT MODELS B) ONE SUVI FLIGHT MODEL (FM) C) THREE SETS OF THE ELECTRICAL SYSTEM TEST EQUIPMENT (ESTE) D) TWO SUVI EMULATORS (SUVIES) E) TWO FLIGHT SOFTWARE DEVELOPMENT ENVIRONMENTS (FSDES) F) ONE GROUND PROCESSING DEVELOPMENT SYSTEM (GPDS) G) SPARES FOR THE FOUR FMS H) ALL ADDITIONAL SUVI MECHANICAL AND ELECTRICAL GROUND SUPPORT EQUIPMENT (MGSE AND EGSE) CALLED OUT ELSEWHERE IN THIS DOCUMENT I) ALL ITEMS AND DOCUMENTS SPECIFIED IN ALL CONTRACT DOCUMENTS

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $325.9 million to LOCKHEED MARTIN CORPORATION for work described as: TAS::80 0114::TAS SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT. THIS CONTRACT IS FOR THE DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, EVALUATE AND SUPPORT LAUNCH OF THE SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT… Key points: 1. Contract awarded for a critical instrument to monitor solar features and forecast space weather. 2. Instrument classified as non-primary with a risk classification of 'B', indicating moderate risk. 3. Long contract duration of over 11,500 days suggests a complex, long-term project. 4. Cost-plus award fee contract type allows for flexibility but requires careful oversight. 5. Sole-source award raises questions about competition and potential cost efficiencies. 6. Instrument data supports geomagnetic storm and solar energetic particle event forecasts.

Value Assessment

Rating: fair

The total contract value of $325.9 million for the Solar Ultraviolet Imager (SUVI) instrument appears substantial. Without specific benchmarks for similar advanced space-based imaging instruments, a direct value-for-money assessment is challenging. The cost-plus award fee structure allows for contractor incentive but necessitates rigorous oversight to ensure costs remain reasonable and performance targets are met. The long duration of the contract (over 31 years) also implies significant long-term investment and potential for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when the urgency of the requirement precludes a competitive process. The lack of competition means that NASA did not benefit from potential price reductions or innovative solutions that might have emerged from a bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's negotiating position is inherently weaker in a sole-source scenario.

Public Impact

The primary beneficiaries are NASA and the scientific community, who will receive data for space weather forecasting. The SUVI instrument will provide broadband imaging in the extreme ultraviolet wavelength range. Data will be used to monitor solar features like coronal holes and flares, and estimate temperature and emission measures. The forecasts generated from SUVI data will benefit sectors reliant on satellite operations and space exploration, as well as potentially impacting power grids and communication systems susceptible to geomagnetic storms. The contract supports the GOES-R satellite program, a critical component of national weather and space weather monitoring capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

• Sole-source award limits competitive pressure, potentially leading to higher costs.
• Long contract duration increases risk of cost overruns and scope creep.
• Cost-plus award fee structure requires robust government oversight to manage costs effectively.
• Classification as a non-primary instrument might suggest lower priority, but its function is critical for forecasting.

Positive Signals

• Contract supports a critical scientific instrument for space weather forecasting.
• Lockheed Martin is a well-established aerospace contractor with extensive experience.
• The instrument's data has direct applications for national security and infrastructure protection.
• Long-term contract provides stability for instrument development and operation.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex, and long-duration contracts, often involving specialized technologies and significant research and development. This contract for the SUVI instrument fits squarely within this domain, focusing on advanced sensor technology for space applications. Comparable spending in this sector includes other satellite development programs, scientific instrument procurement, and related engineering services, which often run into hundreds of millions of dollars. The market is typically dominated by a few large, experienced contractors like Lockheed Martin.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. Given the specialized nature of the SUVI instrument and the sole-source award to a large prime contractor, the direct impact on small businesses through set-asides is unlikely. However, Lockheed Martin may engage small businesses as subcontractors for specific components or services, contributing indirectly to the small business ecosystem within the aerospace supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's program management and contracting offices. As a cost-plus award fee contract, performance metrics and cost controls would be under intense scrutiny. The contract's long duration necessitates continuous monitoring of progress, adherence to technical specifications, and financial accountability. Inspector General oversight may be involved if any financial irregularities or performance issues arise.

Related Government Programs

• GOES Satellite Program
• Space Weather Research
• Satellite Instrument Development
• Aerospace Engineering Services
• National Oceanic and Atmospheric Administration (NOAA) Weather Satellites

Risk Flags

• Sole-source award
• Long contract duration
• Cost-plus award fee structure
• Moderate risk classification (B)

Tags

nasa, lockheed-martin-corporation, space-instrumentation, solar-observation, space-weather-forecasting, definitive-contract, cost-plus-award-fee, sole-source, engineering-services, california, 2007-award, 2039-completion

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $325.9 million to LOCKHEED MARTIN CORPORATION. TAS::80 0114::TAS SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT. THIS CONTRACT IS FOR THE DESIGN, ANALYZE, DEVELOP, FABRICATE, INTEGRATE, TEST, EVALUATE AND SUPPORT LAUNCH OF THE SOLAR ULTRAVIOLET IMAGER (SUVI) INSTRUMENT, SUPPLY AND MAINTAIN THE INSTRUMENT GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT THE SATELLITE OPERATIONS CONTROL CENTER (SOCC). THE SUVI IS CLASSIFIED AS A NON-PRIMARY INSTRUMENT ON THE GOES-R SATELLITE AND HAS A RISK CLASSIFICATION OF B. THE SUVI INSTRUMENT PROVIDES A BROADBAND

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 $325.9 million.

What is the period of performance?

Start: 2007-09-24. End: 2039-04-30.

What is the historical spending pattern for similar solar imaging instruments by NASA or other agencies?

Assessing historical spending on comparable solar imaging instruments is crucial for benchmarking. While specific data for the SUVI instrument's predecessors or direct competitors is not provided, NASA has a history of investing heavily in advanced space-based observation platforms. For instance, the development of instruments for missions like the Solar Dynamics Observatory (SDO) or the Parker Solar Probe involved significant R&D and procurement costs, often in the hundreds of millions of dollars. These programs, however, typically undergo extensive competitive bidding processes. The sole-source nature of the SUVI contract, coupled with its substantial value, warrants a closer look at whether alternative, potentially more cost-effective, solutions were considered or if unique technological requirements justified this approach.

How does the risk classification 'B' for the SUVI instrument translate into potential cost or schedule impacts?

A risk classification of 'B' for the SUVI instrument suggests a moderate level of risk associated with its development and performance. In aerospace projects, risk classifications typically range from 'A' (highest risk) to 'D' or 'E' (lowest risk). A 'B' classification implies that while the technology is not entirely novel or unproven, there are still significant technical challenges, potential for unforeseen issues, or dependencies that could impact cost, schedule, or performance. For this contract, it means that the cost-plus award fee structure is particularly important, as it allows for adjustments to accommodate identified risks. However, it also necessitates robust project management and contingency planning by both NASA and Lockheed Martin to mitigate these moderate risks and prevent them from escalating into major cost overruns or schedule delays.

What are the specific performance metrics tied to the 'award fee' component of this contract?

The 'award fee' component of a Cost Plus Award Fee (CPAF) contract is designed to incentivize the contractor to exceed minimum performance requirements. While the specific metrics for the SUVI instrument contract are not detailed in the provided data, they typically relate to key performance areas such as technical achievement (e.g., instrument calibration accuracy, data quality), schedule adherence (e.g., meeting key milestones ahead of or on time), and cost control (e.g., managing expenditures effectively). NASA would establish a subjective evaluation process where a contractor's performance against these pre-defined criteria is assessed, and an award fee, within a predetermined range, is granted. The effectiveness of this mechanism hinges on clear, measurable criteria and an objective evaluation process by the government.

What is Lockheed Martin's track record with NASA on similar complex instrument development contracts?

Lockheed Martin Corporation has a long and extensive track record of developing complex systems and instruments for NASA and other government agencies, including numerous satellite programs and scientific payloads. They have been a key contractor for various NASA missions, demonstrating capabilities in design, fabrication, integration, and testing of sophisticated space hardware. Their experience with previous solar observation instruments or related technologies would be a significant factor in NASA's decision to award this contract, even on a sole-source basis. A review of their past performance on similar contracts, including adherence to budget, schedule, and technical specifications, would be essential for a comprehensive assessment of their capability and reliability for the SUVI project.

Given the sole-source nature, what mechanisms are in place to ensure fair pricing and prevent contractor overreach?

In sole-source procurements, ensuring fair pricing and preventing contractor overreach relies heavily on robust government oversight and negotiation strategies. NASA would typically conduct a thorough cost analysis, potentially including a should-cost analysis, to determine a fair and reasonable price. This involves scrutinizing the contractor's proposed costs, including direct costs, indirect costs, and profit margins, and comparing them against independent government estimates or historical data for similar work. The Cost Plus Award Fee (CPAF) structure itself provides some leverage, as the 'award fee' is discretionary and tied to performance. Furthermore, contract clauses related to defective pricing, audit rights, and termination for convenience allow the government to maintain control and address potential issues proactively.

What are the long-term implications of a contract extending to 2039 for technology obsolescence and sustainment?

A contract duration extending to April 30, 2039, presents significant challenges related to technology obsolescence and long-term sustainment. Over a period of more than 15 years from the award date (and potentially longer if considering the full operational life), electronic components, manufacturing processes, and software can become outdated or unsupported. NASA and Lockheed Martin will need to proactively manage obsolescence through strategies such as component screening, redesigns, and establishing long-term supply agreements. Sustainment planning is also critical, ensuring that the instrument can be maintained, calibrated, and operated effectively throughout its lifespan, potentially requiring ongoing support contracts and access to specialized expertise, which can add considerable long-term costs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 3251 HANOVER ST BLDG 201, PALO ALTO, CA, 94304

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $338,991,819

Exercised Options: $338,991,819

Current Obligation: $325,884,715

Actual Outlays: $32,213,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2007-09-24

Current End Date: 2039-04-30

Potential End Date: 2039-04-30 00:00:00

Last Modified: 2026-03-09

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