NASA's IRIS Spectrograph Contract Exceeds $191M for R&D, Awarded to Lockheed Martin

Contract Overview

Contract Amount: $191,035,152 ($191.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2009-10-01

End Date: 2027-09-30

Contract Duration: 6,573 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 32

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTERFACE REGION IMAGING SPECTROGRAPH (IRIS). THE CONTRACTOR SHALL REFINE AND EVOLVE THE CONTRACTOR'S COST ESTIMATE FOR PHASES B-F FOR THE INTERFACE REGION IMAGING SPECTROGRAPH (IRIS) MISSION SUBMITTED IN RESPONSE TO NASA ANNOUNCEMENT OF OPPORTUNITY #NNH07ZDA003O FOR THE EXPLORERS PROJECTS DIVISION. THE PRIMARY TASKS IN PHASE B WILL INCLUDE THE GENERATION AND PRESENTATION OF THE SYSTEMS REQUIREMENTS REVIEW (SRR) AND THE PRELIMINARY DESIGN REVIEW (PDR). IN ORDER TO SUPPORT THESE REVIEWS, THE CONCEPT DEFINITION EFFORTS SHALL ENCOMPASS THE WORK REQUIRED TO UPDATE AND REFINE THE PROPOSAL'S SCIENCE INVESTIGATION OBJECTIVES AND PLANS (IF NECESSARY), INSTRUMENT AND SPACECRAFT CONCEPTS AND PERFORMANCE CHARACTERISTICS, AND SCIENCE OPERATIONS AND FLIGHT OPERATIONS PLANS AND CONCEPTS. THESE EFFORTS SHALL IDENTIFY THE CONDITIONS AND CONSTRAINTS NECESSARY FOR THE DEVELOPMENT OF AN INTEGRATED IRIS MISSION APPROACH. THE CONTRACTOR'S MISSION INTEGRATION EFFORTS SHALL INCLUDE CONSIDERATIONS FOR THE ACCOMMODATION OF THE IRIS OBSERVATORY ONTO THE LAUNCH VEHICLE. THE CONTRACTOR'S PHASE B PRELIMINARY DESIGN EFFORTS SHALL DEVELOP THE CSR AND SITE VISIT CONCEPTS INTO A PRELIMINARY DESIGN AND DEFINITION OF THE IRIS MISSION, INCLUDING ITS MISSION OPERATIONS CENTER (MOC) AND SCIENCE OPERATIONS CENTER (SOC). THE PRELIMINARY DESIGN REVIEW (PDR) SHALL BE HELD IN ACCORDANCE WITH NPR 7120.5D, NPR 7123.1A, AND GSFC STD 1001B. THE CONTRACTOR'S EFFORTS IN PHASE B SHALL FORM THE BASIS FOR FINAL CONFIRMATION OF THE REMAINDER OF THE IRIS DEVELOPMENT AND OPERATIONAL PHASES (C, D, E AND F). DETAILED COST AND SCHEDULE ESTIMATES SHALL BE PREPARED AND SUBMITTED DURING PHASE B, WHICH DEFINES THE CONTRACTOR'S UPDATED BUDGET FOR PHASE B AND THE PLANNED BUDGETS FOR PHASE C, D, E AND F WORK. PERIODIC TECHNICAL AND PROGRAMMATIC INTERCHANGE MEETINGS AT BOTH THE CONTRACTOR'S FACILITY AND AT GSFC SHALL BE REQUIRED TO COORDINATE EFFORTS BETWEEN THE CONTRACTOR AND THE EXPLORERS PROJECTS OFFICE. THESE MAY BE CONDUCTED AS FACE-TO-FACE MEETINGS OR TELECONFERENCES, AS REQUIRED.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $191.0 million to LOCKHEED MARTIN CORPORATION for work described as: INTERFACE REGION IMAGING SPECTROGRAPH (IRIS). THE CONTRACTOR SHALL REFINE AND EVOLVE THE CONTRACTOR'S COST ESTIMATE FOR PHASES B-F FOR THE INTERFACE REGION IMAGING SPECTROGRAPH (IRIS) MISSION SUBMITTED IN RESPONSE TO NASA ANNOUNCEMENT OF OPPORTUNITY #NNH07ZDA003O FOR THE EXPLORER… Key points: 1. Significant investment in advanced space imaging technology. 2. Lockheed Martin, a major aerospace contractor, secured the award. 3. Potential for cost overruns given the R&D nature and fixed-fee structure. 4. Focus on physical and engineering sciences research.

Value Assessment

Rating: questionable

The contract value of $191M for R&D phases B-F is substantial. Without specific benchmarks for similar spectrograph development contracts, it's difficult to definitively assess pricing. The Cost Plus Fixed Fee (CPFF) structure carries inherent risk of cost growth if initial estimates are inaccurate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF contract type may not always yield the most cost-effective outcome for the government, as contractor profit is fixed regardless of actual costs.

Taxpayer Impact: Taxpayer funds are allocated for advanced scientific research and development, potentially leading to significant scientific discoveries and technological advancements.

Public Impact

Advancement of scientific understanding of the interface region of the sun. Development of cutting-edge imaging technology with potential dual-use applications. Long-term project spanning nearly two decades, indicating sustained commitment to research. Potential for spin-off technologies benefiting other scientific or commercial sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overrun risk due to CPFF structure and R&D scope.
  • Long project duration increases exposure to changing technological landscapes.
  • Potential for scope creep in complex R&D phases.

Positive Signals

  • Awarded through full and open competition.
  • Significant investment in critical scientific research.
  • Experienced contractor with a strong track record.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. The $191M value is substantial for a single R&D project, reflecting the complexity and long-term nature of developing advanced scientific instruments for space missions.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data, suggesting potential limited subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is managed by NASA's Explorers Projects Division, which typically involves rigorous technical and financial oversight. The long duration and R&D nature necessitate continuous monitoring to ensure progress and control costs.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • National Aeronautics and Space Administration Contracting
  • National Aeronautics and Space Administration Programs

Risk Flags

  • Cost overrun potential
  • Long project timeline
  • R&D complexity
  • Limited small business involvement
  • Contract type (CPFF) risk

Tags

research-and-development-in-the-physical, national-aeronautics-and-space-administr, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $191.0 million to LOCKHEED MARTIN CORPORATION. INTERFACE REGION IMAGING SPECTROGRAPH (IRIS). THE CONTRACTOR SHALL REFINE AND EVOLVE THE CONTRACTOR'S COST ESTIMATE FOR PHASES B-F FOR THE INTERFACE REGION IMAGING SPECTROGRAPH (IRIS) MISSION SUBMITTED IN RESPONSE TO NASA ANNOUNCEMENT OF OPPORTUNITY #NNH07ZDA003O FOR THE EXPLORERS PROJECTS DIVISION. THE PRIMARY TASKS IN PHASE B WILL INCLUDE THE GENERATION AND PRESENTATION OF THE SYSTEMS REQUIREMENTS REVIEW (SRR) AND THE PRELIMINARY DESIGN REVIEW (PDR). IN ORDER TO SUPPORT THESE REVIEWS, THE CONC

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 $191.0 million.

What is the period of performance?

Start: 2009-10-01. End: 2027-09-30.

What is the projected scientific return on investment for the $191M allocated to the IRIS mission?

The scientific return is expected to be high, focusing on understanding the solar interface region, which is crucial for space weather prediction and fundamental solar physics. The spectrograph's advanced capabilities aim to provide unprecedented data, potentially leading to breakthroughs in our understanding of solar dynamics and their impact on Earth.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The main risk with CPFF for R&D is that the contractor is incentivized to control costs to maximize their fixed fee, but if initial cost estimates are significantly underestimated, the government may end up paying more than anticipated without a corresponding increase in scope or quality. This structure can also lead to less aggressive cost-saving measures compared to other contract types.

How effective is the full and open competition process in ensuring value for money for complex R&D projects like IRIS?

Full and open competition is generally effective in fostering a competitive environment that can drive down prices and encourage innovation. However, for highly specialized R&D projects like IRIS, the number of capable bidders might be limited. The effectiveness also depends on the clarity of the requirements and the evaluation criteria used to select the best technical and cost proposal.

Industry Classification

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

Product/Service Code: SPACE VEHICLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNH07ZDA003O

Offers Received: 32

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $198,849,969

Exercised Options: $198,849,969

Current Obligation: $191,035,152

Actual Outlays: $33,722,440

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline

Start Date: 2009-10-01

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2026-02-11

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