NOAA's GOES-R Satellite Series Procurement Exceeds $2 Billion for Enhanced Weather Forecasting Capabilities
Contract Overview
Contract Amount: $2,032,336,135 ($2.0B)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-12-04
End Date: 2039-04-30
Contract Duration: 11,104 days
Daily Burn Rate: $183.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: THE GOVERNMENT IS PROCURING THE NEXT-GENERATION GEOSTATIONARY OPERATIONAL ENVIRONMENTAL SATELLITES (GOES) SERIES TO CONTINUE ITS MISSION THROUGH NEW REQUIREMENTS SPECIFIED IN THE GOES-R LEVEL I REQUIREMENTS DOCUMENT AND MISSION REQUIREMENTS DOCUMENT (MRD). THE FIRST SATELLITE OF THIS NEW SERIES, DESIGNATED AS GOES-R, WILL PROVIDE THE FIRST MAJOR IMPROVEMENT IN INSTRUMENT TECHNOLOGY SINCE GOES-I LAUNCHED IN 1994. THE GOES-R SERIES WILL INTRODUCE OTHER NEW TECHNOLOGIES IN BOTH THE SPACE AND GROUND SEGMENTS. THESE ADVANCES WILL IMPROVE THE NATION'S ABILITY TO MONITOR AND FORECAST WEATHER AND ENVIRONMENTAL PHENOMENA WITH A SIGNIFICANT INCREASE IN THE NUMBER OF PRODUCTS. ONE OF NOAA'S PRINCIPAL MISSIONS IS TO PROVIDE FORECASTS AND WARNINGS FOR THE UNITED STATES, ITS TERRITORIES, ADJACENT WATERS AND OCEAN AREA FOR THE PROTECTION OF LIFE AND PROPERTY AND ENHANCEMENT OF THE NATIONAL ECONOMY. THIS MISSION REQUIRES THE CAPABILITY TO ACQUIRE, PROCESS, AND DISSEMINATE ENVIRONMENTAL DATA ON AN EXTENSIVE SPATIAL RANGE (GLOBAL, REGIONAL AND LOCAL) ON A VARIETY OF TIME SCALES. THESE DATA INCLUDE, BUT ARE NOT LIMITED TO: GLOBAL IMAGERY; CLOUD AND PRECIPITATION PARAMETERS; ATMOSPHERIC PROFILES OF TEMPERATURE, MOISTURE, WINDS, AEROSOLS, AND OZONE; SURFACE CONDITIONS CONCERNING ICE, SNOW AND VEGETATION; OCEAN PARAMETERS AND SEA-SURFACE TEMPERATURE; AND SOLAR AND IN-SITU SPACE ENVIRONMENT CONDITIONS. THE STATEMENT OF WORK (SOW) DEFINES THOSE TASKS TO DESIGN, ANALYZE, VALIDATE, DEVELOP, FABRICATE, ASSEMBLE, INTEGRATE, TEST, VERIFY, EVALUATE, DELIVER GOES-R SERIES SATELLITES AND SUPPORT LAUNCH AND POST LAUNCH, SUPPLY AND MAINTAIN THE GROUND SUPPORT EQUIPMENT (GSE), AND SUPPORT THE NOAA SATELLITE OPERATIONS CONTROL CENTER (SOCC). THE CONTRACTOR SHALL PROVIDE THE PERSONNEL, MATERIALS, FACILITIES, AND OTHER RESOURCES TO DESIGN, VALIDATE, FABRICATE, ASSEMBLE, INTEGRATE, TEST, VERIFY, AND DELIVER GOES-R SERIES SATELLITES AND PROVIDE PRE-LAUNCH, LAUNCH, AND POST-LAUNCH SUPPORT AND TRAINING UNDER THE BASIC CONTRACT, AND OPTIONS WHEN EXERCISED BY THE GOVERNMENT.
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $2.03 billion to LOCKHEED MARTIN CORP for work described as: THE GOVERNMENT IS PROCURING THE NEXT-GENERATION GEOSTATIONARY OPERATIONAL ENVIRONMENTAL SATELLITES (GOES) SERIES TO CONTINUE ITS MISSION THROUGH NEW REQUIREMENTS SPECIFIED IN THE GOES-R LEVEL I REQUIREMENTS DOCUMENT AND MISSION REQUIREMENTS DOCUMENT (MRD). THE FIRST SATELLITE OF … Key points: 1. Significant technological advancement in satellite instrumentation since 1994. 2. Lockheed Martin is the sole contractor for this critical national infrastructure. 3. Long-term contract duration (2008-2039) indicates substantial program commitment. 4. Focus on improved weather and environmental monitoring with increased product generation.
Value Assessment
Rating: questionable
The contract value of over $2 billion for the GOES-R series is substantial. Without specific cost breakdowns per satellite or instrument, it's difficult to benchmark against similar complex space programs. The cost-plus award fee structure allows for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement was conducted under full and open competition, which is positive for price discovery. However, the long-term nature and complexity of the GOES-R series may have limited the number of viable bidders, potentially impacting the final negotiated price.
Taxpayer Impact: Taxpayer funds are supporting a critical upgrade to national weather forecasting infrastructure, aiming for improved public safety and economic benefits through more accurate predictions.
Public Impact
Enhanced accuracy and timeliness of severe weather warnings (hurricanes, tornadoes, etc.). Improved monitoring of environmental phenomena like wildfires and air quality. Support for aviation, maritime, and agricultural sectors through better forecasting. Advancement of U.S. leadership in space-based environmental monitoring technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost and long duration increase risk of budget overruns and schedule delays.
- Sole contractor reliance for a critical national asset poses supply chain and innovation risks.
- Technological obsolescence risk given the long program lifecycle.
Positive Signals
- Significant technological leap forward in weather forecasting capabilities.
- Full and open competition initially sought to ensure best value.
- Contract structure incentivizes performance through award fees.
Sector Analysis
This procurement falls within the aerospace and defense sector, specifically focusing on advanced satellite manufacturing. Spending benchmarks for similar large-scale, multi-satellite programs are typically in the billions of dollars over extended periods.
Small Business Impact
The data indicates Lockheed Martin Corp as the prime contractor. There is no explicit information regarding small business participation in this specific contract, which is common for large, complex defense and aerospace procurements.
Oversight & Accountability
The National Aeronautics and Space Administration (NASA) is overseeing this procurement for NOAA. Oversight mechanisms would typically include program reviews, milestone tracking, and financial audits to ensure contract compliance and mission success.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- High contract value ($2B+)
- Long contract duration (11+ years)
- Cost Plus Award Fee (CPAF) contract type
- Sole prime contractor (Lockheed Martin)
- Critical national infrastructure procurement
- Significant technological advancement
Tags
guided-missile-and-space-vehicle-manufac, national-aeronautics-and-space-administr, co, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $2.03 billion to LOCKHEED MARTIN CORP. THE GOVERNMENT IS PROCURING THE NEXT-GENERATION GEOSTATIONARY OPERATIONAL ENVIRONMENTAL SATELLITES (GOES) SERIES TO CONTINUE ITS MISSION THROUGH NEW REQUIREMENTS SPECIFIED IN THE GOES-R LEVEL I REQUIREMENTS DOCUMENT AND MISSION REQUIREMENTS DOCUMENT (MRD). THE FIRST SATELLITE OF THIS NEW SERIES, DESIGNATED AS GOES-R, WILL PROVIDE THE FIRST MAJOR IMPROVEMENT IN INSTRUMENT TECHNOLOGY SINCE GOES-I LAUNCHED IN 1994. THE GOES-R SERIES WILL INTRODUCE OTHER NEW TECHNOLOGIES IN BOTH THE SPACE AND GROUND
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $2.03 billion.
What is the period of performance?
Start: 2008-12-04. End: 2039-04-30.
What is the projected return on investment for the GOES-R series in terms of lives saved and economic impact from improved weather forecasts?
Quantifying the precise ROI is challenging, but improved severe weather warnings can significantly reduce loss of life and property damage. Economic benefits accrue across sectors like agriculture, transportation, and energy through optimized operations based on more accurate forecasts. The value proposition lies in mitigating disaster costs and enabling proactive decision-making.
What are the specific risks associated with relying on a single contractor, Lockheed Martin, for the entire GOES-R series over such a long period?
Sole-source reliance increases vulnerability to supply chain disruptions, potential price increases, and reduced innovation incentives. If Lockheed Martin faces financial difficulties or strategic shifts, it could jeopardize the program. Furthermore, the government has limited leverage for negotiating future modifications or addressing performance issues compared to a competitive environment.
How effectively will the new technologies in the GOES-R series translate into a tangible increase in the number and quality of actionable weather products for end-users?
The GOES-R series is designed to introduce advanced instruments and data processing capabilities that promise a significant increase in both the volume and resolution of environmental data. This should enable the generation of more detailed and timely products for forecasters, improving the accuracy of predictions for phenomena like hurricanes, severe storms, and wildfires, ultimately enhancing public safety.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12257 STATE HWY, LITTLETON, CO, 80127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,127,139,419
Exercised Options: $2,127,139,419
Current Obligation: $2,032,336,135
Actual Outlays: $304,460,524
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-04
Current End Date: 2039-04-30
Potential End Date: 2039-04-30 00:00:00
Last Modified: 2026-02-12
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