NASA's $360M sole-source contract for Hubble Space Telescope operations awarded to Lockheed Martin
Contract Overview
Contract Amount: $360,197,522 ($360.2M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2011-07-01
End Date: 2026-06-30
Contract Duration: 5,478 days
Daily Burn Rate: $65.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THE MOSES II EFFORT IS A FIVE-YEAR SOLE-SOURCE FOLLOW-ON CONTRACT TO MAINTAIN THE HEALTH AND SAFETY OF THE HST OBSERVATORY THROUGH THE NEXT PHASE OF ITS SCIENCE MISSION. THE SCOPE OF THIS FOLLOW-ON EFFORT INCLUDES CONDUCTING ALL ELEMENTS OF HST OPERATIONS OTHER THAN SCIENCE OPERATIONS, AND TO PERFORM SYSTEMS ENGINEERING TASKS REQUIRED TO PROPERLY MAINTAIN HST FLIGHT AND GROUND SYSTEMS.MISSION OPERATIONS RESPONSIBILITIES INCLUDE SAFE AND EFFICIENT CONTROL AND UTILIZATION OF THE HST OBSERVATORY, MAINTENANCE AND OPERATION OF HST-UNIQUE FACILITIES AND EQUIPMENT, AS WELL AS CREATION, MAINTENANCE, AND UTILIZATION OF HST OPERATIONS PROCESSES AND PROCEDURES. CRITICAL SYSTEMS ENGINEERING RESPONSIBILITIES CONSIST OF OPTIMIZING MISSION SYSTEM CAPABILITIES TO MAXIMIZE HST OPERATIONS EFFECTIVENESS AND SCIENCE PRODUCTIVITY. ESSENTIAL MANAGEMENT REQUIREMENTS INCLUDE PROVIDING A TECHNICAL STAFF POSSESSING IN-DEPTH KNOWLEDGE OF HST S VARIED, COMPLEX, AND UNIQUE FLIGHT AND GROUND SYSTEMS, ENSURING SUCCESSFUL ACCOMPLISHMENT OF THE DIVERSE TASKS NECESSARY TO EFFECTIVELY CONDUCT HST MISSION OPERATIONS AND SYSTEMS ENGINEERING AS WELL AS TO MANAGE AND REPORT CONTRACT ELEMENT COST AND SCHEDULE PERFORMANCE.
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $360.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: THE MOSES II EFFORT IS A FIVE-YEAR SOLE-SOURCE FOLLOW-ON CONTRACT TO MAINTAIN THE HEALTH AND SAFETY OF THE HST OBSERVATORY THROUGH THE NEXT PHASE OF ITS SCIENCE MISSION. THE SCOPE OF THIS FOLLOW-ON EFFORT INCLUDES CONDUCTING ALL ELEMENTS OF HST OPERATIONS OTHER THAN SCIENCE OPE… Key points: 1. Contract focuses on maintaining the health and safety of the HST observatory, excluding science operations. 2. Includes systems engineering to optimize mission capabilities and maximize operational effectiveness. 3. Sole-source award raises questions about competition and potential value for money. 4. Long-term contract duration suggests a need for sustained, specialized support. 5. Contractor has a long history with NASA, indicating established expertise. 6. Geographic concentration in Maryland for contract performance.
Value Assessment
Rating: fair
The contract's value is difficult to benchmark due to its sole-source nature and highly specialized scope. While the total value is substantial, the absence of competition prevents direct price comparisons. The cost-plus-fixed-fee structure necessitates careful oversight to ensure costs remain reasonable and aligned with the fixed fee. Without comparable contracts or detailed cost breakdowns, assessing the overall value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's a follow-on to a previous contract where switching vendors would be impractical or detrimental. The lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature means taxpayers did not benefit from competitive bidding, which could have potentially driven down costs for essential Hubble operations and maintenance.
Public Impact
The primary beneficiary is NASA, ensuring the continued operation and longevity of the Hubble Space Telescope. Services delivered include critical maintenance, systems engineering, and operational control of the observatory. Geographic impact is concentrated in Maryland, where Lockheed Martin Integrated Systems, LLC is located. Workforce implications involve specialized engineering and operational roles required for space mission support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Cost-plus-fixed-fee contract requires robust oversight to manage costs effectively.
- Long-term nature of the contract may reduce flexibility for future technological advancements or cost-saving alternatives.
Positive Signals
- Contractor has a proven track record with NASA and the HST program.
- Focus on maintaining a critical scientific asset ensures continued research capabilities.
- Defined scope of work for operations and systems engineering provides clarity.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aerospace and defense operations. The market for highly specialized space mission operations and maintenance is limited, often dominated by a few key contractors with demonstrated expertise. NASA's spending on such contracts is crucial for maintaining its scientific infrastructure and advancing space exploration.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the specialized nature of maintaining a complex space observatory, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available within the core scope of work.
Oversight & Accountability
Oversight is primarily the responsibility of NASA's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates detailed financial reporting and auditing to ensure compliance and prevent cost overruns. Transparency is maintained through contract awards databases, but specific performance metrics and detailed cost breakdowns may not be publicly available.
Related Government Programs
- Hubble Space Telescope Operations
- NASA Mission Support Contracts
- Aerospace Engineering Services
- Space Observatory Maintenance
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of public performance metrics
Tags
engineering-services, nasa, maryland, definitive-contract, large-contract, sole-source, aerospace, space-telescope, operations-and-maintenance, cost-plus-fixed-fee
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $360.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. THE MOSES II EFFORT IS A FIVE-YEAR SOLE-SOURCE FOLLOW-ON CONTRACT TO MAINTAIN THE HEALTH AND SAFETY OF THE HST OBSERVATORY THROUGH THE NEXT PHASE OF ITS SCIENCE MISSION. THE SCOPE OF THIS FOLLOW-ON EFFORT INCLUDES CONDUCTING ALL ELEMENTS OF HST OPERATIONS OTHER THAN SCIENCE OPERATIONS, AND TO PERFORM SYSTEMS ENGINEERING TASKS REQUIRED TO PROPERLY MAINTAIN HST FLIGHT AND GROUND SYSTEMS.MISSION OPERATIONS RESPONSIBILITIES INCLUDE SAFE AND EFFICIENT CONTROL AND UTILIZATION OF THE HST OBSERVATORY,
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, 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 $360.2 million.
What is the period of performance?
Start: 2011-07-01. End: 2026-06-30.
What is Lockheed Martin's track record with NASA and the Hubble program specifically?
Lockheed Martin Integrated Systems, LLC, and its predecessors, have a long-standing relationship with NASA, particularly concerning the Hubble Space Telescope (HST). They have been involved in the development, launch, and ongoing operations and maintenance of HST for many years. This continuity suggests a deep understanding of the observatory's complex systems and operational requirements. Their historical performance on previous HST contracts would be a key factor in NASA's decision to award this follow-on sole-source effort, indicating a level of trust and proven capability in maintaining the health and safety of this critical scientific asset.
How does the cost-plus-fixed-fee (CPFF) structure impact value for money in this contract?
The Cost-Plus-Fixed-Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure is suitable for research and development or when cost estimates are uncertain, it can incentivize cost-plus behavior. For taxpayers, value for money depends heavily on NASA's ability to effectively monitor and control the contractor's costs. Robust oversight, clear performance metrics, and stringent auditing are essential to ensure that costs remain reasonable and that the fixed fee represents fair compensation for the services rendered, rather than an opportunity for excessive profit.
What are the primary risks associated with a sole-source contract of this magnitude?
The primary risk of a sole-source contract of this magnitude is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Without competing bids, there's less incentive for the contractor to find the most cost-effective solutions. Additionally, there's a risk of vendor lock-in, where NASA becomes overly reliant on a single provider, making it difficult and costly to switch even if performance or pricing becomes unsatisfactory. Ensuring robust contract management and performance monitoring becomes even more critical in sole-source situations to mitigate these risks.
How does this contract contribute to NASA's broader scientific mission objectives?
This contract is fundamental to NASA's scientific mission objectives by ensuring the continued operational capability of the Hubble Space Telescope. HST has been instrumental in numerous groundbreaking discoveries in astronomy and cosmology. By maintaining the observatory's health, safety, and operational effectiveness, this contract allows scientists worldwide to continue utilizing HST for cutting-edge research, data collection, and observation. It directly supports NASA's strategic goals of advancing scientific understanding of the universe and inspiring future generations.
What is the historical spending trend for Hubble operations and maintenance?
Historical spending on Hubble operations and maintenance has been substantial over its decades-long mission. While specific figures for each contract vary, the overall investment reflects the complexity and longevity of the observatory. This $360 million, five-year contract represents a significant, ongoing commitment. Previous contracts, often awarded to the same or similar prime contractors, would have established a baseline for annual spending. Analyzing past expenditures can provide context for the current contract's value, though direct year-over-year comparisons can be complicated by evolving mission needs and technological upgrades.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: NNG10321685R
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 7474 GREENWAY CENTER DR STE 200, GREENBELT, MD, 20770
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $366,007,505
Exercised Options: $366,007,505
Current Obligation: $360,197,522
Actual Outlays: $144,800,843
Subaward Activity
Number of Subawards: 82
Total Subaward Amount: $750,456,416
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-03-31
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