NASA's OSIRIS-REX Phase B contract awarded to Lockheed Martin for $437M to define preliminary design and development plans
Contract Overview
Contract Amount: $437,345,131 ($437.3M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2012-01-19
End Date: 2027-03-31
Contract Duration: 5,550 days
Daily Burn Rate: $78.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ORIGINS SPECTRAL INTERPRETATION RESOURCE IDENTIFICATION SECURITY-REGOLITH EXPLORER (OSIRIS-REX) PHASE B EFFORT. UNDER THIS CONTRACT, THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO COMPLETE MISSION DESIGN AND REQUIREMENTS FLOW DOWN ACTIVITIES CULMINATING IN AN OSIRIS-REX PROJECT MISSION DESIGN REVIEW (MDR). THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO SUPPORT THE OSIRIS-REX PROJECT TO DEFINE AND COMPLETE THE DEFINITION OF THE PRELIMINARY DESIGN, AND THE PLANS FOR DEVELOPMENT, MANUFACTURE, TEST, VERIFICATION AND OPERATION OF A FLIGHT SYSTEM.
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $437.3 million to LOCKHEED MARTIN CORP for work described as: ORIGINS SPECTRAL INTERPRETATION RESOURCE IDENTIFICATION SECURITY-REGOLITH EXPLORER (OSIRIS-REX) PHASE B EFFORT. UNDER THIS CONTRACT, THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO COMPLETE MISSION DESIGN AND REQUIREMENTS FLOW DOWN ACTIVITIES CULMINATING IN AN OSIRIS-REX… Key points: 1. Contract supports critical early-stage mission design and requirements definition for the OSIRIS-REX asteroid sample return mission. 2. Focus on preliminary design, development, manufacturing, testing, verification, and operational plans for the flight system. 3. The contract's duration extends over 15 years, indicating a long-term commitment to mission development. 4. Awarded under full and open competition, suggesting a robust selection process. 5. The cost-plus-award-fee structure incentivizes contractor performance towards mission objectives. 6. This contract represents a significant investment in space exploration and scientific discovery.
Value Assessment
Rating: good
The contract value of $437 million for Phase B of the OSIRIS-REX mission appears reasonable given the complexity and long duration of the project. Phase B typically involves extensive design, analysis, and planning, which are resource-intensive. Comparing this to similar large-scale NASA science missions, the cost per year of development in this phase is within expected ranges. The cost-plus-award-fee structure allows for flexibility while incentivizing performance, which is appropriate for a mission with evolving technical challenges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The fact that it is a definitive contract suggests a well-defined scope of work. While the number of bidders is not explicitly stated, full and open competition generally leads to better price discovery and a wider range of technical solutions being considered by the agency.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and most innovative solutions for this significant space exploration endeavor.
Public Impact
The primary beneficiaries are NASA and the scientific community, who will gain valuable data from asteroid sample return. Services delivered include mission design, requirements definition, and planning for the development and operation of the OSIRIS-REX flight system. The geographic impact is global in terms of scientific knowledge gained, though the physical operations are space-based. Workforce implications include highly skilled engineers, scientists, and technicians involved in advanced aerospace development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 15 years) increases the risk of cost overruns and scope creep if not managed effectively.
- Complexity of space missions inherently carries technical risks that could impact schedule and budget.
- Reliance on a single contractor for a critical phase of a flagship mission requires robust oversight.
Positive Signals
- Awarded under full and open competition, suggesting a competitive environment for selecting the best contractor.
- Cost-plus-award-fee contract structure incentivizes contractor performance and achievement of mission milestones.
- The contractor, Lockheed Martin, has extensive experience in developing complex aerospace and defense systems.
Sector Analysis
The contract falls within the aerospace and defense sector, specifically focusing on space exploration and guided missile and space vehicle manufacturing. This segment of the industry is characterized by high R&D investment, long development cycles, and significant government procurement. Comparable spending benchmarks would involve other NASA flagship missions or large-scale satellite development programs, which often run into hundreds of millions or billions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting plans for small businesses. Large, complex NASA missions like OSIRIS-REX often involve extensive subcontracting, and while not detailed here, it's typical for prime contractors to engage small businesses for specialized components or services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract is provided by NASA, likely through program management offices and contracting officers. The cost-plus-award-fee structure implies performance monitoring against defined criteria. Transparency is generally maintained through NASA's public communications and reporting on mission progress. Inspector General jurisdiction would apply to potential fraud, waste, or abuse.
Related Government Programs
- NASA Science Mission Directorate Programs
- Asteroid and Comet Exploration Missions
- Spacecraft Development and Manufacturing
- Guided Missile and Space Vehicle Manufacturing
- Aerospace Research and Development Contracts
Risk Flags
- Long contract duration increases risk of cost escalation.
- Technical complexity of sample return mission poses inherent risks.
- Performance metrics for award fee need careful monitoring.
- Potential for scope creep over the extended project timeline.
Tags
nasa, lockheed-martin, osiris-rex, asteroid-exploration, space-exploration, definitive-contract, cost-plus-award-fee, full-and-open-competition, guided-missile-and-space-vehicle-manufacturing, research-and-development, colorado, phase-b
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $437.3 million to LOCKHEED MARTIN CORP. ORIGINS SPECTRAL INTERPRETATION RESOURCE IDENTIFICATION SECURITY-REGOLITH EXPLORER (OSIRIS-REX) PHASE B EFFORT. UNDER THIS CONTRACT, THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO COMPLETE MISSION DESIGN AND REQUIREMENTS FLOW DOWN ACTIVITIES CULMINATING IN AN OSIRIS-REX PROJECT MISSION DESIGN REVIEW (MDR). THE CONTRACTOR SHALL PROVIDE THE RESOURCES NECESSARY TO SUPPORT THE OSIRIS-REX PROJECT TO DEFINE AND COMPLETE THE DEFINITION OF THE PRELIMINARY DESIGN, AND THE PLANS FOR DEVELOPMENT,
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 $437.3 million.
What is the period of performance?
Start: 2012-01-19. End: 2027-03-31.
What is Lockheed Martin's track record with NASA on similar complex space missions?
Lockheed Martin has a long and extensive history of working with NASA on numerous complex space missions, including the development of spacecraft for planetary exploration, Earth observation, and space telescopes. They were the prime contractor for the Mars Reconnaissance Orbiter (MRO) and the Juno mission to Jupiter, among others. Their experience spans the entire lifecycle of spacecraft development, from initial design and fabrication to launch and operations. This deep expertise in building sophisticated space systems for NASA provides a strong foundation for their role in the OSIRIS-REX mission. However, like any large contractor, they have also faced challenges and scrutiny on past projects regarding cost and schedule adherence, underscoring the importance of NASA's oversight.
How does the $437 million cost compare to other NASA Phase B mission development efforts?
The $437 million allocated for OSIRIS-REX Phase B is substantial, reflecting the complexity of an asteroid sample return mission. Phase B, focusing on preliminary design and requirements, is a critical and often costly stage. For context, NASA's New Horizons mission to Pluto had a development cost in the hundreds of millions, and the James Webb Space Telescope (JWST) development ran into billions, though JWST is a significantly larger and more complex instrument. While direct comparisons are difficult due to mission scope and technological differences, the OSIRIS-REX Phase B cost appears aligned with the investment required for a flagship-class robotic science mission in its definition phase. The long duration of the contract (over 15 years) also contributes to the overall value.
What are the primary risks associated with this specific contract and the OSIRIS-REX mission?
The primary risks associated with this contract and the OSIRIS-REX mission are multifaceted. Technically, the challenges of designing a spacecraft capable of rendezvousing with an asteroid, collecting a sample, and returning it safely to Earth are immense. This includes risks related to navigation, sample acquisition mechanisms, and re-entry. Programmatically, the long duration of the contract (over 15 years) increases the potential for cost overruns and schedule delays due to evolving requirements, technological obsolescence, or unforeseen issues. Contractor performance risk is managed through the award-fee structure, but ensuring consistent high performance over such an extended period is a challenge. Furthermore, the harsh space environment and the unpredictable nature of asteroid surfaces present inherent operational risks.
How effective is the Cost Plus Award Fee (CPAF) contract structure for managing space exploration projects?
The Cost Plus Award Fee (CPAF) structure is often employed by NASA for complex, high-risk R&D projects like OSIRIS-REX because it balances flexibility with performance incentives. It allows the contractor to recover allowable costs while providing additional profit (the award fee) based on achieving specific performance objectives defined by the government. This structure is beneficial when the exact technical path or final costs are not fully predictable at the outset, as is common in cutting-edge space exploration. It incentivizes the contractor to go beyond minimum requirements and achieve superior performance, which is crucial for mission success. However, effective implementation requires clearly defined, measurable award criteria and robust government oversight to ensure the award fees are justified and do not lead to unnecessary cost increases.
What is the historical spending pattern for NASA's asteroid exploration programs?
NASA's spending on asteroid exploration programs has varied significantly over the years, often tied to specific mission opportunities and budget allocations. Major programs like NEAR Shoemaker, Dawn, OSIRIS-REX, and Lucy represent substantial investments, typically ranging from several hundred million to over a billion dollars per mission, encompassing all phases from development through operations. Funding levels can fluctuate based on national priorities, scientific discoveries, and the availability of launch windows. OSIRIS-REX, as a flagship-class sample return mission, represents one of the more significant investments in this category, reflecting the scientific community's high interest in understanding asteroid composition and origins.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNH09ZDA007O
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $456,347,715
Exercised Options: $456,347,715
Current Obligation: $437,345,131
Actual Outlays: $59,013,520
Subaward Activity
Number of Subawards: 92
Total Subaward Amount: $28,325,978
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-01-19
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-02-13
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