NASA's $47.5M CEV Phase 1 Contract Awarded to Lockheed Martin for R&D
Contract Overview
Contract Amount: $47,546,758 ($47.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-07-11
End Date: 2006-12-30
Contract Duration: 537 days
Daily Burn Rate: $88.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PHASE 1 DEFINITION AND DESIGN ACTIVITES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) SYSTEM
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $47.5 million to LOCKHEED MARTIN CORP for work described as: PHASE 1 DEFINITION AND DESIGN ACTIVITES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) SYSTEM Key points: 1. The contract focuses on definition and design activities for the Crew Exploration Vehicle (CEV) system. 2. Lockheed Martin, a major aerospace contractor, secured this award. 3. The spending is categorized under Research and Development in Physical, Engineering, and Life Sciences. 4. This represents a significant investment in future space exploration capabilities.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the award amount of $47.5M for a definition and design phase seems reasonable for a complex system like the CEV.
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 that should have driven a fair price. The specific price discovery mechanisms are not detailed but competition is a positive indicator.
Taxpayer Impact: Taxpayer funds are being used for critical research and development aimed at advancing space exploration technology, which could yield long-term benefits.
Public Impact
Advancement of the Crew Exploration Vehicle program, crucial for future human spaceflight. Potential for technological spin-offs benefiting various industries. Job creation and economic activity in the aerospace sector. Ensuring U.S. leadership in space exploration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractor overspending.
- Long-term program viability and funding stability are always a concern for large R&D projects.
Positive Signals
- Awarded under full and open competition.
- Focus on critical national space exploration goals.
- Experienced contractor selected.
Sector Analysis
This contract falls under the Research and Development sector, specifically for advanced physical and engineering sciences. Spending in this area is vital for technological innovation and national competitiveness, with significant government investment typically seen in aerospace and defense R&D.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corp, a large business. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular contract.
Oversight & Accountability
The National Aeronautics and Space Administration (NASA) is responsible for overseeing this contract. Given the nature of R&D contracts, ongoing monitoring of progress, cost, and technical milestones is essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep in R&D projects.
- Long-term program funding uncertainty.
- Reliance on a single prime contractor for critical development.
Tags
research-and-development-in-the-physical, national-aeronautics-and-space-administr, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $47.5 million to LOCKHEED MARTIN CORP. PHASE 1 DEFINITION AND DESIGN ACTIVITES RESULTING IN PDR FOR CREW EXPLORATION VEHICLE (CEV) SYSTEM
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 $47.5 million.
What is the period of performance?
Start: 2005-07-11. End: 2006-12-30.
What is the projected total cost for the entire CEV program beyond this initial phase?
The provided data only covers Phase 1 definition and design activities, totaling $47.5M. Information regarding the full lifecycle cost of the Crew Exploration Vehicle program is not available in this dataset. Estimating the total program cost would require access to subsequent phases, development, testing, and operational budgets.
What are the key performance indicators and risk mitigation strategies for this R&D contract?
Specific key performance indicators (KPIs) and detailed risk mitigation strategies for this Phase 1 contract are not explicitly stated in the provided data. However, for R&D contracts of this nature, typical KPIs would include successful completion of design reviews (like the PDR mentioned), adherence to technical specifications, and timely delivery of milestones. Risk mitigation would likely involve rigorous project management, technical oversight, and contingency planning for unforeseen challenges.
How does the cost of this phase compare to similar R&D efforts for major aerospace systems?
Benchmarking the $47.5M cost for this Phase 1 definition and design against similar R&D efforts for major aerospace systems is challenging without more specific comparative data. However, for a foundational phase of a complex program like the Crew Exploration Vehicle, this amount appears to be within a reasonable range, considering the scale and technological ambition involved in developing a new human-rated spacecraft.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12257 STATE HIGHWAY 121, LOCATION A, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,600,031
Exercised Options: $58,600,031
Current Obligation: $47,546,758
Timeline
Start Date: 2005-07-11
Current End Date: 2006-12-30
Potential End Date: 2006-12-30 00:00:00
Last Modified: 2015-01-07
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