NASA awards $26.8M for Low Boom Flight Demonstration aircraft preliminary design to Lockheed Martin

Contract Overview

Contract Amount: $26,791,601 ($26.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2016-02-29

End Date: 2018-05-11

Contract Duration: 802 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF TASK ENTITLED "LOW BOOM FLIGHT DEMONSTRATION (LBFD) AIRCRAFT PRELIMINARY DESIGN (PD)". THE SCOPE OF THIS LBFD AIRCRAFT PD TASK ORDER IS TO ENSURE THAT THE BASELINE LBFD REQUIREMENTS, CONCEPT PRELIMINARY DESIGN, AND CONCEPT FORMULATION AND PLANNING DOCUMENTATION OBJECTIVES ARE ACHIEVED. ALL DELIVERABLES SHALL BE AT AN APPROPRIATE MATURITY LEVEL FOR A SUCCESSFUL LBFD AIRCRAFT PRELIMINARY DESIGN REVIEW (PDR), PER THE FIGURE 3 - LBFD AIRCRAFT PDR ENTRANCE AND SUCCESS CRITERIA. THESE CRITERIA HAVE BEEN TAILORED FROM NPR 7123.1B NASA SYSTEMS ENGINEERING PROCESSES AND REQUIREMENTS AND SHALL SERVE AS THE BASIS TO DEMONSTRATE THAT THE LBFD AIRCRAFT PRELIMINARY DESIGN MEETS ALL REQUIREMENTS WITH ACCEPTABLE RISK AND WITHIN THE COST AND SCHEDULE CONSTRAINTS AND ESTABLISHES THE BASIS FOR PROCEEDING WITH DETAILED DESIGN.

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $26.8 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF TASK ENTITLED "LOW BOOM FLIGHT DEMONSTRATION (LBFD) AIRCRAFT PRELIMINARY DESIGN (PD)". THE SCOPE OF THIS LBFD AIRCRAFT PD TASK ORDER IS TO ENSURE THAT THE BASELINE LBFD REQUIREMENTS, CONCEPT PRELIMINARY DESIGN, AND CONCEPT FORMULATION AND PLANNING DOCUMENTATION OBJEC… Key points: 1. Contract focuses on achieving baseline requirements and preliminary design for the LBFD aircraft. 2. Deliverables are geared towards a successful Preliminary Design Review (PDR). 3. The contract is a cost-plus-fixed-fee type, indicating potential for cost overruns. 4. Competition was full and open, suggesting a robust bidding process. 5. The contract duration is 802 days, spanning over two years. 6. This award represents a significant investment in advanced aerospace research and development.

Value Assessment

Rating: good

The contract value of $26.8 million for preliminary aircraft design appears reasonable given the scope. While specific benchmarks for LBFD preliminary design are not publicly available, R&D contracts of this nature often involve substantial investment. The cost-plus-fixed-fee structure means NASA will cover allowable costs plus a negotiated fee, which can sometimes lead to higher final costs than fixed-price contracts if not managed carefully. However, it also allows for flexibility in research and development where exact costs may be uncertain.

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 bidders had the opportunity to submit proposals. The presence of three bidders (as suggested by 'no': 3) implies a competitive environment, which generally leads to better price discovery and potentially more innovative solutions. The specific details of the evaluation criteria and the number of proposals received are not provided, but the open competition is a positive signal for value.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of companies to bid, potentially driving down costs and improving the quality of services through competitive pressure.

Public Impact

The primary beneficiaries are NASA and the aerospace research community, advancing the development of supersonic flight technology. Services delivered include preliminary design, requirements definition, and documentation for the LBFD aircraft. The geographic impact is primarily within the aerospace industry and research institutions, with potential future applications nationwide. Workforce implications include employment for engineers, designers, and researchers specializing in aerospace and aeronautics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can sometimes lead to costs exceeding initial estimates if not closely monitored.
  • The preliminary design phase is critical; any missteps here could impact downstream development and costs.
  • Reliance on a single large contractor like Lockheed Martin for critical R&D phases can limit broader industry innovation.

Positive Signals

  • Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
  • The contract is for preliminary design, a crucial early stage that sets the foundation for future success.
  • The contractor, Lockheed Martin, has extensive experience in aerospace and defense, suggesting technical capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on aerospace engineering and aeronautics. The market for advanced aircraft design and development is highly specialized, dominated by large aerospace corporations. NASA's investment in the Low Boom Flight Demonstration program aims to overcome regulatory and public acceptance barriers to supersonic commercial flight, a market with significant future economic potential. Comparable spending benchmarks would typically be found within other large-scale aerospace R&D programs, often in the tens to hundreds of millions of dollars for design and prototyping phases.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of advanced aerospace preliminary design, it is likely that the prime contractor, Lockheed Martin, will subcontract portions of the work. Analysis would be needed to determine if small businesses are included in the subcontracting plan and to what extent they benefit from this award.

Oversight & Accountability

Oversight for this contract would primarily reside with NASA's contracting officers and program managers. The contract's cost-plus-fixed-fee nature necessitates close monitoring of expenditures and progress against milestones. NASA's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract funds. Transparency is generally maintained through contract reporting and program reviews, though detailed internal project management is not publicly disclosed.

Related Government Programs

  • NASA Aeronautics Research Mission Directorate
  • Supersonic Technology Development
  • Advanced Aircraft Design Programs
  • X-Plane Program

Risk Flags

  • Cost-Plus-Fixed-Fee Contract Type
  • Technical Complexity of Low-Boom Supersonic Flight
  • Reliance on Preliminary Design Phase Success

Tags

r-and-d, aerospace, nasa, lockheed-martin, california, delivery-order, full-and-open-competition, cost-plus-fixed-fee, preliminary-design, aircraft-development, supersonic-flight

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $26.8 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF TASK ENTITLED "LOW BOOM FLIGHT DEMONSTRATION (LBFD) AIRCRAFT PRELIMINARY DESIGN (PD)". THE SCOPE OF THIS LBFD AIRCRAFT PD TASK ORDER IS TO ENSURE THAT THE BASELINE LBFD REQUIREMENTS, CONCEPT PRELIMINARY DESIGN, AND CONCEPT FORMULATION AND PLANNING DOCUMENTATION OBJECTIVES ARE ACHIEVED. ALL DELIVERABLES SHALL BE AT AN APPROPRIATE MATURITY LEVEL FOR A SUCCESSFUL LBFD AIRCRAFT PRELIMINARY DESIGN REVIEW (PDR), PER THE FIGURE 3 - LBFD AIRCRAFT PDR ENTRANCE AND SUCCESS CRITERIA. THESE CR

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 $26.8 million.

What is the period of performance?

Start: 2016-02-29. End: 2018-05-11.

What is Lockheed Martin's track record with NASA on similar R&D contracts?

Lockheed Martin Corporation has a long and extensive history of contracting with NASA and other government agencies on complex aerospace research and development projects. They have been involved in numerous high-profile programs, including spacecraft development, advanced aircraft design, and space exploration initiatives. Their track record includes significant contributions to programs like the Orion spacecraft, the F-35 fighter jet (though primarily DoD), and various experimental aircraft. While specific performance metrics for past NASA R&D contracts are not detailed here, Lockheed Martin is generally considered a major player with substantial technical expertise and capacity to handle large-scale, technologically challenging projects. Their experience suggests a high likelihood of meeting the technical requirements for the LBFD preliminary design phase, though cost and schedule adherence are always areas of focus for cost-plus contracts.

How does the $26.8 million cost compare to similar preliminary aircraft design contracts?

Benchmarking the $26.8 million cost for the Low Boom Flight Demonstration (LBFD) aircraft preliminary design is challenging without access to proprietary data from similar, directly comparable contracts. However, preliminary design phases for advanced aircraft, especially those involving novel technologies like low-boom supersonic flight, are inherently expensive. This figure appears to be within a reasonable range for the initial conceptualization, requirements definition, and preliminary design review preparation for a complex aerospace vehicle. For context, major aircraft development programs often see initial design and concept phases costing tens to hundreds of millions of dollars, depending on the complexity, novelty, and scale of the intended aircraft. Given that this is a preliminary design task order under a larger potential program, the amount is substantial but not necessarily indicative of overpricing without further comparative analysis.

What are the primary risks associated with this preliminary design contract?

The primary risks associated with this preliminary design contract include technical challenges in achieving the low-boom requirements, potential cost overruns due to the cost-plus-fixed-fee (CPFF) contract type, and schedule delays. Technical risks involve ensuring the aerodynamic design effectively mitigates sonic booms to acceptable levels, which is a complex engineering feat. The CPFF structure means that while the fee is fixed, the total cost is not, creating a risk for NASA if development proves more expensive than anticipated. Schedule risks could arise from unforeseen technical hurdles, integration issues with new technologies, or delays in obtaining necessary approvals or reviews. Furthermore, the success of this preliminary design is critical for the entire LBFD program; any fundamental flaws identified later could necessitate costly redesigns or program termination.

How effective is the 'full and open competition' approach for R&D contracts of this nature?

The 'full and open competition' approach is generally considered the most effective method for government R&D contracts, including this one, as it maximizes the pool of potential offerors, fosters innovation, and promotes competitive pricing. By allowing any qualified source to bid, NASA increases the likelihood of finding the best technical solution at the most reasonable cost. This approach encourages companies to invest in developing cutting-edge capabilities to compete for such high-value contracts. While it requires a more extensive evaluation process, the benefits of potentially superior technical approaches and better value for taxpayer money often outweigh the administrative overhead. For a program as pioneering as the LBFD, tapping into the broadest possible range of expertise is crucial for success.

What are the historical spending patterns for NASA's advanced aeronautics research?

NASA's spending on advanced aeronautics research, particularly in areas like supersonic flight and next-generation aircraft, has varied significantly over the decades, often influenced by national priorities and technological advancements. Historically, programs like the X-plane series have seen substantial investment, with individual projects ranging from tens to hundreds of millions of dollars for design, construction, and testing. Funding levels for aeronautics research within NASA's overall budget have fluctuated, sometimes being prioritized more highly than others. Recent years have seen a renewed focus on areas such as sustainable aviation, electric propulsion, and, relevantly, supersonic technology aimed at reducing overland sonic boom. The LBFD program represents a continuation of this investment in pushing the boundaries of aviation technology, aiming to enable future commercial supersonic transport.

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: RESEARCH AND DEVELOPMENTSpace R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1011 LOCKHEED WAY, PALMDALE, CA, 93599

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

Financial Breakdown

Contract Ceiling: $28,035,291

Exercised Options: $28,035,291

Current Obligation: $26,791,601

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNL16AA07B

IDV Type: IDC

Timeline

Start Date: 2016-02-29

Current End Date: 2018-05-11

Potential End Date: 2018-05-11 00:00:00

Last Modified: 2023-09-06

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