NASA's $170M Test and Technical Services Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $169,878,232 ($169.9M)
Contractor: Lockheed Martin Space Operations Company
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1999-11-15
End Date: 2004-10-30
Contract Duration: 1,811 days
Daily Burn Rate: $93.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: TEST AND TECHNICAL SERVICES AT SSC
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529, UNITED STATES OF AMERICA
Plain-Language Summary
National Aeronautics and Space Administration obligated $169.9 million to LOCKHEED MARTIN SPACE OPERATIONS COMPANY for work described as: TEST AND TECHNICAL SERVICES AT SSC Key points: 1. The contract value is substantial at $169.88 million. 2. Lockheed Martin Space Operations Company is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract duration is approximately 5 years.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee (CPAF), which allows for flexibility in pricing based on performance. While specific benchmarks are not provided, CPAF can be effective in R&D or service contracts where outcomes are uncertain, but requires careful monitoring to ensure cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing the value of taxpayer dollars spent on these essential technical services.
Public Impact
Ensures continued support for critical NASA testing and technical services. Supports advanced space operations and research capabilities. Potential for technological advancements stemming from the contract's scope.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for award fee calculation.
- Potential for cost overruns inherent in CPAF contracts.
- Limited visibility into the specific technical services provided.
Positive Signals
- Awarded via full and open competition.
- Experienced contractor (Lockheed Martin) likely to deliver quality services.
- Contract supports critical national space initiatives.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting technical services for space operations. Spending in this sector is often characterized by high R&D investment and long-term program needs.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Future opportunities may exist for subcontracting, but this prime contract does not appear to prioritize small business participation.
Oversight & Accountability
The contract is managed by the National Aeronautics and Space Administration (NASA), a civilian agency with established oversight mechanisms. The award process and subsequent performance monitoring are subject to federal procurement regulations.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Cost overruns possible with CPAF.
- Performance metrics for award fee not detailed.
- Limited visibility into specific service scope.
- No explicit small business participation noted.
Tags
national-aeronautics-and-space-administr, ms, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $169.9 million to LOCKHEED MARTIN SPACE OPERATIONS COMPANY. TEST AND TECHNICAL SERVICES AT SSC
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SPACE OPERATIONS COMPANY.
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 $169.9 million.
What is the period of performance?
Start: 1999-11-15. End: 2004-10-30.
What specific technical services are included under this contract, and how do they align with NASA's current and future mission objectives?
The contract covers 'TEST AND TECHNICAL SERVICES AT SSC'. While 'SSC' likely refers to a specific NASA center or program (e.g., Stennis Space Center or Space Systems Command), the exact scope of services is not detailed. These services are crucial for ensuring the reliability and performance of space systems, supporting ongoing missions, and enabling future exploration and research endeavors.
How is the award fee structure designed to incentivize performance and control costs within the Cost Plus Award Fee (CPAF) framework?
The CPAF structure implies that Lockheed Martin's fee is tied to achieving specific performance objectives. NASA would have established criteria for technical performance, schedule adherence, and cost management. The effectiveness of this incentive lies in the clarity and measurability of these criteria and NASA's rigorous evaluation process to ensure fair and appropriate award fees are granted.
What is the potential impact of this contract on technological innovation and the broader aerospace industry?
Contracts for advanced technical services in space operations often drive innovation by pushing the boundaries of engineering and testing methodologies. The collaboration between NASA and Lockheed Martin could lead to breakthroughs in areas like propulsion, materials science, or data analysis, benefiting the entire aerospace sector and potentially leading to spin-off technologies.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: JOHN C STENNIS CNTR, BLDG 1100N, STENNIS SPACE CENTER, MS, 39529
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $-2,369,774
Exercised Options: $-2,369,774
Current Obligation: $169,878,232
Timeline
Start Date: 1999-11-15
Current End Date: 2004-10-30
Potential End Date: 2004-10-30 00:00:00
Last Modified: 2015-06-02
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