NASA has awarded a $3.44 billion contract to Lockheed Martin Space Operations Co., Houston, TX, to manage the Agency's space operations activities.

The Consolidated Space Operations contractor will manage

all of NASA's data collection, telemetry and communication

operations supporting its Earth-orbiting satellites,

planetary exploration, and human space flight activities. The

contract shifts management responsibility from five NASA

centers to a single entity, which is an unprecedented step

for an operation of this magnitude. This effort is being

closely observed by other government agencies that also are

reviewing consolidating their operations.

"Since becoming NASA Administrator I have committed

myself to reviewing the way NASA does business and

challenging the NASA team to look at ways to streamline

operations and make them more efficient. This contract is

projected to save the American taxpayers approximately $1.4

billion over 10 years," said Daniel S. Goldin.

The basic contract amounts to $1.90 billion for a

duration of five years, including a three-month phase-in

period. The contract runs from October 1998 to December

2003. The award also contains options totaling $1.54

billion, which includes a five-year extension of the basic

effort (January 2004 through December 2008); additional

options for work at the Kennedy Space Center, FL; and

enhanced mission and data service support to the

International Space Station program.

"Lockheed Martin was selected based on the overall best

value of the company's proposal that will significantly

improve the efficiency of NASA's traditional mission and data

services infrastructure," said Joseph Rothenberg, Associate

Administrator for Space Flight, Washington, DC.

Under the contract guidelines, NASA will adopt a plan

that calls for implementing private sector commercial

practices, products, services and technology. NASA expects

the contractor to reduce overlap, eliminate duplication, and

increase efficiency by streamlining service delivery

processes. NASA also expects Lockheed Martin to

"commercialize" or "privatize" government systems where the

offset will lower the life-cycle cost of space flight

missions.

The range of the contract's services will include data

acquisition from a spacecraft, data transmission to the end

user, data processing and storage, ground and space

communications, and mission control center operations.

The Lockheed Martin Space Operations Co. team includes

Allied Technical Services Corp. with Computer Sciences Co.,

Booz-Allen & Hamilton, Inc., GTE Government Systems, GHG

Corp., Cimarron, and more than 40 other subcontractors.

The work will be performed at five NASA locations

including the Johnson Space Center, Houston, TX; Goddard

Space Flight Center, Greenbelt, MD; Marshall Space Flight

Center, Huntsville, AL; Kennedy Space Center, FL; and the

contractor-operated Jet Propulsion Laboratory, Pasadena, CA.

Lockheed Martin