NASA Orders Three More Orion Spacecraft from Lockheed Martin

Rhea-AI Summary

Lockheed Martin (NYSE: LMT) has secured a contract to deliver three additional Orion spacecraft for NASA's Artemis VI-VIII missions. This contract, valued at $1.99 billion, is part of the Orion Production and Operations Contract (OPOC) and aims for substantial cost savings, achieving a remarkable 50% reduction per vehicle up to Artemis V and an additional 30% for Artemis VI-VIII. The company emphasizes cost efficiency through reusing components and advanced digital processes, supporting NASA's long-term lunar exploration plans.

Positive

• Secured a $1.99 billion contract for three Orion spacecraft for Artemis VI-VIII.
• Achieved a 50% cost reduction per vehicle compared to earlier models.
• Further 30% reduction in costs planned for Artemis VI-VIII missions.
• Plans for extensive component reuse and advanced manufacturing processes.

Negative

• None.

Substantial Cost Reduction Will Be Seen Through Upcoming Artemis Moon Missions

DENVER, Oct. 20, 2022 /PRNewswire/ -- Lockheed Martin (NYSE: LMT) is now under contract to deliver three Orion spacecraft to NASA for its Artemis VI-VIII missions, continuing the delivery of exploration vehicles to the agency to carry astronauts into deep space and around the Moon supporting the Artemis program.

Lockheed Martin is the prime contractor to NASA for the Orion program and has completed two Orion vehicles—EFT-1 which flew in 2014, and Artemis I, which is weeks away from its launch to the Moon—and is actively building vehicles for the Artemis II-V missions.

"Lockheed Martin is honored to partner with NASA to deliver Orion spacecraft for NASA's Artemis missions. This order includes spacecraft, mission planning and support, and takes us into the 2030s," said Lisa Callahan, vice president and general manager for Commercial Civil Space, Lockheed Martin. "We're on the eve of a historic launch kicking off the Artemis era and this contract shows NASA is making long-term plans toward living and working on the Moon, while also having a forward focus on getting humans to Mars."

This order marks the second three missions under the agency's Orion Production and Operations Contract (OPOC), an indefinite-delivery, indefinite-quantity (IDIQ) contract for up to 12 vehicles. A breakout of these orders includes:

• 2019: NASA initiates OPOC IDIQ and orders three Orion spacecraft for Artemis
  missions III-V.
• 2022: NASA orders three additional Orion spacecraft missions for Artemis VI-VIII for $1.99 billion.
• In the future: NASA can order an additional six Orion missions.

Under OPOC, Lockheed Martin and NASA have reduced the costs on Orion by 50% per vehicle on Artemis III through Artemis V, compared to vehicles built during the design and development phase. The vehicles built for Artemis VI, VII and VIII will see an additional 30% cost reduction.

"We're achieving substantial cost savings from Artemis III through Artemis VIII by extensive structure and system reuse and incorporating advanced digital design and manufacturing processes," said Tonya Ladwig, Orion vice president and program manager at Lockheed Martin Space. "The Artemis II vehicle will reuse select avionics from the Artemis I crew module, and that reuse will continue to dramatically increase to where the Artemis III pressure vessel capsule will be entirely refurbished for the Artemis VI mission."

Additionally, the company will drive out cost from these production vehicles through material and component bulk buys from suppliers and an accelerated mission cadence.

With the Artemis I Orion spacecraft currently on top of the Space Launch System rocket, there are two other Orion vehicles undergoing assembly at NASA's Kennedy Space Center in Florida, Artemis II and III. Work is well under way on the Artemis IV craft including welding the pressure vessel together at NASA's Michoud Assembly Facility near New Orleans and the heat shield at Lockheed Martin's facility near Denver, and work has already begun on the Artemis V vehicle.

More information about Orion

Lockheed Martin Orion page: https://www.lockheedmartin.com/orion
NASA Orion page: https://www.nasa.gov/orion

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 114,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Please follow @LMNews on Twitter for the latest announcements and news across the corporation, and @LMSpace for Space-focused company content.

 

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SOURCE Lockheed Martin

FAQ

What is the value of the new contract Lockheed Martin received from NASA for the Orion spacecraft?

The new contract is valued at $1.99 billion.

How many Orion spacecraft is Lockheed Martin contracted to deliver for the Artemis VI-VIII missions?

Lockheed Martin is contracted to deliver three Orion spacecraft.

What cost reductions are Lockheed Martin achieving in the Orion program?

Lockheed Martin has achieved a 50% cost reduction per vehicle and plans an additional 30% reduction for Artemis VI-VIII.

What is the purpose of the Orion spacecraft in the Artemis program?

The Orion spacecraft will carry astronauts into deep space and around the Moon.

What contract governs Lockheed Martin's work on the Orion spacecraft?

Lockheed Martin's work on the Orion spacecraft is governed by the Orion Production and Operations Contract (OPOC).