DoD's $149M R&D Contract for Aerospace Components Awarded to Coherent Technologies, Inc

Contract Overview

Contract Amount: $13,151,819 ($13.2M)

Contractor: Lockheed Martin Coherent Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-07-10

End Date: 2011-10-14

Contract Duration: 3,383 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200210!000091!5700!GR13 !AFRL/SNKE AEROSPACE COMPONENTS !F3361502C1106 !A!N! !N! !20020710!20031117!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !655 ASPEN RIDGE DRIVE !LAFAYETTE !CO!80026!41835!013!08!LAFAYETTE !BOULDER !COLORADO !+000000333000!N!N!000000519315!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!004!E! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: LAFAYETTE, BOULDER County, COLORADO, 80026

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC. for work described as: 200210!000091!5700!GR13 !AFRL/SNKE AEROSPACE COMPONENTS !F3361502C1106 !A!N! !N! !20020710!20031117!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !655 ASPEN RIDGE DRIVE !LAFAYETTE !CO!80026!41835!013!08!LAFAYETTE !BOULD… Key points: 1. This contract focuses on Research and Development for aerospace components, a critical area for defense. 2. The awardee, Coherent Technologies, Inc., is a subsidiary of Lockheed Martin, indicating a large prime contractor. 3. The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. 4. The sector is primarily R&D within the Defense industry, with a specific NAICS code of 541710.

Value Assessment

Rating: fair

The contract value is $149,375,479. Without specific cost breakdowns or benchmarks for similar R&D projects, it's difficult to definitively assess pricing. However, the duration of over 9 years suggests significant scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies a competitive process was initiated, but specific sources were excluded, which could impact the breadth of competition and price discovery.

Taxpayer Impact: The significant value of this contract represents a substantial investment of taxpayer funds into advanced aerospace R&D.

Public Impact

Advancement in aerospace technology through dedicated research and development. Potential for new component development impacting future military aircraft and space systems. Economic impact on the Colorado region through contract work and potential job creation. Contribution to national security through enhanced defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term R&D projects.
  • Risk of technological obsolescence given the long contract duration.
  • Dependence on a single contractor for critical R&D.

Positive Signals

  • Awarded through a competitive process, suggesting potential for value.
  • Focus on R&D aligns with strategic defense modernization goals.
  • Involves a major defense contractor, potentially ensuring robust execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on electronics and communication equipment applied research. The aerospace component focus is typical for defense R&D spending, which often involves significant investment in innovation.

Small Business Impact

The contract was awarded to Coherent Technologies, Inc., a subsidiary of Lockheed Martin. There is no indication of small business participation in the provided data, suggesting this contract primarily involves large prime contractors.

Oversight & Accountability

The contract's long duration and significant value warrant robust oversight to ensure progress, manage costs, and verify the achievement of R&D objectives. Accountability for deliverables and milestones will be crucial.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Long contract duration increases risk of cost overruns and technological obsolescence.
  • Potential for limited competition due to 'exclusion of sources'.
  • R&D projects inherently carry uncertainty in outcomes and timelines.
  • Lack of transparency on specific R&D objectives and expected deliverables.
  • Significant financial commitment without clear, immediate return on investment.

Tags

research-and-development-in-the-physical, department-of-defense, co, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC.. 200210!000091!5700!GR13 !AFRL/SNKE AEROSPACE COMPONENTS !F3361502C1106 !A!N! !N! !20020710!20031117!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !655 ASPEN RIDGE DRIVE !LAFAYETTE !CO!80026!41835!013!08!LAFAYETTE !BOULDER !COLORADO !+000000333000!N!N!000000519315!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2002-07-10. End: 2011-10-14.

What specific technological advancements are expected from this $149M R&D investment, and how do they align with current and future Air Force operational needs?

The contract aims to advance aerospace components through applied research in electronics and communication. Specific advancements are not detailed, but they likely target improvements in areas such as sensor technology, communication systems, or propulsion components for next-generation aircraft and space assets. Alignment with Air Force needs would involve enhancing capabilities like situational awareness, secure communications, or performance efficiency.

Given the 'exclusion of sources' clause, what was the rationale, and could it have limited the potential for more innovative solutions or better pricing?

The rationale for excluding sources is not provided. It could be due to proprietary technology, specific technical expertise required, or prior performance. While intended to ensure the best fit, excluding sources can limit the competitive landscape, potentially leading to higher prices or fewer innovative approaches compared to a truly open competition.

How will the effectiveness and value of this long-term R&D contract be measured, especially considering the inherent uncertainties in research and development outcomes?

Effectiveness and value will likely be measured through milestone achievements, prototype development, successful testing, and the eventual integration of developed components into operational systems. Regular technical reviews, performance metrics, and adherence to budget will be key oversight mechanisms. The contract's success will ultimately be judged by its contribution to advancing defense capabilities and technological superiority.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 655 ASPEN RIDGE DRIVE, LAFAYETTE, CO, 02

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2002-07-10

Current End Date: 2011-10-14

Potential End Date: 2011-10-14 00:00:00

Last Modified: 2011-06-29

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