DoD's $34.6M ALCS-R TMRR Effort with Lockheed Martin Faces Technical Risks
Contract Overview
Contract Amount: $34,605,044 ($34.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-10-03
End Date: 2022-12-03
Contract Duration: 1,887 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: R&D
Official Description: IGF::OT::IGF AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $34.6 million to LOCKHEED MARTIN CORP for work described as: IGF::OT::IGF AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT Key points: 1. The $34.6 million contract for the Airborne Launch Control System Replacement (ALCS-R) Technical Maturation Risk Reduction (TMRR) effort was awarded to Lockheed Martin Corp. 2. The contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, with a focus on advanced technological development. 3. The fixed-price incentive contract structure aims to balance cost control with performance incentives, but carries inherent risks if technical milestones are not met. 4. The duration of the contract (1887 days) suggests a complex and lengthy development process, increasing the potential for cost overruns and schedule delays.
Value Assessment
Rating: questionable
The fixed-price incentive contract type suggests an attempt to control costs while incentivizing performance. However, the significant duration and R&D nature of the project introduce substantial risk of cost escalation beyond initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specialized nature of the ALCS-R system may limit the number of truly competitive bidders.
Taxpayer Impact: While competition was sought, the success of this R&D effort in delivering a cost-effective solution will ultimately determine the taxpayer impact.
Public Impact
The ALCS-R program is critical for modernizing U.S. nuclear command and control capabilities. Successful completion of this TMRR effort is essential for the future development and deployment of the ALCS-R system. Delays or failures in this R&D phase could have significant national security implications. The investment in advanced technology development aims to ensure the reliability and effectiveness of strategic deterrents.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Technical Maturation Risk Reduction (TMRR) implies inherent technical challenges.
- Long contract duration (1887 days) increases risk of cost and schedule overruns.
- Fixed-price incentive contract can lead to cost growth if targets are missed.
- Sole-source potential for follow-on production contracts.
Positive Signals
- Awarded under full and open competition.
- Focus on critical national security technology.
- Contract aims to reduce technical risks before full-scale development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but often carries higher risk due to the inherent uncertainties in innovation.
Small Business Impact
The data provided does not indicate any specific involvement or set-aside for small businesses in this particular contract. Further investigation would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. The fixed-price incentive structure requires careful monitoring of technical progress and cost performance to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High technical risk inherent in R&D.
- Long contract duration increases potential for cost/schedule overruns.
- Complexity of nuclear command and control systems.
- Potential for cost growth under FPI contract.
- Dependence on contractor's technical expertise.
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to LOCKHEED MARTIN CORP. IGF::OT::IGF AIRBORNE LAUNCH CONTROL SYSTEM REPLACEMENT (ALCS-R) TECHNICAL MATURATION RISK REDUCTION (TMRR) EFFORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.6 million.
What is the period of performance?
Start: 2017-10-03. End: 2022-12-03.
What specific technical risks are being addressed in this TMRR effort, and what are the mitigation strategies?
The TMRR effort is designed to identify and mitigate key technical risks associated with the ALCS-R system's development. Specific risks likely include integration challenges with existing platforms, component reliability under extreme conditions, and software complexity. Mitigation strategies would involve rigorous testing, prototyping, simulation, and phased development to address these issues incrementally before full-scale production.
How does the fixed-price incentive contract structure balance cost control with the inherent uncertainties of R&D?
A fixed-price incentive (FPI) contract sets a target cost and target profit. If the final cost is below the target, both the government and contractor share in the savings (sharing formula). If the final cost exceeds the target, the contractor bears a portion of the overrun up to a ceiling price. This incentivizes the contractor to control costs while acknowledging that R&D can be unpredictable, offering a potential upside for efficiency but capping the government's liability.
What is the projected long-term cost-effectiveness of the ALCS-R system, considering the investment in this TMRR phase?
The long-term cost-effectiveness hinges on the successful maturation and risk reduction achieved during this TMRR phase. If this effort effectively identifies and resolves critical technical challenges, it should prevent more costly retrofits or failures during later development and operational phases. The $34.6 million investment is intended to save greater costs down the line by ensuring a more robust and reliable system from the outset.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA820416R0001
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $94,339,981
Exercised Options: $53,420,508
Current Obligation: $34,605,044
Actual Outlays: $-1,009
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $22,383,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-10-03
Current End Date: 2022-12-03
Potential End Date: 2026-12-04 00:00:00
Last Modified: 2025-04-22
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