DoD Awards $26.1M for Advanced Battle Management System Development to Lockheed Martin
Contract Overview
Contract Amount: $26,142,010 ($26.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-17
End Date: 2027-01-16
Contract Duration: 1,460 days
Daily Burn Rate: $17.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ADVANCED BATTLE MANAGEMENT SYSTEM (ABMS) - DISTRIBUTIVE BATTLE MANAGEMENT NODE (DBMN) PHASE 1A
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76101
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to LOCKHEED MARTIN CORPORATION for work described as: ADVANCED BATTLE MANAGEMENT SYSTEM (ABMS) - DISTRIBUTIVE BATTLE MANAGEMENT NODE (DBMN) PHASE 1A Key points: 1. The Department of the Air Force awarded a $26.1M contract for the ABMS DBMN Phase 1A. 2. Lockheed Martin Corporation is the sole awardee, indicating a potential lack of broad competition. 3. The contract is for Research and Development in physical, engineering, and life sciences. 4. This award represents a significant investment in modernizing military command and control capabilities.
Value Assessment
Rating: fair
The $26.1M award for Phase 1A of the DBMN is a substantial investment. Benchmarking against similar R&D contracts in advanced defense systems is difficult without more specific cost breakdowns, but the amount suggests a complex and critical development effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. However, the awardee is Lockheed Martin, a major defense contractor, which may limit the diversity of innovation brought to this specific phase.
Taxpayer Impact: Taxpayer funds are being used for critical defense modernization, aiming for enhanced battlefield efficiency and interoperability.
Public Impact
Enhances military communication and decision-making capabilities. Supports the development of a more integrated and resilient battlespace network. Invests in advanced technological solutions for national security. Potential for future contract expansions as the system matures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee to a large prime contractor.
- Research and Development contracts can have cost overruns.
- Complexity of integrating new systems with legacy infrastructure.
Positive Signals
- Addresses a critical modernization need for the Air Force.
- Utilizes a full and open competition approach.
- Focus on advanced technological development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences for defense applications. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to inherent R&D risks and costs.
Small Business Impact
While the prime contractor is Lockheed Martin Corporation, the contract details do not specify any subcontracting goals for small businesses. Further inquiry may be needed to understand potential opportunities for small business participation in this project.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The contract type (Cost Plus Fixed Fee) necessitates close monitoring of costs and performance to ensure value for money and prevent potential cost overruns.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns in R&D.
- Dependency on a single large contractor.
- Complexity of system integration.
- Cybersecurity risks.
- Long development timeline.
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to LOCKHEED MARTIN CORPORATION. ADVANCED BATTLE MANAGEMENT SYSTEM (ABMS) - DISTRIBUTIVE BATTLE MANAGEMENT NODE (DBMN) PHASE 1A
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
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 $26.1 million.
What is the period of performance?
Start: 2023-01-17. End: 2027-01-16.
What is the projected return on investment for the Advanced Battle Management System given its development costs?
Quantifying the ROI for advanced defense systems like the ABMS is challenging due to the intangible nature of national security benefits and the long-term development cycles. The primary return is expected in enhanced operational effectiveness, reduced risk to personnel, and improved strategic advantage, rather than direct financial returns. Success will be measured by improved battlefield awareness, faster decision-making, and seamless integration across different military platforms.
What are the key technical risks associated with the DBMN Phase 1A development, and how are they being mitigated?
Key risks include integration challenges with existing and future systems, cybersecurity vulnerabilities, and the inherent uncertainties in developing novel technologies. Mitigation strategies likely involve rigorous testing protocols, phased development with clear milestones, robust cybersecurity measures, and close collaboration between Lockheed Martin and the Air Force to address technical hurdles proactively as they arise during Phase 1A.
How effectively will this system improve joint force interoperability and reduce operational redundancies?
The DBMN is designed to be a core component of the ABMS, aiming to create a common operational picture accessible across different services and domains. Its effectiveness in improving interoperability and reducing redundancies hinges on successful development, integration, and adoption by all relevant military branches. Phase 1A's success will be a critical indicator of the system's potential to achieve these ambitious goals.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 20
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,498,485
Exercised Options: $32,498,485
Current Obligation: $26,142,010
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $5,823,660
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-01-17
Current End Date: 2027-01-16
Potential End Date: 2027-01-16 00:00:00
Last Modified: 2026-01-08
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)