DoD's $20.4M Fine Detail Optical Surveillance Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $20,425,166 ($20.4M)
Contractor: Lockheed Martin Coherent Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-06-01
End Date: 2014-05-07
Contract Duration: 1,436 days
Daily Burn Rate: $14.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: FINE DETAIL OPTICAL SURVEILLANCE
Place of Performance
Location: LOUISVILLE, BOULDER County, COLORADO, 80027
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC. for work described as: FINE DETAIL OPTICAL SURVEILLANCE Key points: 1. Contract awarded to a major defense contractor, indicating potential for high-value, specialized solutions. 2. Full and open competition suggests a robust market, but specific technical requirements may limit bidders. 3. Research and Development focus highlights investment in advanced capabilities, carrying inherent innovation risks. 4. The contract spans over four years, allowing for significant project development and potential cost overruns.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar R&D contracts is difficult due to the specialized nature of optical surveillance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specialized nature of optical surveillance technology may have limited the number of qualified bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being invested in advanced R&D for defense, with the ultimate value dependent on the successful development and deployment of the optical surveillance technology.
Public Impact
Investment in advanced defense technology could enhance national security capabilities. Potential for technological advancements that may have dual-use applications. Long-term contract duration allows for sustained research and development efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded under full and open competition.
- Focus on cutting-edge R&D for critical defense needs.
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 maintaining technological superiority but often involves higher risk and less predictable outcomes compared to procurement of existing technologies.
Small Business Impact
The contract was awarded to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee structure necessitates diligent oversight to control costs and ensure adherence to project milestones.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overruns
- Technical Feasibility Risk
- Scope Creep
- Limited Measurable Outcomes
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 $20.4 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC.. FINE DETAIL OPTICAL SURVEILLANCE
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2010-06-01. End: 2014-05-07.
What specific technological advancements are expected from this optical surveillance contract, and how will they be measured?
The contract aims to develop advanced optical surveillance capabilities. Specific advancements are not detailed, but likely include enhanced resolution, range, or data processing. Measurement would typically involve rigorous testing and validation against predefined technical requirements and performance benchmarks, assessed throughout the development lifecycle.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this R&D project?
The primary risk is that the contractor may not have sufficient incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to budget overruns if project complexities or unforeseen challenges arise, requiring robust government oversight and clear milestone definitions.
How does this investment in optical surveillance technology align with current defense strategies and potential threats?
This investment likely aligns with strategies focused on enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities. It addresses the need for advanced monitoring in complex environments, potentially countering evolving threats by providing superior situational awareness and early warning capabilities to military operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 135 S TAYLOR AVE, LOUISVILLE, CO, 80027
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,425,166
Exercised Options: $20,425,166
Current Obligation: $20,425,166
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-01
Current End Date: 2014-05-07
Potential End Date: 2014-05-07 00:00:00
Last Modified: 2017-05-16
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