DoD's $26.75M DEUCSI Contract to Lockheed Martin for Space Internet Research Faces Limited Competition
Contract Overview
Contract Amount: $26,754,255 ($26.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2026-04-30
Contract Duration: 2,404 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI)CALL 002
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.8 million to LOCKHEED MARTIN CORPORATION for work described as: DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI)CALL 002 Key points: 1. The contract focuses on R&D in physical and engineering sciences, a broad category. 2. Lockheed Martin, a major defense contractor, is the sole awardee. 3. The contract duration is substantial at over 2000 days. 4. The award type is a definitive contract with a Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, only one offer was received. This suggests potential barriers to entry or a lack of broader market interest for this specific research area.
Taxpayer Impact: Taxpayer funds are being used for advanced research, with the ultimate value dependent on the successful outcomes of the experimentation.
Public Impact
Advancement of space internet technologies could have future civilian and military applications. Investment in cutting-edge R&D signals a commitment to technological superiority. The long duration suggests a complex and potentially iterative research process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single offer received despite full and open competition.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may indicate potential for scope creep or delays.
Positive Signals
- Focus on critical R&D for national security.
- Potential for significant technological advancements.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be highly variable and difficult to benchmark due to its specialized nature.
Small Business Impact
The contract was not set aside for small businesses, and no small business participation is indicated. This suggests the primary contractor is a large entity, and opportunities for smaller innovative firms may be limited in this specific award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that research objectives are met within the defined scope.
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
- Limited competition despite 'full and open' solicitation.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Long contract duration increases exposure to changing requirements and market conditions.
- No small business set-aside or participation noted.
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 $26.8 million to LOCKHEED MARTIN CORPORATION. DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET (DEUCSI)CALL 002
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 $26.8 million.
What is the period of performance?
Start: 2019-09-30. End: 2026-04-30.
What specific technological advancements are expected from this research, and how will they be measured?
The specific technological advancements are not detailed in the provided data. However, the contract's focus on 'DEFENSE EXPERIMENTATION USING COMMERCIAL SPACE INTERNET' suggests aims to improve secure, resilient, and high-bandwidth communication capabilities for defense applications leveraging commercial infrastructure. Success metrics would likely involve performance benchmarks related to latency, throughput, security, and operational reliability in experimental environments.
Given only one offer was received, what steps were taken to ensure a fair price was negotiated?
While the data indicates 'full and open competition,' only one offer was received. The agency likely relied on pre-negotiated rates, historical cost data, and potentially independent cost estimates to validate the reasonableness of the proposed price. The 'Cost Plus Fixed Fee' structure means the fee is fixed, but the cost reimbursement aspect requires careful monitoring and justification of incurred costs to prevent overpayment.
How does the $26.75M investment align with broader DoD strategies for space-based communication and R&D?
This investment aligns with the DoD's strategic imperative to maintain technological superiority, particularly in contested domains like space. Enhancing space-based communication capabilities through commercial partnerships addresses the need for resilient, adaptable, and potentially more cost-effective solutions compared to solely relying on government-owned assets. The R&D focus indicates a forward-looking approach to exploring new paradigms in military connectivity.
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: FA865019R9314
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD BLDG 10, 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: $52,908,974
Exercised Options: $27,682,660
Current Obligation: $26,754,255
Actual Outlays: $570,017
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $468,440
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-30
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-16
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