DoD's $10.1M Hypersonics Materials Research Contract Awarded to Lockheed Martin

Contract Overview

Contract Amount: $10,091,234 ($10.1M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2019-12-02

End Date: 2026-03-02

Contract Duration: 2,282 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MATERIALS ARCHITECTURES CHARACTERIZATION FOR HYPERSONICS (MACH)

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to LOCKHEED MARTIN CORP for work described as: MATERIALS ARCHITECTURES CHARACTERIZATION FOR HYPERSONICS (MACH) Key points: 1. Contract focuses on advanced materials for hypersonic applications, a critical defense technology area. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of over 6 years indicates a long-term investment in research and development. 4. Cost-plus-fixed-fee pricing structure allows for flexibility in research but requires careful cost oversight. 5. The research and development sector is characterized by high innovation and significant upfront investment. 6. This contract aligns with broader national security objectives related to advanced weapons systems.

Value Assessment

Rating: good

The contract value of $10.1 million over approximately 6 years for specialized R&D in hypersonics appears reasonable given the complexity and strategic importance of the work. Benchmarking against similar advanced materials research contracts is challenging due to the niche nature of hypersonic technology. However, the cost-plus-fixed-fee structure, while common for R&D, necessitates diligent oversight to ensure cost efficiency and prevent scope creep. The fixed fee component provides some incentive for the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 24 potential bidders suggests a healthy competitive landscape for research and development in advanced materials for defense applications. This level of competition is generally favorable for price discovery and ensures that the government can select the most capable and cost-effective solution.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices and encouraging innovation among bidders.

Public Impact

The primary beneficiary is the Department of Defense, specifically advancing its capabilities in hypersonic technologies. Services delivered include research, development, and characterization of advanced materials crucial for hypersonic flight. The contract is managed by the Department of the Air Force, indicating a focus on air-based hypersonic systems. Workforce implications include highly skilled scientists, engineers, and technicians specializing in materials science and aerospace engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed rigorously.
The long duration of the contract increases the risk of technological obsolescence or shifts in strategic priorities.
Dependence on a single large contractor for critical R&D could pose supply chain or innovation risks.

Positive Signals

Awarded through full and open competition, maximizing potential for innovation and value.
Focus on a critical national security technology area (hypersonics) demonstrates strategic investment.
Long-term contract provides stability for research and development efforts, fostering deeper expertise.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced materials for the aerospace and defense industries. This sector is characterized by high innovation, long development cycles, and significant government investment due to its strategic importance. The market for hypersonic technologies is rapidly evolving, with substantial global investment from major powers. Comparable spending benchmarks are difficult to establish precisely due to the classified nature of some hypersonic research, but R&D contracts of this magnitude are typical for cutting-edge defense initiatives.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The nature of advanced materials research for hypersonic applications often requires specialized facilities and expertise typically found in larger, established defense contractors. While this specific award may not directly benefit small businesses, the broader advancement in hypersonic technology could create future opportunities in the supply chain or specialized component manufacturing.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Air Force, with specific program managers responsible for monitoring progress, costs, and adherence to technical requirements. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure the fixed fee remains appropriate and costs are controlled. Transparency may be limited due to the sensitive nature of hypersonic research, but standard government contracting oversight mechanisms and potentially Inspector General reviews would apply.

Related Government Programs

Advanced Materials Research
Hypersonic Weapons Development
Aerospace Engineering R&D
Department of Defense Research Contracts
Air Force Science and Technology Programs

Risk Flags

Cost Overrun Risk
Technological Obsolescence
Long-Term Project Management
Sensitive Technology R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to LOCKHEED MARTIN CORP. MATERIALS ARCHITECTURES CHARACTERIZATION FOR HYPERSONICS (MACH)

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORP.

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 $10.1 million.

What is the period of performance?

Start: 2019-12-02. End: 2026-03-02.

What is Lockheed Martin's track record with similar advanced materials research contracts for the Department of Defense?

Lockheed Martin Corporation has a long and extensive history of performing complex research and development contracts for the Department of Defense, including work on advanced materials and aerospace technologies. They are a prime contractor on numerous programs involving cutting-edge defense systems. While specific details on prior hypersonic materials contracts are often classified, their general experience in areas like advanced composites, high-temperature alloys, and structural analysis for extreme environments is well-established. Their performance on previous R&D contracts would typically be evaluated through contract performance metrics, delivery schedules, and technical milestone achievements, which inform future award decisions.

How does the $10.1 million contract value compare to other R&D investments in hypersonic materials?

The $10.1 million contract value for Materials Architectures Characterization for Hypersonics (MACH) is a significant but not exceptionally large sum for a multi-year, specialized R&D effort in a cutting-edge field like hypersonics. Major defense R&D programs, especially those involving advanced materials for strategic systems, can range from tens to hundreds of millions of dollars over their lifecycle. This particular contract appears to focus on a specific phase or aspect of materials characterization. Benchmarking is difficult due to the proprietary and often classified nature of hypersonic research, but this award suggests a focused investment rather than a broad, program-wide development effort.

What are the primary risks associated with this cost-plus-fixed-fee contract structure for R&D?

The primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract structure for R&D, like the MACH contract, revolve around cost control and potential for overruns. While the fixed fee provides a defined profit margin for the contractor, the government bears the risk of actual costs exceeding estimates. This necessitates rigorous oversight by the contracting agency to ensure that all incurred costs are reasonable, allocable, and allowable. Scope creep, where the project expands beyond its original objectives without corresponding adjustments to the fee or timeline, is another significant risk. Effective management requires clear definition of work, regular progress reviews, and proactive identification of potential cost drivers.

How does this contract contribute to the overall effectiveness of US hypersonic programs?

This contract is crucial for the foundational understanding and development of materials necessary for effective hypersonic systems. Hypersonic vehicles operate under extreme conditions of temperature, pressure, and speed, requiring materials that can withstand these environments without degradation. By characterizing these materials, the research aims to identify optimal compositions, manufacturing processes, and performance limits. This knowledge directly informs the design and engineering of future hypersonic platforms, ensuring they are reliable, durable, and capable of achieving mission objectives. Without advancements in materials science, the practical realization and widespread deployment of effective hypersonic technology would be severely limited.

What are the historical spending patterns for R&D in advanced materials within the Department of Defense?

The Department of Defense has consistently allocated substantial funding towards Research and Development, with a significant portion dedicated to advanced materials science, particularly for aerospace and defense applications. Historical spending patterns show a continuous investment in areas like composites, ceramics, alloys, and additive manufacturing tailored for extreme environments. Funding often fluctuates based on strategic priorities, technological breakthroughs, and perceived threats. Investments in areas like hypersonics have seen a marked increase in recent years due to global competition. While specific figures for 'hypersonic materials R&D' are often embedded within broader categories, the overall trend indicates a sustained and growing commitment to maintaining technological superiority through materials innovation.

What is the significance of the 'Materials Architectures Characterization for Hypersonics (MACH)' designation?

The designation 'Materials Architectures Characterization for Hypersonics (MACH)' signifies a focused research effort aimed at understanding the fundamental structure and properties of materials under the extreme conditions experienced by hypersonic vehicles. 'Materials Architectures' refers to the internal structure, composition, and arrangement of elements within a material, which dictate its performance. 'Characterization' involves testing and analyzing these properties. 'Hypersonics' specifies the application domain, highlighting the need for materials that can withstand speeds above Mach 5, extreme temperatures, and aerodynamic stresses. The MACH designation thus points to a critical, early-stage research activity essential for enabling advanced hypersonic capabilities.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001119S0022

Offers Received: 24

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1111 LOCKHEED MARTIN WAY, SUNNYVALE, CA, 94089

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,091,234

Exercised Options: $10,091,234

Current Obligation: $10,091,234

Actual Outlays: $1,339,258

Subaward Activity

Number of Subawards: 28

Total Subaward Amount: $8,854,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline