DoD Awards $12.1M for Hardened Materials Research to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $12,116,291 ($12.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-04-23
End Date: 2027-07-08
Contract Duration: 2,267 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HARDENED MATERIALS AND PROCESSING RESEARCH
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $12.1 million to LOCKHEED MARTIN CORP for work described as: HARDENED MATERIALS AND PROCESSING RESEARCH Key points: 1. Significant investment in advanced materials research by the Department of Defense. 2. Competition was open, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Fixed Fee) may lead to cost overruns. 4. Research falls within the R&D sector, crucial for national security.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can be less price-efficient than fixed-price contracts, potentially leading to higher costs for the government if not managed closely. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure means the final price is not fixed upfront, impacting price discovery.
Taxpayer Impact: Taxpayers are funding critical R&D, with the ultimate benefit being advanced materials for defense. The cost-efficiency depends heavily on program execution and oversight.
Public Impact
Advancement of critical hardened materials technology for defense applications. Potential for technological breakthroughs that could enhance national security. Investment in a high-tech R&D area with long-term strategic importance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Limited visibility into specific cost drivers for R&D.
- Long contract duration increases exposure to changing requirements.
Positive Signals
- Awarded under full and open competition.
- Focus on critical national security research.
- Contract awarded to a major defense contractor with relevant expertise.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical sciences. Spending in this area is vital for maintaining a technological edge in defense, with benchmarks varying widely based on the specific research scope and duration.
Small Business Impact
The contract was awarded to Lockheed Martin Corp, a large prime contractor. There is no indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles.
Oversight & Accountability
The Cost Plus Fixed Fee contract requires robust oversight to ensure costs are reasonable and the fixed fee is justified. The long duration necessitates continuous monitoring of progress and adherence to research objectives.
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
- Cost overrun potential due to CPFF structure.
- Long contract duration (over 6 years).
- Lack of small business prime participation.
- R&D effectiveness can be challenging to measure definitively.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to LOCKHEED MARTIN CORP. HARDENED MATERIALS AND PROCESSING RESEARCH
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 $12.1 million.
What is the period of performance?
Start: 2021-04-23. End: 2027-07-08.
What is the projected return on investment for this hardened materials research in terms of enhanced defense capabilities?
The return on investment is difficult to quantify precisely due to the nature of R&D. However, successful development of hardened materials could lead to significant improvements in weapon system survivability, reduced maintenance costs, and enhanced operational effectiveness, providing a substantial long-term strategic advantage.
What are the specific risks associated with the Cost Plus Fixed Fee structure in this R&D context?
The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts. The government bears the risk of cost overruns, and ensuring the 'fixed fee' remains appropriate requires diligent oversight of the contractor's cost accounting and project management.
How will the effectiveness of the research be measured, given the long duration and R&D focus?
Effectiveness will likely be measured through a series of milestones, technical reviews, and prototype demonstrations. Key performance indicators will focus on achieving specific material properties, successful integration into test systems, and validation of performance under simulated operational conditions.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: FA865021R5408
Offers Received: 1
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: $14,693,291
Exercised Options: $14,693,291
Current Obligation: $12,116,291
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-04-23
Current End Date: 2027-07-08
Potential End Date: 2027-07-08 00:00:00
Last Modified: 2025-12-10
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