DoD awards $32.8M for HCSW Material NRE Development to Lockheed Martin
Contract Overview
Contract Amount: $32,805,165 ($32.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-10
End Date: 2023-09-30
Contract Duration: 1,634 days
Daily Burn Rate: $20.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HCSW MATERIAL / INITIAL NRE DEVELOPMENT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to LOCKHEED MARTIN CORPORATION for work described as: HCSW MATERIAL / INITIAL NRE DEVELOPMENT Key points: 1. Significant R&D investment in advanced materials. 2. Sole awardee, raising questions about competition. 3. Long contract duration (1634 days) suggests complex development. 4. High value for a single NRE contract.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables and comparable NRE contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition where other sources were initially excluded. This method may not yield the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development, with the ultimate value dependent on the success of the HCSW material.
Public Impact
Development of potentially critical materials for defense applications. Investment in technological advancement within the aerospace sector. Potential for follow-on production contracts if development is successful.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Cost Plus Fixed Fee contract type risk.
- Long duration may indicate scope creep potential.
Positive Signals
- Supports critical defense research.
- Investment in advanced material science.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but can be high-risk and long-term.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure efficient use of funds and prevent cost overruns. The Department of the Air Force is responsible for monitoring progress and expenditures.
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
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of small business participation
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to LOCKHEED MARTIN CORPORATION. HCSW MATERIAL / INITIAL NRE DEVELOPMENT
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 $32.8 million.
What is the period of performance?
Start: 2019-04-10. End: 2023-09-30.
What specific technological advancements are expected from this HCSW material development, and how do they align with current and future Air Force needs?
The HCSW (High-Capacity, Small-Warhead) material development likely aims to create lighter, stronger, or more resilient components for aerospace applications. These advancements could lead to improved aircraft performance, reduced maintenance, or enhanced survivability. Alignment with Air Force needs would be detailed in program requirements documents, focusing on specific mission capabilities and operational advantages.
Given the limited competition, what measures are in place to ensure Lockheed Martin is not overcharging for the NRE development?
The Cost Plus Fixed Fee structure requires robust government oversight. Measures include detailed cost proposal analysis, regular audits of incurred costs, performance reviews against milestones, and negotiation of a fair fixed fee based on the estimated cost and complexity. The contracting officer must ensure the fee adequately compensates for the risk and effort without being excessive.
What is the projected timeline for transitioning this NRE development into a production-ready capability, and what are the associated risks?
The transition timeline is not explicitly stated but is implied to be lengthy given the 1634-day duration. Risks include technical challenges in scaling up production, material performance degradation over time, integration issues with existing systems, and potential shifts in program priorities or funding. Successful transition hinges on rigorous testing, validation, and effective program management.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4800 BRADFORD DR NW, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,966,578
Exercised Options: $33,966,578
Current Obligation: $32,805,165
Actual Outlays: $396,877
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA868218D0003
IDV Type: IDC
Timeline
Start Date: 2019-04-10
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-08-19
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