DoD's Space Fence Program Exceeds $1 Billion, Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $1,039,565,270 ($1.0B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-06-02
End Date: 2022-04-30
Contract Duration: 2,889 days
Daily Burn Rate: $359.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: IGF::CT::IGF SPACE FENCE PROGRAM FINAL ENGINEERING AND MANUFACTURING DEVELOPMENT; PRODUCTION AND DEPLOYMENT
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $1.04 billion to LOCKHEED MARTIN CORPORATION for work described as: IGF::CT::IGF SPACE FENCE PROGRAM FINAL ENGINEERING AND MANUFACTURING DEVELOPMENT; PRODUCTION AND DEPLOYMENT Key points: 1. The Space Fence Program, a critical defense initiative, has reached a total contract value of over $1 billion. 2. Lockheed Martin Corporation secured the contract through full and open competition, indicating a competitive bidding process. 3. The program's fixed-price incentive structure aims to control costs while incentivizing performance. 4. The primary sector for this spending is IT, specifically in advanced radar and tracking systems for national security.
Value Assessment
Rating: good
The total award of over $1 billion for the Space Fence Program is substantial. Benchmarking against similar large-scale, complex defense system development contracts suggests this value is within a reasonable range, given the advanced technology and long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: While the total cost is high, the competitive award process likely ensured taxpayers received a fair price for this advanced defense capability.
Public Impact
Enhances U.S. and allied space situational awareness capabilities. Provides critical tracking of orbital debris and potential threats. Supports national security by monitoring space domain activities. Represents a significant investment in advanced aerospace technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration (2889 days) increases risk of cost overruns or scope creep.
- Fixed-price incentive contracts can lead to cost overruns if performance targets are not met efficiently.
- Reliance on a single prime contractor (Lockheed Martin) for a program of this magnitude.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Addresses a critical national security need for space domain awareness.
- Utilizes advanced technology for enhanced tracking capabilities.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on advanced radar, sensor, and data processing systems for space surveillance. Spending benchmarks for similar large-scale defense acquisition programs indicate that costs can range widely, but programs of this complexity and duration often represent significant investments.
Small Business Impact
The data indicates that small business participation was not a primary focus, as the contract was awarded to Lockheed Martin Corporation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Air Force, is the awarding agency. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure contract compliance and effective use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High total contract value.
- Long contract duration.
- Complexity of the technology involved.
- Potential for cost overruns in fixed-price incentive contracts.
- Dependence on a single large prime contractor.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.04 billion to LOCKHEED MARTIN CORPORATION. IGF::CT::IGF SPACE FENCE PROGRAM FINAL ENGINEERING AND MANUFACTURING DEVELOPMENT; PRODUCTION AND DEPLOYMENT
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 $1.04 billion.
What is the period of performance?
Start: 2014-06-02. End: 2022-04-30.
What is the projected return on investment for the Space Fence Program in terms of enhanced national security and reduced risk from space-based threats?
The return on investment for the Space Fence Program is primarily measured in enhanced national security and risk mitigation. By providing comprehensive space situational awareness, it allows for the early detection of potential threats, tracking of orbital debris to prevent collisions, and improved command and control of space assets. Quantifying this ROI is challenging but crucial for justifying the significant expenditure.
What are the key performance indicators (KPIs) used to assess the success of the Space Fence Program under its fixed-price incentive contract?
Key performance indicators for the Space Fence Program likely include metrics related to tracking accuracy, detection range, data latency, system availability, and the number of objects successfully cataloged. The fixed-price incentive structure means that Lockheed Martin is incentivized to meet or exceed these KPIs, with potential for bonuses or penalties tied to performance outcomes.
How does the technological advancement of the Space Fence Program compare to international counterparts, and what is its long-term strategic advantage?
The Space Fence Program represents a significant technological leap in space surveillance capabilities, utilizing advanced radar and processing to track smaller objects at greater distances than previous systems. This provides the U.S. with a strategic advantage in monitoring the increasingly crowded and contested space environment, enhancing its ability to protect national assets and maintain space superiority.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
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
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,812,192,672
Exercised Options: $1,058,535,825
Current Obligation: $1,039,565,270
Actual Outlays: $8,420,279
Subaward Activity
Number of Subawards: 422
Total Subaward Amount: $1,603,585,869
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2014-06-02
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2024-03-05
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