Space Fence Phase A SDR contract awarded to Lockheed Martin for $30M by the Air Force

Contract Overview

Contract Amount: $30,000,000 ($30.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2009-06-11

End Date: 2010-12-10

Contract Duration: 547 days

Daily Burn Rate: $54.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPACE FENCE PHASE A SDR

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to LOCKHEED MARTIN CORPORATION for work described as: SPACE FENCE PHASE A SDR Key points: 1. The contract value of $30 million for Phase A of the Space Fence program represents an initial investment in a critical space surveillance capability. 2. Competition dynamics for this phase are not fully detailed, but the award suggests a competitive process was undertaken. 3. Key risk indicators include the complexity of space surveillance technology and the potential for schedule or cost overruns in advanced R&D phases. 4. This contract falls within the defense sector, specifically focusing on advanced sensor and tracking systems for space domain awareness. 5. The performance period of approximately 1.5 years for Phase A indicates a focused effort on initial development or design stages.

Value Assessment

Rating: good

The $30 million award for Phase A of the Space Fence program appears reasonable for an initial development phase of a complex system. Benchmarking against similar large-scale sensor development contracts is challenging due to the unique nature of space surveillance. However, the fixed-price contract type suggests an effort to control costs upfront. Further analysis would require comparing the scope of work and deliverables against industry standards for similar R&D efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders, as suggested by the data, points to a healthy level of interest and competition for this significant defense contract. This competitive environment is generally expected to drive better pricing and innovation.

Taxpayer Impact: A full and open competition benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are the U.S. Air Force and the broader Department of Defense, gaining enhanced capabilities for tracking space objects. This contract supports the development of advanced radar and data processing systems crucial for maintaining space situational awareness. The geographic impact is national, as the system will contribute to U.S. space security, with potential implications for global space traffic management. Workforce implications include potential job creation in specialized engineering, software development, and systems integration roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of space-based systems can lead to unforeseen technical challenges and cost escalations.
Long-term sustainment and upgrade costs for such advanced infrastructure are often significant and require careful budgeting.
Dependence on a single prime contractor for critical technology development could pose future supply chain risks.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type helps to establish cost certainty for this phase of development.
Involvement of a major defense contractor like Lockheed Martin indicates access to significant technical expertise and resources.

Sector Analysis

The Space Fence program falls within the broader defense electronics and aerospace sector, a market characterized by high R&D investment and long development cycles. This contract is for a critical component of space domain awareness, a growing area of focus for national security. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of space surveillance technology, but large-scale radar and sensor development programs can run into hundreds of millions or billions of dollars.

Small Business Impact

While this contract was awarded to a large prime contractor, the potential for subcontracting opportunities for small businesses in specialized areas like component manufacturing, software development, or technical support exists. The extent of small business participation would depend on Lockheed Martin's subcontracting plan and the specific needs of Phase A. Further analysis of subcontracting awards would be necessary to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance milestones and reporting requirements. Transparency is generally maintained through contract awards databases, though specific technical details may be classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Surveillance Network
Missile Defense Systems
Satellite Ground Systems
Advanced Radar Technology Development
Space Situational Awareness Programs

Risk Flags

High Technology Development Risk
Potential for Cost Overruns
Long-Term Program Viability
Complexity of Global System Integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to LOCKHEED MARTIN CORPORATION. SPACE FENCE PHASE A SDR

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 $30.0 million.

What is the period of performance?

Start: 2009-06-11. End: 2010-12-10.

What is Lockheed Martin Corporation's track record with similar large-scale defense sensor development contracts?

Lockheed Martin Corporation has a extensive track record in developing and producing complex defense systems, including radar, satellite, and command and control technologies. They have been a prime contractor on numerous large-scale programs for the Department of Defense and other government agencies. Their experience spans various domains, including air, land, sea, space, and cyber. For instance, they have been involved in developing advanced radar systems for missile defense and surveillance, as well as satellite systems for intelligence gathering and communication. This background suggests they possess the technical expertise and program management capabilities necessary for a project like the Space Fence Phase A SDR. However, the success and cost-effectiveness of past projects can vary, and a detailed review of their performance on comparable programs would be beneficial for a comprehensive risk assessment.

How does the $30 million award for Phase A compare to the overall estimated cost of the Space Fence program?

The $30 million awarded for Phase A of the Space Fence program represents an initial investment, likely for research, design, and preliminary development. The total cost of the Space Fence program, which involves the construction and deployment of a global network of radar sites, is significantly higher, estimated to be in the billions of dollars. Phase A is a crucial but early stage. Understanding the full program cost requires examining subsequent phases, including system integration, testing, deployment, and long-term operations and maintenance. The $30 million is a fraction of the total lifecycle cost, and its value is best assessed in relation to the specific deliverables and objectives of this initial phase, rather than the overall program budget.

What are the primary risks associated with the development of advanced space surveillance technology like Space Fence?

The development of advanced space surveillance technology like the Space Fence program carries several inherent risks. Technical risks are significant due to the cutting-edge nature of the required radar and data processing capabilities; unforeseen challenges in achieving desired performance, accuracy, and reliability are common. Integration risks arise from combining complex hardware and software components into a cohesive system. Schedule risks are prevalent in large, technologically intensive projects, where delays can occur due to technical hurdles, testing complexities, or external factors. Cost risks are also substantial, as development complexities and potential overruns can significantly increase the final price. Furthermore, operational risks related to maintaining and upgrading such a sophisticated global system over its lifespan must be considered.

What is the expected effectiveness of the Space Fence program in enhancing U.S. space domain awareness?

The Space Fence program is designed to significantly enhance U.S. space domain awareness by providing a more comprehensive and accurate tracking capability for objects in Earth orbit. Its primary objective is to detect, track, and catalog a much larger number of smaller objects, including debris, than current systems can manage. This improved awareness is critical for collision avoidance, space traffic management, and understanding the space environment, which is increasingly congested. By providing more timely and precise data, Space Fence aims to reduce the risk of satellite collisions, improve the safety and sustainability of space operations, and support national security interests by providing better information on objects in orbit.

How has spending on space surveillance and tracking capabilities evolved over the past decade?

Spending on space surveillance and tracking (SST) capabilities has seen a notable increase over the past decade, driven by growing concerns about space debris, the proliferation of satellites, and the increasing reliance on space-based assets for military, commercial, and civilian purposes. Historically, funding was often integrated within broader intelligence or defense programs. However, there has been a trend towards more dedicated funding streams and specific programs like Space Fence, reflecting the heightened strategic importance of maintaining a secure and accessible space environment. This evolution indicates a recognition of the growing threats and challenges in orbit, prompting increased investment in technologies and systems to monitor and manage space activities effectively.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 03

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

Financial Breakdown

Contract Ceiling: $30,000,000

Exercised Options: $30,000,000

Current Obligation: $30,000,000

Timeline