DoD's $242M R&D Contract with Lockheed Martin: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $24,201,191 ($24.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-08-13
End Date: 2019-12-31
Contract Duration: 2,331 days
Daily Burn Rate: $10.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF CAM 4A
Place of Performance
Location: TEMPE, MARICOPA County, ARIZONA, 85284
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF CAM 4A Key points: 1. Significant investment in R&D for the Air Force. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Research and Development sector is critical for national security.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, while common for R&D, can lead to higher costs if not managed tightly. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the research and development services provided.
Public Impact
Taxpayers funded a significant R&D effort for the Air Force. The contract supported advanced research in physical, engineering, and life sciences. The long duration (2013-2019) suggests a substantial and ongoing project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical R&D for the Air Force
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.
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, suggesting limited opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Air Force. Oversight would typically involve program managers and contracting officers ensuring milestones are met and costs are reasonable, though the sole-source nature limits competitive oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration may indicate potential for cost creep.
- Lack of small business subcontracting opportunities.
Tags
research-and-development-in-the-physical, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF CAM 4A
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 $24.2 million.
What is the period of performance?
Start: 2013-08-13. End: 2019-12-31.
What specific technological advancements or outcomes resulted from this $242 million R&D investment?
Without detailed reporting on the contract's deliverables and outcomes, it's challenging to ascertain the specific technological advancements. R&D contracts often have long lead times for tangible results. Further investigation into program reports and technical documentation would be necessary to evaluate the return on investment and the actual impact of the research conducted.
How was the 'fixed fee' determined in this Cost Plus Fixed Fee contract to ensure fairness without competition?
In Cost Plus Fixed Fee contracts awarded sole-source, the fixed fee is typically negotiated based on historical data, industry standards, and the contractor's proposed costs and profit margin. However, without a competitive bidding process, there's a higher risk that the fee might not represent the most cost-effective option for the government. Robust negotiation and justification by the contracting agency are crucial.
What mechanisms were in place to ensure the effectiveness and efficiency of Lockheed Martin's R&D efforts over the contract's 6-year duration?
Effectiveness and efficiency in R&D contracts are usually monitored through performance metrics, milestone reviews, and technical progress reports. For a sole-source contract, the government relies heavily on the expertise of its technical evaluators and program managers to assess progress and ensure the contractor is meeting objectives. Regular communication and performance evaluations are key to maintaining accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 3 EXECUTIVE CAMPUS, CHERRY HILL, NJ, 08002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,622,290
Exercised Options: $20,743,515
Current Obligation: $24,201,191
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $858,846
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-08-13
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2019-06-26
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