DoD Awards $193.9M DICE Contract to Lockheed Martin for R&D
Contract Overview
Contract Amount: $19,390,564 ($19.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-12
End Date: 2026-10-11
Contract Duration: 2,251 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 37
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DAC INTEGRATION AND CONTEXTUAL EXPLANATION (DICE)
Place of Performance
Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002
Plain-Language Summary
Department of Defense obligated $19.4 million to LOCKHEED MARTIN CORPORATION for work described as: DAC INTEGRATION AND CONTEXTUAL EXPLANATION (DICE) Key points: 1. Significant R&D investment in physical and engineering sciences. 2. Sole awardee, raising questions about competition and price discovery. 3. Long contract duration (2020-2026) with substantial value. 4. Focus on advanced research suggests potential for technological breakthroughs.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables and comparable projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being advertised as full and open, the award went to a single contractor. This suggests potential barriers to entry or a highly specialized requirement, impacting price discovery.
Taxpayer Impact: Taxpayer funds are allocated for advanced research, with the ultimate value dependent on the success of the R&D outcomes.
Public Impact
Advancement of critical defense research capabilities. Potential for new technologies impacting national security. Long-term commitment of resources to a single contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite full and open solicitation.
- Cost-plus contract type carries inherent cost escalation risk.
- Long contract duration may not reflect evolving needs.
Positive Signals
- Addresses a critical R&D need for the Air Force.
- Potential for significant technological innovation.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be high-risk due to the nature of discovery.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses, suggesting limited direct participation.
Oversight & Accountability
Oversight will be critical to ensure cost control and effective research progress given the contract type and duration.
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
- Lack of demonstrated competition.
- Cost-plus contract risks.
- Long-term commitment without clear performance metrics.
- Potential for scope creep in R&D.
Tags
research-and-development-in-the-physical, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to LOCKHEED MARTIN CORPORATION. DAC INTEGRATION AND CONTEXTUAL EXPLANATION (DICE)
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 $19.4 million.
What is the period of performance?
Start: 2020-08-12. End: 2026-10-11.
What specific research objectives does the DICE program aim to achieve, and how will success be measured?
The specific research objectives for the DICE program are not detailed in the provided data. Success measurement would typically involve defined milestones, deliverables, and technical performance metrics agreed upon in the contract's statement of work. Without these, assessing the program's effectiveness and value for money is challenging.
Given the full and open solicitation, why did only one contractor submit a responsive bid for this substantial R&D contract?
Several factors could explain the limited competition despite a full and open solicitation. The research may require highly specialized expertise, proprietary technology, or unique facilities possessed by only one entity. Alternatively, the contract's complexity, specific requirements, or perceived risk might have deterred other potential bidders.
How will the Department of Defense ensure cost-effectiveness and prevent potential overruns with a Cost Plus Fixed Fee contract for a long-duration R&D project?
Effective oversight, stringent milestone tracking, and regular performance reviews are crucial. The DoD should implement robust cost-control measures, closely monitor expenditures against the fixed fee, and ensure clear communication channels with Lockheed Martin to address any potential issues proactively. Independent technical reviews can also validate progress and justify continued funding.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001119S0085
Offers Received: 37
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 3 EXECUTIVE CAMPUS, CHERRY HILL, NJ, 08002
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,231,657
Exercised Options: $37,231,657
Current Obligation: $19,390,564
Actual Outlays: $5,906,779
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $11,152,485
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-12
Current End Date: 2026-10-11
Potential End Date: 2026-10-11 00:00:00
Last Modified: 2025-12-03
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