DoD Awards $147M R&D Contract to Lockheed Martin for Missile Systems
Contract Overview
Contract Amount: $147,365,985 ($147.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2004-04-16
End Date: 2009-04-30
Contract Duration: 1,840 days
Daily Burn Rate: $80.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200409!000010!5700!CZ30 !SMC/MR !FA882004C0001 !A!N! !N! ! !20040416!20060430!926784042!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !12257 STATE HIGHWAY 121, L!LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !+000030499919!N!N!000219998490!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !358 !SBR !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $147.4 million to LOCKHEED MARTIN CORP for work described as: 200409!000010!5700!CZ30 !SMC/MR !FA882004C0001 !A!N! !N! ! !20040416!20060430!926784042!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !12257 STATE HIGHWAY 121, L!LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAP… Key points: 1. Significant investment in advanced missile and space systems development. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk associated with advanced R&D projects, but contract structure may mitigate some. 4. Sector focus on R&D aligns with national defense priorities.
Value Assessment
Rating: good
The contract value of $147M over approximately 5 years for R&D in missile and space systems appears reasonable given the specialized nature of the work. Benchmarking against similar advanced R&D contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a wider range of bidders and can lead to more competitive pricing. The specific pricing mechanisms and discovery process are not detailed here.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense research and development, aiming to enhance national security capabilities.
Public Impact
Enhances national defense capabilities through advanced technology. Supports high-tech jobs in the aerospace and defense sector. Potential for technological spin-offs benefiting other industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- R&D projects inherently carry technical and schedule risks.
- Long contract duration may require ongoing monitoring for scope creep.
Positive Signals
- Full and open competition can drive innovation and cost efficiency.
- Focus on advanced technology development aligns with strategic goals.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced technology development for missile and space systems. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
While this specific contract is with a large prime contractor, the nature of R&D often involves a complex supply chain. Opportunities for small businesses may exist as subcontractors to Lockheed Martin, though this is not explicitly stated.
Oversight & Accountability
The contract is managed by the Department of Defense (DoD) through the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the effectiveness of oversight for R&D projects can vary.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Technical feasibility of advanced R&D.
- Potential for cost overruns in complex R&D.
- Long-term relevance of developed technologies.
- Dependency on a single large contractor.
Tags
research-and-development-in-the-physical, department-of-defense, co, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $147.4 million to LOCKHEED MARTIN CORP. 200409!000010!5700!CZ30 !SMC/MR !FA882004C0001 !A!N! !N! ! !20040416!20060430!926784042!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !12257 STATE HIGHWAY 121, L!LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !+000030499919!N!N!000219998490!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !358 !SBR !541710!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $147.4 million.
What is the period of performance?
Start: 2004-04-16. End: 2009-04-30.
What specific technological advancements are expected from this R&D contract, and how do they align with current defense strategy?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences' for 'Missile and Space Systems-Advanced Tech Dev'. Expected advancements likely include next-generation missile propulsion, guidance systems, or space-based defense technologies. These align with strategic defense goals of maintaining technological superiority and developing robust deterrence capabilities in evolving geopolitical landscapes.
What are the primary technical risks associated with developing advanced missile and space systems under this contract, and how are they being mitigated?
Primary technical risks include unforeseen scientific challenges, integration complexities between new and existing systems, and the potential for technological obsolescence. Mitigation strategies likely involve phased development, rigorous testing protocols, independent technical reviews, and flexible contract clauses to adapt to emerging findings. The 'Cost Plus Fixed Fee' structure may also incentivize efficient problem-solving.
How will the effectiveness of this R&D investment be measured, and what are the key performance indicators for success?
Effectiveness will be measured by the successful development and demonstration of specified advanced technologies, meeting performance benchmarks outlined in the contract. Key performance indicators could include prototype functionality, system reliability in simulated environments, achievement of specific technical milestones, and successful technology transfer to production programs. Post-contractual performance in operational systems will also be a long-term indicator.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 12257 STATE HIGHWAY 121, L, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-16
Current End Date: 2009-04-30
Potential End Date: 2009-04-30 00:00:00
Last Modified: 2013-11-06
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