DoD Awards $62M Lockheed Martin Contract for Advanced High Frequency Capability Evolution
Contract Overview
Contract Amount: $61,960,097 ($62.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2024-03-18
End Date: 2026-03-31
Contract Duration: 743 days
Daily Burn Rate: $83.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ADVANCED EXTREMELY HIGH FREQUENCY CAPABILITY EVOLUTION PHASE II
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $62.0 million to LOCKHEED MARTIN CORP for work described as: ADVANCED EXTREMELY HIGH FREQUENCY CAPABILITY EVOLUTION PHASE II Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on advanced communication technology development. 3. Potential for long-term sustainment and follow-on work. 4. Significant investment in a specialized engineering service sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds for this advanced technology development.
Public Impact
Enhances critical military communication capabilities. Supports advanced technological research and development. Potential for job creation within the aerospace and defense sector. Impacts national security through improved defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPFF contract type can incentivize cost overruns.
- Lack of transparency in pricing due to no-bid nature.
Positive Signals
- Addresses a critical defense need.
- Leverages established contractor expertise.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense system development. Spending benchmarks for highly specialized R&D like this are difficult to establish due to unique technological requirements.
Small Business Impact
The award went to a large prime contractor, with no indication of subcontracting opportunities for small businesses in the provided data. This limits direct participation for SMBs in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and effective execution. The Department of Defense should monitor progress and expenditures diligently.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency in pricing
- No clear small business participation
Tags
engineering-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.0 million to LOCKHEED MARTIN CORP. ADVANCED EXTREMELY HIGH FREQUENCY CAPABILITY EVOLUTION PHASE II
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $62.0 million.
What is the period of performance?
Start: 2024-03-18. End: 2026-03-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single contractor. To ensure fair pricing, the agency should conduct thorough market research and potentially engage in price negotiation or cost analysis, even without formal competition. Independent cost estimates and review of the contractor's proposed costs are crucial.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns on this advanced technology project?
Managing a CPFF contract requires robust government oversight. This includes detailed monitoring of incurred costs, regular performance reviews, and strict adherence to the contract's scope. The government should establish clear milestones and performance metrics, and actively engage with the contractor to identify and mitigate potential cost drivers early in the project lifecycle.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators for this contract would likely focus on technical performance metrics related to the advanced high frequency capability, such as signal clarity, range, reliability, and operational readiness. Effectiveness will be measured against defined system requirements and operational testing outcomes. Regular technical reviews and independent verification of performance against these KPIs will be essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,960,097
Exercised Options: $61,960,097
Current Obligation: $61,960,097
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,694,316
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA882320D0001
IDV Type: IDC
Timeline
Start Date: 2024-03-18
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-11-14
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