DoD's $14.9M contract for applied research in weapons systems awarded to Coherent Technologies, Inc

Contract Overview

Contract Amount: $20,598,744 ($20.6M)

Contractor: Lockheed Martin Coherent Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-05

End Date: 2008-07-30

Contract Duration: 1,608 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200411!000268!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !FA945104C0015 !A!N! !N! ! !20040305!20050323!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !135 S TAYLOR AVENUE !LOUISVILLE !CO!80027!46355!013!08!LOUISVILLE !BOULDER !COLORADO !+000001750000!N!N!000005048969!AC52!RDTE/WEAPONS-APPLIED RESEARCH !A5 !WEAPONS !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !N!Z!A!U!U!2!001!K! !Z!Y!Z! ! !N!B!N!N! ! !Z! !B!A!00 !D!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: LOUISVILLE, BOULDER County, COLORADO, 80027

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC. for work described as: 200411!000268!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !FA945104C0015 !A!N! !N! ! !20040305!20050323!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !135 S TAYLOR AVENUE !LOUISVILLE !CO!80027!46355!013!08!LOUISVILLE !BOUL… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1608 days indicates a long-term commitment to research and development. 3. The primary focus on 'Weapons' and 'Research and Development' places this contract within a critical defense sector. 4. Awarded to a single entity, Coherent Technologies, Inc., highlighting specialized capabilities. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring contractor profit. 6. The contract is a significant investment in advanced weapons technology development.

Value Assessment

Rating: fair

The total award amount of $14.9 million for a period of over four years for applied research in weapons systems appears to be within a reasonable range for specialized R&D. Benchmarking against similar contracts for advanced weapons development would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, can sometimes lead to higher costs if not managed closely. Without specific performance metrics or deliverables, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders, though not explicitly stated in the provided data, is generally expected in such a scenario. This competitive environment should theoretically lead to better pricing and innovative solutions for the government. The specific number of bidders would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it aims to secure the best possible value by fostering a competitive market for defense research and development services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force Research Laboratory (AFRL), which will receive advanced research outcomes. The services delivered are focused on research and development in physical, engineering, and life sciences, with a specific application to weapons systems. The geographic impact is primarily within the United States, supporting domestic defense innovation and potentially creating high-skilled jobs. Workforce implications include the employment of scientists, engineers, and technicians at Coherent Technologies, Inc., contributing to the specialized defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not meticulously managed.
The long duration of the contract necessitates ongoing oversight to ensure alignment with evolving defense needs.
The specialized nature of weapons research may limit the number of truly competitive bidders in the future.
Reliance on a single contractor for critical R&D could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports critical research and development in advanced weapons systems, aligning with national security objectives.
Coherent Technologies, Inc. is a specialized entity, likely possessing unique expertise in this domain.
The contract duration allows for in-depth research and development, potentially leading to significant technological advancements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on applied research for weapons systems. The North American Industry Classification System (NAICS) code 541710 covers Research and Development in the Physical, Engineering, and Life Sciences. This is a highly specialized area within the broader defense industrial base, often characterized by long development cycles, significant intellectual property, and substantial government investment. Comparable spending benchmarks would typically be found within other advanced technology development contracts awarded by agencies like the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB is false) and the contractor is not identified as a small business. Therefore, there are no direct subcontracting implications or benefits for small businesses stemming from a small business set-aside. The focus is on a large prime contractor for specialized R&D. Any subcontracting would likely be at the discretion of Coherent Technologies, Inc., potentially involving other specialized firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, likely through the Air Force Research Laboratory (AFRL) contracting office. Accountability measures would be defined in the contract's terms and conditions, including performance milestones, reporting requirements, and payment schedules tied to progress. Transparency is generally limited for defense R&D contracts due to national security sensitivities, but contract awards and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Weapons Systems Development
Defense Research and Development
Air Force Research Laboratory Contracts
Applied Scientific Research
Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates sustained monitoring of performance and alignment with evolving requirements.
Specialized nature of weapons R&D may limit future competition.
Potential for contractor performance issues in a long-term, complex research project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC.. 200411!000268!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !FA945104C0015 !A!N! !N! ! !20040305!20050323!149375479!149375479!149375479!N!COHERENT TECHNOLOGIES, INC !135 S TAYLOR AVENUE !LOUISVILLE !CO!80027!46355!013!08!LOUISVILLE !BOULDER !COLORADO !+000001750000!N!N!000005048969!AC52!RDTE/WEAPONS-APPLIED RESEARCH !A5 !WEAPONS !000 !* !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN COHERENT TECHNOLOGIES, INC..

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 $20.6 million.

What is the period of performance?

Start: 2004-03-05. End: 2008-07-30.

What is the specific technological area within weapons systems that Coherent Technologies, Inc. is researching under this contract?

The provided data indicates the contract supports 'RDTE/WEAPONS-APPLIED RESEARCH' and falls under the Product Service Code (PSC) '541710' (Research and Development in the Physical, Engineering, and Life Sciences) with a broader category of 'WEAPONS'. While the specific technological focus isn't detailed, it implies research into novel or improved weapon capabilities, potentially encompassing areas like directed energy, advanced materials, guidance systems, or other cutting-edge defense technologies. Further details would likely be found in the contract's Statement of Work (SOW) or technical exhibits, which are not publicly available in this dataset.

How does the $14.9 million award compare to typical R&D spending for similar advanced weapons projects?

The $14.9 million award for applied research in weapons systems over approximately 4.4 years (from March 2004 to July 2008) represents a significant but not extraordinary investment for a specialized R&D project within the Department of Defense. Benchmarking requires comparing it to contracts with similar scope, technological complexity, and duration. Defense R&D contracts can range from a few million to hundreds of millions of dollars. Given the 'full and open competition' and the specialized nature of 'Weapons-Applied Research,' this amount suggests a focused effort on a particular technological advancement rather than a broad, multi-system development program. Without access to a database of comparable contracts, precise benchmarking is difficult, but it appears to be a mid-range investment for targeted R&D.

What are the key performance indicators (KPIs) or deliverables expected under this Cost Plus Fixed Fee contract?

The provided data does not specify the Key Performance Indicators (KPIs) or detailed deliverables for this contract. Under a Cost Plus Fixed Fee (CPFF) contract, the government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. Performance is typically measured against milestones outlined in the Statement of Work (SOW). These might include technical reports, prototype development, testing results, or demonstrations of specific capabilities. The fixed fee incentivizes the contractor to manage costs efficiently to maximize profit, but the government's primary concern is achieving the technical objectives within the agreed-upon scope. Detailed KPIs and deliverables would be defined in the contract's SOW and associated documentation.

What is Coherent Technologies, Inc.'s track record with Department of Defense contracts, particularly in weapons R&D?

Coherent Technologies, Inc. (now part of Lockheed Martin) has a history of working with the Department of Defense, particularly in areas related to advanced technologies and aerospace. While this specific contract focuses on weapons-applied research, the company has been involved in developing technologies relevant to defense, including areas like optical systems, atmospheric sensing, and potentially directed energy applications. Their acquisition by Lockheed Martin in 2007 suggests a successful business trajectory and integration into a larger defense prime contractor's portfolio. A comprehensive review of their contract history would reveal the breadth and depth of their DoD engagements, including performance ratings and past project successes or challenges.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific R&D effort?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee itself is not meant to increase. The government bears the risk of cost escalation, while the contractor is incentivized to control costs to protect their fixed profit margin. For R&D, where the path to success can be uncertain and technical challenges may arise, CPFF can be appropriate as it allows flexibility. However, it requires robust government oversight to ensure costs are reasonable and allocable, and that the contractor is making diligent efforts to achieve the project goals efficiently. Without strict oversight, there's a risk of scope creep or inefficient resource allocation.

How does this contract fit into the broader landscape of US defense spending on research and development?

This $14.9 million contract represents a small fraction of the overall US defense R&D budget, which typically runs into the tens of billions of dollars annually. However, it signifies targeted investment in a specific, potentially critical, area of weapons technology. Such contracts are crucial for maintaining technological superiority and exploring innovative solutions that may not be immediately apparent or feasible within larger, more constrained programs. It reflects the DoD's strategy of funding both incremental improvements and high-risk, high-reward research through various mechanisms, including contracts with specialized companies like Coherent Technologies.

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

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 135 S TAYLOR AVENUE, LOUISVILLE, CO, 02

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline