DoD's $54M R&D Contract with Lockheed Martin Aculight Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $54,209,582 ($54.2M)

Contractor: Lockheed Martin Aculight Corporation

Awarding Agency: Department of Defense

Start Date: 2017-09-26

End Date: 2024-09-30

Contract Duration: 2,561 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::OT::IGF LANCE

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to LOCKHEED MARTIN ACULIGHT CORPORATION for work described as: IGF::OT::IGF LANCE Key points: 1. Significant contract value of $54.2 million for R&D. 2. Competition method is 'Full and Open', suggesting potential for broad market engagement. 3. Contract type is 'Definitive Contract', typically used for well-defined scopes. 4. Sector is R&D in Physical, Engineering, and Life Sciences, excluding biotech. 5. Potential concerns regarding cost efficiency and specific R&D outcomes.

Value Assessment

Rating: questionable

The contract's $54.2 million value for R&D requires detailed cost breakdown to assess value for money. Benchmarking against similar R&D contracts is difficult without specific deliverables, but the scale suggests a need for rigorous oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the effectiveness of this competition in securing the best value for this specific R&D effort needs further examination.

Taxpayer Impact: Taxpayer funds are being utilized for advanced R&D, with the ultimate benefit to national security or technological advancement needing to be clearly demonstrated.

Public Impact

Investment in advanced R&D for potential defense applications. Potential for technological breakthroughs that could enhance military capabilities. Contract duration of over 6 years suggests a long-term strategic investment. Transparency in R&D spending is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for R&D outcomes.
Potential for cost overruns in long-term R&D projects.
Difficulty in assessing the true value of intangible R&D results.

Positive Signals

Awarded under full and open competition.
Supports critical research and development for the Air Force.
Long contract duration may indicate a stable and important program.

Sector Analysis

This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for innovation but can be challenging to benchmark due to the unique nature of research outcomes.

Small Business Impact

The contract does not indicate specific set-asides for small businesses. Given the prime contractor is Lockheed Martin, it's possible that subcontracting opportunities may exist, but direct analysis of SMB participation is not available from the provided data.

Oversight & Accountability

Oversight will be critical to ensure that the R&D objectives are met within budget and on schedule. The Department of Defense's Inspector General and relevant program offices should monitor progress and expenditures closely.

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

Potential for cost overruns due to 'Cost No Fee' structure.
Difficulty in defining and measuring R&D success.
Long contract duration increases exposure to changing technological landscapes.
Lack of specific performance metrics in the provided data.
Limited insight into the specific R&D deliverables and their ultimate value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to LOCKHEED MARTIN ACULIGHT CORPORATION. IGF::OT::IGF LANCE

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN ACULIGHT 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 $54.2 million.

What is the period of performance?

Start: 2017-09-26. End: 2024-09-30.

What specific technological advancements or capabilities are expected from this $54.2 million R&D investment, and how will their achievement be measured?

The contract details do not specify the exact technological advancements. Measuring R&D success is inherently challenging, often relying on milestones like prototype development, successful testing, or the creation of intellectual property. A clear statement of work with measurable objectives is crucial for effective oversight and value assessment.

Given the 'Cost No Fee' contract type, what mechanisms are in place to control costs and ensure efficient use of taxpayer funds throughout the contract's duration?

'Cost No Fee' contracts place the financial risk on the government. Robust oversight, regular audits, and strict adherence to the contract's ceiling are essential. The government must actively manage the contractor's spending and ensure that all costs incurred are reasonable, allocable, and necessary for the R&D effort.

How does the 'Full and Open Competition' process ensure that Lockheed Martin Aculight provided the most cost-effective solution for the Air Force's R&D needs in this specialized area?

Full and open competition aims to maximize the number of potential offerors, fostering a competitive environment that should drive down prices and improve quality. However, the effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess the technical and cost proposals submitted by all bidders.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA945117S0008

Offers Received: 6

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 22121 20TH AVE SE, BOTHELL, WA, 98021

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: $63,698,677

Exercised Options: $55,026,569

Current Obligation: $54,209,582

Actual Outlays: $2,332,435

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $9,809,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline