DoD's $19.5M R&D Contract with Lockheed Martin: Cost Plus Fixed Fee Awarded
Contract Overview
Contract Amount: $19,469,901 ($19.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2005-05-19
End Date: 2007-02-27
Contract Duration: 649 days
Daily Burn Rate: $30.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to LOCKHEED MARTIN CORP for work described as: Key points: 1. Contract awarded to a major defense contractor, indicating significant industry players. 2. Research and Development in Physical, Engineering, and Life Sciences is a critical sector. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed. 4. Full and Open Competition after Exclusion of Sources suggests a complex procurement history.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, carries inherent risks of cost escalation. Without detailed cost breakdowns and robust oversight, it's difficult to definitively assess value against the $19.5M ceiling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a non-standard competitive process, potentially limiting the pool of bidders and impacting price discovery. This suggests specific technical requirements or prior relationships may have influenced the selection.
Taxpayer Impact: The CPFF structure and limited competition raise concerns about maximizing taxpayer value. Careful monitoring is needed to ensure costs remain within reasonable bounds for the R&D outcomes achieved.
Public Impact
Taxpayers fund advanced research and development in critical scientific and engineering fields. The contract supports innovation within the defense sector, potentially leading to new technologies. Procurement processes that exclude sources can limit transparency and potentially increase costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition after exclusion of sources
- Potential for cost overruns
Positive Signals
- Supports critical R&D in physical, engineering, and life sciences
- Awarded to a major defense contractor, suggesting capability
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its often complex and evolving nature.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this contract. Large prime contractors often manage complex R&D projects, potentially limiting subcontracting opportunities for smaller entities.
Oversight & Accountability
The contract's duration and CPFF structure necessitate strong oversight from the Defense Contract Management Agency to control costs and ensure deliverables meet objectives. Monitoring expenditures against the fixed fee and award ceiling is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Limited competition after exclusion of sources
- Potential for cost overruns
- Lack of transparency on specific R&D objectives
- No indication of small business participation
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to LOCKHEED MARTIN CORP. See the official description on USAspending.
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 $19.5 million.
What is the period of performance?
Start: 2005-05-19. End: 2007-02-27.
What specific R&D objectives were prioritized under this CPFF contract, and how were they aligned with the Department of Defense's strategic goals?
The contract focused on Research and Development in Physical, Engineering, and Life Sciences. While the specific objectives are not detailed, such contracts typically aim to advance foundational scientific knowledge or develop specific technological capabilities relevant to defense applications. Alignment with strategic goals would be assessed through program reviews and milestone achievements defined in the contract's statement of work.
How did the 'Exclusion of Sources' in the competition process impact the final negotiated price and overall value for the taxpayer?
Excluding sources inherently limits the competitive landscape, potentially reducing downward pressure on pricing. While the contract was 'Full and Open' after this exclusion, the initial limitation suggests specific capabilities were sought. The impact on value depends on whether the selected contractor offered superior technical merit or efficiency that justified the price compared to a broader, more competitive field.
What mechanisms were in place to manage cost risks associated with the Cost Plus Fixed Fee structure and ensure effective utilization of the $19.5 million award ceiling?
Effective management of CPFF contracts relies on stringent cost accounting standards, regular audits, and performance metrics. The Defense Contract Management Agency would monitor expenditures against the ceiling, review contractor cost proposals, and ensure adherence to the statement of work. Milestone payments and fixed fee adjustments tied to performance would also incentivize cost control and efficient execution.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12257 STATE HIGHWAY 121, L, LITTLETON, CO, 80127
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-05-19
Current End Date: 2007-02-27
Potential End Date: 2007-02-27 00:00:00
Last Modified: 2016-05-20
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