DoD Awards $50.3M LRF System Development Task Order to Lockheed Martin
Contract Overview
Contract Amount: $50,310,278 ($50.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-06-22
End Date: 2025-09-30
Contract Duration: 1,196 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CET 22-229 AWARD A NEW TASK ORDER FOR LONG RANGE FIRES (LRF) SYSTEM DEVELOPMENT
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $50.3 million to LOCKHEED MARTIN CORPORATION for work described as: CET 22-229 AWARD A NEW TASK ORDER FOR LONG RANGE FIRES (LRF) SYSTEM DEVELOPMENT Key points: 1. Significant investment in long-range fires system development. 2. Sole awardee is Lockheed Martin, a major defense contractor. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Engineering services sector sees substantial contract activity.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. The award amount of $50.3M for system development over approximately 3 years suggests a reasonable investment for this type of project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The $50.3M award represents taxpayer investment in advanced defense capabilities, aiming for technological superiority.
Public Impact
Enhances U.S. military's long-range strike capabilities. Supports technological advancement in defense systems. Potential job creation within Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may lead to higher costs.
- Sole awardee limits immediate competitive pressure on this specific task order.
Positive Signals
- Awarded under full and open competition.
- Addresses critical defense capability development.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense system development. Benchmarks for similar complex system development contracts can vary widely, but $50.3M over three years is a substantial, though not unprecedented, investment.
Small Business Impact
The data indicates this award went to Lockheed Martin Corporation, a large prime contractor. There is no explicit mention of small business participation in this specific award notice, suggesting potential for subcontracting opportunities.
Oversight & Accountability
The Department of Defense, through its Defense Microelectronics Activity, is responsible for overseeing this contract. Standard oversight mechanisms for cost-plus contracts would apply to ensure efficient use of funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract structure.
- Long development timeline (approx. 3 years).
- Reliance on a single large prime contractor.
- Potential for evolving technological requirements impacting scope.
Tags
engineering-services, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to LOCKHEED MARTIN CORPORATION. CET 22-229 AWARD A NEW TASK ORDER FOR LONG RANGE FIRES (LRF) SYSTEM DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Microelectronics Activity).
What is the total obligated amount?
The obligated amount is $50.3 million.
What is the period of performance?
Start: 2022-06-22. End: 2025-09-30.
What is the projected return on investment for the LRF system development, considering its strategic importance?
The return on investment for the LRF system development is primarily measured by its contribution to national security and military effectiveness. While a direct financial ROI is difficult to quantify, the system's ability to provide enhanced long-range strike capabilities is expected to deter adversaries and provide a strategic advantage, thus justifying the investment.
What are the key performance indicators (KPIs) being used to monitor the progress and cost-effectiveness of this Cost Plus Fixed Fee contract?
Key performance indicators for this Cost Plus Fixed Fee contract would likely include adherence to development milestones, technical performance metrics of the LRF system, and rigorous tracking of incurred costs against the estimated cost. Regular reviews and audits by the Defense Microelectronics Activity are crucial to ensure cost control and prevent scope creep.
How will the effectiveness of the LRF system be evaluated post-development to ensure it meets the intended operational requirements?
The effectiveness of the LRF system will be evaluated through a series of rigorous testing and validation phases, including developmental testing, operational testing, and potentially live-fire exercises. These evaluations will assess the system's accuracy, range, reliability, and integration with existing military platforms to ensure it meets the Department of Defense's strategic and tactical requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ072715R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $53,283,447
Exercised Options: $53,283,447
Current Obligation: $50,310,278
Actual Outlays: $2,034,973
Subaward Activity
Number of Subawards: 67
Total Subaward Amount: $6,260,478
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ072716D0001
IDV Type: IDC
Timeline
Start Date: 2022-06-22
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-07-21
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