DoD Awards $7.2M Lockheed Martin Contract for Missile Defense R&D in Hawaii
Contract Overview
Contract Amount: $7,236,886 ($7.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-16
End Date: 2029-05-15
Contract Duration: 1,825 days
Daily Burn Rate: $4.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: AAMDTC FOLLOW-ON CONTRACT AWARD.
Place of Performance
Location: KEKAHA, KAUAI County, HAWAII, 96752
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to LOCKHEED MARTIN CORPORATION for work described as: AAMDTC FOLLOW-ON CONTRACT AWARD. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focuses on Research and Development in physical sciences. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Significant taxpayer investment in a specialized R&D area.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking against similar R&D contracts is difficult without more specific scope details.
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 may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Advanced missile defense technology development. Potential for job creation in Hawaii's R&D sector. Impact on national security capabilities. Long-term investment in defense innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of specific performance metrics for incentive fee.
Positive Signals
- Addresses critical national security need.
- Leverages established contractor expertise.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all objectives and that costs are managed effectively. The Missile Defense Agency should provide regular updates on progress and spending.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competition.
- Cost-plus contract type.
- Potential for scope creep.
- Limited transparency on specific R&D outcomes.
- Dependency on a single contractor.
Tags
research-and-development-in-the-physical, department-of-defense, hi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to LOCKHEED MARTIN CORPORATION. AAMDTC FOLLOW-ON CONTRACT AWARD.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2024-05-16. End: 2029-05-15.
What specific technological advancements are expected from this R&D contract, and how will they enhance missile defense capabilities?
The contract aims to advance missile defense technologies, likely focusing on areas such as interceptor development, sensor technology, or command and control systems. Specific advancements are proprietary but are expected to improve the effectiveness and efficiency of the U.S. missile defense shield against evolving threats, contributing to national security.
Given the sole-source nature and cost-plus contract type, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
While sole-source and cost-plus contracts inherently carry higher risk, oversight mechanisms likely include detailed cost accounting standards, regular audits, and defined incentive fee structures tied to specific performance milestones. The agency must actively monitor expenditures and contractor performance to ensure costs remain reasonable and aligned with program goals.
How does this investment align with broader DoD R&D priorities, and what is the projected long-term return on investment for national security?
This investment likely aligns with DoD priorities to maintain technological superiority in missile defense. The long-term ROI is measured in enhanced national security, deterrence capabilities, and the protection of U.S. interests and allies from ballistic missile threats. The specific return is difficult to quantify but is considered essential for strategic defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ085123R0002
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
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: $39,237,294
Exercised Options: $12,998,082
Current Obligation: $7,236,886
Actual Outlays: $814,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-16
Current End Date: 2029-05-15
Potential End Date: 2029-06-15 00:00:00
Last Modified: 2025-12-15
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