DoD Awards Lockheed Martin $111.5M for Objective Simulation Framework Development
Contract Overview
Contract Amount: $111,465,033 ($111.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-16
End Date: 2024-12-03
Contract Duration: 414 days
Daily Burn Rate: $269.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: DEVELOPMENT OF OBJECTIVE SIMULATION FRAMEWORK CAPABILITIES TO PROVIDE A MODELING AND SIMULATION AUGMENTATION SYSTEM
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $111.5 million to LOCKHEED MARTIN CORPORATION for work described as: DEVELOPMENT OF OBJECTIVE SIMULATION FRAMEWORK CAPABILITIES TO PROVIDE A MODELING AND SIMULATION AUGMENTATION SYSTEM Key points: 1. Significant investment in advanced simulation capabilities for missile defense. 2. Sole awardee, Lockheed Martin, suggests specialized expertise or limited market. 3. Cost-plus award fee contract structure allows for flexibility but requires strong oversight. 4. Focus on custom computer programming services indicates a high-tech, specialized need.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee (CPAF) type, which can lead to higher costs if not managed carefully. Benchmarking against similar custom programming services for defense simulation is difficult without more granular data, but the per-unit cost appears high.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, the specific nature of the 'Objective Simulation Framework' may have limited the number of qualified bidders. The award fee structure incentivizes performance but requires careful monitoring to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced defense simulation technology. The effectiveness of the competition and oversight will determine the value for money.
Public Impact
Enhances U.S. missile defense capabilities through advanced modeling and simulation. Supports the Missile Defense Agency's technological superiority in a critical defense area. Potential for spin-off technologies or applications in other defense or civilian sectors. Ensures U.S. military readiness through realistic training and testing environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun risk due to CPAF contract type.
- Potential for vendor lock-in if framework becomes proprietary.
- Limited visibility into specific performance metrics and award fee justification.
Positive Signals
- Addresses a critical national security need for advanced simulation.
- Leverages a prime contractor with established defense industry experience.
- Competition was sought, indicating an effort to find qualified providers.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically custom computer programming services. Spending benchmarks for advanced simulation frameworks are highly variable, but this award represents a substantial investment in specialized software development for a critical defense application.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award. Further analysis would be needed to determine if small business participation was sought or achieved.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from the Department of Defense and the Missile Defense Agency to ensure cost control and performance. Regular audits and performance reviews will be crucial to hold the contractor accountable and justify award fees.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost escalation risk due to CPAF contract.
- Potential for vendor lock-in.
- Complexity of simulation framework may lead to integration challenges.
- Limited transparency on award fee justification.
- Dependence on a single large contractor for critical capability.
Tags
custom-computer-programming-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.5 million to LOCKHEED MARTIN CORPORATION. DEVELOPMENT OF OBJECTIVE SIMULATION FRAMEWORK CAPABILITIES TO PROVIDE A MODELING AND SIMULATION AUGMENTATION SYSTEM
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 $111.5 million.
What is the period of performance?
Start: 2023-10-16. End: 2024-12-03.
What specific metrics are used to determine the 'award fee' for Lockheed Martin, and how are these tied to the successful development of the simulation framework?
The specific metrics for the award fee are not detailed in the provided data. Typically, for CPAF contracts, these metrics would be outlined in the contract's Performance Work Statement (PWS) and could include factors like meeting technical milestones, adhering to schedule, quality of deliverables, and overall customer satisfaction. The Missile Defense Agency would need to rigorously evaluate Lockheed Martin's performance against these predefined criteria to justify any awarded fee beyond the base cost.
Given the 'full and open competition' designation, what factors might have led to a single award to Lockheed Martin, and what is the risk of limited future competition?
While designated 'full and open,' the highly specialized nature of developing an 'Objective Simulation Framework' likely meant only a few companies possessed the requisite technical expertise, security clearances, and past performance. This specialization can inherently limit the competitive pool. The risk of limited future competition exists if the developed framework becomes proprietary or if Lockheed Martin establishes a significant technological advantage, making it difficult for others to compete on subsequent related contracts.
How will the effectiveness of this simulation framework be measured post-development to ensure it meets the Missile Defense Agency's strategic objectives?
The effectiveness will likely be measured through a combination of technical performance evaluations and operational testing. This includes verifying the framework's accuracy against real-world data, its ability to simulate complex scenarios reliably, and its integration with existing defense systems. The Missile Defense Agency will likely conduct rigorous testing and validation exercises, potentially involving warfighters, to confirm the framework enhances decision-making, training, and strategic planning for missile defense operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014717R0047
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9970 FEDERAL DR, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $117,437,881
Exercised Options: $112,961,354
Current Obligation: $111,465,033
Actual Outlays: $74,043,944
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $19,046,025
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014719D0002
IDV Type: IDC
Timeline
Start Date: 2023-10-16
Current End Date: 2024-12-03
Potential End Date: 2024-12-03 00:00:00
Last Modified: 2026-01-14
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