DARPA awarded Lockheed Martin a $11.6M contract for R&D in advanced technologies, spanning over 5 years

Contract Overview

Contract Amount: $11,619,050 ($11.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2006-05-14

End Date: 2011-12-31

Contract Duration: 2,057 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 43

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200611!600418!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0056 !A!N! !N! ! !20060514!20071014!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000000800000!N!N!000010954380!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!1!043!E! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to LOCKHEED MARTIN CORPORATION for work described as: 200611!600418!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0056 !A!N! !N! ! !20060514!20071014!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURL… Key points: 1. The contract's value of $11.6 million over five years suggests a moderate investment in advanced technology research. 2. Lockheed Martin, a major defense contractor, secured this award, indicating its established capabilities in the sector. 3. The contract's duration and cost-plus-fixed-fee structure may present cost control challenges. 4. This award falls under Research and Development, a critical area for maintaining technological superiority. 5. The contract's focus on 'Other Defense-Advanced Tech Dev' positions it within a niche but vital segment of defense spending. 6. The relatively small number of bids (43) for this type of specialized R&D could indicate limited market capacity or high barriers to entry.

Value Assessment

Rating: fair

The contract value of $11.6 million over approximately five years averages to about $2.3 million per year. This is a modest sum for advanced R&D, especially for a prime contractor like Lockheed Martin. Without specific deliverables or benchmarks, it's difficult to definitively assess value for money. However, the cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to cost overruns if not managed tightly, potentially impacting the overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple companies had the opportunity to bid. The data indicates 43 bids were received. A healthy number of bids generally promotes price discovery and can lead to more competitive pricing. However, for highly specialized R&D, the pool of qualified bidders might be smaller than for more common goods or services.

Taxpayer Impact: A full and open competition, especially with a significant number of bidders, is generally favorable for taxpayers as it increases the likelihood of securing the best possible price and technical solution.

Public Impact

The primary beneficiaries are likely the Department of Defense and DARPA, gaining access to advanced technological solutions. The services delivered are in the realm of research and development for advanced defense technologies. The geographic impact is primarily within New Jersey, where Lockheed Martin's facility is located, potentially supporting local jobs. Workforce implications include highly skilled R&D personnel, engineers, and scientists employed by Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The duration of the contract (over 5 years) increases the risk of scope creep or evolving technological requirements.
Assessing the true value and impact of R&D outcomes can be challenging and may not yield immediate, tangible results.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Lockheed Martin is a reputable contractor with extensive experience in defense R&D.
The contract focuses on advanced technologies, which is crucial for national security and future capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced defense technologies. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of scientific and technical services. Spending in this area is critical for innovation and maintaining a technological edge. Comparable spending benchmarks would vary widely depending on the specific technology area, but DARPA's budget itself represents significant investment in cutting-edge research.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. Given the nature of advanced technology R&D and the prime contractor being Lockheed Martin, it is unlikely that small businesses were the primary focus for the prime award. However, Lockheed Martin may engage small businesses as subcontractors, but this information is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and DARPA's contract management. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are essential to ensure costs are controlled and objectives are met. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Research Programs
Advanced Technology Development Contracts
Lockheed Martin Defense Contracts
Research and Development Spending

Risk Flags

Cost-plus-fixed-fee pricing structure requires diligent oversight to manage costs.
The nature of R&D means outcomes can be uncertain and may not yield immediate tangible results.
Contract duration of over 5 years increases potential for scope creep or requirement changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to LOCKHEED MARTIN CORPORATION. 200611!600418!9700!HR0011!DARPA CONTRACT MANAGEMENT DIR. !HR001106C0056 !A!N! !N! ! !20060514!20071014!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000000800000!N!N!000010954380!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2006-05-14. End: 2011-12-31.

What specific advanced technologies were researched under this contract?

The provided data indicates the contract was for 'RDTE/OTHER DEFENSE-ADV TECH DEV' and falls under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific nature of the 'advanced technologies' is not detailed in the summary data. DARPA typically funds research in areas such as artificial intelligence, cyber, hypersonics, quantum computing, and advanced materials. Without access to the contract statement of work or subsequent reports, the precise technological focus remains unspecified in this dataset.

How does the $11.6 million award compare to other DARPA contracts for similar R&D efforts?

The $11.6 million award over approximately five years represents an average annual value of roughly $2.3 million. This is a moderate amount for DARPA, which often funds projects ranging from a few million to tens or even hundreds of millions of dollars, depending on the scope and phase of research. Smaller, foundational research projects might be in this range, while larger, more complex system development efforts would command significantly higher budgets. Comparing it directly requires knowledge of the specific technology area and the typical funding profiles for such research within DARPA.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

CPFF contracts carry inherent risks, particularly in R&D where the final costs and outcomes can be uncertain. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as profits are based on a fixed fee applied to allowable costs. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating the effort required to achieve the R&D objectives within the fixed fee. If the R&D proves more complex or costly than anticipated, the contractor's profit margin can be squeezed. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is Lockheed Martin's track record with DARPA contracts?

Lockheed Martin is a major defense contractor with a long history of working with the Department of Defense, including DARPA. They are known for their extensive capabilities in advanced research, development, and systems integration across various defense domains. While this specific contract data doesn't detail their performance history with DARPA, their status as a prime contractor on numerous complex projects suggests a generally strong track record. However, like any large contractor, performance can vary across individual contracts, and specific details would require a deeper dive into contract performance reports and historical data.

How has federal spending on 'Other Defense-Advanced Tech Dev' evolved over time?

The provided data is for a single contract awarded in 2006. To understand the evolution of federal spending on 'Other Defense-Advanced Tech Dev,' a broader analysis of historical budgets and contract awards within this category (or similar classifications like NAICS 541710 for defense-related R&D) would be necessary. Generally, spending in advanced technology development tends to fluctuate based on perceived threats, technological breakthroughs, and strategic priorities. Periods of heightened geopolitical tension or rapid technological advancement often see increased investment in this area.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 43

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 3 EXECUTIVE CAMPUS, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline