DoD's RIEDAR PROGRAM contract awarded to Lockheed Martin for $12.7M shows R&D spending in Florida

Contract Overview

Contract Amount: $12,737,523 ($12.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2007-06-01

End Date: 2009-12-15

Contract Duration: 928 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RIEDAR PROGRAM

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to LOCKHEED MARTIN CORPORATION for work described as: RIEDAR PROGRAM Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of 928 days indicates a medium-term project. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. Awarded by the Defense Advanced Research Projects Agency (DARPA), known for cutting-edge research. 6. Geographic location of performance is Florida. 7. No small business set-aside was utilized.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not managed tightly. Comparing it to similar DARPA R&D contracts would require detailed analysis of the scope of work and expected outcomes. The raw dollar amount of $12.7 million is moderate for a defense R&D project of this duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 19 bids suggests a healthy level of interest and competition for this R&D opportunity. This broad competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: A competitive bidding process like this typically benefits taxpayers by driving down costs and encouraging innovation from multiple offerors, leading to better value for the investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the advancement of physical, engineering, and life sciences research. The services delivered are in the realm of research and development, aiming to push technological boundaries. The geographic impact is concentrated in Florida, where the contract performance is located. Workforce implications could include employment for scientists, engineers, and support staff in the R&D sector within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
Lack of specific performance metrics makes it difficult to assess value for money.
The contract is relatively old (awarded in 2007), making current comparisons less relevant without updates.

Positive Signals

Full and open competition with 19 bidders suggests a robust and fair selection process.
Awarded by DARPA, an agency known for funding high-impact, innovative research.
The project is focused on critical R&D areas within physical, engineering, and life sciences.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment, often driven by national security imperatives. Comparable spending benchmarks would depend on the specific technological domain within R&D, but DARPA projects typically aim for groundbreaking advancements.

Small Business Impact

The data indicates that this contract did not involve a small business set-aside. Given the nature of advanced R&D, prime contracts are often awarded to large, established corporations with specialized capabilities. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within DARPA. Accountability measures would be tied to the milestones and deliverables outlined in the Cost Plus Fixed Fee agreement. Transparency is generally maintained through contract award databases, though detailed project progress reports are often sensitive.

Related Government Programs

Department of Defense Research and Development Programs
DARPA Research Initiatives
Advanced Technology Development Contracts
Physical Sciences Research Contracts
Engineering Research Contracts
Life Sciences Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Lack of specific performance metrics in summary data
Contract awarded in 2007, historical data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to LOCKHEED MARTIN CORPORATION. RIEDAR PROGRAM

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 $12.7 million.

What is the period of performance?

Start: 2007-06-01. End: 2009-12-15.

What was the specific technological area or objective of the RIEDAR PROGRAM contract?

The provided data identifies the contract as being for 'Research and Development in the Physical, Engineering, and Life Sciences' under the 'RIEDAR PROGRAM'. However, the specific technological area or objective is not detailed. DARPA's mission is to fund research that can lead to technological surprise and create asymmetric advantages for U.S. national security. Without further documentation, the precise focus of RIEDAR remains unspecified, but it likely involved exploring novel concepts or technologies within the broad categories mentioned.

How does the $12.7 million award compare to typical DARPA R&D contract values?

The $12.7 million award for the RIEDAR PROGRAM is within the moderate range for DARPA contracts. DARPA funds a wide spectrum of research, from small, exploratory grants to large, multi-year programs. While some DARPA initiatives can reach hundreds of millions of dollars, many focus on specific, high-risk, high-reward research projects that may have budgets in the tens of millions. The duration of 928 days (approximately 2.5 years) is also typical for a research project of this funding level, suggesting a focused effort rather than a broad, long-term development program.

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

Cost Plus Fixed Fee (CPFF) contracts, while common for R&D where the scope can be uncertain, carry inherent risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. If costs escalate beyond initial estimates, the government pays more. While the fee is fixed, there's less incentive for the contractor to control costs aggressively compared to fixed-price contracts. Effective oversight, clear definition of allowable costs, and robust negotiation are crucial to mitigate these risks and ensure value for money.

Given the full and open competition with 19 bidders, what does this imply about the contractor selection process?

The fact that the RIEDAR PROGRAM contract received 19 bids under full and open competition suggests a strong interest in the research area and a competitive marketplace for the required expertise. This high level of competition generally indicates that the government's solicitation was well-defined and attractive to a diverse range of potential offerors. It increases the likelihood that the selected contractor, Lockheed Martin Corporation in this case, was chosen based on a strong technical proposal and competitive pricing, rather than a lack of alternatives. This process is favorable for ensuring the government obtains the best value.

What is the significance of the contract being performed in Florida?

The performance location in Florida signifies that the economic impact of this federal spending, including job creation and support for local businesses, is concentrated in that state. For the Department of Defense and DARPA, selecting a performance location might be influenced by factors such as the presence of relevant research institutions, existing defense industry infrastructure, or specific state incentives. For Lockheed Martin Corporation, having operations or partners in Florida would facilitate the execution of this R&D contract.

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: 19

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 W SAND LAKE RD MP125, ORLANDO, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,737,523

Exercised Options: $12,737,523

Current Obligation: $12,737,523

Contract Characteristics

Cost or Pricing Data: NO

Timeline