DoD's EXACTO Phase I contract awarded to Lockheed Martin for $12.57M, focusing on R&D

Contract Overview

Contract Amount: $12,573,162 ($12.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2008-11-21

End Date: 2010-09-15

Contract Duration: 663 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: EXACTO PHASE I

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to LOCKHEED MARTIN CORPORATION for work described as: EXACTO PHASE I Key points: 1. Contract Value: $12.57 million for research and development. 2. Competition: Awarded under full and open competition. 3. Risk: Moderate risk due to cost-plus-fixed-fee structure. 4. Sector: Defense R&D, specifically physical and engineering sciences.

Value Assessment

Rating: good

The contract value of $12.57M for a 663-day R&D project appears reasonable given the specialized nature of the work. Benchmarking against similar DARPA contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment.

Public Impact

Advancement in defense technology through R&D. Potential for improved targeting systems. Investment in cutting-edge scientific research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contract type can lead to cost overruns.
  • Lack of specific performance metrics in provided data.
  • Limited information on the specific R&D outcomes.

Positive Signals

  • Awarded under full and open competition.
  • Focus on critical defense research and development.
  • Contract awarded to a reputable defense contractor.

Sector Analysis

This contract falls within the Defense R&D sector, specifically NAICS code 541712. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to its specialized and often experimental nature.

Small Business Impact

The data indicates this contract was not awarded to small businesses (SB: false). Larger prime contractors like Lockheed Martin may engage small businesses as subcontractors, but this is not detailed here.

Oversight & Accountability

Oversight is primarily managed by the Defense Advanced Research Projects Agency (DARPA). The cost-plus-fixed-fee structure necessitates close monitoring of expenditures and progress to ensure value for money.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Advanced Research Projects Agency Programs

Risk Flags

  • Cost-plus-fixed-fee contract type.
  • Research and Development inherently carries uncertainty.
  • No specific small business participation noted.
  • Limited public information on specific deliverables.

Tags

research-and-development-in-the-physical, department-of-defense, tx, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to LOCKHEED MARTIN CORPORATION. EXACTO PHASE I

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 $12.6 million.

What is the period of performance?

Start: 2008-11-21. End: 2010-09-15.

What specific technological advancements are expected from EXACTO Phase I, and how do they align with DARPA's strategic goals?

EXACTO Phase I likely focused on foundational research for advanced projectile guidance systems, aiming to improve accuracy and reduce collateral damage. These advancements align with DARPA's broader mission of developing disruptive technologies for national security, potentially enhancing the effectiveness of existing weapon platforms and enabling new operational capabilities.

What are the primary risks associated with the cost-plus-fixed-fee contract type for this R&D project?

The primary risk with a cost-plus-fixed-fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. For R&D, this can be exacerbated by the inherent uncertainties in research, potentially leading to cost overruns if unforeseen challenges arise or the scope needs adjustment.

How will the effectiveness of the R&D investment be measured and validated by DARPA?

DARPA typically measures R&D effectiveness through a series of technical reviews, milestone achievements, and prototype demonstrations. For EXACTO Phase I, effectiveness would likely be assessed by the successful development and testing of guidance technologies, quantifiable improvements in projectile accuracy, and the potential for transition to later phases or operational systems.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,573,162

Exercised Options: $12,573,162

Current Obligation: $12,573,162

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2008-11-21

Current End Date: 2010-09-15

Potential End Date: 2010-09-15 00:00:00

Last Modified: 2010-07-12

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