DoD's National Cyber Range Program awarded $37.7M to Lockheed Martin for advanced cyber testing capabilities

Contract Overview

Contract Amount: $37,685,592 ($37.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2010-01-08

End Date: 2011-10-31

Contract Duration: 661 days

Daily Burn Rate: $57.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THE NATIONAL CYBER RANGE (NCR) PROGRAM AS SOLICITED UNDER DARPA BAA 08-43 IS TO ENABLE A REVOLUTION IN THE NATION S ABILITY TO CONDUCT CYBER OPERATIONS BY PROVIDING A PERSISTENT CYBER RANGE THAT WILL: CONDUCT UNBIASED, QUANTITATIVE AND QUALITATIVE ASSESSMENT OF INFORMATION ASSURANCE AND SURVIVABILITY TOOLS IN A REPRESENTATIVE NETWORK ENVIRONMENT; REPLICATE COMPLEX, LARGE-SCALE, HETEROGENEOUS NETWORKS AND USERS IN CURRENT AND FUTURE DEPARTMENT OF DEFENSE (DOD) WEAPON SYSTEMS AND OPERATIONS; ENABLE MULTIPLE, INDEPENDENT, SIMULTANEOUS EXPERIMENTS ON THE SAME INFRASTRUCTURE; ENABLE REALISTIC TESTING OF INTERNET/GLOBAL INFORMATION GRID (GIG) SCALE RESEARCH; DEVELOP AND DEPLOY REVOLUTIONARY CYBER TESTING CAPABILITIES; AND ENABLE THE USE OF THE SCIENTIFIC METHOD FOR RIGOROUS CYBER TESTING. THIS CONTRACT SUPPORTS THE NCR PHASE II PROGRAM.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THE NATIONAL CYBER RANGE (NCR) PROGRAM AS SOLICITED UNDER DARPA BAA 08-43 IS TO ENABLE A REVOLUTION IN THE NATION S ABILITY TO CONDUCT CYBER OPERATIONS BY PROVIDING A PERSISTENT CYBER RANGE THAT WILL: CONDUCT UNBIASED, QUANTITATIVE AND QUALITATIVE ASSESSMENT OF INF… Key points: 1. Contract aims to revolutionize national cyber operations through a persistent cyber range. 2. Focus on unbiased assessment of information assurance and survivability tools. 3. Replication of complex, large-scale, heterogeneous networks for realistic testing. 4. Enables simultaneous, independent experiments on shared infrastructure. 5. Supports rigorous application of the scientific method to cyber research. 6. Contract awarded via full and open competition, indicating broad market engagement.

Value Assessment

Rating: good

The contract value of $37.7 million for a period of 661 days appears reasonable for a complex R&D initiative like the National Cyber Range. Benchmarking against similar large-scale simulation and testing infrastructure development projects within the DoD suggests this is within expected cost parameters. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility in research while providing cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Broad Agency Announcement (BAA), which typically signifies a full and open competition. This approach allows any interested and capable offeror to submit proposals, fostering a competitive environment. The presence of 7 proposals indicates significant industry interest and a robust competition.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple companies to vie for the contract.

Public Impact

The primary beneficiaries are the Department of Defense and national security agencies requiring advanced cyber warfare testing and development. Services delivered include the creation and operation of a persistent cyber range for research and development. The geographic impact is primarily within Florida, where the contract is managed. Workforce implications include specialized roles in cybersecurity, network engineering, and research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of cyber range development can lead to cost overruns if not managed tightly.
Ensuring the range accurately reflects evolving cyber threats requires continuous updates and investment.
Dependence on a single prime contractor (Lockheed Martin) for core development could pose long-term risks if not actively managed.

Positive Signals

Awarded through a competitive BAA process, suggesting strong technical merit and value.
The program's objective to revolutionize cyber operations aligns with critical national security needs.
Focus on quantitative and qualitative assessment promotes data-driven decision-making.
The persistent nature of the range allows for ongoing research and development, maximizing long-term utility.

Sector Analysis

The National Cyber Range Program falls within the Research and Development sector, specifically focusing on cybersecurity and information assurance. This contract supports the DoD's strategic goal of maintaining technological superiority in cyberspace. Comparable spending in this sector involves significant investments in simulation, testing, and advanced technology development for defense applications, often involving large prime contractors.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'ss': false and 'sb': false. However, large prime contractors like Lockheed Martin often engage small businesses as subcontractors to fulfill specialized needs or meet subcontracting goals. The impact on the small business ecosystem would depend on the extent of subcontracting opportunities generated by this prime contract.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA) and the contracting activity (DCA) within the Department of Defense. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed reporting and adherence to milestones. Transparency is facilitated through contract awards databases and potential reporting requirements, though specific operational details of the cyber range itself may be classified.

Related Government Programs

DARPA Programs
DoD Cyber Warfare Initiatives
Information Assurance Research
Network Simulation and Emulation
Cybersecurity Test and Evaluation

Risk Flags

Potential for cost overruns in complex R&D
Risk of technology obsolescence in rapidly evolving cyber field
Challenges in accurately simulating diverse and complex network environments
Dependence on contractor for development of critical national capability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THE NATIONAL CYBER RANGE (NCR) PROGRAM AS SOLICITED UNDER DARPA BAA 08-43 IS TO ENABLE A REVOLUTION IN THE NATION S ABILITY TO CONDUCT CYBER OPERATIONS BY PROVIDING A PERSISTENT CYBER RANGE THAT WILL: CONDUCT UNBIASED, QUANTITATIVE AND QUALITATIVE ASSESSMENT OF INFORMATION ASSURANCE AND SURVIVABILITY TOOLS IN A REPRESENTATIVE NETWORK ENVIRONMENT; REPLICATE COMPLEX, LARGE-SCALE, HETEROGENEOUS NETWORKS AND USERS IN CURRENT AND FUTURE DEPARTMENT OF DEFENSE (DOD) WEAPON SYSTEMS AND OP

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2010-01-08. End: 2011-10-31.

What is the historical spending trend for the National Cyber Range Program?

The provided data reflects a specific contract award of $37.7 million with an end date in 2011. To understand the historical spending trend, one would need to examine the total funding allocated to the National Cyber Range Program across its entire lifecycle, including subsequent contracts, modifications, and operational costs. This would involve searching federal procurement databases for all contracts associated with the NCR program, analyzing their values, durations, and agencies involved. Without access to a broader dataset encompassing the program's history, it's impossible to definitively describe the spending trend beyond this single contract's value and duration.

How does the cost of this contract compare to similar cyber range development projects?

Comparing the $37.7 million cost for the National Cyber Range Program requires identifying comparable projects in terms of scope, complexity, and technological advancement. Projects involving the development of large-scale, persistent cyber simulation and testing environments for military or intelligence purposes are typically high-cost endeavors. Factors influencing cost include the fidelity of network replication, the types of cyber threats simulated, the scale of the environment, and the duration of development and initial operation. Given the program's objective to 'revolutionize the Nation's ability to conduct cyber operations' and its focus on replicating complex, large-scale networks, the $37.7 million appears to be a significant but potentially justifiable investment for a foundational capability. However, a precise benchmark would necessitate access to cost data from similar, publicly documented cyber range initiatives.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While the specific KPIs are not detailed in the provided data, the contract's purpose outlines several areas where performance would be measured. These likely include the successful establishment and persistent operation of the cyber range infrastructure, the ability to accurately replicate complex network environments, the successful execution of multiple, independent, simultaneous experiments, and the delivery of unbiased, quantitative, and qualitative assessments of cyber tools. Performance would also be evaluated based on the development and deployment of revolutionary cyber testing capabilities and the adherence to the scientific method in cyber experimentation. The contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA) would typically monitor progress against defined milestones and deliverables.

What is Lockheed Martin's track record with similar large-scale R&D contracts for the DoD?

Lockheed Martin Corporation has a long and extensive track record of performing large-scale Research and Development (R&D) and complex systems integration contracts for the Department of Defense and other government agencies. They are a major defense contractor involved in numerous high-value programs across various domains, including aerospace, defense, and cybersecurity. Their experience encompasses developing advanced simulation and training systems, complex network infrastructure, and cutting-edge technological solutions. While specific details of past performance on cyber range development would require deeper investigation into their contract history, their position as a leading defense prime contractor suggests a substantial capability and experience base relevant to this type of R&D effort.

What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' inherently carries risks associated with R&D activities. These include technical risks, where the desired technological advancements may not be achieved or may take longer than anticipated. There are also cost risks, as R&D projects can be subject to unforeseen expenses and scope changes. Schedule risks are common, as the innovative nature of R&D often leads to unpredictable timelines. Furthermore, market risks, such as evolving threat landscapes or changing requirements, can impact the relevance and utility of the developed capabilities. For a cyber range, specific risks include the challenge of keeping pace with rapidly evolving cyber threats and technologies, ensuring the fidelity and scalability of the simulated environments, and managing the complexity of integrating diverse systems.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 12506 LAKE UNDERHILL RD, ORLANDO, FL, 32825

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

Financial Breakdown

Contract Ceiling: $37,685,592

Exercised Options: $37,685,592

Current Obligation: $37,685,592

Contract Characteristics

Cost or Pricing Data: YES

Timeline