DoD Awards $25.7M Contract to Lockheed Martin for Classified R&D Effort
Contract Overview
Contract Amount: $25,747,676 ($25.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-06-10
End Date: 2014-12-15
Contract Duration: 1,649 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE STATEMENT OF WORK FOR THIS EFFORT IS CLASSIFIED.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $25.7 million to LOCKHEED MARTIN CORPORATION for work described as: THE STATEMENT OF WORK FOR THIS EFFORT IS CLASSIFIED. Key points: 1. The contract value is $25.7 million, awarded to a single, large defense contractor. 2. The Statement of Work is classified, limiting transparency into the specific research and development. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences, a critical area for national security.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a classified SOW, makes it difficult to assess pricing effectiveness against similar contracts. The fixed fee component provides some incentive for cost control, but the lack of transparency is a concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the classified nature of the SOW may have limited the pool of eligible bidders and the ability of offerors to fully understand the scope.
Taxpayer Impact: The impact on taxpayers is difficult to quantify due to the classified nature of the work and the contract type. Oversight is crucial to ensure value for money.
Public Impact
Taxpayers are funding advanced research and development with limited visibility into the specific outcomes. The classified SOW raises questions about public accountability and the ability to assess the true value of the investment. The contract supports innovation within the defense sector, potentially leading to technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Classified Statement of Work
- Cost Plus Fixed Fee contract type
- Lack of transparency in R&D objectives
Positive Signals
- Awarded under full and open competition
- Supports critical defense research and development
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining a technological edge, but requires careful oversight to ensure efficiency and effectiveness.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation as subcontractors in the provided data.
Oversight & Accountability
The classified nature of the Statement of Work presents a challenge for effective oversight. Robust internal controls and reporting mechanisms within DARPA are essential to ensure accountability and proper use of funds.
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
- Classified Statement of Work limits transparency and oversight.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Potential for limited competition due to classification.
- Lack of public information on specific R&D goals and outcomes.
- No indication of small business subcontracting.
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.7 million to LOCKHEED MARTIN CORPORATION. THE STATEMENT OF WORK FOR THIS EFFORT IS CLASSIFIED.
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 $25.7 million.
What is the period of performance?
Start: 2010-06-10. End: 2014-12-15.
What specific technological advancements or capabilities is this classified R&D effort intended to achieve, and how do they align with national security priorities?
The specific objectives of this classified R&D effort are not publicly disclosed due to the nature of the Statement of Work. However, contracts awarded by DARPA typically aim to develop breakthrough technologies that address critical national security challenges, often pushing the boundaries of scientific and engineering capabilities to maintain a strategic advantage.
Given the Cost Plus Fixed Fee structure and classified SOW, what mechanisms are in place to prevent cost overruns and ensure the contractor is delivering value for taxpayer money?
While the SOW is classified, the Cost Plus Fixed Fee structure implies a negotiated fixed fee for the contractor's effort. Oversight agencies likely employ rigorous auditing, performance monitoring, and milestone reviews to ensure costs are reasonable and allocable to the contract, and that the contractor is making satisfactory progress towards the defined, albeit classified, objectives.
How does the agency ensure that the competitive process for classified R&D contracts truly fosters innovation and avoids potential anti-competitive outcomes, especially when the scope is not fully tra
For classified procurements, agencies like DARPA often utilize specialized competitive strategies tailored to the sensitive nature of the work. This can include pre-solicitation conferences with cleared contractors, phased procurements, and detailed evaluation criteria that focus on technical approach and past performance, aiming to identify the most capable source while maintaining security and fostering innovation.
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: 4
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 # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,749,600
Exercised Options: $25,749,600
Current Obligation: $25,747,676
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-06-10
Current End Date: 2014-12-15
Potential End Date: 2014-12-15 00:00:00
Last Modified: 2017-09-29
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