DoD Awards $192M for TRUST Program to Lockheed Martin, Research & Development Focus
Contract Overview
Contract Amount: $19,230,927 ($19.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-05-14
End Date: 2019-10-15
Contract Duration: 2,710 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 120
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OPEN MANUFACTURING. THE CONTRACTOR SHALL ACCOMPLISH THE TASKS UNDER THE TRANSITION RELIABLE UNITIZED STRUCTURE (TRUST) PROGRAM.
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $19.2 million to LOCKHEED MARTIN CORPORATION for work described as: OPEN MANUFACTURING. THE CONTRACTOR SHALL ACCOMPLISH THE TASKS UNDER THE TRANSITION RELIABLE UNITIZED STRUCTURE (TRUST) PROGRAM. Key points: 1. Significant investment in advanced manufacturing R&D. 2. Sole contractor, Lockheed Martin, raises competition questions. 3. Long contract duration (2012-2019) may impact cost-effectiveness. 4. Focus on physical and engineering sciences R&D.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the TRUST program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting an initial attempt to solicit multiple bids. However, the long duration and specific nature of the TRUST program might have limited subsequent competitive opportunities.
Taxpayer Impact: Taxpayer funds are directed towards advanced manufacturing research, potentially yielding long-term defense capabilities. The effectiveness of competition in ensuring value for money is a key consideration.
Public Impact
Investment in advanced manufacturing technology for defense. Potential for technological advancements in unitized structures. Long-term commitment to a single contractor for a critical program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency on specific R&D outcomes.
- Potential for cost creep in cost-plus contracts.
- Limited visibility into ongoing competition dynamics.
Positive Signals
- Focus on critical R&D for national security.
- Awarded under full and open competition initially.
- Experienced contractor with a long history in defense.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be challenging to benchmark due to its specialized and often novel nature.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The long duration of the contract necessitates continuous monitoring to ensure performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole contractor for a long-duration program.
- Cost-plus-fixed-fee structure can incentivize higher costs.
- Limited information on specific R&D outcomes.
- No clear indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to LOCKHEED MARTIN CORPORATION. OPEN MANUFACTURING. THE CONTRACTOR SHALL ACCOMPLISH THE TASKS UNDER THE TRANSITION RELIABLE UNITIZED STRUCTURE (TRUST) 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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2012-05-14. End: 2019-10-15.
What specific technological advancements or capabilities has the TRUST program delivered to justify the $192 million investment?
The provided data does not detail the specific deliverables or technological advancements of the TRUST program. Further analysis would require access to program reports, milestone achievements, and performance metrics to assess the tangible outcomes and their alignment with the significant investment made by the Department of Defense.
How effectively did the initial full and open competition translate into sustained value for money throughout the contract's extended period?
While the contract was initially awarded under full and open competition, its long duration (2012-2019) raises questions about ongoing value. Without data on subsequent bidding or performance reviews, it's difficult to ascertain if the competitive landscape remained robust or if the fixed-fee structure adequately incentivized cost efficiency over time.
What are the primary risks associated with a sole-source contractor, like Lockheed Martin, managing a long-term R&D program like TRUST?
Key risks include potential complacency leading to reduced innovation, lack of competitive pressure to optimize costs, and vendor lock-in. The government's ability to pivot or incorporate new technologies may be limited. Continuous oversight and clear performance metrics are crucial to mitigate these risks.
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: 120
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1011 LOCKHEED WAY, PALMDALE, CA, 93599
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,334,572
Exercised Options: $19,334,572
Current Obligation: $19,230,927
Actual Outlays: $31,918
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,842,170
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-05-14
Current End Date: 2019-10-15
Potential End Date: 2019-10-15 00:00:00
Last Modified: 2024-08-07
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