DARPA awards $56M R&D contract to Lockheed Martin for physical sciences research
Contract Overview
Contract Amount: $56,159,097 ($56.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-23
End Date: 2022-12-31
Contract Duration: 1,257 days
Daily Burn Rate: $44.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: DARPA RESEARCH PROJECT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $56.2 million to LOCKHEED MARTIN CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on physical, engineering, and life sciences R&D. 3. Potential for high-impact technological advancements. 4. Limited visibility into specific project outcomes. 5. Significant taxpayer investment in advanced research.
Value Assessment
Rating: fair
The contract value of $56.2 million over approximately 3.5 years is substantial for a research project. Benchmarking is difficult without knowing the specific deliverables and complexity, but it appears to be within a reasonable range for advanced R&D by a major contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This approach may reduce price discovery compared to full and open competition, potentially leading to higher costs.
Taxpayer Impact: Taxpayer funds are supporting advanced research with potential long-term benefits, but the limited competition raises questions about cost-effectiveness.
Public Impact
Advancement of cutting-edge scientific and technological capabilities. Potential for dual-use applications benefiting both defense and civilian sectors. Investment in innovation that could drive future economic growth. Creation of high-skilled jobs in research and development. Risk of research not yielding commercially viable or practical applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Research outcomes are inherently uncertain.
- Lack of small business participation.
- Contract type (Cost Plus Incentive Fee) can incentivize cost overruns.
Positive Signals
- Supports critical national security research.
- Partnership with a leading aerospace and defense company.
- Focus on high-impact scientific discovery.
- Potential for significant technological breakthroughs.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be highly variable and subject to long development cycles.
Small Business Impact
The data indicates no small business participation in this contract. This is common for large, complex research and development projects awarded to major prime contractors, but it represents a missed opportunity for small business innovation.
Oversight & Accountability
DARPA is known for its rigorous oversight of research projects. However, the specific oversight mechanisms for this contract and their effectiveness in managing costs and ensuring progress are not detailed in the provided data.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Uncertainty of research outcomes and return on investment.
- Limited competition may have resulted in a higher price.
- Lack of small business involvement.
- Long duration of the contract increases exposure to changing requirements.
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 $56.2 million to LOCKHEED MARTIN CORPORATION. DARPA RESEARCH PROJECT
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 $56.2 million.
What is the period of performance?
Start: 2019-07-23. End: 2022-12-31.
What specific research objectives does this contract aim to achieve, and how do they align with DARPA's strategic goals?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific objectives are not detailed, DARPA's mission is to make pivotal investments in breakthrough technologies for national security. This project likely aims to advance fundamental scientific understanding or develop novel capabilities in areas critical to defense, such as advanced materials, propulsion, or complex systems.
What are the key performance indicators (KPIs) for this Cost Plus Incentive Fee contract, and how will success be measured?
For a Cost Plus Incentive Fee (CPIF) contract, success is typically measured by achieving specific technical milestones and performance targets while managing costs. The incentive fee is earned if the contractor meets or exceeds these targets, often related to performance, schedule, or cost savings. The specific KPIs would be detailed in the contract's Statement of Work and performance metrics.
Given the limited competition, what measures are in place to ensure the government receives fair value for the taxpayer dollars invested?
While the competition was limited, the government likely relied on pre-negotiated rates, historical cost data, and potentially independent cost estimates to establish a fair price. The CPIF structure itself provides some incentive for the contractor to control costs to maximize their profit. However, robust technical and programmatic oversight is crucial to ensure the research progresses effectively and delivers value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Solicitation ID: HR001118S0026
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,159,097
Exercised Options: $57,159,097
Current Obligation: $56,159,097
Actual Outlays: $6,425,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-07-23
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-07-21
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