Lockheed Martin awarded $116M for DARPA's mobile tactical weapon delivery system

Contract Overview

Contract Amount: $116,315,934 ($116.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-01-10

End Date: 2024-05-03

Contract Duration: 1,575 days

Daily Burn Rate: $73.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE CONTRACTOR SHALL SUPPORT THE DARPA'S OPERATIONAL FIRES (OPFIRES)PHASE 3 PROGRAM TO ENABLE CAPABILITIES FOR A MOBILE, GROUND-LAUNCHED TACTICAL WEAPON DELIVERY SYSTEM CAPABLE OF CARRYING A VARIETY OF PAYLOADS TO A VARIETY OF RANGES.

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $116.3 million to LOCKHEED MARTIN CORPORATION for work described as: THE CONTRACTOR SHALL SUPPORT THE DARPA'S OPERATIONAL FIRES (OPFIRES)PHASE 3 PROGRAM TO ENABLE CAPABILITIES FOR A MOBILE, GROUND-LAUNCHED TACTICAL WEAPON DELIVERY SYSTEM CAPABLE OF CARRYING A VARIETY OF PAYLOADS TO A VARIETY OF RANGES. Key points: 1. Contract focuses on R&D for a mobile, ground-launched tactical weapon system. 2. The system aims to support a variety of payloads and ranges. 3. This award represents a significant investment in advanced defense technology. 4. The contract duration is over 4 years, indicating a substantial development effort. 5. The contractor, Lockheed Martin, is a major defense industry player. 6. The contract type is Cost Plus Fixed Fee, common for R&D projects.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and focus on future capabilities. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, but the fixed fee provides some predictability for the contractor's profit. Without specific performance metrics or comparable R&D projects for similar systems, a definitive value assessment is difficult. However, the significant funding suggests a high perceived value by DARPA for the potential technological advancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive process, though the specifics of the competition (e.g., number of proposals received, evaluation criteria) are not detailed here. Full and open competition is generally expected to yield better pricing and innovation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the development of advanced defense technologies.

Public Impact

The primary beneficiaries are the Department of Defense and DARPA, seeking to enhance tactical weapon delivery capabilities. The services delivered involve research and development for a mobile, ground-launched weapon system. The geographic impact is national, focusing on advancing U.S. defense technology. Workforce implications include highly skilled R&D personnel in aerospace and defense engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a risk with Cost Plus Fixed Fee contracts, especially in R&D.
Technological feasibility and successful integration of diverse payloads could be challenging.
Long development timelines can lead to evolving requirements and potential obsolescence.

Positive Signals

Awarding to a major defense contractor like Lockheed Martin suggests access to significant expertise and resources.
Full and open competition increases the likelihood of selecting the most innovative and cost-effective solution.
DARPA's involvement indicates a focus on cutting-edge research with potentially high strategic value.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense industry is a significant market for R&D, with substantial government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically involve other advanced weapons system development programs, which are often classified or highly specialized.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Given the nature of the work and the prime contractor, it is likely that larger, specialized firms will be involved. Further analysis would be needed to determine if small business subcontracting opportunities exist within the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under DARPA's program management and the Department of Defense's contracting oversight mechanisms. Accountability is typically managed through contract milestones, performance reviews, and financial audits. Transparency may be limited due to the sensitive nature of defense R&D, but reporting requirements are standard for government contracts.

Related Government Programs

DARPA OPIR
Tactical Weapon Systems Development
Mobile Launch Platforms
Advanced Payload Integration

Risk Flags

Cost Overrun Risk
Technological Feasibility Risk
Schedule Delay Risk
Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.3 million to LOCKHEED MARTIN CORPORATION. THE CONTRACTOR SHALL SUPPORT THE DARPA'S OPERATIONAL FIRES (OPFIRES)PHASE 3 PROGRAM TO ENABLE CAPABILITIES FOR A MOBILE, GROUND-LAUNCHED TACTICAL WEAPON DELIVERY SYSTEM CAPABLE OF CARRYING A VARIETY OF PAYLOADS TO A VARIETY OF RANGES.

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 $116.3 million.

What is the period of performance?

Start: 2020-01-10. End: 2024-05-03.

What is Lockheed Martin's track record with DARPA and similar R&D programs?

Lockheed Martin Corporation is a major defense contractor with extensive experience in research and development for the U.S. Department of Defense and its agencies, including DARPA. They have a long history of developing advanced weapon systems, aerospace technologies, and complex platforms. Their track record with DARPA likely includes numerous successful and challenging R&D projects, often involving cutting-edge technologies and ambitious program goals. While specific details of past DARPA contracts are often sensitive, Lockheed Martin's overall performance in large-scale, complex R&D initiatives suggests a strong capability to undertake programs like OPIR. Their extensive resources, engineering expertise, and established processes are typically well-suited for the demands of DARPA's innovative research environment.

How does the $116 million cost compare to similar R&D efforts for tactical weapon systems?

Directly comparing the $116 million cost to similar R&D efforts for tactical weapon systems is challenging due to the proprietary and classified nature of much defense R&D. However, this figure is substantial and aligns with the typical investment required for developing novel, complex defense technologies. DARPA programs, by their nature, often push the boundaries of current capabilities, which inherently involves significant research and development costs. The Cost Plus Fixed Fee (CPFF) contract type also means the final cost can vary. For context, other advanced weapon system development programs, especially those involving mobility, multiple payload options, and extended range capabilities, can range from tens of millions to hundreds of millions of dollars over their development lifecycle.

What are the primary risks associated with this specific contract and its objectives?

The primary risks associated with this contract revolve around technological feasibility, integration challenges, and cost management. Developing a mobile, ground-launched tactical weapon system capable of carrying a variety of payloads to different ranges is an ambitious undertaking. Key risks include: 1. Technical Hurdles: Ensuring the system's mobility, launch reliability, and payload compatibility across diverse requirements can present significant engineering challenges. 2. Integration Complexity: Integrating various payloads and ensuring seamless operation with the launch platform requires meticulous design and testing. 3. Cost Overruns: As a CPFF contract, there is a risk of costs exceeding initial estimates, particularly if unforeseen technical issues arise during the R&D phases. 4. Schedule Delays: Complex R&D projects are prone to delays due to testing, redesign, or evolving requirements. 5. Programmatic Risk: DARPA programs are often exploratory; the ultimate operational utility or transition to production is not always guaranteed.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for R&D like this?

The Cost Plus Fixed Fee (CPFF) contract type is commonly used for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation and exploration are paramount. For a program like DARPA's OPIR, which aims to develop novel capabilities, CPFF allows flexibility. The government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost incurred. However, it also carries risks for the government, as the total cost is not fixed and can escalate if actual costs are higher than anticipated. For R&D, it balances the need for contractor flexibility and innovation with a degree of cost control through the fixed fee.

What is the historical spending pattern for DARPA's tactical weapon system development programs?

DARPA's historical spending patterns for tactical weapon system development programs are characterized by significant, but often project-specific, investments. DARPA typically funds high-risk, high-reward research aimed at creating breakthrough technologies rather than developing mature, fielded systems. Spending on individual programs can vary widely, from tens of millions to hundreds of millions of dollars, depending on the complexity and duration of the research. Programs often involve multiple phases, with funding awarded incrementally based on successful milestone achievement. While specific historical data for 'tactical weapon system development' as a singular category might be aggregated differently across reports, DARPA's overall budget reflects a consistent commitment to advancing defense capabilities through innovative R&D, with significant portions allocated to areas like advanced munitions, autonomous systems, and novel platform concepts.

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

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001119S0019

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051

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: $130,944,872

Exercised Options: $116,315,934

Current Obligation: $116,315,934

Actual Outlays: $8,377,346

Subaward Activity

Number of Subawards: 113

Total Subaward Amount: $217,304,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline