DARPA awards $29.7M contract to Lockheed Martin for advanced R&D in physical, engineering, and life sciences

Contract Overview

Contract Amount: $29,768,100 ($29.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2025-08-29

Contract Duration: 1,611 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $29.8 million to LOCKHEED MARTIN CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract focuses on cutting-edge research and development, aligning with DARPA's mission to foster innovation. 2. The award to a major defense contractor suggests a focus on complex, high-stakes technological advancements. 3. A definitive contract type indicates a long-term commitment to the research objectives. 4. The duration of the contract (over 1600 days) points to the ambitious and potentially lengthy nature of the research. 5. The specific NAICS code (541715) highlights the contract's placement within the broad R&D sector. 6. The contract's value, while significant, should be viewed in the context of extensive R&D investments by agencies like DARPA.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its unique and forward-looking nature. Direct comparisons to similar contracts are difficult as DARPA projects often push technological boundaries. The cost-plus-fixed-fee structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some incentive for the contractor to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially due to specific technical requirements or prior involvement. The number of bidders is not specified, but this limited competition approach suggests a curated selection process rather than broad market solicitation.

Taxpayer Impact: This limited competition may result in less aggressive pricing than a fully open bid, potentially impacting taxpayer value if alternative, equally capable sources were available but not considered.

Public Impact

The primary beneficiaries are likely the advancement of scientific knowledge and technological capabilities within the US. The services delivered are research and development activities in physical, engineering, and life sciences. The geographic impact is primarily within New Jersey, where the contractor is located, but the research outcomes could have national or global implications. Workforce implications include employment for highly skilled researchers, engineers, and support staff at Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict price discovery and potentially lead to higher costs for taxpayers.
The cost-plus-fixed-fee contract type carries inherent risks of cost escalation if project scope or unforeseen challenges arise.
The exclusion of certain sources, even with a justification, warrants scrutiny to ensure no viable alternatives were overlooked.

Positive Signals

Award to a reputable contractor like Lockheed Martin suggests a high level of technical capability and experience.
The focus on R&D aligns with national strategic goals for technological superiority.
The definitive contract structure provides stability for long-term research endeavors.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by high innovation, significant government investment, and long development cycles. DARPA is a key player in funding high-risk, high-reward research that can lead to transformative technologies. Comparable spending benchmarks are difficult to establish due to the unique nature of DARPA projects, but overall federal R&D spending is in the tens of billions annually.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. This suggests the focus was on specialized capabilities likely held by larger, established firms. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to leverage the small business ecosystem for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Advanced Research Projects Agency (DARPA) program managers. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is generally limited for specific R&D projects due to national security and proprietary concerns, though contract award details are publicly available. Inspector General jurisdiction would apply to allegations of fraud, waste, or abuse.

Related Government Programs

DARPA Research Programs
Department of Defense Research and Development
Advanced Technology Development Contracts
Lockheed Martin Defense Contracts

Risk Flags

Limited competition justification requires review.
Potential for cost overruns in CPFF R&D contract.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.8 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 $29.8 million.

What is the period of performance?

Start: 2021-04-01. End: 2025-08-29.

What is the specific technological area being researched under this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. While the broad category is defined, the precise technological focus is proprietary to DARPA's research objectives and is not detailed in the provided data. DARPA typically funds projects aimed at creating breakthrough capabilities for national security, often involving advanced materials, complex systems, artificial intelligence applications in physical sciences, or novel biological engineering approaches.

How does the $29.7 million value compare to other DARPA R&D contracts?

The $29.7 million award is a substantial sum, typical for significant R&D initiatives undertaken by DARPA. DARPA's contract values can range widely, from a few million for early-stage research to tens or even hundreds of millions for larger, multi-year programs. This particular contract's value suggests a project of moderate to high scope and duration within DARPA's portfolio. Without access to a comprehensive database of all DARPA contracts, a precise percentile ranking is difficult, but it represents a significant investment in a specific research area.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a CPFF contract, especially in R&D, is cost overrun. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit margin. If the research encounters unforeseen technical challenges, requires more resources than initially estimated, or if the scope expands, the total cost to the government can exceed initial projections. The government bears the risk of cost increases, while the contractor has an incentive to manage costs to protect their fixed fee. Effective oversight and clear definition of milestones are crucial to mitigate these risks.

What does 'Full and Open Competition After Exclusion of Sources' imply for this contract?

This contracting method suggests that the agency initially intended to compete the requirement broadly but then excluded specific sources. This exclusion must be justified, often due to unique capabilities, prior work, or specific security requirements. It implies that while competition was considered, the pool of eligible bidders was narrowed. This can occur when a specific technology or expertise is required that only a limited number of entities possess. The justification for exclusion is critical for ensuring fair competition and optimal value.

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

Lockheed Martin is a major defense contractor with extensive experience in research and development across various domains, including aerospace, defense systems, and advanced technologies. They have a long-standing relationship with DARPA and have been involved in numerous complex R&D projects. Their track record generally indicates a high capacity for undertaking sophisticated technological endeavors. Specific performance metrics on past DARPA contracts would require deeper investigation into contract databases and performance reports, but their position as a prime contractor on significant projects suggests a history of successful, albeit complex, execution.

Are there any specific performance metrics or deliverables outlined for this contract?

The provided data does not include specific performance metrics or detailed deliverables for this contract. For R&D contracts, especially those with a CPFF structure, deliverables often include research reports, prototypes, technical data packages, and presentations at review meetings. Performance is typically assessed based on progress towards research goals, technical milestones achieved, and the quality of the research outcomes. Detailed statements of work (SOW) and contract clauses would contain this information, but they are not included in the summary data.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001120S0050

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 3 EXECUTIVE CAMPUS, CHERRY HILL, NJ, 08002

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

Financial Breakdown

Contract Ceiling: $31,256,077

Exercised Options: $30,150,531

Current Obligation: $29,768,100

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $8,170,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline