DoD awards $23.1M contract to Lockheed Martin for DARPA research, with 8 bidders competing

Contract Overview

Contract Amount: $23,108,730 ($23.1M)

Contractor: Lockheed Martin Aculight Corporation

Awarding Agency: Department of Defense

Start Date: 2022-03-04

End Date: 2025-04-30

Contract Duration: 1,153 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to LOCKHEED MARTIN ACULIGHT CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract value appears reasonable given the R&D nature and duration. 2. Full and open competition suggests a healthy market for this specialized research. 3. Potential risks include R&D project uncertainty and cost overruns. 4. This contract supports advanced defense research, aligning with DARPA's mission. 5. The R&D sector is characterized by high innovation and specialized expertise. 6. Contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve.

Value Assessment

Rating: good

The $23.1 million contract value for a nearly 3-year R&D project seems within a reasonable range for specialized defense research. Benchmarking against similar DARPA contracts for advanced technology development would provide a more precise assessment, but the number of bidders suggests competitive pricing was likely sought. The Cost Plus Fixed Fee structure is typical for R&D where exact costs are hard to predict, but it necessitates careful oversight to manage expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 8 bidders participating, there was a significant level of competition. This suggests that the agency actively sought a broad range of potential contractors, which typically leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive proposals for its research needs.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. warfighter through advancements in defense technology. The contract will deliver research and development services in physical, engineering, and life sciences. The geographic impact is primarily within the contractor's facilities, likely in Washington state. This contract supports highly skilled jobs in the research and development sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a risk with Cost Plus Fixed Fee contracts, requiring diligent oversight.
The success of R&D projects is inherently uncertain and may not yield desired outcomes.
Dependency on a single large contractor for critical research could pose long-term risks.

Positive Signals

Full and open competition indicates a healthy market and potential for innovation.
The award to a well-established defense contractor like Lockheed Martin suggests a degree of reliability.
The contract duration allows for in-depth research and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by significant government investment, particularly in defense, aimed at fostering technological advancements. The market is highly specialized, with a few large prime contractors and numerous subcontractors providing niche expertise. Comparable spending benchmarks are difficult without knowing the specific research area, but R&D contracts can range from millions to billions.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large prime contractors like Lockheed Martin are often required to meet small business subcontracting goals. The impact on the small business ecosystem will depend on whether Lockheed Martin actively seeks out small businesses for specialized components or services related to this research project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Contract Management Agency (DCMA) and the DARPA program office. Accountability measures will include regular progress reports, milestone reviews, and financial audits. Transparency is generally maintained through contract award announcements and public databases, though the specific details of the research may be sensitive.

Related Government Programs

DARPA Research Programs
Department of Defense R&D Spending
Advanced Technology Development Contracts
Lockheed Martin Contracts

Risk Flags

Cost Overrun Risk (CPFF contract type)
R&D Project Uncertainty
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to LOCKHEED MARTIN ACULIGHT CORPORATION. DARPA RESEARCH PROJECT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN ACULIGHT 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 $23.1 million.

What is the period of performance?

Start: 2022-03-04. End: 2025-04-30.

What is Lockheed Martin's track record with DARPA contracts?

Lockheed Martin is a major defense contractor with extensive experience working with DARPA on various research and development projects. They have a long history of delivering complex technological solutions for defense applications. While specific performance metrics for all past DARPA contracts are not publicly detailed, their continued selection for such high-stakes R&D indicates a generally positive track record. DARPA's selection process is rigorous, and contractors are typically chosen based on demonstrated capability, past performance, and innovative approaches. Further analysis would involve reviewing specific past DARPA awards to Lockheed Martin, their associated performance evaluations (if available), and any documented issues or successes.

How does the $23.1 million value compare to similar DARPA R&D contracts?

The $23.1 million contract value for a nearly three-year R&D project is within a common range for DARPA initiatives. DARPA funds a wide spectrum of research, from foundational science to advanced prototypes, with contract values varying significantly based on the scope, complexity, and duration. Contracts can range from a few million dollars for early-stage research to tens or even hundreds of millions for more extensive development programs. Given that this contract is for 'Research and Development in the Physical, Engineering, and Life Sciences,' and involves a major contractor over a substantial period, the awarded amount appears proportionate. A precise benchmark would require comparing it to contracts with similar technical objectives and durations within the same NAICS code (541715).

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fixed fee incentivizes efficiency, there's less direct financial incentive for the contractor to strictly control costs compared to fixed-price contracts. The government bears the risk of cost increases. Effective oversight by the contracting officer and technical team is crucial to monitor expenditures, ensure costs are reasonable and allocable, and prevent scope creep that could inflate the total cost. The CPFF structure is often used for R&D where the final scope and costs are uncertain at the outset.

What is the expected program effectiveness or outcome?

The expected outcome of this contract is the advancement of research and development in specific areas of physical, engineering, and life sciences, as directed by DARPA. DARPA's mission is to make pivotal investments in breakthrough technologies for national security. Therefore, the effectiveness will be measured by the successful completion of research objectives, the generation of new knowledge, and the potential transition of developed technologies into practical applications for defense purposes. The specific 'breakthrough' or 'pivotal' nature of the outcome is inherent to DARPA's high-risk, high-reward research model. Success metrics would be defined within the contract's statement of work and technical milestones.

How does this contract fit into DARPA's historical spending patterns for R&D?

This $23.1 million contract aligns with DARPA's historical spending patterns, which consistently involve significant investments in cutting-edge research and development across various scientific and engineering disciplines. DARPA's budget typically allocates substantial funds to contracts that explore novel concepts and technologies, often with values in the multi-million dollar range. The agency frequently utilizes competitive solicitations, including full and open, to identify the best research partners. The use of contract types like CPFF is also consistent with DARPA's approach to managing R&D projects where uncertainty is high. This specific award appears to be a typical component of DARPA's broader portfolio of research investments aimed at maintaining a technological edge for national security.

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

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001121S0021

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 22121 20TH AVE SE, BOTHELL, WA, 98021

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: $23,108,730

Exercised Options: $23,108,730

Current Obligation: $23,108,730

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $674,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline