Lockheed Martin awarded $13.5M contract for Air Combat Evolution (ACE) TA 4 by DARPA

Contract Overview

Contract Amount: $13,522,223 ($13.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2027-08-03

Contract Duration: 1,768 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIR COMBAT EVOLUTION (ACE) TA 4

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to LOCKHEED MARTIN CORPORATION for work described as: AIR COMBAT EVOLUTION (ACE) TA 4 Key points: 1. Contract awarded to a single, large defense contractor, indicating a focus on specialized capabilities. 2. The contract duration of nearly 5 years suggests a long-term research and development effort. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for national security. 4. The contract type (Cost Plus Fixed Fee) is common for R&D where costs can be uncertain. 5. Texas is the place of performance, potentially indicating regional economic impact. 6. The absence of small business set-asides suggests the scope requires large prime contractor involvement.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. However, $13.5 million for a multi-year R&D effort in advanced defense technology by a prime contractor like Lockheed Martin appears within a reasonable range for such specialized work. Further analysis would require comparing specific labor rates, overhead, and material costs against industry standards for similar DARPA projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple offerors had the opportunity to bid. The presence of 4 bidders (as indicated by 'no': 4) is a positive sign for competition, though the final award went to Lockheed Martin. This level of competition is generally expected to drive better pricing and innovation.

Taxpayer Impact: Full and open competition, even with a single awardee, helps ensure that taxpayer funds are used efficiently by encouraging multiple companies to propose their best solutions and pricing.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the U.S. Air Force, through advancements in air combat technology. The services delivered involve research and development, likely focusing on next-generation autonomous or semi-autonomous combat systems. The place of performance is Texas, suggesting potential job creation and economic activity within that state. The contract supports highly skilled jobs in research, engineering, and advanced manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee if not carefully managed.
The long duration of the contract could lead to scope creep or evolving requirements that may increase the overall cost.
Reliance on a single large contractor may limit future competition or innovation from smaller, agile firms.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract is for Research and Development, a critical area for maintaining technological superiority.
The contractor, Lockheed Martin, is a well-established entity with a strong track record in defense contracting.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development (R&D) for advanced aerospace and combat systems. The market for defense R&D is characterized by high barriers to entry, significant government investment, and a focus on technological innovation. Comparable spending benchmarks would typically be found within other DARPA or Air Force Research Laboratory contracts for similar advanced technology development programs.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Given the nature of advanced R&D in defense, the prime contractor, Lockheed Martin, is likely to handle the core development. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by this contract's primary award structure. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a known entity for rigorous oversight of its research programs. Accountability measures are typically embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and milestone achievement. Transparency may be limited due to the classified or sensitive nature of advanced defense research, but standard contract reporting mechanisms should be in place.

Related Government Programs

Air Force Research Laboratory Contracts
Advanced Tactical Aircraft Programs
Autonomous Systems Development
Department of Defense Research and Development

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Long Contract Duration
Potential for Scope Creep
Reliance on Prime Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to LOCKHEED MARTIN CORPORATION. AIR COMBAT EVOLUTION (ACE) TA 4

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 $13.5 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-08-03.

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

Lockheed Martin has a long and extensive history of working with DARPA and other defense agencies on cutting-edge research and development projects. They are a prime contractor on numerous advanced technology initiatives, including those related to aerospace, autonomous systems, and next-generation combat capabilities. Their track record generally indicates a strong capacity to execute complex R&D efforts, often involving significant technological innovation and integration challenges. Specific performance metrics on past DARPA contracts would provide a more granular assessment, but their status as a leading defense contractor suggests a high level of experience and capability in this domain.

How does the $13.5 million value compare to similar DARPA R&D contracts?

The $13.5 million award value for the AIR COMBAT EVOLUTION (ACE) TA 4 contract is within the typical range for specialized, multi-year R&D efforts managed by DARPA. DARPA projects often involve high-risk, high-reward research that requires significant investment in specialized expertise and technology development. While specific comparisons depend heavily on the technical scope and duration, contracts of this magnitude are common for developing foundational technologies or prototypes for future defense systems. Larger, system-level development contracts would naturally be significantly higher, while smaller, more focused research grants might be lower.

What are the primary risks associated with this Cost Plus Fixed Fee contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, revolve around cost control and potential for cost overruns. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the total contract value could increase significantly. Effective oversight by DARPA is crucial to scrutinize incurred costs, ensure efficiency, and prevent unnecessary expenditures to mitigate these risks.

How might the 'Air Combat Evolution' program impact future military capabilities?

The 'Air Combat Evolution' (ACE) program, particularly TA 4, is likely focused on advancing key technologies for future air combat systems. This could include areas such as artificial intelligence for decision-making, advanced sensor fusion, autonomous operations, human-machine teaming, or novel propulsion and airframe designs. Successful development within this program could lead to the creation of more capable, adaptable, and potentially autonomous combat aircraft, enhancing air superiority, reducing risk to human pilots in certain scenarios, and enabling new operational concepts. The specific impact depends on the precise technological advancements achieved.

What is the historical spending trend for R&D in physical, engineering, and life sciences by DARPA?

DARPA consistently allocates substantial funding towards Research and Development in Physical, Engineering, and Life Sciences, as this aligns with its core mission of pioneering technological breakthroughs for national security. Historical spending trends show a significant and often increasing investment in these areas, reflecting the dynamic nature of technological advancement and the perceived need to maintain a strategic advantage. While specific annual figures fluctuate based on strategic priorities and emerging threats, R&D in these scientific domains remains a cornerstone of DARPA's budget, supporting a wide array of innovative projects aimed at revolutionizing military capabilities.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001122S0015

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108

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: $27,772,544

Exercised Options: $14,386,495

Current Obligation: $13,522,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline