DARPA awards $11.5M contract to Lockheed Martin for advanced R&D, highlighting significant investment in physical and engineering sciences

Contract Overview

Contract Amount: $11,530,253 ($11.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-05-02

End Date: 2027-03-15

Contract Duration: 1,413 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75265

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to LOCKHEED MARTIN CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract value of $11.5 million indicates a substantial investment in specialized research and development. 2. The award to Lockheed Martin, a major defense contractor, suggests a focus on complex, high-stakes projects. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific pre-qualification criteria. 4. The contract duration of over 3 years points to a long-term research objective. 5. The North American Industry Classification System (NAICS) code 541715 places this contract within the R&D sector for physical, engineering, and life sciences. 6. The contract type 'COST PLUS FIXED FEE' suggests that while costs are reimbursed, a fixed fee is applied, balancing risk and incentive. 7. The primary location in Texas (TX) may indicate a concentration of specialized research facilities or workforce in that region.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without more granular data on the scope of research. However, $11.5 million for a multi-year R&D project by DARPA is within a typical range for advanced technological development. The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where precise costs are difficult to estimate upfront, but it requires careful oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior involvement. The number of bidders (6) suggests a moderate level of competition, indicating that while not entirely unrestricted, multiple qualified entities were considered.

Taxpayer Impact: This type of competition aims to balance the need for specialized capabilities with ensuring a reasonable price for taxpayers by allowing multiple, albeit pre-qualified, entities to bid.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other government agencies that will utilize the advanced research outcomes. The services delivered involve cutting-edge research and development in physical, engineering, and life sciences. The geographic impact is primarily centered in Texas (TX), where the contractor is located, potentially stimulating local economic activity and employment. Workforce implications include the employment of highly skilled scientists, engineers, and technicians by Lockheed Martin to execute the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
The exclusion of certain sources, even if justified, limits the breadth of competition and potential for innovation from a wider pool.
Long contract duration could lead to scope creep or misalignment with evolving technological needs if not actively managed.

Positive Signals

Award to a reputable contractor like Lockheed Martin suggests a high likelihood of technical competence and project execution capability.
DARPA's involvement indicates a focus on innovative and potentially groundbreaking research with significant future applications.
The competitive bidding process, even with exclusions, provides a degree of price discovery and selection of the most capable offeror.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for national security and technological advancement. Comparable spending in this sector by agencies like DARPA can range from millions to billions of dollars annually, depending on the strategic priorities and the complexity of the research initiatives undertaken. The market is characterized by a high degree of specialization and a limited number of large, established defense contractors capable of undertaking such complex projects.

Small Business Impact

There is no indication of a small business set-aside for this contract, as indicated by 'sb': false. Lockheed Martin is a large corporation. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated or highlighted in the provided data. The primary focus appears to be on large prime contractors with the specialized capabilities required for advanced R&D.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. Mechanisms would include regular progress reports, technical reviews, and financial audits to ensure adherence to the contract's objectives and cost controls. Accountability rests with Lockheed Martin to deliver the research outcomes and with DARPA to monitor performance and manage the contract effectively. Transparency is generally maintained through contract awards databases, though specific research details may be classified.

Related Government Programs

DARPA Research Projects
Department of Defense Research and Development
Advanced Technology Development Contracts
Lockheed Martin Defense Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion.
Complexity of R&D may lead to unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 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 $11.5 million.

What is the period of performance?

Start: 2023-05-02. End: 2027-03-15.

What is Lockheed Martin's track record with DARPA contracts, particularly in R&D?

Lockheed Martin Corporation has a long and extensive history of contracting with DARPA and other Department of Defense agencies, particularly in advanced research and development. They are a major defense contractor known for its capabilities in aerospace, defense, and security technologies. Their track record typically involves complex, high-technology projects requiring significant engineering and scientific expertise. While specific performance metrics for past DARPA contracts are not detailed here, their continued selection for such awards suggests a generally positive performance history and a strong ability to meet the demanding technical and programmatic requirements set by DARPA. This includes delivering innovative solutions and managing complex research efforts within defined parameters.

How does the $11.5 million value compare to other DARPA R&D contracts in the physical and engineering sciences?

The $11.5 million award value for this DARPA contract is within a common range for specialized R&D projects. DARPA funds a wide spectrum of research, from foundational science initiatives costing a few million dollars to large-scale system development programs that can exceed hundreds of millions. Contracts in the physical, engineering, and life sciences (NAICS 541715) often fall into the mid-millions range for focused, multi-year research efforts like this one. Larger, more complex programs involving hardware development or system integration would typically command higher values. Therefore, $11.5 million represents a significant but not exceptionally large investment for a targeted R&D effort by DARPA.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and ensuring optimal value. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. While the fixed fee provides a ceiling on profit, there's less direct financial incentive for efficiency compared to fixed-price contracts. For the contractor, the risk lies in accurately estimating the costs involved in R&D, which is inherently uncertain. If costs exceed estimates significantly, the fixed fee might not adequately compensate for the effort expended. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks for both parties.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process?

The term 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a procurement process that began with the intent of broad competition but ultimately narrowed the field based on specific criteria. This means that while the initial solicitation was made broadly available, certain potential offerors were excluded. The reasons for exclusion are typically tied to stringent technical requirements, unique capabilities, security clearances, or prior work that makes only a subset of potential contractors eligible. It suggests a balance between achieving a competitive price and ensuring that only highly qualified entities with specific expertise or prerequisites can participate, thereby potentially reducing risk for complex R&D projects.

How might this contract contribute to future technological advancements or national security?

Contracts awarded by DARPA are fundamentally aimed at developing breakthrough technologies that can provide significant future advantages, often in areas critical to national security. This specific contract, focusing on physical, engineering, and life sciences R&D, could lead to advancements in areas such as materials science, advanced manufacturing, robotics, artificial intelligence hardware, or novel sensor technologies. The outcomes could enhance military capabilities, improve intelligence gathering, or create dual-use technologies with civilian applications. By investing in high-risk, high-reward research, DARPA aims to maintain a technological edge for the United States.

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: HR001122S0045

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

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: $16,080,498

Exercised Options: $16,080,498

Current Obligation: $11,530,253

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $3,469,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline