DARPA awards $470M contract to Lockheed Martin for advanced research and development in physical sciences

Contract Overview

Contract Amount: $470,392,312 ($470.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-10-17

End Date: 2027-01-16

Contract Duration: 1,187 days

Daily Burn Rate: $396.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $470.4 million to LOCKHEED MARTIN CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences, excluding nanotechnology and biotechnology. 2. Significant investment in a single contractor suggests a high degree of trust or specialized capability. 3. The 'NOT COMPETED' award type raises questions about the procurement process and potential for broader market engagement. 4. A long performance period of nearly four years indicates a complex, long-term research objective. 5. The contract's value places it among substantial R&D investments within the defense sector. 6. The specific NAICS code points to a focus on fundamental scientific inquiry and application.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific deliverables or comparable projects. The 'NOT COMPETED' nature means direct price comparisons to other bids are impossible. However, the substantial award amount suggests a significant scope of work. Further analysis would require understanding the specific research objectives and expected outcomes to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'NOT COMPETED' procedure, indicating that only one source was solicited or deemed capable of fulfilling the requirement. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition may limit price discovery and potentially lead to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The justification for a sole-source award needs to be robust to ensure funds are used efficiently.

Public Impact

The primary beneficiary is the Department of Defense, specifically DARPA, through advancements in scientific research. The contract aims to deliver cutting-edge research and development in physical, engineering, and life sciences. The geographic impact is primarily within California, where the contractor is located, but the research outcomes could have national or global implications. Workforce implications include highly skilled researchers and engineers employed by Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
The sole-source nature limits opportunities for other capable firms to participate and demonstrate their expertise.
Transparency in the justification for a sole-source award is crucial for public trust.

Positive Signals

Award to a major defense contractor like Lockheed Martin suggests access to significant R&D infrastructure and expertise.
The substantial funding indicates a high priority placed on the research objectives by DARPA.
A long contract duration allows for in-depth exploration and development of complex scientific challenges.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is characterized by significant government investment, long development cycles, and a reliance on specialized contractors with advanced technical capabilities. Comparable spending benchmarks would involve other large-scale R&D contracts awarded by agencies like DARPA, DoD, or other federal research bodies.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is made directly to Lockheed Martin and does not specify small business set-asides. There is no explicit information regarding subcontracting plans for small businesses. This could limit opportunities for smaller, innovative firms to contribute to this specific research effort.

Oversight & Accountability

Oversight for this contract would typically fall under DARPA's program management and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is often limited in sole-source R&D contracts due to the proprietary nature of the research, but reporting requirements are usually stipulated.

Related Government Programs

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

Risk Flags

Sole-source award bypasses competitive bidding.
Lack of transparency regarding specific research objectives.
Potential for cost overruns without competitive pressure.
Limited opportunities for small businesses in this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $470.4 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 $470.4 million.

What is the period of performance?

Start: 2023-10-17. End: 2027-01-16.

What specific research objectives does this contract aim to achieve?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under DARPA. However, the specific research objectives are not detailed. DARPA typically funds high-risk, high-reward research projects that aim to create breakthrough technologies for national security. Without further documentation, the precise scientific or engineering goals remain unspecified. These could range from novel materials science to advanced propulsion systems, or complex biological research with defense applications. The contract's value and duration suggest a significant, multi-faceted research endeavor.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED,' implying a sole-source award. The justification for such an award typically rests on factors like the unique capabilities of the contractor, the urgency of the requirement, or the unavailability of other sources. For a large defense contractor like Lockheed Martin, DARPA might argue they possess specialized expertise, proprietary technology, or existing infrastructure essential for the project that cannot be replicated by other firms within the required timeframe. A thorough justification would need to be documented by the agency, detailing why competition was not feasible or advantageous.

How does the $470 million award compare to other R&D contracts awarded by DARPA or the DoD?

An award of $470 million is substantial, even within the context of large federal R&D contracts. DARPA, in particular, is known for funding ambitious, high-cost research initiatives. While many DARPA contracts are smaller, focused efforts, larger, multi-year programs can reach hundreds of millions of dollars. For comparison, other major defense R&D programs or contracts for advanced weapon systems development can also be in the hundreds of millions or even billions. This specific award suggests a significant, long-term strategic investment by DARPA in a particular area of scientific advancement.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risks associated with a sole-source R&D contract of this magnitude include potential cost overruns due to a lack of competitive pressure, reduced incentive for innovation if the contractor faces no direct competition, and the possibility that the chosen contractor may not be the most optimal solution available. There's also a risk of 'vendor lock-in,' where the agency becomes overly reliant on a single provider. Furthermore, if the research objectives are not clearly defined or achievable, a significant amount of taxpayer funds could be expended with limited tangible results. Transparency and robust oversight are critical to mitigate these risks.

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 includes delivering advanced technological solutions, though like any large contractor, they have also faced scrutiny on specific projects regarding cost, schedule, or performance. Their established infrastructure, scientific personnel, and security clearances make them a frequent recipient of high-value, sensitive R&D contracts from agencies like DARPA.

What are the expected outcomes or deliverables for this contract?

The specific deliverables for this contract are not detailed in the provided data. However, for a DARPA R&D contract, outcomes typically involve the development of new technologies, prototypes, scientific discoveries, or advanced research findings. These could be foundational research that enables future systems, or more applied research leading to specific technological demonstrations. The contract's duration and value suggest that the expected outcomes are likely complex and may involve significant technological maturation. DARPA's mission is to make pivotal investments in breakthrough technologies for national security, so the ultimate goal is to advance the state-of-the-art in the specified scientific fields.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1011 LOCKHEED WAY, PALMDALE, CA, 93599

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: $592,438,303

Exercised Options: $592,438,303

Current Obligation: $470,392,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline