DARPA awards $6.75M contract to Lockheed Martin for R&D, highlighting significant investment in advanced physical and engineering sciences

Contract Overview

Contract Amount: $6,754,019 ($6.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-14

End Date: 2025-12-14

Contract Duration: 669 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DARPA RESEARCH PROJECT

Place of Performance

Location: THOUSAND OAKS, VENTURA County, CALIFORNIA, 91360

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to LOCKHEED MARTIN CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract value of $6.75 million represents a focused investment in specialized research and development. 2. The award to Lockheed Martin suggests a reliance on established defense contractors for complex R&D projects. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a specific, yet competitive, procurement approach. 4. The contract duration of approximately 2 years points to a project with defined milestones and deliverables. 5. The NAICS code 541715 places this contract within the broad category of physical, engineering, and life sciences research. 6. The 'COST PLUS FIXED FEE' contract type suggests that while costs are monitored, the contractor has a defined profit margin. 7. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed project scope and deliverables. However, the $6.75 million award for a roughly two-year period suggests a moderate investment for advanced research. Comparing it to other DARPA projects of similar scope would provide better context for value for money. The 'COST PLUS FIXED FEE' structure implies a degree of cost control, but the ultimate expenditure will depend on the actual costs incurred by Lockheed Martin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method implies that while the competition was initially open, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior involvement. The number of bidders (10) indicates a reasonable level of interest, but the exclusion of sources may limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, which helps ensure a reasonable price for the specialized research. However, the exclusion of certain sources warrants scrutiny to ensure no potentially more cost-effective solutions were overlooked.

Public Impact

The primary beneficiaries are likely the Department of Defense and DARPA, gaining advancements in physical, engineering, and life sciences. The services delivered are research and development, aiming to produce innovative technologies or scientific understanding. The geographic impact is primarily within California, where the contract is managed or performed. Workforce implications include specialized roles for scientists, engineers, and researchers at Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could potentially lead to higher costs than a fully open bid.
The 'COST PLUS FIXED FEE' contract type can incentivize cost overruns if not closely monitored, despite the fixed fee component.
Lack of specific details on the R&D focus makes it difficult to assess the direct impact or potential for dual-use technology.

Positive Signals

Award to a major defense contractor like Lockheed Martin suggests a high likelihood of technical capability and project execution.
The number of bidders (10) indicates that the opportunity attracted significant interest, suggesting a competitive environment.
DARPA's involvement implies a focus on cutting-edge research with potential for significant technological breakthroughs.

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 substantial, with agencies like DARPA consistently investing in next-generation technologies. Comparable spending benchmarks would involve analyzing other DARPA contracts for similar research areas and durations, as well as R&D spending by other government agencies and private sector entities in advanced materials, engineering, and related scientific fields.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). The award to a large prime contractor like Lockheed Martin suggests that subcontracting opportunities may exist for small businesses. However, the extent of small business participation will depend on Lockheed Martin's subcontracting plan and the specific needs of the research project. Without explicit set-asides, small businesses would need to compete directly with larger firms or seek subcontracting roles.

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. Accountability measures are typically embedded within the contract terms, including performance milestones, reporting requirements, and payment schedules tied to progress. Transparency is facilitated through contract databases and public reporting, though specific technical details of the research may be sensitive. Inspector General jurisdiction would apply in cases 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 due to source exclusion.
Cost-plus contract type requires diligent oversight to manage expenditures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 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 $6.8 million.

What is the period of performance?

Start: 2024-02-14. End: 2025-12-14.

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

Lockheed Martin is a major defense contractor with a long history of working with DARPA and other Department of Defense agencies on advanced research and development projects. While specific details on past contracts of identical scope and value are not provided here, their extensive experience in areas like aerospace, advanced materials, and complex systems integration suggests a strong capability to execute DARPA's research objectives. DARPA typically selects contractors based on demonstrated technical expertise, past performance, and innovative approaches, indicating that Lockheed Martin likely possesses a favorable track record for such endeavors.

How does the $6.75 million value compare to other DARPA R&D contracts?

The $6.75 million contract value is within the moderate range for DARPA research projects. DARPA funds a wide spectrum of research, from small, exploratory grants to large, multi-year programs. Contracts can range from hundreds of thousands to tens or even hundreds of millions of dollars. This particular award suggests a focused research effort with defined objectives over a roughly two-year period. To provide a precise comparison, one would need to analyze DARPA's portfolio of contracts awarded in fiscal years 2024-2025 for projects categorized under NAICS code 541715, looking at both value and duration.

What are the primary risks associated with a 'COST PLUS FIXED FEE' contract type for R&D?

The primary risks associated with a 'COST PLUS FIXED FEE' (CPFF) contract type for R&D involve potential cost overruns and the contractor's incentive to manage expenses. While the 'fixed fee' component provides the contractor with a predetermined profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates, the government bears the burden, potentially exceeding the initially perceived value. Effective oversight, stringent cost controls, and clear definition of allowable costs are crucial to mitigate these risks and ensure the project stays within budget expectations.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost and innovation?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific needs. By initially opening the competition and then excluding certain sources, the agency likely sought to ensure that bidders met stringent technical, security, or capability requirements essential for the R&D. While this approach can lead to a competitive price among the remaining bidders, the exclusion of some sources might limit the range of innovative solutions or potentially higher-value proposals that could have emerged from a truly unrestricted competition. The impact on cost and innovation depends heavily on the justification for the exclusions and the number of qualified bidders remaining.

What is the typical duration for DARPA R&D contracts of this magnitude?

The typical duration for DARPA R&D contracts can vary significantly based on the project's complexity, scope, and objectives. However, for contracts in the mid-single-digit million-dollar range, a duration of 1 to 3 years is common. This allows sufficient time for research, experimentation, analysis, and reporting of findings. The 669-day duration (approximately 22 months) for this Lockheed Martin contract aligns well with typical timelines for focused R&D efforts managed by DARPA, suggesting a project with defined phases and deliverables within a manageable timeframe.

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: HR001123S0030

Offers Received: 16

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1 LOCKHEED BLVD, 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: $6,754,019

Exercised Options: $6,754,019

Current Obligation: $6,754,019

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $149,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline