DoD's $21.19M DEUMOR contract to Lockheed Martin shows R&D investment in advanced radar technology

Contract Overview

Contract Amount: $21,190,807 ($21.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-19

End Date: 2027-09-24

Contract Duration: 1,466 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DIGITALLY EXPANDED UHF MIMO OPTIMIZED RADAR (DEUMOR)

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to LOCKHEED MARTIN CORPORATION for work described as: DIGITALLY EXPANDED UHF MIMO OPTIMIZED RADAR (DEUMOR) Key points: 1. Contract awarded for advanced radar research and development, indicating a focus on technological superiority. 2. The use of a Cost Plus Fixed Fee (CPFF) contract type suggests potential for cost overruns, requiring close monitoring. 3. Lockheed Martin, a major defense contractor, brings significant experience to this complex R&D effort. 4. The contract duration of nearly five years implies a substantial and long-term research objective. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical area for national security innovation. 6. The contract's geographic location in New York may indicate a concentration of specialized R&D talent or facilities.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to the specialized nature of the technology and the inherent uncertainties in research. The CPFF structure, while common for R&D, can lead to costs exceeding initial estimates if not managed diligently. Without specific performance metrics or comparable contract data for similar advanced radar systems, a definitive value-for-money assessment is difficult. However, the investment aligns with the Department of Defense's strategic goals for technological advancement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is intended to foster price discovery and ensure the government receives the best possible value. The number of bidders is not specified, but the full and open nature implies a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among a wider range of potential contractors.

Public Impact

The Department of Defense benefits from advancements in radar technology, potentially enhancing surveillance and targeting capabilities. This contract supports research and development activities, contributing to the broader scientific and technological base. The contract is located in New York, potentially creating or sustaining high-skilled jobs in the region. The development of advanced radar systems could have dual-use applications, benefiting both military and civilian sectors in the long term.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if not rigorously managed.
The specialized nature of advanced radar technology makes independent cost verification and benchmarking difficult.
Long contract duration increases the potential for scope creep or evolving technological requirements impacting final cost.

Positive Signals

Awarded under full and open competition, indicating a potentially competitive pricing environment.
Lockheed Martin is a reputable contractor with extensive experience in defense R&D, suggesting a lower risk of technical failure.
The contract supports critical research and development aligned with national security objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences. The defense industry heavily invests in R&D to maintain a technological edge. Comparable spending in this sub-sector often involves significant investment in areas like artificial intelligence, advanced materials, and sophisticated sensor technologies. The market for advanced radar systems is highly specialized, dominated by a few large defense contractors.

Small Business Impact

There is no indication that this contract includes specific small business set-asides. As a large-scale R&D effort awarded to a major prime contractor, the primary focus is likely on specialized capabilities. However, Lockheed Martin may engage small businesses as subcontractors for specific components or services, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with potential involvement from the Department of Defense's Inspector General. The CPFF structure necessitates close financial oversight to monitor costs and ensure adherence to the fixed fee. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of R&D activities.

Related Government Programs

Advanced Radar Systems Development
Department of Defense Research and Development Programs
Naval Technology Modernization
Electronic Warfare Systems

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technological Obsolescence
Difficulty in Benchmarking R&D Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to LOCKHEED MARTIN CORPORATION. DIGITALLY EXPANDED UHF MIMO OPTIMIZED RADAR (DEUMOR)

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2023-09-19. End: 2027-09-24.

What is Lockheed Martin's track record with similar Cost Plus Fixed Fee (CPFF) R&D contracts for the Department of Defense?

Lockheed Martin has a long and extensive history of performing Cost Plus Fixed Fee (CPFF) Research and Development (R&D) contracts for the Department of Defense (DoD). CPFF contracts are common for R&D due to the inherent uncertainties in project outcomes and technological development. While specific contract details are often proprietary, Lockheed Martin's performance on such contracts is generally characterized by its ability to manage complex technical challenges and deliver advanced capabilities. However, like all CPFF contracts, there is an inherent risk of cost growth if project requirements evolve or unforeseen technical hurdles arise. The government's oversight mechanisms, including Earned Value Management (EVM) and regular progress reviews, are crucial for mitigating these risks and ensuring value for taxpayer money. Lockheed Martin's substantial size and experience suggest they possess robust internal controls for managing these types of agreements, but diligent government oversight remains paramount.

How does the $21.19 million cost compare to other advanced radar R&D contracts?

Directly comparing the $21.19 million cost of the DEUMOR contract to other advanced radar R&D contracts is challenging without access to detailed specifications and scope of work for those comparable contracts. The cost of R&D is highly variable, depending on factors such as the novelty of the technology, the complexity of the required research, the specific performance characteristics sought, and the duration of the research effort. Contracts for fundamental research might be smaller, while those involving prototype development and testing of highly advanced systems, like optimized MIMO radar, could easily reach tens or even hundreds of millions of dollars. Given that this contract is for 'Research and Development in the Physical, Engineering, and Life Sciences,' and involves advanced radar, the $21.19 million figure appears to be a moderate investment for a multi-year R&D effort by a major defense contractor. It suggests a focused research objective rather than a full-scale system development.

What are the primary risks associated with this specific contract, beyond general R&D uncertainties?

Beyond the general R&D uncertainties inherent in any research project, this specific contract carries risks related to the 'DIGITALLY EXPANDED UHF MIMO OPTIMIZED RADAR (DEUMOR)' technology itself. UHF MIMO radar systems are complex, and achieving 'optimized' performance, especially with digital expansion, presents significant technical challenges. There's a risk that the desired performance levels may not be achievable within the contract's timeline or budget. Furthermore, the Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can incentivize cost overruns if not managed stringently. The reliance on a single large contractor, Lockheed Martin, while beneficial for expertise, could also limit alternative solutions or innovations if the chosen technological path proves suboptimal. Finally, the rapid pace of technological advancement in radar means that by the time R&D is complete, the developed technology might face obsolescence or be surpassed by emerging alternatives.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' classification imply for the contract's objectives?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' indicates that this contract is focused on fundamental scientific inquiry and applied engineering principles within established scientific domains. It suggests the project aims to advance knowledge and develop new technologies related to the physical world (like electromagnetics for radar), engineering processes, and potentially biological systems, though the latter is excluded here. The exclusion of nanotechnology and biotechnology means the R&D is likely centered on more traditional, yet advanced, engineering disciplines. For this DEUMOR contract, it implies the research will delve into areas such as signal processing, antenna design, digital hardware/software development, and the physics of radio wave propagation at UHF frequencies, aiming to improve radar capabilities through engineering innovation rather than breakthroughs in novel materials or biological applications.

What is the significance of the contract being a 'Definitive Contract' awarded in September 2023?

The designation of this contract as a 'Definitive Contract' signifies that it is a standard, legally binding agreement outlining the terms and conditions for the delivery of goods or services. Unlike basic ordering agreements or other preliminary contract types, a definitive contract establishes firm commitments from both the government and the contractor. Being awarded in September 2023 and having an estimated completion date in September 2027 (a duration of 1466 days, approximately 4 years) indicates a substantial, multi-year research and development effort. This timeline suggests the project is intended to achieve significant milestones in the development of the DEUMOR system, moving beyond initial concept phases into more advanced research, design, and potentially early prototyping or testing stages. The timing also places it within current defense modernization priorities.

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: N0001422SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088

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: $46,415,206

Exercised Options: $27,223,478

Current Obligation: $21,190,807

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $1,698,544

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline