DoD awards $547.8M contract for Robotic Systems Engineering, with Lockheed Martin as prime

Contract Overview

Contract Amount: $5,478,115 ($5.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-03-13

Contract Duration: 529 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 99

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ROBOTICALLY ENABLED UNITS SYSTEMS ENGINEERING (REUSE)

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to LOCKHEED MARTIN CORPORATION for work described as: ROBOTICALLY ENABLED UNITS SYSTEMS ENGINEERING (REUSE) Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences. 2. Focus on advanced robotic systems development and integration. 3. Long-term contract duration of 529 days. 4. Significant investment in future defense capabilities. 5. Potential for technological advancements in autonomous systems.

Value Assessment

Rating: good

The contract value of $547.8 million for R&D in robotic systems appears reasonable given the scope of developing advanced units and systems engineering. Benchmarking against similar large-scale R&D contracts in defense, this figure aligns with investments in cutting-edge technologies. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research while providing a defined profit margin for the contractor, which can be efficient for complex, evolving projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored to ensure the government receives the best value and innovative solutions by drawing from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

Benefits the Department of Defense by advancing robotic systems capabilities. Services delivered include research, development, and engineering for robotic units. Geographic impact is primarily within Texas, where Lockheed Martin operates. Workforce implications include highly skilled engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
The long duration of the contract requires sustained oversight to ensure progress.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Focus on advanced R&D aligns with strategic defense modernization goals.
Prime contractor, Lockheed Martin, has a strong track record in defense systems.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences related to robotics. The market for defense robotics is substantial and growing, driven by the need for enhanced capabilities in areas such as surveillance, logistics, and combat support. Comparable spending benchmarks in this area often involve multi-million dollar investments for complex system development and integration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award. While Lockheed Martin is the prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of robotics or component manufacturing. The extent of small business subcontracting will depend on Lockheed Martin's procurement strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to performance milestones and deliverables outlined in the Cost Plus Fixed Fee agreement. Transparency is facilitated through contract award announcements and potential reporting requirements, though detailed project specifics may be sensitive.

Related Government Programs

Robotics Research and Development Programs
Advanced Weapons Systems Development
Autonomous Systems Integration
Department of Defense Research Contracts

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk (R&D)
Technological Obsolescence Risk
Integration Complexity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to LOCKHEED MARTIN CORPORATION. ROBOTICALLY ENABLED UNITS SYSTEMS ENGINEERING (REUSE)

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 $5.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-13.

What is Lockheed Martin's track record with similar R&D contracts for the Department of Defense?

Lockheed Martin has an extensive and well-established track record with the Department of Defense, frequently securing large-scale R&D contracts across various defense domains. They are known for their work in advanced aerospace, defense, and security technologies, including significant contributions to unmanned systems, artificial intelligence, and complex engineering projects. Their history includes numerous successful contract completions, though like any large defense contractor, they have also faced scrutiny on specific projects regarding cost, schedule, and performance. For R&D contracts specifically, their experience spans from foundational research to the development of highly sophisticated prototypes and systems, often involving significant technological innovation and integration challenges.

How does the $547.8 million value compare to other robotic systems R&D contracts?

The $547.8 million contract value for robotic systems R&D is substantial, placing it among significant investments in this specialized field. While direct comparisons can be challenging due to varying scopes, technological maturity, and contract types, this figure is consistent with major defense R&D initiatives. For instance, contracts for developing advanced unmanned aerial vehicles (UAVs), autonomous ground vehicles, or complex robotic platforms for military applications often range from tens to hundreds of millions of dollars. The Cost Plus Fixed Fee structure also influences the overall value, as it allows for adjustments during the research process. This award reflects a strategic commitment by the DoD to advance robotic capabilities, indicating a significant market for such R&D.

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 potential for scope creep. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government bears the risk of actual project costs exceeding estimates. If the research encounters unforeseen technical challenges or requires more resources than initially anticipated, the total cost to the government can escalate significantly. Effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent unnecessary costs. Additionally, defining the scope of work clearly from the outset is vital to mitigate the risk of the contractor expanding the project's boundaries without commensurate adjustments to the fee or schedule.

What is the expected impact of this contract on the development of autonomous systems in defense?

This contract is expected to have a significant positive impact on the development of autonomous systems within the defense sector. By funding research and development into robotic units and systems engineering, the Department of Defense is directly investing in the foundational technologies and integration expertise required for advanced autonomy. This could lead to breakthroughs in areas such as enhanced situational awareness, improved operational efficiency, reduced risk to human personnel in dangerous environments, and the development of more sophisticated decision-making capabilities for robotic platforms. The focus on 'robotic systems engineering' suggests an emphasis on creating robust, reliable, and scalable autonomous solutions that can be integrated into existing and future military operations.

How has federal spending on robotics R&D evolved over the past five years?

Federal spending on robotics R&D has seen a consistent upward trend over the past five years, driven by increasing recognition of its strategic importance across various sectors, particularly defense, healthcare, and logistics. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), and National Institutes of Health (NIH) have allocated substantial resources to advance robotic capabilities. The DoD, in particular, has prioritized robotics for applications ranging from autonomous vehicles and unmanned systems to soldier augmentation and logistical support. This growth reflects a broader national strategy to maintain technological superiority and leverage automation for efficiency and safety. While specific figures fluctuate annually based on budget allocations and program priorities, the overall trajectory indicates a sustained and growing investment in this field.

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: N0001424B0001

Offers Received: 99

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: $9,260,006

Exercised Options: $5,683,575

Current Obligation: $5,478,115

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline