DoD Awards $36M for JATAS Prototype Development to Lockheed Martin Under Full and Open Competition

Contract Overview

Contract Amount: $36,018,993 ($36.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2012-12-31

Contract Duration: 1,193 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: JATAS PROTOTYPE DEVELOPMENT

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.0 million to LOCKHEED MARTIN CORPORATION for work described as: JATAS PROTOTYPE DEVELOPMENT Key points: 1. Significant investment in advanced defense technology. 2. Lockheed Martin, a major defense contractor, secured the award. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The contract spans over three years, indicating a substantial development effort.

Value Assessment

Rating: fair

The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The total award value of $36M for a 1193-day duration needs further analysis against similar prototype development contracts to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the specific pricing outcomes and the number of bids received are crucial for a definitive assessment.

Taxpayer Impact: Taxpayer funds are being utilized for advanced defense system development. The ultimate value and effectiveness of the JATAS prototype will determine the long-term taxpayer impact.

Public Impact

Enhances national security capabilities through advanced navigation and guidance systems. Supports technological innovation within the defense sector. Potential for follow-on production contracts if the prototype is successful.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contract type may incentivize higher costs.
  • Long duration could lead to scope creep or evolving requirements.
  • Lack of specific performance metrics in provided data.

Positive Signals

  • Awarded under full and open competition.
  • Involves a major defense contractor with proven capabilities.
  • Focus on critical defense system development.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on navigation and guidance systems. Spending in this area is driven by national security needs and technological advancements, with significant government investment.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. As a large prime contractor, Lockheed Martin's adherence to small business utilization goals would require further investigation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is critical to ensure the prototype meets requirements and costs remain controlled.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Incentive Fee contract type.
  • Long contract duration.
  • Potential for evolving requirements.
  • Lack of specific performance metrics in provided data.

Tags

search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.0 million to LOCKHEED MARTIN CORPORATION. JATAS PROTOTYPE DEVELOPMENT

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2009-09-25. End: 2012-12-31.

What were the key performance indicators (KPIs) established for this prototype development, and how will they be measured to ensure successful outcomes?

The provided data does not detail the specific Key Performance Indicators (KPIs) for the JATAS prototype development. Effective oversight would necessitate clearly defined, measurable, achievable, relevant, and time-bound (SMART) KPIs. These would likely focus on aspects such as system accuracy, reliability, integration capabilities, and operational effectiveness under simulated conditions. The contracting agency's performance reports and milestone reviews would be the primary mechanisms for tracking progress against these unstated KPIs.

Given the Cost Plus Incentive Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives the best possible value?

The Cost Plus Incentive Fee (CPIF) contract structure inherently carries a risk of cost overruns. To mitigate this, the contract likely includes pre-defined target costs, cost ceilings, and incentive fee targets tied to specific performance objectives. The government's oversight team would actively monitor expenditures, review contractor cost proposals, and ensure adherence to the contract's terms. Regular performance reviews and audits are crucial to identify potential cost issues early and adjust incentive fees accordingly, thereby aligning contractor and government interests.

How does the successful development of the JATAS prototype align with the Department of Defense's broader strategic objectives for situational awareness and navigation?

The JATAS prototype development directly supports the Department of Defense's strategic objectives by aiming to enhance situational awareness and navigation capabilities. Advanced systems like JATAS are critical for maintaining information superiority and enabling precise operations across various domains. Successful development could lead to improved target identification, more accurate battlefield positioning, and enhanced command and control, ultimately contributing to mission effectiveness and the safety of personnel in complex operational environments.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001908R0043

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 W SAND LAKE RD MP125, ORLANDO, FL, 32819

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,892,757

Exercised Options: $36,471,017

Current Obligation: $36,018,993

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2009-09-25

Current End Date: 2012-12-31

Potential End Date: 2012-12-31 00:00:00

Last Modified: 2017-05-31

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