DoD's $59.4M MQ-25 Concept Refinement Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $59,367,468 ($59.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-23
End Date: 2018-09-13
Contract Duration: 720 days
Daily Burn Rate: $82.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF MQ-25 CONCEPT REFINEMENT EFFORT
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $59.4 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF MQ-25 CONCEPT REFINEMENT EFFORT Key points: 1. The contract focuses on R&D for the MQ-25 unmanned aerial refueling aircraft. 2. Lockheed Martin, a major defense contractor, secured this sole-source award. 3. The contract value is substantial, indicating significant investment in the program. 4. The R&D sector is critical for advancing military technology and capabilities.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, raising questions about price discovery and potential for better value through competition. Sole-source awards often result in higher prices.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding on this significant R&D effort.
Public Impact
Development of advanced drone technology for refueling capabilities. Potential impact on future naval aviation strategies and operational readiness. Significant investment in a key defense modernization program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Sole-source award
Positive Signals
- Focus on critical R&D
- Award to established prime contractor
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value.
Small Business Impact
The awardee is a large corporation, and there is no indication of small business participation in this specific contract. Opportunities for small businesses may lie in subcontracting roles.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the project stays within scope. The Defense Contract Management Agency is responsible for oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF contract
- Limited transparency on pricing due to sole-source award
- No clear indication of small business involvement
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.4 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF MQ-25 CONCEPT REFINEMENT EFFORT
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 $59.4 million.
What is the period of performance?
Start: 2016-09-23. End: 2018-09-13.
What specific technological advancements are expected from this concept refinement effort, and how do they align with the DoD's long-term strategic goals?
This effort aims to refine the core technologies and design concepts for the MQ-25 Stingray, focusing on its aerial refueling capabilities. The goal is to mature the design to a point where it can effectively support carrier-based aircraft, extending their range and operational flexibility. This aligns with the DoD's strategic objective of modernizing naval aviation and enhancing power projection capabilities in contested environments.
Given the sole-source nature, what mechanisms are in place to ensure Lockheed Martin is not overcharging for the services rendered under this contract?
The Cost Plus Fixed Fee (CPFF) contract type, while not ideal for price competition, requires detailed cost proposals and audits. The Defense Contract Management Agency (DCMA) will likely conduct rigorous oversight of incurred costs and contractor performance. Negotiation of the fixed fee and potential for forward pricing rates are key areas for ensuring fair pricing, alongside robust auditing.
How will the success of this concept refinement effort be measured, and what are the key performance indicators for the MQ-25 program moving forward?
Success will likely be measured by the successful maturation of key technologies, demonstration of required refueling capabilities in simulated or actual flight tests, and the finalization of a viable design for production. Key performance indicators will include technical performance metrics related to range, payload, reliability, and integration with existing naval systems, as well as adherence to schedule and budget milestones.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001916R0036
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: $62,976,433
Exercised Options: $62,976,433
Current Obligation: $59,367,468
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $5,718,175
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-23
Current End Date: 2018-09-13
Potential End Date: 2018-09-13 00:00:00
Last Modified: 2022-09-01
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