DoD Awards $19.7M Contract to Lockheed Martin for Experimental Engineering Services
Contract Overview
Contract Amount: $19,695,016 ($19.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2026-01-31
Contract Duration: 1,705 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EXPERIMENTAL ENGINEERING
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to LOCKHEED MARTIN CORP for work described as: EXPERIMENTAL ENGINEERING Key points: 1. This contract is for experimental engineering services, a critical but often high-risk area. 2. Lockheed Martin is a major defense contractor, indicating a significant player in this space. 3. The 'NOT COMPETED' award raises questions about price discovery and potential value. 4. The sector is Defense, specifically engineering services, which can have long development cycles.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific deliverables, but the per-unit cost is not readily available for this type of experimental work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.
Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible value for these experimental engineering services.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long duration (over 5 years) for experimental work warrants close monitoring of progress and spending. The specific nature of 'experimental engineering' makes it difficult for the public to assess the value or necessity of the spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Experimental nature of services
Positive Signals
- Award to a major defense contractor
- Long-term contract for ongoing R&D
Sector Analysis
This contract falls within the Engineering Services sector, specifically for experimental purposes within the Department of Defense. Spending in this area is crucial for innovation but requires careful oversight due to inherent uncertainties and potential for cost escalation.
Small Business Impact
The awardee, Lockheed Martin Corp, is a large business. There is no indication that small businesses were involved in this specific contract, potentially missing opportunities for small business participation.
Oversight & Accountability
Given the sole-source nature and cost-plus contract type, robust oversight from the Department of the Navy is essential to ensure efficient use of funds and achievement of project goals. Regular reporting and performance reviews are critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Difficulty in measuring ROI for experimental work
- Limited transparency on specific project goals
Tags
engineering-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to LOCKHEED MARTIN CORP. EXPERIMENTAL ENGINEERING
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $19.7 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-01-31.
What specific experimental engineering objectives does this contract aim to achieve, and how will success be measured?
The contract details are limited, but 'experimental engineering' implies research and development into novel technologies or processes. Success metrics would likely involve technical milestones, prototype development, and feasibility studies. Without specific documentation, it's difficult to ascertain the precise objectives and how they align with DoD strategic goals.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards typically occur when only one responsible source can provide the required service. Justification might stem from unique capabilities, proprietary technology, or urgent needs. The government should have conducted a price analysis based on historical data, independent cost estimates, or other relevant benchmarks to ensure fair and reasonable pricing, despite the lack of competition.
How will the effectiveness of the experimental engineering work be evaluated over the contract's five-year duration, and what is the potential return on investment for the DoD?
Effectiveness will likely be evaluated through phased technical reviews, prototype demonstrations, and final reports assessing the viability of the experimental outcomes. The potential ROI is inherently uncertain in experimental work, but successful outcomes could lead to significant advancements in defense capabilities, cost savings in future systems, or entirely new operational paradigms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
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: $70,500,000
Exercised Options: $70,500,000
Current Obligation: $19,695,016
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-06-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-08-06
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)