Naval Air Systems Command awards $835M contract to Lockheed Martin for aircraft development
Contract Overview
Contract Amount: $760,722,960 ($760.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 1996-11-16
End Date: 2008-10-21
Contract Duration: 4,357 days
Daily Burn Rate: $174.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199712!1700!0325!AA4J0!NAVAL AIR SYSTEMS COMMAND !N0001997C0038 !A!*!AWARD !19961116!20010216!834951691!834951691!834951691!N!81755!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!55177!037!06!PALMDALE PF/TI !LOS ANGELES !CALIFORNIA!0001!+000070400000!N!N!000000000000!AC14!RDTE/AIRCRAFT-DEMO/VALID !A1A!AIRFRAMES AND SPARES !2000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!*!B!A!*!A !Y!U!2!004!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $760.7 million to LOCKHEED MARTIN CORP for work described as: 199712!1700!0325!AA4J0!NAVAL AIR SYSTEMS COMMAND !N0001997C0038 !A!*!AWARD !19961116!20010216!834951691!834951691!834951691!N!81755!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!55177!037!06!PALMDALE PF/TI !LOS AN… Key points: 1. The contract, valued at $834,951,691, is for research, development, testing, and evaluation (RDTE) of aircraft. 2. Lockheed Martin Corporation, a major defense contractor, secured this award. 3. The contract was awarded under full and open competition. 4. The period of performance spans from November 1996 to February 2001, with a potential extension to October 2008.
Value Assessment
Rating: good
The total contract value is $834,951,691. Without specific per-unit cost data or comparable contract benchmarks, a precise value assessment is difficult. However, the scale suggests a significant investment in advanced aircraft development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple sources were solicited. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers are impacted through funding for advanced defense capabilities, with the expectation that competitive bidding will lead to efficient use of public funds.
Public Impact
Enhances national defense capabilities through advanced aircraft technology. Supports high-tech jobs in the aerospace sector, particularly in California. Represents a significant investment in future military aviation platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D contracts.
- Dependence on a single prime contractor for critical technology development.
Positive Signals
- Awarded through full and open competition.
- Significant investment in cutting-edge aerospace technology.
- Long performance period allows for thorough development and testing.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft research and development. Spending in this area is critical for maintaining technological superiority and national security. Benchmarks for similar RDTE contracts can vary widely based on complexity and scope.
Small Business Impact
While the prime contractor is Lockheed Martin, a large corporation, the contract may involve subcontracts to small businesses for specialized components or services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and R&D nature necessitate robust oversight from the Naval Air Systems Command to ensure progress, manage risks, and control costs effectively. Accountability is maintained through regular reporting and milestone reviews.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to R&D uncertainty.
- Long contract duration increases exposure to changing technological landscapes.
- Dependence on a single large contractor for critical development.
- Classification of specific project details limits public transparency.
Tags
department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $760.7 million to LOCKHEED MARTIN CORP. 199712!1700!0325!AA4J0!NAVAL AIR SYSTEMS COMMAND !N0001997C0038 !A!*!AWARD !19961116!20010216!834951691!834951691!834951691!N!81755!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!55177!037!06!PALMDALE PF/TI !LOS ANGELES !CALIFORNIA!0001!+000070400000!N!N!000000000000!AC14!RDTE/AIRCRAFT-DEMO/VALID !A1A!AIRFRAMES AND SPARES !2000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!*!B!A!*!A !Y!U!2!0
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 $760.7 million.
What is the period of performance?
Start: 1996-11-16. End: 2008-10-21.
What specific aircraft or technology is being developed under this contract?
The provided data indicates the contract is for 'RDTE/AIRCRAFT-DEMO/VALID' and 'AIRFRAMES AND SPARES'. This suggests the development of prototype aircraft or advanced airframe technologies, potentially for demonstration purposes. Specific details about the exact nature of the aircraft or technology are not discernible from the data, which may be classified or proprietary.
What are the key performance metrics and milestones for this R&D contract?
Key performance metrics and milestones for this research and development contract are not explicitly detailed in the provided data. Typically, such contracts would include phased deliverables, testing protocols, and technical reviews. The Naval Air Systems Command would establish these to track progress and ensure the development aligns with program objectives and technological advancements.
How does the cost structure (Cost Plus Fixed Fee) influence the final price and contractor incentive?
A Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure is common for R&D where costs are uncertain. While it incentivizes the contractor to complete the work, it can also lead to cost overruns if not closely monitored, as the fee is fixed regardless of final cost.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1996-11-16
Current End Date: 2008-10-21
Potential End Date: 2008-10-21 00:00:00
Last Modified: 2022-04-07
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