DoD Awards $111M to Lockheed Martin for JBMD Kongo Class Ships R&D
Contract Overview
Contract Amount: $111,044,012 ($111.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-08-04
End Date: 2010-11-30
Contract Duration: 1,579 days
Daily Burn Rate: $70.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Defense
Official Description: JBMD KONGO CLASS SHIPS
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $111.0 million to LOCKHEED MARTIN CORPORATION for work described as: JBMD KONGO CLASS SHIPS Key points: 1. Significant investment in advanced missile defense technology. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long contract duration (over 4 years) suggests complex development. 4. Focus on R&D in physical sciences indicates cutting-edge application.
Value Assessment
Rating: questionable
The contract value of $111M for R&D is substantial. Without competitive bids, it's difficult to assess if this price represents fair value compared to potential alternatives or industry benchmarks for similar complex systems development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was considered. This limits price discovery and potentially leads to higher costs than if multiple companies had competed.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this critical defense capability.
Public Impact
Enhances national missile defense capabilities. Supports advanced technological development in the defense sector. Potential for job creation within Lockheed Martin and its supply chain. Contributes to the modernization of naval defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High contract value without competitive benchmark.
- Long contract duration may indicate scope creep risk.
Positive Signals
- Addresses critical national security need.
- Leverages established defense contractor expertise.
- Supports advanced R&D in a key sector.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710), a sector characterized by high innovation and significant government investment, particularly in defense applications.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting potential missed opportunities for SMBs in the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that costs remain justified throughout the contract's lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Dependency on a single supplier
Tags
research-and-development-in-the-physical, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.0 million to LOCKHEED MARTIN CORPORATION. JBMD KONGO CLASS SHIPS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $111.0 million.
What is the period of performance?
Start: 2006-08-04. End: 2010-11-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or lack of viable alternatives. For this JBMD Kongo Class Ships R&D, the DoD would need to demonstrate why only Lockheed Martin could fulfill the requirement, potentially due to proprietary technology or specialized expertise essential for this specific missile defense system development.
How does the $111M cost compare to similar R&D contracts for advanced naval defense systems?
Benchmarking this $111M R&D contract is challenging without access to proprietary cost data or comparable sole-source awards. However, the scale suggests a complex, multi-year development effort. A thorough review would involve comparing development timelines, technological sophistication, and the specific deliverables against other major R&D programs in naval defense to assess cost-effectiveness.
What are the key performance indicators and milestones for this contract, and how is progress being tracked?
Key performance indicators and milestones for this R&D contract would likely focus on technological advancements, system integration, testing outcomes, and adherence to development schedules. The Missile Defense Agency would be responsible for rigorous tracking through regular progress reports, technical reviews, and independent verification to ensure Lockheed Martin is meeting its contractual obligations and delivering the intended capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $118,761,611
Exercised Options: $118,761,611
Current Obligation: $111,044,012
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-08-04
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2023-08-16
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