DoD Awards Lockheed Martin $30M for R&D Engineering Services Under Full and Open Competition
Contract Overview
Contract Amount: $30,004,904 ($30.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-05-13
End Date: 2013-04-30
Contract Duration: 1,448 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONTRACT AWARD FOR BASE PERIOD ENGINEERING SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131
Plain-Language Summary
Department of Defense obligated $30.0 million to LOCKHEED MARTIN CORPORATION for work described as: CONTRACT AWARD FOR BASE PERIOD ENGINEERING SERVICES Key points: 1. Significant award to a major defense contractor for R&D. 2. Full and open competition suggests a competitive bidding process. 3. Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. 4. The R&D focus indicates investment in future capabilities.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility for R&D, carries inherent risk of cost escalation. Benchmarking CPFF contracts in R&D is challenging due to project variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for research and development, aiming for future technological advancements and national security benefits.
Public Impact
Investment in advanced engineering and research capabilities. Potential for technological breakthroughs impacting defense systems. Supports high-skilled jobs in the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (approx. 4 years)
- No small business participation noted
Positive Signals
- Full and open competition
- Award to a reputable contractor
- Focus on critical R&D
Sector Analysis
This award falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to cost overruns.
Small Business Impact
The data indicates no specific allocation or participation for small businesses in this contract. Larger, prime contractors often handle significant R&D efforts, potentially limiting direct opportunities for smaller firms.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The CPFF structure necessitates robust monitoring to ensure cost efficiency and adherence to project scope.
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
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Long contract duration
- Potential for scope creep in R&D projects
- Limited insight into specific R&D deliverables
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 $30.0 million to LOCKHEED MARTIN CORPORATION. CONTRACT AWARD FOR BASE PERIOD ENGINEERING SERVICES
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 $30.0 million.
What is the period of performance?
Start: 2009-05-13. End: 2013-04-30.
What specific R&D objectives does this contract aim to achieve, and how will their successful completion be measured?
The contract aims to advance physical and engineering sciences relevant to defense applications. Success metrics would likely involve milestones related to prototype development, testing, and validation of new technologies or methodologies. Specific objectives are not detailed in the provided data but are crucial for assessing value.
What are the potential risks associated with the Cost Plus Fixed Fee structure in this long-term R&D project?
The primary risk is cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. Without stringent oversight and clear scope definition, costs can exceed initial estimates. This structure can also disincentivize cost-saving innovations if the fixed fee remains constant regardless of efficiency.
How does the R&D investment align with current and future defense modernization priorities?
This R&D investment likely supports the DoD's strategic goals for technological advancement and maintaining a competitive edge. Aligning R&D with modernization priorities ensures that taxpayer funds contribute to capabilities that address evolving threats and operational requirements, rather than funding speculative research.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: N0002408R5219
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 4770 EASTGATE MALL LOCATION A, SAN DIEGO, CA, 92121
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: $59,538,834
Exercised Options: $30,027,000
Current Obligation: $30,004,904
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-05-13
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2017-08-03
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 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 (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (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)