DoD awards $117.3M R&D contract to Lockheed Martin for advanced weapons technology development

Contract Overview

Contract Amount: $117,337,315 ($117.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-13

End Date: 2009-06-30

Contract Duration: 1,751 days

Daily Burn Rate: $67.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200412!040467!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003904C0035 !A!N! !N! ! !20040913!20051031!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GOODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000009553662!N!N!000000000000!AC53!RDTE/WEAPONS-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!V!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $117.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200412!040467!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003904C0035 !A!N! !N! ! !20040913!20051031!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GOODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANA… Key points: 1. Contract focuses on research and development for advanced weapons and technology. 2. Sole-source award to Lockheed Martin suggests unique capabilities or limited market. 3. Significant investment in R&D indicates a focus on future defense capabilities. 4. Contract duration of over 4 years highlights a long-term development effort. 5. The specific Product Service Code (PSC) points to specialized electronics and communication equipment. 6. Geographic location in Virginia may leverage existing defense industry infrastructure.

Value Assessment

Rating: fair

The contract value of $117.3 million for R&D in advanced weapons technology is substantial. Without specific benchmarks for comparable R&D efforts in this highly specialized field, it is difficult to definitively assess value for money. The 'not competed' nature of the award also limits direct price comparison. However, the duration and scope suggest a significant investment that, if successful, could yield high returns in defense capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a single contractor possesses unique capabilities, intellectual property, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher price than if multiple bids were solicited.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which could have driven down costs. The justification for the sole-source award would need to be robust to ensure public funds are being used efficiently.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced weapons technology. Services delivered include research and development in physical, engineering, and life sciences, specifically related to weapons. The geographic impact is primarily within Virginia, where Lockheed Martin's facility is located, potentially supporting local jobs. Workforce implications include highly skilled R&D personnel at Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
R&D contracts can be inherently risky with uncertain outcomes.
Specific details on the technology being developed are not publicly disclosed, limiting transparency.

Positive Signals

Award to a major defense contractor like Lockheed Martin suggests access to significant expertise.
Focus on advanced technology development aligns with national security priorities.
Long-term contract duration indicates a commitment to achieving specific developmental milestones.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced weapons technology. The market for such specialized R&D is often concentrated among a few large defense contractors. Comparable spending benchmarks are difficult to establish due to the proprietary nature of defense R&D, but significant government investment in this area is typical for maintaining technological superiority.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal, unless Lockheed Martin voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the contract's performance clauses and milestones. Transparency is limited due to the sole-source nature and the sensitive R&D focus.

Related Government Programs

Advanced Weapons Development Programs
Department of Defense Research and Development
Lockheed Martin Defense Contracts
Electronics and Communication Equipment R&D

Risk Flags

Sole-source award
High-value R&D contract
Potential for cost overruns in R&D
Uncertainty of R&D outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.3 million to LOCKHEED MARTIN CORPORATION. 200412!040467!1700!D0222 !SPACE AND NAVAL WARFARE SYSTEMS !N0003904C0035 !A!N! !N! ! !20040913!20051031!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GOODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000009553662!N!N!000000000000!AC53!RDTE/WEAPONS-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !1! ! ! ! ! !999

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 $117.3 million.

What is the period of performance?

Start: 2004-09-13. End: 2009-06-30.

What is Lockheed Martin's track record with similar sole-source R&D contracts for the Department of Defense?

Lockheed Martin Corporation is a major defense contractor with extensive experience in sole-source R&D contracts across various defense domains. Historically, they have been awarded numerous sole-source contracts for developing advanced technologies, including weapon systems, aerospace components, and C4ISR capabilities. These contracts often stem from their established expertise, proprietary technologies, or the highly specialized nature of the research required, making them a frequent recipient of such awards when specific capabilities are needed. Analyzing their past performance on similar sole-source R&D efforts would involve reviewing contract completion records, any associated cost overruns or schedule delays, and the ultimate success of the developed technologies in meeting DoD objectives.

How does the $117.3 million value compare to other advanced weapons R&D contracts?

The $117.3 million award for advanced weapons R&D is a significant sum, but its comparability to other contracts is challenging without more specific details on the scope and nature of the research. Defense R&D contracts can range from tens of millions to billions of dollars, depending on the complexity, duration, and technological advancement sought. Contracts for foundational research might be smaller, while those for developing and prototyping advanced weapon systems, especially those involving cutting-edge technologies like directed energy or hypersonic capabilities, can be substantially larger. Given this contract's sole-source nature and focus on 'advanced tech dev,' it likely represents a substantial investment in a specific, high-priority area for the DoD, potentially falling within the mid-to-high range for such specialized R&D efforts.

What are the primary risks associated with this sole-source R&D contract?

The primary risks associated with this sole-source R&D contract include: 1. Cost Overruns: Without competitive pressure, there's a risk that costs could escalate beyond initial projections, especially in complex R&D environments where unforeseen challenges are common. 2. Schedule Delays: R&D projects are inherently uncertain, and delays in achieving technical milestones can extend the contract duration and increase overall costs. 3. Technical Risk: The technology being developed may not prove feasible or may not meet the stringent performance requirements of the DoD, leading to a failure to deliver the intended capability. 4. Lack of Innovation: Sole-source awards can sometimes stifle innovation by not exposing the project to a wider range of ideas and solutions that might emerge from a competitive bidding process. 5. Contractor Performance: While Lockheed Martin is a reputable contractor, any large, long-term project carries inherent risks related to contractor execution and management.

What does the 'Research and Development in Physical, Engineering, and Life Sciences' category imply for this contract?

The classification 'Research and Development in Physical, Engineering, and Life Sciences' (NAICS code 541710) indicates that this contract is for scientific inquiry and experimentation aimed at advancing knowledge and capabilities within these broad fields. For this specific contract, it implies the work involves fundamental or applied research, systematic study, and experimentation to understand physical and engineering principles, develop new materials or processes, or create novel technological applications. Given the context of 'weapons-advanced tech dev,' the R&D likely focuses on areas such as materials science for advanced armor or propulsion, novel engineering designs for weapon platforms, physics principles for energy weapons, or potentially even life sciences applications related to soldier performance or protection in advanced combat scenarios.

What are the historical spending patterns for this type of R&D within the Department of Defense?

The Department of Defense consistently allocates significant portions of its budget to Research, Development, Test, and Evaluation (RDT&E). Historical spending patterns show a strong emphasis on areas like advanced materials, aerospace technologies, cybersecurity, artificial intelligence, and next-generation weapon systems. Funding for R&D in physical and engineering sciences, particularly related to defense applications, has been a staple, driven by the need to maintain technological superiority over potential adversaries. While specific figures fluctuate annually based on strategic priorities and budget allocations, the DoD remains one of the largest government funders of R&D, with a substantial portion directed towards applied research and advanced technology development, often through contracts with major defense contractors like Lockheed Martin.

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: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9500 GOODWIN DR, MANASSAS, VA, 20110

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline