Naval Research Lab contract awarded to Lockheed Martin for $183M for R&D in physical, engineering, and life sciences
Contract Overview
Contract Amount: $18,314,071 ($18.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2002-06-12
End Date: 2014-12-31
Contract Duration: 4,585 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200212!01057Z!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017302C2035 !A!N! !N! !20020612!20051213!121371538!121371538!834951691!N!LOCKHEED MARTIN CORPORATION !3251 HANOVER ST BLDG 201 !PALO ALTO !CA!94304!55282!085!06!PALO ALTO !SANTA CLARA !CALIFORNIA!+000000702500!N!N!000000000000!AR22!RDTE/SPACE-SCIENCE APPLICATIONS-APPLIED RESEARCH !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304
Plain-Language Summary
Department of Defense obligated $18.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200212!01057Z!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017302C2035 !A!N! !N! !20020612!20051213!121371538!121371538!834951691!N!LOCKHEED MARTIN CORPORATION !3251 HANOVER ST BLDG 201 !PALO ALTO !CA!94304!55282!085!06!PALO ALTO !SANTA… Key points: 1. Contract awarded for applied research in RDTE/Space Science Applications. 2. Significant duration of over 12 years suggests a long-term research need. 3. Cost-plus-fixed-fee contract type may lead to cost overruns if not managed carefully. 4. The contract was awarded under full and open competition. 5. The North American Industry Classification System (NAICS) code 541710 indicates a focus on research and development. 6. The contract's value of $183M over its lifespan is substantial for applied research.
Value Assessment
Rating: fair
The contract value of $183,140,710 over approximately 12.5 years averages to about $14.65 million per year. This figure needs to be benchmarked against similar applied research contracts within the Department of Defense and specifically the Naval Research Laboratory. Without specific comparable data, it's difficult to definitively assess value for money. The cost-plus-fixed-fee (CPFF) structure, while common for R&D, carries inherent risks of cost escalation if not tightly controlled through effective oversight and milestone management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of full and open competition generally fosters a more competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the process suggests a deliberate effort to seek the best value from the market.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is intended to secure the most advantageous terms and pricing for research and development services, ensuring funds are used efficiently.
Public Impact
The primary beneficiary is the Naval Research Laboratory, which receives advanced research and development services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies and capabilities for the Navy. The geographic impact is primarily within California, where Lockheed Martin's facility is located, potentially supporting local employment and economic activity. The contract likely involves highly skilled scientists, engineers, and technicians, contributing to the specialized workforce in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed effectively.
- Long contract duration of over 12 years requires sustained oversight to ensure continued relevance and performance.
- Specific details on the research outcomes and deliverables are not readily available, making performance assessment challenging.
- The large contract value necessitates robust financial controls and auditing.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process for selecting the contractor.
- Contractor is Lockheed Martin, a major defense contractor with extensive experience in R&D.
- Focus on applied research in space science applications aligns with critical defense needs.
- The contract supports innovation and technological advancement for the U.S. Navy.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by significant government investment, particularly in defense and aerospace. The market size for R&D services in the defense industry is substantial, with agencies like the Department of Defense being major clients. This contract with Lockheed Martin represents a significant investment in applied research, likely contributing to the development of next-generation technologies for naval applications.
Small Business Impact
There is no indication that this contract included small business set-asides. The prime contractor, Lockheed Martin, is a large aerospace and defense corporation. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan and its impact on the small business ecosystem are not detailed in the provided data. Further investigation into subcontracting goals and achievements would be necessary to assess the impact on small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Naval Research Laboratory and the Department of Defense. Given the R&D nature and long duration, oversight would likely involve program managers, contracting officers, and potentially technical representatives monitoring progress, costs, and adherence to research objectives. Accountability measures would be tied to contract milestones and deliverables. Transparency might be limited due to the classified or sensitive nature of some R&D projects, but standard reporting requirements would apply.
Related Government Programs
- Naval Research Laboratory Contracts
- Department of Defense Applied Research
- Lockheed Martin Defense Contracts
- Space Science Research
- Engineering and Physical Sciences R&D
Risk Flags
- Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
- Long contract duration requires sustained oversight and management.
- Lack of specific performance metrics in provided data makes outcome assessment difficult.
Tags
department-of-defense, department-of-the-navy, naval-research-laboratory, lockheed-martin-corporation, research-and-development, space-science-applications, applied-research, cost-plus-fixed-fee, full-and-open-competition, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to LOCKHEED MARTIN CORPORATION. 200212!01057Z!1700!E3230 !NAVAL RESEARCH LABORATORY !N0017302C2035 !A!N! !N! !20020612!20051213!121371538!121371538!834951691!N!LOCKHEED MARTIN CORPORATION !3251 HANOVER ST BLDG 201 !PALO ALTO !CA!94304!55282!085!06!PALO ALTO !SANTA CLARA !CALIFORNIA!+000000702500!N!N!000000000000!AR22!RDTE/SPACE-SCIENCE APPLICATIONS-APPLIED RESEARCH !C2 !CONSTRUCTION !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2002-06-12. End: 2014-12-31.
What specific technological advancements or research outcomes have resulted from this contract?
The provided data does not detail the specific technological advancements or research outcomes achieved under this contract. Contracts for applied research, especially those with a focus on space science applications, often yield results that may be classified or have a long lead time before public dissemination or application. To ascertain the specific outcomes, one would need to consult Naval Research Laboratory reports, project documentation, or public announcements related to the contract's deliverables. The nature of R&D is inherently uncertain, and success is often measured by progress towards defined objectives rather than guaranteed breakthroughs.
How does the annual spending on this contract compare to other similar applied research contracts within the Navy or DoD?
The average annual spending for this contract is approximately $14.65 million ($183.14M / 12.5 years). Benchmarking this against other similar applied research contracts within the Navy or DoD requires access to a broader dataset of federal contracts. Factors such as the specific research domain (e.g., space science vs. materials science), the maturity of the research, and the contractor's overhead rates can significantly influence costs. Without comparative data on contracts with similar scope, duration, and objectives, it is challenging to definitively state whether this spending is high, low, or average. However, for applied R&D, this annual figure is substantial and indicative of a significant research effort.
What are the key performance indicators (KPIs) used to evaluate Lockheed Martin's performance on this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for R&D contracts, KPIs would focus on achieving research milestones, technical performance metrics, adherence to project timelines, and effective management of resources. For a cost-plus-fixed-fee contract, financial management and reporting accuracy are also critical. The Naval Research Laboratory would have established specific technical and programmatic milestones within the contract's Statement of Work (SOW) that Lockheed Martin is required to meet. Performance evaluations would likely be documented in contract performance reports and reviews.
What is the historical spending trend for applied research in space science applications by the Naval Research Laboratory?
The provided data focuses on a single contract and does not offer historical spending trends for the Naval Research Laboratory (NRL) in space science applications. To analyze historical spending, one would need to examine NRL's budget allocations and contract awards over multiple fiscal years, specifically filtering for contracts categorized under space science R&D or related NAICS codes. Such an analysis would reveal whether spending in this area has increased, decreased, or remained stable, and identify major contractors and research areas receiving the most funding.
Are there any known risks or challenges associated with Lockheed Martin's performance on previous contracts of similar scope?
The provided data does not contain information on Lockheed Martin's performance risks or challenges on previous contracts. Assessing contractor performance history requires access to contract performance databases, past performance reviews, and potentially Inspector General reports. Lockheed Martin is a major defense contractor with a long history, and like any large entity, they may have faced challenges on various contracts. A comprehensive risk assessment would involve reviewing their track record specifically in applied R&D for the Navy, looking for patterns of cost overruns, schedule delays, or technical difficulties on comparable projects.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 3251 HANOVER ST BLDG 201, PALO ALTO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,424,697
Exercised Options: $19,424,697
Current Obligation: $18,314,071
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2002-06-12
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2014-08-26
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)