DoD's $20M R&D contract for advanced EW transmitters awarded to Lockheed Martin

Contract Overview

Contract Amount: $20,113,364 ($20.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2009-05-11

End Date: 2013-08-30

Contract Duration: 1,572 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 57-4001-09 CONTRACT AWARDED UTILIZING NRL BAA FOR ADVANCED ELECTRONIC WARFARE TRANSMITTER.

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to LOCKHEED MARTIN CORPORATION for work described as: 57-4001-09 CONTRACT AWARDED UTILIZING NRL BAA FOR ADVANCED ELECTRONIC WARFARE TRANSMITTER. Key points: 1. Contract focused on research and development, indicating early-stage innovation. 2. Awarded under a Broad Agency Announcement (BAA), suggesting a focus on scientific merit. 3. The contract duration of over 3 years suggests a complex, multi-phase research effort. 4. The use of Cost Plus Fixed Fee (CPFF) pricing can incentivize cost control while allowing for flexibility. 5. The single award indicates a specific capability sought, potentially limiting broader market engagement. 6. The contract was awarded by the Department of the Navy, highlighting a specific service need. 7. Research and Development in Physical Sciences is a critical area for defense modernization.

Value Assessment

Rating: fair

The contract value of approximately $20 million for a research and development effort over 1572 days (over 4 years) appears reasonable for advanced technology development. Benchmarking R&D contracts is inherently difficult due to the unique nature of innovation. However, given the contractor's extensive experience in defense contracting and the specialized nature of electronic warfare technology, the pricing is likely within an acceptable range for the scope of work. The CPFF structure allows for cost transparency as the project progresses, but requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a Broad Agency Announcement (BAA), which is a mechanism for full and open competition. This approach allows any interested party to submit proposals based on the stated research interests. While the specific number of proposals received is not detailed, the BAA process is designed to solicit a wide range of innovative solutions. The use of a BAA generally promotes a competitive environment, encouraging multiple entities to vie for research funding.

Taxpayer Impact: A full and open competition, even through a BAA, is beneficial for taxpayers as it increases the likelihood of receiving the best technical solution at a competitive price by casting a wide net for innovation.

Public Impact

The Department of the Navy benefits from advancements in electronic warfare technology, enhancing its operational capabilities. This contract supports the development of next-generation electronic warfare transmitters, crucial for modern defense systems. The research conducted could lead to improved threat detection and countermeasures for naval forces. The contract is likely to involve highly skilled scientists and engineers, potentially creating or sustaining jobs in specialized fields within New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to ensure costs remain controlled and justified throughout the research period.
As a research and development contract, the ultimate success and applicability of the developed technology are inherently uncertain.
The single award nature of the contract means that potential benefits of competition among multiple contractors for the same technology development were not realized.
The specific details of the 'advanced electronic warfare transmitter' are not publicly disclosed, limiting a full understanding of the technological risks and benefits.

Positive Signals

Awarded to a reputable defense contractor, Lockheed Martin, suggesting a high likelihood of technical competence and project execution.
The use of a Broad Agency Announcement (BAA) indicates a commitment to exploring innovative solutions from a broad range of potential sources.
The contract duration of over four years suggests a commitment to a significant research endeavor, potentially leading to substantial technological advancements.
The focus on electronic warfare is a critical area for national security, indicating strategic investment by the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The defense industry heavily invests in R&D to maintain technological superiority. Electronic warfare is a critical sub-sector within defense R&D, encompassing technologies that protect military platforms and disrupt enemy systems. Comparable spending in defense R&D can vary widely, but significant investments are consistently made in areas like advanced electronics, sensors, and communication systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to a large prime contractor like Lockheed Martin suggests that the primary focus was on leveraging established capabilities for complex R&D. While large prime contractors often engage small businesses as subcontractors, the absence of specific set-aside provisions or stated subcontracting plans means the direct impact on the small business ecosystem for this particular award is not detailed.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve rigorous monitoring of incurred costs, progress reports, and technical milestones by the Department of the Navy. The contract's duration and R&D nature necessitate close collaboration and review to ensure funds are used effectively and objectives are met. Transparency is facilitated through regular reporting requirements. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Advanced Electronic Warfare Systems
Department of Defense Research and Development Programs
Naval Technology Development
Broad Agency Announcements (BAA) for Research

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Research and Development (R&D) contracts inherently carry technical and schedule risks.
The specific technological advancements are not detailed, limiting full risk assessment.
Single award may limit broader market innovation compared to multiple awards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to LOCKHEED MARTIN CORPORATION. 57-4001-09 CONTRACT AWARDED UTILIZING NRL BAA FOR ADVANCED ELECTRONIC WARFARE TRANSMITTER.

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 $20.1 million.

What is the period of performance?

Start: 2009-05-11. End: 2013-08-30.

What is Lockheed Martin's track record with similar R&D contracts for electronic warfare?

Lockheed Martin Corporation has a long and extensive history of developing and producing advanced electronic warfare (EW) systems for the U.S. military and allied nations. They are a major player in the defense industry, with significant expertise in areas such as radar, electronic support measures, electronic attack, and communications jamming. Their track record includes numerous large-scale R&D and production contracts for various military branches, often involving complex, cutting-edge technologies. For instance, they have been involved in programs like the F-35's integrated EW suite, various airborne and ground-based EW platforms, and research into next-generation EW capabilities. This specific contract for advanced EW transmitters aligns with their core competencies and historical contract awards, suggesting a strong foundation for successful execution.

How does the $20 million contract value compare to other R&D efforts in advanced electronic warfare?

The $20 million contract value for this specific R&D effort in advanced electronic warfare transmitters is within a typical range for early-stage technology development contracts. Research and development projects, especially those involving novel hardware and complex software integration, can vary significantly in cost. Smaller, more focused research efforts might be in the single-digit millions, while larger, multi-year programs with extensive prototyping and testing could easily exceed $50 million or even $100 million. Given that this contract was awarded under a Broad Agency Announcement (BAA) and has a duration of over four years, $20 million suggests a substantial but not exceptionally large investment, likely focused on developing and demonstrating a specific advanced capability rather than a full system production or deployment.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this type of R&D contract are inherent to the nature of innovation and advanced technology development. Technical risk is significant, as the development of 'advanced electronic warfare transmitters' may involve unproven concepts or require overcoming substantial engineering challenges. There's a risk that the technology may not perform as expected, may not be scalable, or may become obsolete before it can be fielded. Cost risk is also present, particularly with Cost Plus Fixed Fee (CPFF) contracts, where unforeseen technical hurdles or scope changes could lead to cost overruns if not managed diligently. Schedule risk is another concern; R&D projects often encounter delays due to research complexities, testing issues, or integration problems. Finally, there's a risk of obsolescence, where the technology developed might be surpassed by adversaries or new technological breakthroughs before it can be fully implemented.

What does the use of a Broad Agency Announcement (BAA) imply about the program's goals?

The use of a Broad Agency Announcement (BAA) strongly implies that the Department of the Navy was seeking novel, innovative, and potentially disruptive technological solutions for advanced electronic warfare transmitters. BAAs are typically used when the government has a broad interest in a particular research area but does not have a precisely defined technical solution in mind. Instead, they solicit proposals from the scientific and industrial community that align with the stated research objectives. This approach is designed to foster creativity and leverage external expertise, often leading to breakthroughs that might not emerge from traditional, more prescriptive contract vehicles. It suggests a focus on fundamental research, applied research, and advanced technology development rather than the procurement of a specific, off-the-shelf item.

How does this contract fit into the broader context of U.S. Navy's electronic warfare modernization efforts?

This contract fits directly into the U.S. Navy's ongoing and critical efforts to modernize its electronic warfare (EW) capabilities. In an increasingly contested electromagnetic spectrum, maintaining a technological edge in EW is paramount for naval operations. Advanced EW transmitters are fundamental components for both offensive (disrupting enemy systems) and defensive (protecting naval assets) EW applications. Investments in R&D for such technologies are essential to counter evolving threats from potential adversaries who are also advancing their EW capabilities. This contract likely represents a step towards developing next-generation systems that will enhance the Navy's ability to operate effectively in complex and contested environments, ensuring information superiority and platform survivability.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,113,364

Exercised Options: $20,113,364

Current Obligation: $20,113,364

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline