DoD Awards $43M R&D Contract to Lockheed Martin for Physical Sciences Research
Contract Overview
Contract Amount: $43,118,479 ($43.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-16
End Date: 2025-12-31
Contract Duration: 1,932 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: DELIVERY ORDER 0001 FUNDING CLINS 0001&0002 OF BASIC
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $43.1 million to LOCKHEED MARTIN CORPORATION for work described as: DELIVERY ORDER 0001 FUNDING CLINS 0001&0002 OF BASIC Key points: 1. Significant investment in advanced physical sciences research. 2. Dominant contractor in specialized R&D sectors. 3. Potential for long-term technological advancements. 4. High contract value indicates complex, critical research needs.
Value Assessment
Rating: good
The contract value of $43.1 million for R&D services is substantial. Benchmarking against similar complex research contracts is difficult without more specific details on the scope of work, but the pricing structure (Cost Plus Incentive Fee) suggests a focus on performance incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing for the services rendered.
Taxpayer Impact: Taxpayer funds are being invested in research and development, which has the potential for future economic benefits and technological advancements, though the direct return on investment can be long-term and uncertain.
Public Impact
Advancement of critical physical sciences research. Potential for new technologies and capabilities for the Department of Defense. Supports high-skilled jobs in the research and development sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of R&D may lead to cost overruns.
- Long-term return on investment for research is uncertain.
Positive Signals
- Awarded through full and open competition.
- Incentive fee structure encourages performance.
- Supports critical national security research.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The data indicates the award went to a large corporation, Lockheed Martin. There is no direct indication of small business participation in this specific delivery order, which is common for large, prime contracts.
Oversight & Accountability
The Cost Plus Incentive Fee structure implies performance metrics that should be monitored by the Department of the Navy. Regular oversight is necessary to ensure research objectives are met efficiently and within projected costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns in complex R&D.
- Long-term return on investment is uncertain.
- Contract duration extends over multiple fiscal years.
- Reliance on a single large contractor for critical research.
Tags
research-and-development-in-the-physical, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.1 million to LOCKHEED MARTIN CORPORATION. DELIVERY ORDER 0001 FUNDING CLINS 0001&0002 OF BASIC
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 $43.1 million.
What is the period of performance?
Start: 2020-09-16. End: 2025-12-31.
What specific research objectives does this contract aim to achieve, and how do they align with current DoD priorities?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the specific objectives are not detailed, they likely align with broader DoD priorities such as enhancing defense capabilities, developing new materials, improving systems performance, or advancing scientific understanding relevant to national security. The broad NAICS code suggests a wide range of potential research areas.
What are the key performance indicators (KPIs) tied to the incentive fee structure, and how will progress be measured?
The specific KPIs for the Cost Plus Incentive Fee (CPIF) contract are not provided. Typically, for R&D contracts, KPIs might include achieving specific technical milestones, delivering prototypes, successful testing phases, or meeting defined performance parameters within a certain timeframe. The Department of the Navy would establish and monitor these metrics to ensure contractor performance and cost control.
How does the $43.1 million award compare to typical R&D spending for similar projects within the Department of the Navy?
A $43.1 million award for R&D in physical sciences is a significant sum, suggesting a project of substantial scope and complexity. Without specific project details, direct comparison is challenging. However, major R&D initiatives within DoD can range from tens to hundreds of millions of dollars, depending on the technological maturity, duration, and strategic importance of the 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 Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: N6833519R0063
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
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: $43,123,279
Exercised Options: $43,123,279
Current Obligation: $43,118,479
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $42,248,082
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833520D0935
IDV Type: IDC
Timeline
Start Date: 2020-09-16
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-18
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