DoD Awards $149.5M Contract to Lockheed Martin for Electronics & Communication R&D
Contract Overview
Contract Amount: $166,107,896 ($166.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-11-04
End Date: 2010-10-09
Contract Duration: 1,800 days
Daily Burn Rate: $92.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200602!000295!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CN401 !A!N! !N! ! !20051104!20070930!149448669!149448669!834951691!N!LOCKHEED MARTIN CORPORATION !106 APPLE ST LOCATION B !TINTON FALLS !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000005641000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1B!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $166.1 million to LOCKHEED MARTIN CORPORATION for work described as: 200602!000295!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CN401 !A!N! !N! ! !20051104!20070930!149448669!149448669!834951691!N!LOCKHEED MARTIN CORPORATION !106 APPLE ST LOCATION B !TINTON FALLS !NJ!07724!19840!025!34!EATONTOWN !MONM… Key points: 1. The contract is for Research and Development in Physical, Engineering, and Life Sciences. 2. Lockheed Martin Corporation, a major defense contractor, is the sole awardee. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The period of performance spans over 4 years, suggesting a long-term project.
Value Assessment
Rating: questionable
The contract value is $149.5 million. Without specific unit costs or detailed breakdowns of R&D activities, it's difficult to benchmark against similar contracts. The Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests a limited competition. This method can impact price discovery by restricting the pool of potential bidders.
Taxpayer Impact: The total taxpayer impact is the full contract value of $149.5 million, plus potential award fees, for R&D services.
Public Impact
This contract supports advanced research and development in critical electronics and communication technologies. The award to Lockheed Martin signifies continued investment in the defense industrial base. The R&D outcomes could lead to future technological advancements impacting national security. The long performance period suggests a sustained effort in a specialized field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Cost Plus Award Fee contracts can be prone to cost overruns.
- Lack of detailed R&D deliverables makes value assessment difficult.
Positive Signals
- Award to a major defense contractor with proven capabilities.
- Focus on critical R&D for national security.
- Long-term engagement allows for in-depth development.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on electronics and communication equipment. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The award went to a large prime contractor, Lockheed Martin Corporation.
Oversight & Accountability
The contract type and award method suggest oversight is necessary to ensure cost control and effective R&D execution. The Department of Defense and the Defense Contract Management Agency are responsible for oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Limited competition may not result in the most cost-effective solution.
- Lack of transparency on specific R&D deliverables and success metrics.
- No clear indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.1 million to LOCKHEED MARTIN CORPORATION. 200602!000295!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T06CN401 !A!N! !N! ! !20051104!20070930!149448669!149448669!834951691!N!LOCKHEED MARTIN CORPORATION !106 APPLE ST LOCATION B !TINTON FALLS !NJ!07724!19840!025!34!EATONTOWN !MONMOUTH !NEW JERSEY!+000005641000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !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 $166.1 million.
What is the period of performance?
Start: 2005-11-04. End: 2010-10-09.
What specific R&D objectives are being pursued under this contract, and how will their achievement be measured to justify the award fee?
The contract details do not specify the precise R&D objectives. The 'Research and Development in Physical, Engineering, and Life Sciences' is broad. Measuring achievement for a Cost Plus Award Fee contract typically involves predefined metrics related to technical milestones, innovation, and timely delivery of research outcomes. Without these specifics, it's hard to assess if the award fee structure is truly driving value.
Given the limited competition, what steps were taken to ensure the government received a fair and reasonable price for the R&D services?
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' implying a justification for limiting bidders. Ensuring a fair price likely involved pre-negotiation market research, comparison of Lockheed Martin's proposed costs against independent government estimates, and negotiation of the fee structure. However, the absence of broader competition inherently reduces the pressure for the lowest possible price.
How will the outcomes of this R&D contract be transitioned into operational systems or future procurements to maximize taxpayer benefit?
The transition plan for R&D outcomes is not detailed in the provided data. Effective transition typically involves clear pathways for integrating new technologies into existing or future defense systems. This requires collaboration between the R&D contractor, program offices, and end-users to ensure the research is relevant and actionable, ultimately maximizing the return on the $149.5 million investment.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 6210 GUARDIAN GATEWAY STE 225, ABERDEEN PROVING GROUND, MD, 21005
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $158,357,768
Exercised Options: $158,357,768
Current Obligation: $166,107,896
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-11-04
Current End Date: 2010-10-09
Potential End Date: 2010-10-09 00:00:00
Last Modified: 2023-01-05
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