DoD's $18.6M MEADS Tech Development Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $18,571,922 ($18.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-29
End Date: 2015-12-29
Contract Duration: 1,826 days
Daily Burn Rate: $10.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MEADS TECHNOLOGY DEVELOPMENT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.6 million to LOCKHEED MARTIN CORPORATION for work described as: MEADS TECHNOLOGY DEVELOPMENT Key points: 1. Contract awarded to a single, large business prime. 2. No small business participation noted. 3. Significant taxpayer investment in technology development. 4. National Security sector focus. 5. Cost Plus Fixed Fee contract type.
Value Assessment
Rating: questionable
The contract is for technology development, making direct pricing comparisons difficult. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly, potentially impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs than if multiple vendors had competed.
Taxpayer Impact: The $18.6 million awarded represents a significant taxpayer investment with limited transparency on cost-effectiveness due to the lack of competition.
Public Impact
Taxpayers funded the development of advanced missile defense technology. The contract supports national security objectives. Potential for future follow-on production contracts. Lack of competition raises concerns about optimal resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
- Long duration for development
Positive Signals
- Supports national security
- Technology development
Sector Analysis
This contract falls within the Defense sector, specifically related to missile defense systems. Spending in this area is critical for national security but requires careful oversight due to high costs and technological complexity.
Small Business Impact
There is no indication of small business participation in this contract. This suggests that the prime contractor, Lockheed Martin, is handling the entire scope of work, potentially missing opportunities for small business innovation and economic contribution.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure costs are reasonable and that the technology development aligns with stated national security needs. Accountability for performance and budget adherence is crucial.
Related Government Programs
- National Security
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type can lead to cost overruns.
- No small business participation noted.
- Long contract duration for development phase.
Tags
national-security, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to LOCKHEED MARTIN CORPORATION. MEADS TECHNOLOGY DEVELOPMENT
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 Army).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2010-12-29. End: 2015-12-29.
What is the projected return on investment for this technology development contract, considering its sole-source nature?
Quantifying the ROI for a sole-source technology development contract is challenging. While the $18.6 million investment aims to advance national security capabilities, the lack of competition makes it difficult to benchmark against alternative solutions or determine if taxpayer funds were used most efficiently. Future production contracts and the system's operational effectiveness will ultimately define its true return.
What are the primary risks associated with a sole-source, cost-plus fixed fee contract for technology development?
The primary risks include potential cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize higher spending. The lack of competition means the government has limited leverage to negotiate favorable pricing. Furthermore, without competitive pressure, there's a risk of slower innovation or less focus on efficiency compared to a competed contract.
How effectively does this contract contribute to the Department of Defense's overall missile defense strategy?
This contract's effectiveness hinges on the successful development of the MEADS technology. As a sole-source award, its contribution is dependent on the government's initial assessment of Lockheed Martin's unique capabilities. The long-term effectiveness will be measured by the technology's performance in meeting defense requirements and its integration into the broader missile defense architecture.
Industry Classification
NAICS: Public Administration › National Security and International Affairs › National Security
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q10R0223
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,571,922
Exercised Options: $18,571,922
Current Obligation: $18,571,922
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-29
Current End Date: 2015-12-29
Potential End Date: 2015-12-29 12:12:00
Last Modified: 2018-08-06
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