DoD's $54.4M laser initiative awarded to Lockheed Martin for R&D, facing scrutiny over value and competition

Contract Overview

Contract Amount: $54,433,884 ($54.4M)

Contractor: Lockheed Martin Aculight Corporation

Awarding Agency: Department of Defense

Start Date: 2010-05-01

End Date: 2016-09-02

Contract Duration: 2,316 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ROBUST ELECTRIC LASER INITIATIVE

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $54.4 million to LOCKHEED MARTIN ACULIGHT CORPORATION for work described as: ROBUST ELECTRIC LASER INITIATIVE Key points: 1. Contract awarded for research and development in advanced laser technology. 2. Significant investment in a specialized defense technology area. 3. Sole awardee raises questions about competitive pricing and innovation. 4. Long duration suggests a complex, multi-phase research project. 5. Contract type indicates potential for cost overruns. 6. Geographic concentration in Washington state for contract performance.

Value Assessment

Rating: questionable

The contract's value of $54.4 million for a research and development project requires careful benchmarking against similar defense R&D efforts. Without specific performance metrics or deliverables, assessing value for money is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common in R&D, can lead to costs exceeding initial estimates if not rigorously managed. Comparing this to other large-scale laser technology development contracts would be necessary to determine if the pricing is competitive and if the government is receiving good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were theoretically allowed to participate. However, the fact that only one award was made to Lockheed Martin AcuLight Corporation indicates that either the competition was not robust, or Lockheed Martin was the only entity capable of meeting the stringent technical requirements. Further details on the number of proposals received and the evaluation process would clarify the extent of actual competition.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to drive down prices through market forces. However, if the competition was limited in practice due to specialized requirements, taxpayers may not have realized the full cost savings possible.

Public Impact

Benefits the Department of Defense by advancing laser technology capabilities. Services delivered include research and development in advanced physical sciences. Geographic impact is concentrated in Washington state where the contractor is located. Workforce implications include specialized R&D jobs 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 closely monitored.
Lack of specific performance metrics makes value assessment difficult.
Sole awardee raises concerns about the effectiveness of the full and open competition process.

Positive Signals

Awarded under full and open competition, theoretically maximizing potential bidders.
Contractor is a known entity in defense contracting, suggesting technical capability.
Focus on R&D aligns with strategic defense modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The defense industry heavily invests in R&D to maintain technological superiority. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD for emerging technologies like directed energy or advanced materials. The market for such specialized R&D is often concentrated among a few large defense contractors.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the award was made to a large corporation and there is no indication of small business set-asides. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance with terms and conditions. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is often limited in defense R&D contracts due to national security considerations, but Inspector General reviews could be initiated if performance or cost issues arise.

Related Government Programs

Directed Energy Research Programs
Advanced Weapons Systems Development
Department of Defense Research and Development Funding
Lockheed Martin Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Lack of detailed performance metrics hinders value assessment.
Limited information on the extent of actual competition despite 'full and open' designation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.4 million to LOCKHEED MARTIN ACULIGHT CORPORATION. ROBUST ELECTRIC LASER INITIATIVE

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN ACULIGHT 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 $54.4 million.

What is the period of performance?

Start: 2010-05-01. End: 2016-09-02.

What specific technological advancements were achieved under the ROBUST ELECTRIC LASER INITIATIVE contract?

The provided data does not detail the specific technological advancements achieved under the ROBUST ELECTRIC LASER INITIATIVE. As a research and development contract, the primary goal was likely to explore, develop, and test new laser technologies. Without access to project reports, technical documentation, or final outcome assessments, it is impossible to quantify the specific breakthroughs or innovations. Future analysis would require reviewing contract close-out reports or publicly released technical summaries from the Department of Defense to understand the tangible results of this $54.4 million investment.

How does the $54.4 million cost compare to similar laser R&D initiatives within the DoD?

Benchmarking the $54.4 million cost against similar laser R&D initiatives requires access to a broader dataset of defense contracts. However, large-scale R&D projects in advanced technologies like directed energy can easily run into tens or hundreds of millions of dollars over several years. The duration of this contract (2316 days, approximately 6.3 years) suggests a significant, long-term research effort. To provide a precise comparison, one would need to identify contracts with similar scope, technological focus (e.g., high-energy lasers, laser weapon systems), and award dates. Without such direct comparisons, it's difficult to definitively state if $54.4 million represents a high, low, or average investment for this type of R&D.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) or milestones for the ROBUST ELECTRIC LASER INITIATIVE. For Cost Plus Fixed Fee (CPFF) research and development contracts, milestones are often tied to the completion of specific research phases, technical reviews, prototype development, or demonstration events. The government would typically monitor progress against these milestones to ensure the contractor is on track and to authorize payments. A thorough review of the contract's Statement of Work (SOW) and any associated task orders would be necessary to identify the specific performance expectations and deliverables.

What is the track record of Lockheed Martin AcuLight Corporation in laser technology R&D?

Lockheed Martin AcuLight Corporation, as part of the larger Lockheed Martin corporation, has a significant track record in aerospace, defense, and advanced technologies, including directed energy and laser systems. Lockheed Martin is a major defense contractor known for its extensive research and development capabilities across various domains. While specific details about AcuLight Corporation's independent R&D achievements in laser technology prior to or during this contract would require deeper investigation into their specific projects and patents, their affiliation with Lockheed Martin suggests a strong foundation in relevant scientific and engineering expertise necessary for complex R&D endeavors.

Were there any identified risks or challenges during the contract performance period?

The provided summary data does not detail specific risks or challenges encountered during the performance of the ROBUST ELECTRIC LASER INITIATIVE contract. However, R&D contracts, especially those involving novel technologies like advanced lasers, inherently carry risks such as technical feasibility challenges, integration issues, cost overruns, and schedule delays. The Cost Plus Fixed Fee structure itself implies a recognition of inherent cost uncertainty. A comprehensive risk assessment would require examining contract modification history, performance reports, and any official correspondence related to issues that may have arisen during the contract's nearly seven-year duration.

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 › C – National Defense 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

Address: 22121 20TH AVE SE, BOTHELL, WA, 98021

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: $58,635,198

Exercised Options: $54,537,234

Current Obligation: $54,433,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline