DoD's $22.5M contract with Lockheed Martin for Squad X experimentation shows R&D focus

Contract Overview

Contract Amount: $22,555,850 ($22.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-10-29

End Date: 2021-07-31

Contract Duration: 641 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW DARPA BAA PROPOSAL TITLED, PHASE II SQUAD X EXPERIMENTATION

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to LOCKHEED MARTIN CORPORATION for work described as: NEW DARPA BAA PROPOSAL TITLED, PHASE II SQUAD X EXPERIMENTATION Key points: 1. Contract awarded for research and development, indicating investment in future capabilities. 2. Full and open competition suggests a broad search for innovative solutions. 3. Definitive contract type implies a well-defined scope of work. 4. The contract duration of 641 days allows for substantial project development. 5. Awarded to a major defense contractor, aligning with established industry players. 6. Focus on physical, engineering, and life sciences research, excluding specialized fields. 7. Texas location for contract performance may indicate regional R&D concentration.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The Cost Plus Fixed Fee (CPFF) pricing structure is common for R&D where exact costs are uncertain, but it requires careful oversight to ensure cost control. Without more detailed cost breakdowns or performance metrics, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. This approach generally fosters a competitive environment, potentially leading to better pricing and a wider range of innovative solutions. The number of bidders is not specified, but the open competition suggests a deliberate effort to maximize market engagement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative approaches, maximizing the return on investment for research and development funds.

Public Impact

The primary beneficiaries are the Department of Defense and potentially future military personnel who could benefit from advanced squad technologies. The contract supports research and development activities, aiming to advance capabilities in physical, engineering, and life sciences. Geographic impact is centered around Texas, where contract performance is scheduled. Workforce implications include employment for researchers, engineers, and technical staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not rigorously managed.
The specialized nature of R&D makes it difficult to benchmark performance and value against public data.
Long contract durations require sustained oversight to ensure progress and adherence to objectives.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports critical research and development for future defense capabilities.
The contractor, Lockheed Martin, is a major defense entity with extensive R&D experience.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is substantial, with significant government investment aimed at maintaining technological superiority. Contracts like this are crucial for innovation, bridging the gap between basic research and fielded capabilities. Comparable spending benchmarks are difficult to establish without knowing the specific technological area of 'Squad X Experimentation'.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb: false'. The prime contractor is a large corporation, Lockheed Martin. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract details provided. The focus is on large-scale R&D, which typically involves prime contractors with extensive resources and capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, likely through contracting officers and technical monitors. The CPFF structure necessitates close monitoring of costs and progress to ensure funds are used effectively. Transparency is generally limited for specific R&D projects due to national security and proprietary concerns, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DARPA Research Programs
Army Futures Command Initiatives
Advanced Technology Development Contracts
Department of Defense Research and Development

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Shifting Military Requirements
Limited Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to LOCKHEED MARTIN CORPORATION. NEW DARPA BAA PROPOSAL TITLED, PHASE II SQUAD X EXPERIMENTATION

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 $22.6 million.

What is the period of performance?

Start: 2019-10-29. End: 2021-07-31.

What is the specific technological focus of the 'Squad X Experimentation' and how does it align with current military modernization goals?

The 'Squad X Experimentation' program, funded by this contract, likely aims to enhance the capabilities of small military units through advanced technologies. While specific details are proprietary, it could encompass areas such as improved situational awareness, enhanced lethality, better soldier survivability, or increased operational autonomy through AI and robotics. Such initiatives align with broader military modernization goals focused on maintaining a technological edge, improving soldier performance in complex environments, and adapting to evolving threats. The research and development nature of the contract suggests a focus on exploring novel solutions rather than immediate deployment of existing technologies.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact cost control and contractor incentive for efficiency in this R&D contract?

The Cost Plus Fixed Fee (CPFF) structure is common for research and development contracts where the scope of work and final costs are inherently uncertain. Under CPFF, the contractor is reimbursed for allowable costs incurred and receives a predetermined fixed fee, representing their profit. This structure incentivizes the contractor to complete the work within the estimated cost to maximize their fee relative to effort, but it also places a significant burden on the government to meticulously audit incurred costs. Effective oversight is crucial to prevent cost overruns and ensure that the fixed fee remains appropriate for the work performed. Without stringent cost monitoring, there's a risk of inflated expenses.

What is Lockheed Martin's track record with similar DARPA or Army R&D contracts, particularly in areas related to squad-level technologies?

Lockheed Martin Corporation is a major defense contractor with a long history of engaging in complex research and development projects for the Department of Defense, including DARPA and various Army commands. They possess extensive experience in areas relevant to advanced military technologies, such as robotics, artificial intelligence, sensor systems, and advanced materials. While specific details of their past performance on programs directly analogous to 'Squad X Experimentation' are often proprietary, their established presence and significant investment in R&D suggest a strong capability to undertake such challenging initiatives. Their track record generally includes successful delivery on large-scale, technologically advanced programs, though like any large contractor, specific project outcomes can vary.

How does the $22.5 million award amount compare to typical R&D spending for similar advanced technology experimentation projects within the DoD?

The $22.5 million award for this Phase II R&D contract is a substantial but not extraordinary amount for advanced technology experimentation within the Department of Defense. DARPA and Army R&D programs often involve multi-phase approaches, with Phase II contracts typically representing a significant scale-up from initial feasibility studies (Phase I). Budgets for such projects can range from a few million to tens of millions of dollars, depending on the technological complexity, duration, and objectives. This contract's value suggests a focused effort on developing and experimenting with specific technologies aimed at enhancing squad capabilities, aligning with the typical investment levels for maturing promising concepts into more concrete prototypes or experimental systems.

What are the potential risks associated with the 641-day duration of this contract, and what mitigation strategies might be in place?

A contract duration of 641 days (approximately 21 months) for an R&D project like 'Squad X Experimentation' presents several potential risks. These include the possibility of technological obsolescence if advancements occur rapidly outside the project's scope, shifts in military requirements or priorities that could render the research less relevant, and potential cost increases due to unforeseen technical challenges or inflation over the extended period. Mitigation strategies likely involve built-in review points, flexible project management to adapt to evolving needs, and rigorous cost tracking. The government's oversight team would monitor progress closely, ensuring the project remains aligned with strategic goals and managing resources effectively to address any emerging issues.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051

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: $22,555,850

Exercised Options: $22,555,850

Current Obligation: $22,555,850

Actual Outlays: $4,318,776

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $61,958,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline