DoD's $27.5M Lockheed Martin R&D Task Order: Full & Open Competition, High Risk
Contract Overview
Contract Amount: $27,474,115 ($27.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2007-11-05
End Date: 2014-11-30
Contract Duration: 2,582 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER 0001
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
Department of Defense obligated $27.5 million to LOCKHEED MARTIN CORP for work described as: TASK ORDER 0001 Key points: 1. Significant R&D investment in social sciences and humanities. 2. Sole awardee Lockheed Martin Corp suggests potential for limited competition. 3. Cost Plus Fixed Fee contract type carries inherent cost escalation risks. 4. Long duration (2007-2014) and high value warrant scrutiny. 5. Lack of small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, coupled with a long performance period, increases the risk of cost overruns. Benchmarking CPFF contracts in R&D is challenging due to variability, but the high value and duration here warrant close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as 'Full and Open Competition,' the single award to Lockheed Martin Corp raises questions about the effectiveness of the competition. Price discovery may have been limited if only one strong proposal was received or if the scope was highly specialized.
Taxpayer Impact: Taxpayers funded a significant R&D effort with potential for cost growth due to the contract type and duration. The value of the research outcomes is critical to justifying this expenditure.
Public Impact
Research into social sciences and humanities can have long-term societal benefits, but the direct impact of this specific task order is unclear. The substantial investment by the Department of Defense in non-traditional R&D areas may indicate evolving strategic priorities. The long performance period suggests a complex or evolving research objective, potentially leading to scope creep and increased costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long performance duration
- High contract value
- No small business participation
Positive Signals
- Full and open competition advertised
- Research and Development focus
Sector Analysis
This contract falls under Research and Development in the Social Sciences and Humanities (NAICS 541720). Spending in this sector can vary widely, but large, long-term contracts like this are less common than in areas like IT or defense hardware.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests the prime contractor is a large entity, and opportunities for subcontracting to small businesses were either not pursued or not mandated.
Oversight & Accountability
The long duration and CPFF structure necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure cost control and adherence to research objectives. Accountability for research outcomes is paramount.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type
- Limited competition despite 'Full and Open' designation
- Lack of small business participation
- Long performance period increases risk
- Unclear research value and impact
Tags
research-and-development-in-the-social-s, department-of-defense, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to LOCKHEED MARTIN CORP. TASK ORDER 0001
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $27.5 million.
What is the period of performance?
Start: 2007-11-05. End: 2014-11-30.
What were the specific research objectives and deliverables for this task order, and how were they measured to ensure value for money?
The specific research objectives and deliverables are not detailed in the provided data. For a Cost Plus Fixed Fee contract of this magnitude and duration, clear, measurable objectives and rigorous performance metrics are essential to ensure the $27.5 million investment yielded valuable research outcomes for the Department of Defense.
Given the 'Full and Open Competition' designation, why did only one awardee, Lockheed Martin Corp, receive this significant contract?
While advertised as 'Full and Open,' the single award suggests that either only one offeror met the stringent requirements, or the competition was effectively limited. This could be due to the highly specialized nature of the R&D, the specific expertise required, or potentially a less robust solicitation process, impacting price discovery.
How effectively did the CPFF contract type manage cost risks over the 7-year performance period for this R&D task order?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation, especially over long durations like this 7-year task order. Without detailed cost performance data, it's difficult to assess effectiveness. However, the structure necessitates strong government oversight to mitigate overruns and ensure the fixed fee remained appropriate for the work performed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
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: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 13800 OLD GENTRILLY RD, NEW ORLEANS, LA, 70129
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,580,933
Exercised Options: $41,580,933
Current Obligation: $27,474,115
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865008D7802
IDV Type: IDC
Timeline
Start Date: 2007-11-05
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2018-02-28
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