DoD's $82.3M fighter risk reduction program awarded to Lockheed Martin shows strong competition and R&D focus
Contract Overview
Contract Amount: $82,327,864 ($82.3M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2007-05-02
End Date: 2020-12-31
Contract Duration: 4,992 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAS::57 3600::TAS AUTOMATIC COLLISION AVOIDANCE TECHNOLOGY/FIGHTER RISK REDUCTION PROGRAM, (ACAT/FRRP)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $82.3 million to LOCKHEED MARTIN CORP for work described as: TAS::57 3600::TAS AUTOMATIC COLLISION AVOIDANCE TECHNOLOGY/FIGHTER RISK REDUCTION PROGRAM, (ACAT/FRRP) Key points: 1. Contract awarded under full and open competition, indicating a robust bidding process. 2. Significant investment in research and development for advanced fighter technologies. 3. Long contract duration suggests a complex, multi-year development effort. 4. Cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight. 5. The program aims to reduce risks associated with fighter aircraft development. 6. Focus on automatic collision avoidance technology highlights a critical safety enhancement.
Value Assessment
Rating: good
The total award amount of $82.3 million over a 13-year period represents a substantial investment in advanced defense technology. Benchmarking this against similar large-scale R&D programs in defense is challenging due to the specialized nature of fighter risk reduction. However, the cost-plus-fixed-fee structure, while common for R&D, necessitates close monitoring to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. This approach typically fosters a competitive environment, driving innovation and potentially leading to more favorable pricing for the government. The presence of multiple bidders allows for a thorough evaluation of technical proposals and cost structures, ensuring the best value is selected.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining advanced technology at a competitive price, maximizing the return on investment for defense spending.
Public Impact
The primary beneficiaries are the U.S. Air Force and Navy, who will gain enhanced fighter aircraft capabilities. Services delivered include research, development, and testing of advanced collision avoidance systems. The geographic impact is primarily within the defense industrial base, with potential for technology transfer. Workforce implications include highly skilled engineers and technicians in aerospace and R&D sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- Long contract durations increase the risk of scope creep or technological obsolescence.
- Reliance on a single prime contractor (Lockheed Martin) for such a critical program warrants close oversight.
Positive Signals
- Award under full and open competition suggests a competitive process that should yield good value.
- Focus on risk reduction and safety technologies aligns with critical defense modernization goals.
- The program's long-term nature indicates a strategic commitment to advancing fighter capabilities.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically focusing on Research and Development for advanced military aircraft. The market for fighter jet technology is highly specialized, dominated by a few major defense contractors. Spending in this area is driven by national security imperatives and the need to maintain technological superiority. Comparable spending benchmarks would involve other large-scale R&D programs for next-generation military platforms.
Small Business Impact
The data does not indicate any specific small business set-asides for this contract. Given the specialized nature of fighter aircraft R&D, prime contractors like Lockheed Martin often manage complex supply chains that may involve small businesses as subcontractors. However, without explicit subcontracting plans or set-aside information, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to track expenditures and verify the reasonableness of costs incurred. Transparency is typically maintained through regular reporting requirements and program reviews, with potential oversight from the Department of Defense Inspector General for significant issues.
Related Government Programs
- Fighter Aircraft Modernization Programs
- Advanced Avionics Development
- Aerospace Research and Development
- Defense Technology Innovation
- Automatic Collision Avoidance Systems
Risk Flags
- Cost Overrun Potential
- Schedule Delay Risk
- Technological Obsolescence
- Contract Oversight Intensity
Tags
defense, department-of-defense, lockheed-martin-corp, research-and-development, fighter-aircraft, collision-avoidance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.3 million to LOCKHEED MARTIN CORP. TAS::57 3600::TAS AUTOMATIC COLLISION AVOIDANCE TECHNOLOGY/FIGHTER RISK REDUCTION PROGRAM, (ACAT/FRRP)
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 $82.3 million.
What is the period of performance?
Start: 2007-05-02. End: 2020-12-31.
What is Lockheed Martin's track record with similar large-scale defense R&D contracts?
Lockheed Martin is a major defense contractor with extensive experience in developing complex military aircraft and systems, including fighter jets like the F-35. They have a long history of managing large, multi-year R&D programs, often involving advanced technologies and significant budgets. Their track record includes both successes in delivering cutting-edge capabilities and instances of cost and schedule challenges, which are common in programs of this scale and complexity. The company's ability to secure such contracts underscores its perceived capability by the Department of Defense to handle critical defense development efforts.
How does the $82.3 million total award compare to other fighter risk reduction programs?
Direct comparisons of the $82.3 million award for this specific fighter risk reduction program are difficult without access to detailed budget data for comparable programs. However, the amount is substantial and reflects the high cost associated with developing advanced aerospace technologies. Large-scale R&D efforts for next-generation military platforms often run into hundreds of millions or even billions of dollars over their lifecycle. This particular contract, spanning over 13 years, suggests a significant, long-term investment in a critical risk-reduction phase for fighter aircraft development, aligning with the typical investment profile for such strategic defense initiatives.
What are the primary risks associated with this contract and how are they being mitigated?
The primary risks include technological challenges in developing novel collision avoidance systems, potential cost overruns inherent in cost-plus-fixed-fee contracts, and schedule delays due to the complexity of fighter aircraft integration. Mitigation strategies likely involve rigorous testing and validation protocols, close monitoring of expenditures by the DCMA, phased development approaches to identify and address issues early, and strong program management by Lockheed Martin. The 'fighter risk reduction' aspect itself implies a proactive approach to identifying and mitigating potential development and operational risks before they become critical.
How effective has the TAS AUTOMATIC COLLISION AVOIDANCE TECHNOLOGY/FIGHTER RISK REDUCTION PROGRAM been in achieving its stated goals?
Assessing the program's effectiveness requires detailed performance metrics and outcomes that are not publicly available in this data. However, the contract's long duration (2007-2020) suggests a sustained effort to address specific technological challenges. The 'risk reduction' designation implies that the program's success is measured not just by delivered technology, but by the identification and mitigation of potential failures or shortcomings in future fighter designs. Continued funding and contract awards over such an extended period generally indicate that the program is meeting key developmental milestones and providing valuable insights to the DoD.
What are the historical spending patterns for fighter risk reduction programs within the DoD?
Historical spending on fighter risk reduction programs within the DoD has generally been significant, reflecting the high stakes involved in maintaining air superiority. These programs are often characterized by long development cycles and substantial R&D investments, driven by the need to incorporate cutting-edge technologies and address evolving threats. Funding levels can fluctuate based on strategic priorities, technological advancements, and budget allocations. Programs like this one are crucial for ensuring that new fighter platforms are safer, more capable, and less prone to costly development or operational failures.
What is the significance of the 'Cost Plus Fixed Fee' contract type for this R&D effort?
The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work may evolve or unforeseen technical challenges are anticipated. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final project cost. However, it requires robust government oversight to ensure that costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor for the risks undertaken without being excessive.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12257 STATE HIGHWAY 121, L, LITTLETON, CO, 80127
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $86,266,680
Exercised Options: $85,121,997
Current Obligation: $82,327,864
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA865005G5503
IDV Type: IDC
Timeline
Start Date: 2007-05-02
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2021-07-28
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