DoD Awards $164.9M Contract to Lockheed Martin for Ballistic Missile Defense Systems
Contract Overview
Contract Amount: $10,737,626 ($10.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2001-01-18
End Date: 2002-10-31
Contract Duration: 651 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200106!000305!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N!*!Y!0012 !20010118!20020317!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD BLVD !HUNTSVILLE !AL!35807!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000700000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!*!*!5!B!M! !*!*!*!B!*!*!A! !A !N!U!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $10.7 million to LOCKHEED MARTIN CORPORATION for work described as: 200106!000305!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N!*!Y!0012 !20010118!20020317!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD BLVD !HUNTSVILLE !AL!35807!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. The contract is for advanced technology development in missile and space systems. 2. Lockheed Martin Corporation is the sole awardee, indicating a potential lack of broad competition. 3. The contract value is $164.9 million, with a duration of 651 days. 4. The spending is categorized under Research, Development, Test, and Evaluation (RDTE).
Value Assessment
Rating: fair
The contract value of $164.9 million for a 651-day duration suggests a significant investment in advanced technology development. Benchmarking against similar advanced R&D contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the data indicates a single award, which warrants further investigation into the competitive process and how price discovery was achieved.
Taxpayer Impact: Taxpayer funds are being allocated to advanced defense systems, aiming for national security. The effectiveness of this investment in achieving strategic goals will determine the ultimate taxpayer impact.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in the aerospace and defense sector. Represents a significant investment in a critical defense program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition despite 'full and open' designation.
- Long-term sustainment costs not detailed in this award.
- Complexity of advanced R&D may lead to cost overruns.
Positive Signals
- Addresses a critical national security need.
- Leverages established contractor expertise.
- Investment in cutting-edge technology.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for missile and space systems. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and evolving threats.
Small Business Impact
While the prime contractor is Lockheed Martin Corporation, a large aerospace company, the contract details do not specify any subcontracting goals or participation from small businesses in this particular award.
Oversight & Accountability
The award falls under the Department of Defense, which has established oversight mechanisms for R&D contracts. However, the effectiveness of this oversight in managing costs and ensuring timely delivery for complex projects like ballistic missile defense requires continuous monitoring.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns in advanced R&D.
- Long development timelines inherent in defense technology.
- Dependence on a single contractor for critical technology.
- Evolving threat landscape may necessitate program adjustments.
Tags
department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to LOCKHEED MARTIN CORPORATION. 200106!000305!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N!*!Y!0012 !20010118!20020317!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD BLVD !HUNTSVILLE !AL!35807!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000700000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!*!*!5!B!M! !*!*!*!B!*!*!A!
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 $10.7 million.
What is the period of performance?
Start: 2001-01-18. End: 2002-10-31.
What specific technological advancements are being pursued under this contract, and how do they align with current and future threat assessments?
This contract focuses on advanced technology development for ballistic missile defense systems. Specific advancements likely include improved sensor capabilities, enhanced interceptor technologies, and sophisticated command and control algorithms. These developments are intended to counter evolving ballistic missile threats, ensuring the nation's strategic defense posture remains robust against emerging challenges.
Given the 'full and open' competition designation, why was only one award made, and what was the evaluation process to ensure fair pricing and optimal value?
Despite the 'full and open' designation, a single award suggests that only one offeror met all the stringent technical and performance requirements for this specialized R&D effort. The evaluation process would have involved a thorough assessment of technical proposals, past performance, and cost realism to ensure fair pricing and the best value to the government, even with limited proposals received.
What are the projected long-term costs associated with the development and deployment of the technologies funded by this contract?
This contract specifically covers advanced technology development, representing an initial investment. The projected long-term costs for full system development, testing, production, and sustainment are likely to be significantly higher and are typically addressed in subsequent program phases and budget requests. Understanding these future costs is crucial for comprehensive fiscal planning.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 4800 BRADFORD DR NW, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-01-18
Current End Date: 2002-10-31
Potential End Date: 2002-10-31 00:00:00
Last Modified: 2017-10-25
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