Lockheed Martin Awarded $104.8M for Missile and Space Systems R&D
Contract Overview
Contract Amount: $10,481,398 ($10.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2002-09-19
End Date: 2011-06-29
Contract Duration: 3,205 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200212!002996!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N! !N!0025 !20020919!20050228!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD DR NW !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000004499625!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M! !A!B!20040228!B! ! !A! !A!N!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $10.5 million to LOCKHEED MARTIN CORPORATION for work described as: 200212!002996!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N! !N!0025 !20020919!20050228!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD DR NW !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADIS… Key points: 1. Contract awarded to Lockheed Martin for advanced missile and space systems development. 2. Significant funding allocated to Research, Development, Test, and Evaluation (RDTE). 3. Competition type indicates full and open, suggesting multiple bids were considered. 4. The sector is heavily focused on defense technology and strategic systems.
Value Assessment
Rating: good
The contract value of $104.8M for advanced R&D appears reasonable given the specialized nature of missile and space systems. Benchmarking against similar complex defense development contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially more competitive pricing. The number of bids received (2) is a key factor in assessing the effectiveness of this competition.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for defense contracts.
Public Impact
Advancement in U.S. missile and space defense capabilities. Potential for technological spin-offs benefiting other sectors. Job creation and economic impact in Alabama. Long-term implications for national security and strategic deterrence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (3205 days).
- Cost-plus contract type can lead to cost overruns if not managed tightly.
Positive Signals
- Awarded under full and open competition.
- Focus on critical defense R&D.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced R&D for missile and space systems. Spending in this area is critical for national security and often involves high-value, long-term development projects.
Small Business Impact
The data does not indicate any specific subcontracting or set-aside for small businesses in this award. Further investigation would be needed to determine if small businesses were involved in the supply chain.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which provides oversight for DoD contracts. The cost-plus fixed fee structure requires diligent oversight to control costs and ensure performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overrun Risk (Cost-Plus contract type)
- Long Contract Duration (3205 days)
- Limited Competition Pool (potentially few bidders for specialized R&D)
- Technological Obsolescence Risk (rapid pace of defense tech development)
Tags
research-and-development-in-the-physical, department-of-defense, al, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to LOCKHEED MARTIN CORPORATION. 200212!002996!2100!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6098D0002 !A!N! !N!0025 !20020919!20050228!075457143!075457143!834951691!N!LOCKHEED MARTIN CORPORATION !4800 BRADFORD DR NW !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000004499625!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !541710!E! !5!B!M! !A!B!20040228!B
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN 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 $10.5 million.
What is the period of performance?
Start: 2002-09-19. End: 2011-06-29.
What specific technological advancements are expected from this contract, and how do they align with current strategic defense priorities?
This contract is for the development of advanced technologies within missile and space systems. Expected advancements likely include improved accuracy, extended range, enhanced survivability, and potentially new capabilities for ballistic missile defense. These align with the strategic priority of maintaining a technological edge in space and countering evolving missile threats, ensuring national security and global stability.
Given the cost-plus contract type, what are the primary risks associated with cost overruns and how are they mitigated?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts is that the contractor may incur costs exceeding the initial estimate, although the fee is fixed. Mitigation strategies include robust government oversight of contractor expenditures, detailed cost tracking, performance metrics, and clear contract clauses that define allowable costs and require justification for deviations. Regular audits and reviews are crucial.
How effective is the 'full and open competition' process in ensuring the best value for taxpayer money in highly specialized defense R&D like this?
Full and open competition is generally effective in promoting value by encouraging multiple bidders to offer competitive pricing and innovative solutions. However, for highly specialized R&D, the number of capable bidders may be limited. The effectiveness hinges on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit and cost proposals from the few qualified entities.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 4800 BRADFORD DR NW, HUNTSVILLE, AL, 05
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-19
Current End Date: 2011-06-29
Potential End Date: 2011-06-29 00:00:00
Last Modified: 2010-06-29
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