DoD's $51.8M Lockheed Martin contract for chemical and biological test grids shows strong competition and R&D focus

Contract Overview

Contract Amount: $51,865,004 ($51.9M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-19

End Date: 2010-10-15

Contract Duration: 1,487 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: DAAB0703DB009 068514251!805258373!834951691!N!LOCKHEED MARTIN CHEMICAL AND BIOLOGICAL TEST GRID

Place of Performance

Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $51.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: DAAB0703DB009 068514251!805258373!834951691!N!LOCKHEED MARTIN CHEMICAL AND BIOLOGICAL TEST GRID Key points: 1. Contract awarded to a single, large defense contractor, indicating a focus on specialized capabilities. 2. The contract duration of nearly four years suggests a significant, ongoing research and development effort. 3. Awarded under full and open competition, implying a robust bidding process. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to a high-tech, specialized service. 5. The contract's value is substantial, reflecting the complexity and importance of chemical and biological defense testing. 6. Performance is located in New Jersey, a state with a significant presence in defense contracting and R&D.

Value Assessment

Rating: good

The contract value of $51.8 million over approximately four years for specialized R&D in chemical and biological defense testing appears reasonable given the contractor's expertise and the nature of the work. Benchmarking against similar, highly specialized R&D contracts is challenging due to unique requirements, but the pricing structure (Time and Materials) allows for flexibility in research environments. The award to Lockheed Martin, a major defense contractor, suggests a competitive selection process for a critical capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 14 proposals suggests a healthy level of interest and competition for this specialized R&D requirement. This broad competition is generally favorable for price discovery and ensures the government can select the most capable and cost-effective solution.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely drives down costs and ensures the government receives the best value for its investment in critical defense research.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive advanced capabilities for chemical and biological threat detection and defense. The services delivered include research and development related to chemical and biological test grids, crucial for national security. The geographic impact is primarily within New Jersey, where the contractor is located and likely where the R&D activities will be conducted. Workforce implications include employment for highly skilled scientists, engineers, and technicians involved in advanced research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on defense applications related to chemical and biological threats. This sector is characterized by high innovation, significant government investment, and the involvement of specialized contractors. The market size for defense R&D is substantial, with a continuous need for advancements in areas like threat detection, protection, and response. This contract represents a specific investment in a critical niche within the broader defense R&D landscape.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. There is no explicit information regarding subcontracting plans for small businesses. The focus on a large, specialized R&D project typically involves prime contractors with extensive resources and capabilities, potentially limiting direct opportunities for small businesses unless they are part of the prime's supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures would include performance reviews, milestone tracking, and adherence to contract terms. Transparency is facilitated through contract databases and reporting requirements, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

department-of-defense, department-of-the-army, research-and-development, chemical-and-biological-defense, time-and-materials, full-and-open-competition, lockheed-martin, new-jersey, large-business, national-security, advanced-technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. DAAB0703DB009 068514251!805258373!834951691!N!LOCKHEED MARTIN CHEMICAL AND BIOLOGICAL TEST GRID

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $51.9 million.

What is the period of performance?

Start: 2006-09-19. End: 2010-10-15.

What is Lockheed Martin's track record with similar Department of Defense R&D contracts, particularly in chemical and biological defense?

Lockheed Martin Integrated Systems, LLC, as a subsidiary of Lockheed Martin Corporation, has a long and extensive history of performing complex research and development for the Department of Defense across various domains, including aerospace, defense systems, and advanced technologies. Their track record in chemical and biological defense R&D is significant, encompassing areas such as threat detection, protective systems, and decontamination technologies. The company has been a prime contractor on numerous large-scale defense programs, demonstrating a capacity to manage complex projects, integrate advanced technologies, and meet stringent performance requirements. Their involvement in this specific contract for chemical and biological test grids aligns with their core competencies and established expertise in supporting national security objectives through advanced scientific and engineering solutions.

How does the $51.8 million contract value compare to other R&D contracts for similar chemical and biological defense capabilities?

The $51.8 million contract value for chemical and biological test grids, awarded over approximately four years, represents a substantial investment. However, directly comparing it to other R&D contracts is complex due to the highly specialized nature of chemical and biological defense. Contracts in this area can range significantly based on the specific technology, scope of research, and duration. For instance, contracts for developing advanced sensor systems, novel protective materials, or large-scale simulation platforms could easily reach tens or hundreds of millions of dollars. Given that this contract focuses on 'test grids,' it likely involves sophisticated infrastructure and research methodologies essential for validating defense systems against biological and chemical threats. While specific comparable figures are proprietary, the value appears commensurate with the critical and technically demanding nature of the work within the defense R&D sector.

What are the primary risks associated with this Time and Materials (T&M) contract for R&D, and how are they mitigated?

Time and Materials (T&M) contracts, while offering flexibility for R&D where scope can evolve, carry inherent risks of cost escalation if not managed tightly. The primary risk is that the contractor may incur higher labor hours or material costs than anticipated, leading to the total contract value exceeding initial estimates. For this contract, potential risks include unforeseen technical challenges requiring more research time, increased material costs, or scope creep if research objectives are not clearly defined and controlled. Mitigation strategies typically involve robust government oversight, including detailed review of labor hours and material invoices, setting cost ceilings, requiring regular progress reports, and establishing clear performance metrics. The Department of the Army would likely employ a dedicated program management team to monitor expenditures and progress closely, ensuring that the research remains focused and efficient.

What is the expected effectiveness of the chemical and biological test grids being developed under this contract for enhancing national security?

The chemical and biological test grids developed under this contract are expected to significantly enhance national security by providing advanced capabilities for testing and validating defense systems against a wide range of threats. These grids likely serve as sophisticated platforms for simulating realistic scenarios involving chemical and biological agents, allowing researchers and warfighters to assess the performance of protective equipment, detection systems, and response protocols. By enabling rigorous testing in controlled environments, these grids contribute to the development of more effective countermeasures, improved training methodologies, and a better understanding of threat dynamics. Ultimately, the effectiveness of these test grids translates into enhanced readiness, reduced vulnerability, and a more robust national defense posture against potential biological and chemical attacks.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) sector trended over the past decade, and where does this contract fit?

Federal spending in NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' has generally shown a consistent upward trend over the past decade, driven by national security priorities, public health initiatives, and technological advancements. While subject to fluctuations based on budget cycles and specific program needs, the overall investment in this sector remains robust. This contract, valued at $51.8 million, represents a significant, albeit specific, allocation within this broad category. It fits within the defense-related R&D segment, which constitutes a substantial portion of the total spending under this NAICS code. The contract's focus on chemical and biological test grids aligns with ongoing government efforts to maintain a technological edge in critical defense areas, reflecting a sustained commitment to research and development in specialized scientific fields.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 14

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DAAB0703DB009

IDV Type: IDC

Timeline

Start Date: 2006-09-19

Current End Date: 2010-10-15

Potential End Date: 2010-10-15 00:00:00

Last Modified: 2015-05-12

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