DoD's $36.3M R&D contract to Lockheed Martin for physical sciences research shows moderate competition
Contract Overview
Contract Amount: $36,267,570 ($36.3M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-08-30
End Date: 2010-08-29
Contract Duration: 1,095 days
Daily Burn Rate: $33.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: CR-1780
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $36.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: CR-1780 Key points: 1. Contract awarded under full and open competition, suggesting a broad search for qualified vendors. 2. The contract duration of 1095 days indicates a significant, long-term research and development effort. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The award to a single large contractor, Lockheed Martin, warrants scrutiny for potential market concentration. 5. The contract type (Time and Materials) can pose cost control challenges if not managed diligently. 6. The geographic location of performance in New Jersey may have implications for local economic impact.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without detailed technical specifications and deliverables. However, the $36.3 million award over three years for research in physical sciences is within a typical range for large-scale defense R&D projects. The Time and Materials pricing structure, while common for R&D where scope can evolve, necessitates robust oversight to ensure costs remain reasonable and do not escalate beyond initial expectations. Comparing it to similar R&D efforts would require access to more granular data on the specific research areas and outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of the Army sought proposals from all responsible sources. While the specific number of bids received is not detailed, this procurement method generally fosters a competitive environment. The fact that it was competed broadly suggests that the government aimed to secure the best value and technical solution available in the market for this research and development effort.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for the government's investment.
Public Impact
The primary beneficiary is the Department of Defense, which gains access to advanced research and development capabilities in physical sciences. The contract supports the advancement of technologies relevant to national security and defense applications. The performance in New Jersey may provide indirect economic benefits to the local region through employment and supply chain activities. The research outcomes could lead to future technological advancements impacting various sectors beyond defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- Reliance on a single large contractor may limit future competition or innovation from smaller firms.
- The specific R&D outcomes and their direct impact on defense capabilities require ongoing assessment.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Long contract duration suggests a commitment to a significant research objective.
- Contractor's established presence in defense contracting indicates experience and capability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is crucial for defense innovation, enabling the development of next-generation technologies. The market for defense R&D is characterized by large, established prime contractors like Lockheed Martin, often working on complex, long-term projects. Spending in this area is driven by national security priorities and the need to maintain a technological edge.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of large-scale defense R&D, prime contractors like Lockheed Martin often manage complex supply chains. While not directly a small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill specific research or component needs, though this is not explicitly detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. The Time and Materials contract type necessitates close monitoring of labor hours and material costs to ensure adherence to the contract's ceiling and prevent cost overruns. Transparency would be facilitated through regular reporting requirements from the contractor and potential audits by government agencies or the Inspector General's office.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Physical Sciences Research Initiatives
- Lockheed Martin Defense Contracts
Risk Flags
- Cost Control Risk (Time and Materials)
- Contractor Performance Monitoring
- Scope Creep Potential in R&D
Tags
department-of-defense, department-of-the-army, research-and-development, physical-sciences, engineering, life-sciences, lockheed-martin, time-and-materials, full-and-open-competition, new-jersey, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. CR-1780
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 $36.3 million.
What is the period of performance?
Start: 2007-08-30. End: 2010-08-29.
What specific research areas within physical sciences were covered by this contract?
The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not specify the precise research areas. Typically, such contracts could encompass a wide range of disciplines including materials science, physics, chemistry, advanced manufacturing, or other engineering disciplines relevant to defense applications. Detailed information would likely be found in the contract's statement of work (SOW) or technical exhibits, which are not included in the provided summary data. Understanding the specific research focus is crucial for assessing the contract's alignment with strategic defense objectives and its potential technological impact.
How does the $36.3 million value compare to similar R&D contracts awarded by the DoD?
The $36.3 million value for a three-year R&D contract is substantial but not extraordinary within the context of large defense procurements. The Department of Defense invests billions annually in R&D across various scientific and engineering fields. Contracts of this magnitude are common for developing advanced technologies or conducting foundational research that requires significant expertise and resources. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes, durations, and technical scopes awarded around the same period. However, generally, this amount reflects a significant investment in a specific research capability.
What are the potential risks associated with a Time and Materials (T&M) contract for R&D?
Time and Materials contracts, while flexible for R&D where scope can be uncertain, carry inherent risks. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rate. Without stringent oversight, contractors may not be incentivized to control costs efficiently. This necessitates robust government monitoring of labor effort, material usage, and progress against milestones. For R&D, this means ensuring that the time and materials are being applied effectively towards achieving the research objectives and that the contractor is not over-utilizing resources. The government must actively manage the contract to mitigate these cost risks.
What is Lockheed Martin's track record with similar DoD R&D contracts?
Lockheed Martin is a major defense contractor with extensive experience in research and development across numerous defense programs. They have a long history of securing and executing large, complex R&D contracts for the Department of Defense, covering areas from aerospace and advanced materials to cybersecurity and artificial intelligence. Their track record generally includes successful delivery of technological advancements and systems integration. However, like any large contractor, they may have faced challenges or controversies on specific projects. A detailed assessment would require reviewing their performance history on contracts with similar technical scopes and values, including any past performance evaluations or disputes.
What does the '541710' NAICS code imply about the contract's focus?
The North American Industry Classification System (NAICS) code 541710 signifies that this contract is for 'Research and Development in the Physical, Engineering, and Life Sciences.' This broad category encompasses a wide array of scientific and technical activities. It suggests the contract's objective is to conduct scientific inquiry and experimentation to advance knowledge and understanding in fields such as physics, chemistry, materials science, engineering disciplines, and biological sciences, with the ultimate goal of developing new technologies, products, or processes relevant to the contracting agency's mission, in this case, the Department of Defense.
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: 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: 2
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
Financial Breakdown
Contract Ceiling: $57,849,383
Exercised Options: $36,267,570
Current Obligation: $36,267,570
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2007-08-30
Current End Date: 2010-08-29
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2015-05-13
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