DoD awards $36.8M R&D contract to Lockheed Martin for physical, engineering, and life sciences research
Contract Overview
Contract Amount: $36,818,927 ($36.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-24
End Date: 2009-12-31
Contract Duration: 829 days
Daily Burn Rate: $44.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: AWARD OF CR-1930
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $36.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: AWARD OF CR-1930 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 829 days indicates a medium-term research and development effort. 3. Research and Development in Physical, Engineering, and Life Sciences is a broad category with significant government investment. 4. The award to a large, established defense contractor like Lockheed Martin is typical for complex R&D projects. 5. The contract type (Time and Materials) can sometimes lead to cost overruns if not closely managed. 6. The contract was awarded in 2007, providing historical context for current spending patterns.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without detailed technical specifications and deliverables. However, the award amount of $36.8 million for a nearly two-year research effort in physical, engineering, and life sciences appears within a reasonable range for complex projects undertaken by major defense contractors. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored against established milestones and labor rates. Further analysis would require comparing the specific research outcomes and their alignment with the initial objectives against the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A full and open competition generally promotes price discovery and encourages contractors to offer competitive terms. However, the effectiveness of this competition in securing the best value depends on the specific requirements and the number of qualified bidders.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing and technical solutions by allowing a wide range of potential contractors to participate.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other government agencies that will utilize the research findings. The services delivered involve advanced research and development in physical, engineering, and life sciences, aiming to advance technological capabilities. The geographic impact is primarily associated with the contractor's location in New Jersey, where the work is presumably performed. Workforce implications include employment opportunities for scientists, engineers, and support staff at Lockheed Martin and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed effectively.
- Limited information on the specific research outcomes and their alignment with objectives.
- The broad nature of R&D in physical, engineering, and life sciences makes direct value assessment difficult without specific deliverables.
Positive Signals
- Awarded through full and open competition, indicating a structured procurement process.
- Contract awarded to a reputable and experienced defense contractor.
- The research area is critical for national security and technological advancement.
Sector Analysis
The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by significant government investment, particularly from defense and intelligence agencies, aimed at developing new technologies and improving existing ones. The market size for R&D services is substantial, with major defense contractors like Lockheed Martin being key players. This contract represents a portion of the broader federal spending on scientific and technological advancement, contributing to innovation and maintaining a technological edge.
Small Business Impact
This contract does not appear to have a small business set-aside, as indicated by 'sb: false'. There is no explicit mention of subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Lockheed Martin voluntarily engages small businesses for specialized support. Further investigation into subcontracting reports would be needed to confirm any indirect benefits to small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The contract's Time and Materials nature necessitates close monitoring of labor hours, rates, and expenditures to ensure compliance with the contract terms and prevent cost overruns. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though detailed project progress and specific research findings may be subject to security or proprietary restrictions.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Research Laboratory Contracts
- Advanced Technology Development Contracts
- Physical Sciences Research Funding
- Engineering Research Grants
- Life Sciences Research Initiatives
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of specific performance metrics and outcomes in public data.
- Broad scope of R&D makes direct value assessment challenging.
Tags
department-of-defense, department-of-the-army, research-and-development, physical-engineering-life-sciences, lockheed-martin, time-and-materials, full-and-open-competition, new-jersey, large-contract, historical-data
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. AWARD OF CR-1930
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 $36.8 million.
What is the period of performance?
Start: 2007-09-24. End: 2009-12-31.
What was the specific research objective of this contract, and were the objectives met?
The specific research objective of this contract, CR-1930, awarded to Lockheed Martin Integrated Systems, LLC, was within the broad category of 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710). Without access to the detailed contract statement of work (SOW) and subsequent performance reports, it is not possible to ascertain the precise research objectives or whether they were fully met. Contracts in this domain often aim to explore novel concepts, develop prototypes, or conduct foundational research that may not have immediate, tangible deliverables but contribute to future technological advancements. The success of such R&D efforts is typically evaluated based on milestones, technical reports, and the potential for future application rather than a single, definitive outcome.
How does the $36.8 million award compare to other R&D contracts in physical, engineering, and life sciences awarded around the same period?
The $36.8 million award for this R&D contract is a significant sum, indicative of a substantial research effort. To benchmark it effectively, one would need to compare it against other contracts awarded by the Department of Defense or other federal agencies for similar R&D activities in physical, engineering, and life sciences during the 2007-2009 period. Such comparisons would ideally consider the contract duration, the specific research scope, the performing organization's size and expertise, and the competitive landscape. While $36.8 million is a considerable investment, it falls within the range of large-scale R&D projects undertaken by major defense contractors. Without a detailed analysis of comparable contracts, it's difficult to definitively state whether this represents exceptionally high or low spending for the scope of work.
What are the potential risks associated with a Time and Materials (T&M) contract for R&D, and how were they mitigated?
Time and Materials (T&M) contracts, like the one awarded to Lockheed Martin, carry inherent risks for R&D projects, primarily the potential for cost overruns. Since payment is based on direct labor hours at specified rates and actual material costs, there's less incentive for the contractor to control costs efficiently compared to fixed-price contracts. For R&D, this can be exacerbated by the unpredictable nature of research, where timelines can extend, and unforeseen challenges may increase labor hours. Mitigation strategies typically involve robust oversight by the government, including detailed monitoring of labor hours, verification of rates, and strict adherence to the contract's ceiling. Establishing clear milestones and requiring regular progress reports are also crucial. However, the effectiveness of these mitigations depends heavily on the government's oversight capacity and the contractor's adherence to ethical practices.
What is Lockheed Martin's track record with similar R&D contracts for the Department of Defense?
Lockheed Martin Integrated Systems, LLC, as a subsidiary of Lockheed Martin Corporation, has an extensive track record of performing complex research and development contracts for the Department of Defense (DoD) and other federal agencies. The corporation is a major defense contractor with deep expertise across various scientific and engineering disciplines relevant to physical, engineering, and life sciences. Historically, Lockheed Martin has been involved in numerous high-profile R&D initiatives, including advanced materials, aerospace technologies, and defense systems. While specific performance details for individual contracts are often not publicly disclosed in detail, their consistent selection for large-scale, critical R&D projects suggests a generally positive performance history and a strong capability to meet demanding technical requirements. However, like any large contractor, they may have faced challenges or criticisms on specific projects.
How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) evolved since this contract was awarded?
Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541710) has generally seen significant growth since the award of this contract in 2007. Driven by national security priorities, technological competition, and advancements in fields like artificial intelligence, biotechnology, and advanced manufacturing, federal R&D budgets have expanded considerably. Agencies like the Department of Defense, National Science Foundation, and the National Institutes of Health are major contributors to this spending. While specific year-over-year figures fluctuate based on appropriations and strategic shifts, the overall trend indicates a sustained and often increasing investment in scientific and technological research. This reflects a continued recognition of R&D's importance for economic growth, innovation, and maintaining a competitive edge.
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: $54,380,782
Exercised Options: $36,818,927
Current Obligation: $36,818,927
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2007-09-24
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2015-05-13
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