Lockheed Martin's $58.4M contract for advanced radioisotope support spans nearly a decade, awarded by the Department of Energy
Contract Overview
Contract Amount: $58,447,388 ($58.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Energy
Start Date: 1998-03-06
End Date: 2007-10-15
Contract Duration: 3,510 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PLANNING, MANAGEMENT & EXECUTION OF DEVELOPMENT & DESIGN ENGINEERING, MANUFACTURIN, INTEFRATION SUPPORT & PROJECT MANAGEMENT OF AN ADVANCED RADIOISOTO
Place of Performance
Location: DENVER, DENVER County, COLORADO, 80201
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $58.4 million to LOCKHEED MARTIN CORP for work described as: PLANNING, MANAGEMENT & EXECUTION OF DEVELOPMENT & DESIGN ENGINEERING, MANUFACTURIN, INTEFRATION SUPPORT & PROJECT MANAGEMENT OF AN ADVANCED RADIOISOTO Key points: 1. Contract awarded via full and open competition, suggesting a broad market search. 2. Long duration (1998-2007) indicates a sustained need for specialized services. 3. Cost Plus Fixed Fee (CPFF) pricing structure allows for cost overruns, requiring close monitoring. 4. The contract's focus on advanced radioisotope support highlights a critical niche within energy and defense sectors. 5. Awarded to a single contractor, Lockheed Martin Corp, for a significant period. 6. The contract value of $58.4 million over its life represents substantial investment in this specialized area.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging due to its specialized nature and historical award date. The CPFF structure, while common for R&D and complex projects, inherently carries higher risk for cost control compared to fixed-price contracts. Without specific performance metrics or comparable contract data from the same period, a definitive value-for-money assessment is difficult. However, the sustained award over nearly a decade suggests the services were deemed necessary and potentially met expectations, despite the inherent cost risks of the pricing model.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that the Department of Energy sought proposals from all responsible sources. The fact that it resulted in a single award to Lockheed Martin Corp suggests that, despite the open competition, they were the most qualified or competitive bidder for this highly specialized requirement. The duration and nature of the work may have limited the pool of capable offerors.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the specific outcome here, a single award, warrants scrutiny to ensure that the competition was truly robust and not artificially constrained by the specialized nature of the requirement.
Public Impact
The Department of Energy benefits from specialized support for advanced radioisotope projects, crucial for energy research and potentially national security applications. This contract supports the development, design, manufacturing, integration, and project management of advanced radioisotope systems. The geographic impact is primarily linked to the contractor's facilities, likely in Colorado where the contract was registered. Workforce implications include employment of highly skilled engineers, scientists, and technicians in specialized manufacturing and R&D roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
- Long contract duration without clear break clauses could indicate a lack of flexibility for future technological shifts.
- Award to a single large contractor may limit opportunities for smaller, innovative firms in this niche.
Positive Signals
- Awarded through full and open competition, suggesting an effort to maximize value.
- Sustained award over nearly a decade implies consistent need and likely satisfactory performance.
- Focus on advanced radioisotope technology addresses a critical and specialized government requirement.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on specialized components for advanced applications. The market for advanced radioisotope technology is niche, often driven by government requirements for space exploration, medical isotopes, or specialized power sources. Spending in this area is typically characterized by high R&D costs, long development cycles, and a limited number of highly specialized contractors, such as Lockheed Martin.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of advanced radioisotope manufacturing and integration, it is unlikely that small businesses would be the primary awardees for such a large and complex contract. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary data.
Oversight & Accountability
Oversight for this contract would fall under the Department of Energy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be expected to monitor costs and ensure compliance with the fixed fee. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.
Related Government Programs
- NASA Space Exploration Programs
- Department of Defense Advanced Propulsion Systems
- Nuclear Energy Research and Development
- Radioisotope Thermoelectric Generators (RTGs)
Risk Flags
- Cost Overrun Risk (CPFF)
- Technological Obsolescence
- Limited Competition Outcome (Single Award)
- Long Contract Duration
Tags
defense, department-of-energy, lockheed-martin-corp, advanced-radioisotope, cost-plus-fixed-fee, full-and-open-competition, definitive-contract, manufacturing, research-and-development, colorado, long-term-contract, space-vehicle-propulsion
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $58.4 million to LOCKHEED MARTIN CORP. PLANNING, MANAGEMENT & EXECUTION OF DEVELOPMENT & DESIGN ENGINEERING, MANUFACTURIN, INTEFRATION SUPPORT & PROJECT MANAGEMENT OF AN ADVANCED RADIOISOTO
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $58.4 million.
What is the period of performance?
Start: 1998-03-06. End: 2007-10-15.
What was the specific nature of the 'advanced radioisotope' work performed under this contract?
The contract data indicates the work involved 'PLANNING, MANAGEMENT & EXECUTION OF DEVELOPMENT & DESIGN ENGINEERING, MANUFACTURIN, INTEFRATION SUPPORT & PROJECT MANAGEMENT OF AN ADVANCED RADIOISOTO'. This suggests a comprehensive scope covering the entire lifecycle from initial concept and design through manufacturing, integration, and ongoing project management. Advanced radioisotopes are often used in applications requiring long-term, reliable power sources (like RTGs for space missions) or in specialized medical treatments. The 'advanced' nature implies cutting-edge research, development, and potentially novel applications beyond standard radioisotope uses.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar R&D projects?
The CPFF structure is common for research and development or complex projects where the scope is not fully defined at the outset, making fixed-price contracts impractical. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a fixed fee representing their profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it shifts much of the cost risk to the government. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, CPFF lacks the built-in incentives for cost reduction beyond the fixed fee itself, potentially making it less cost-effective if not managed stringently.
What are the potential risks associated with a contract awarded in 1998 and ending in 2007?
A contract spanning nearly a decade from 1998 to 2007 carries several potential risks. Technological obsolescence is a significant concern; advancements in radioisotope technology or related fields may have occurred, rendering the original specifications or approaches outdated. Market dynamics and contractor capabilities could also shift over such a long period. Furthermore, the long duration might indicate a lack of flexibility in adapting to evolving program requirements or a failure to re-compete the work to ensure continued best value. Without specific performance data, it's difficult to assess if the government received optimal value throughout the entire contract period compared to potentially re-competed or updated contracts.
Can we assess the contractor's track record with the Department of Energy based on this single award?
This single award to Lockheed Martin Corp for $58.4 million provides limited insight into their overall track record with the Department of Energy (DOE). It demonstrates their capability to win a significant, long-term contract in a specialized technical area through full and open competition. However, to fully assess their track record, one would need to examine their performance history across multiple contracts with the DOE, including any past performance evaluations, contract modifications, disputes, or terminations. This data point alone suggests they were a capable and competitive bidder for this specific requirement.
How does the $58.4 million contract value compare to typical spending in the guided missile and space vehicle propulsion sector?
The National Industrial Classification (NAICS) code 336415 covers 'Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing.' Spending in this sector can vary widely, with major defense programs involving billions of dollars. A $58.4 million contract over nearly a decade, averaging roughly $6.5 million per year, is a substantial amount for specialized components or support services but likely represents a smaller portion of the overall defense budget dedicated to propulsion systems. It suggests a focused investment in a specific niche, possibly related to advanced materials or unique propulsion technologies, rather than a broad-based manufacturing effort.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,101,934
Exercised Options: $10,101,934
Current Obligation: $58,447,388
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 1998-03-06
Current End Date: 2007-10-15
Potential End Date: 2007-10-15 00:00:00
Last Modified: 2018-08-09
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