DoD's $271M MK21A Reentry Vehicle R&D Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $271,095,741 ($271.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2019-10-22
End Date: 2023-12-02
Contract Duration: 1,502 days
Daily Burn Rate: $180.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MK21A REENTRY VEHICLE TECHNOLOGY MATURATION AND RISK REDUCTION RESEARCH AND DEVELOPMENT
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $271.1 million to LOCKHEED MARTIN CORP for work described as: MK21A REENTRY VEHICLE TECHNOLOGY MATURATION AND RISK REDUCTION RESEARCH AND DEVELOPMENT Key points: 1. The contract focuses on research and development for a critical defense component, the MK21A reentry vehicle. 2. Lockheed Martin, a major defense contractor, secured this significant award. 3. The award was made under a full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries some risk.
Value Assessment
Rating: good
The Cost Plus Fixed Fee structure allows for flexibility in R&D but requires careful oversight to manage costs effectively. Benchmarking against similar complex R&D contracts is difficult due to unique program requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source procurement for this advanced technology development.
Public Impact
Development of advanced reentry vehicle technology is crucial for national security and strategic deterrence. This investment supports the modernization of the U.S. nuclear triad. The contract's duration and value indicate a long-term commitment to this critical program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- The complexity of reentry vehicle technology presents inherent technical risks.
- Reliance on a single contractor for critical components can raise long-term supply chain concerns.
Positive Signals
- Awarded under full and open competition.
- Significant investment in a key national security program.
- Contractor has extensive experience in aerospace and defense.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to defense applications. Spending in this area is often characterized by high innovation, long development cycles, and significant government investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, which is common for large, complex defense development programs requiring specialized expertise and infrastructure.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Given the critical nature of the technology, robust oversight mechanisms, including technical reviews and cost audits, are essential to ensure program success and responsible use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Technical complexity and inherent R&D risks.
- Long-term reliance on a single prime contractor.
- National security implications require stringent program security.
- Dependency on future budget allocations for continued development.
Tags
research-and-development-in-the-physical, department-of-defense, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $271.1 million to LOCKHEED MARTIN CORP. MK21A REENTRY VEHICLE TECHNOLOGY MATURATION AND RISK REDUCTION RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $271.1 million.
What is the period of performance?
Start: 2019-10-22. End: 2023-12-02.
What are the key performance metrics for the MK21A reentry vehicle technology maturation?
Key performance metrics likely include survivability in harsh reentry environments, accuracy of trajectory control, payload integration capabilities, and reliability. Specific metrics are often classified due to national security implications but would focus on ensuring the vehicle meets stringent operational requirements for its intended strategic role.
How does the Cost Plus Fixed Fee structure balance contractor incentive and government risk for this R&D program?
The 'Cost Plus' portion allows the contractor to recover allowable costs, while the 'Fixed Fee' provides a predetermined profit. This structure incentivizes the contractor to perform the work but requires government vigilance to control costs. The government bears the risk of cost overruns beyond the agreed-upon allowable costs, making effective oversight crucial.
What is the long-term strategic importance of the MK21A reentry vehicle program?
The MK21A is a critical component of the U.S. strategic deterrence capability, specifically for the Ground-Based Strategic Deterrent (GBSD) program. Its successful development ensures the continued modernization and effectiveness of the nation's nuclear triad, maintaining a credible deterrent posture in a dynamic geopolitical landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA821919R7000
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $322,529,151
Exercised Options: $271,095,741
Current Obligation: $271,095,741
Actual Outlays: $8,318,458
Subaward Activity
Number of Subawards: 376
Total Subaward Amount: $164,811,225
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-10-22
Current End Date: 2023-12-02
Potential End Date: 2023-12-02 00:00:00
Last Modified: 2025-04-22
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