DoD Awards $30.8M for Electronics R&D to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $30,840,011 ($30.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-04-09
End Date: 2008-05-30
Contract Duration: 1,512 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 48
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200407!000065!5700!GR19 !DET 1 AFRL/PKD !FA865004C7108 !A!N! !N! ! !20040409!20060209!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMMIT !OHIO !+000008000000!N!N!000015535337!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!048!E! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: AKRON, SUMMIT County, OHIO, 44315
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to LOCKHEED MARTIN CORPORATION for work described as: 200407!000065!5700!GR19 !DET 1 AFRL/PKD !FA865004C7108 !A!N! !N! ! !20040409!20060209!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMM… Key points: 1. Significant award for advanced technology development in electronics and communication. 2. Lockheed Martin, a major defense contractor, secured this contract. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Research and Development sector, crucial for future technological advancements.
Value Assessment
Rating: fair
The award amount of $30.8M for a 1512-day duration suggests a substantial project. Benchmarking against similar R&D contracts for advanced electronics development would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies a limited competition. This method may not have resulted in the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D, which can yield long-term benefits but requires careful oversight to ensure cost-effectiveness.
Public Impact
Advancement in defense electronics technology. Potential for job creation within Lockheed Martin and its supply chain. Impact on national security through improved communication and electronic systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price.
- Limited competition may have reduced price discovery.
- Long contract duration (1512 days) increases risk of scope creep or changing requirements.
Positive Signals
- Award to a reputable defense contractor.
- Focus on critical R&D for advanced technology.
- Potential for significant technological breakthroughs.
Sector Analysis
This contract falls within the Research and Development sector, specifically for electronics and communication equipment. Spending in this area is vital for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties of R&D.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Large prime contractors like Lockheed Martin often have subcontracting plans, but direct involvement of small businesses is not detailed here.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA). Oversight will be critical given the Cost Plus Fixed Fee structure and the R&D nature of the work to ensure funds are used efficiently and effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited competition method.
- Long contract duration.
- R&D inherently carries uncertainty and risk of failure or cost overruns.
Tags
research-and-development-in-the-physical, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to LOCKHEED MARTIN CORPORATION. 200407!000065!5700!GR19 !DET 1 AFRL/PKD !FA865004C7108 !A!N! !N! ! !20040409!20060209!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMMIT !OHIO !+000008000000!N!N!000015535337!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2004-04-09. End: 2008-05-30.
What specific technological advancements are expected from this R&D contract, and how will they benefit the Department of Defense?
The contract focuses on 'RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV'. Expected advancements likely include next-generation communication systems, enhanced electronic warfare capabilities, or improved sensor technologies. These advancements aim to provide the DoD with a technological edge, improving situational awareness, command and control, and overall mission effectiveness in complex operational environments.
What are the primary risks associated with a Cost Plus Fixed Fee contract for advanced R&D, and how are they mitigated?
The primary risk is that the contractor may not be sufficiently incentivized to control costs, potentially leading to expenditures exceeding initial estimates. Mitigation strategies include robust oversight by the DCMA, clear performance metrics, regular progress reviews, and potentially incentive fee structures tied to specific R&D milestones or cost savings, although the provided data doesn't detail these specific mitigations.
How does the 'Full and Open Competition After Exclusion of Sources' method impact the overall value and effectiveness of this contract?
This method, while allowing for some competition, inherently limits the pool of potential bidders. If only a few sources were excluded without strong justification, it could lead to less competitive pricing and potentially limit the innovative solutions available. The effectiveness hinges on whether the excluded sources were truly incapable of meeting the specific advanced technology requirements.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 48
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1210 MASSILLON ROAD, AKRON, OH, 13
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-09
Current End Date: 2008-05-30
Potential End Date: 2008-05-30 00:00:00
Last Modified: 2013-06-13
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