DoD's $80M R&D Contract for Solid Rocket Motors Awarded to Lockheed Martin Amidst Full and Open Competition
Contract Overview
Contract Amount: $80,048,615 ($80.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-30
End Date: 2023-09-30
Contract Duration: 1,614 days
Daily Burn Rate: $49.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SOLID ROCKET MOTOR AND BOOSTER VEHICLE
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $80.0 million to LOCKHEED MARTIN CORPORATION for work described as: SOLID ROCKET MOTOR AND BOOSTER VEHICLE Key points: 1. The contract focuses on research and development in physical sciences, excluding specialized fields like nanotechnology. 2. Lockheed Martin, a major defense contractor, secured this award through a competitive process. 3. The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not managed carefully. 4. The award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs than fixed-price contracts if not closely monitored. The total award amount is substantial, but without specific performance metrics or comparable contract data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was initiated, but specific sources may have been excluded. This method aims for price discovery but the exclusion clause warrants scrutiny.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting efforts to secure reasonable pricing. However, the CPFF structure necessitates robust oversight to ensure funds are used efficiently.
Public Impact
This contract supports advanced research and development in critical areas for national defense. The award to Lockheed Martin signifies continued investment in established defense industrial base capabilities. The duration of the contract (over 4 years) suggests a long-term commitment to the project's objectives. The focus on solid rocket motors is vital for space launch and missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending.
- Potential for cost overruns due to the nature of R&D and CPFF.
- Exclusion of sources in a 'full and open' competition needs further clarification.
Positive Signals
- Awarded through a competitive process.
- Supports critical defense R&D.
- Long contract duration indicates sustained program focus.
Sector Analysis
The aerospace and defense sector, particularly R&D, is characterized by high costs and long development cycles. Spending benchmarks for similar R&D contracts can vary widely based on technological complexity and program scope.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The focus appears to be on large prime contractors within the defense industrial base.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF contract type requires diligent monitoring of costs and performance to ensure accountability and prevent waste.
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
- Cost Plus Fixed Fee (CPFF) contract type.
- Research and Development (R&D) inherently carries cost uncertainty.
- Potential for cost overruns.
- Exclusion of sources in competition needs clarification.
- Lack of specific performance metrics for value assessment.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.0 million to LOCKHEED MARTIN CORPORATION. SOLID ROCKET MOTOR AND BOOSTER VEHICLE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
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 $80.0 million.
What is the period of performance?
Start: 2019-04-30. End: 2023-09-30.
What specific technological advancements are expected from this R&D investment, and how will they enhance national security capabilities?
This contract likely aims to improve the performance, reliability, or cost-effectiveness of solid rocket motor technology for various defense applications, such as missile systems or space launch vehicles. Expected advancements could include increased thrust, longer shelf life, reduced environmental impact, or enhanced safety features. The ultimate goal is to maintain a technological edge in strategic deterrence and space access capabilities.
Given the CPFF structure and R&D nature, what are the primary risks to cost control, and what mitigation strategies are in place?
The primary risks to cost control in a CPFF R&D contract include scope creep, unforeseen technical challenges, and potential for inefficient resource utilization by the contractor. Mitigation strategies typically involve rigorous contract management, detailed performance metrics, regular progress reviews, and strong government oversight to ensure adherence to the fixed fee and prevent unnecessary expenditures.
How does the 'exclusion of sources' within the 'full and open competition' impact the potential for innovation and cost savings?
Excluding specific sources, even in a nominally full and open competition, can limit the range of innovative approaches and potentially reduce competitive pressure on pricing. While there might be justifiable reasons for exclusion (e.g., security, specialized expertise), it warrants scrutiny to ensure it doesn't stifle broader market participation or lead to suboptimal outcomes for the government.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA868218R1002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4800 BRADFORD DR NW, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $81,555,640
Exercised Options: $81,555,640
Current Obligation: $80,048,615
Actual Outlays: $391,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA868218D0003
IDV Type: IDC
Timeline
Start Date: 2019-04-30
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-08-20
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