DoD awards $101.9M to Lockheed Martin for R&D in electronics and communication equipment

Contract Overview

Contract Amount: $10,194,836 ($10.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2006-06-02

End Date: 2008-07-31

Contract Duration: 790 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 23

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200609!000854!5700!FA8750!AFRL/IFK !FA875006C0050 !A!N! !Y! ! !20060602!20080519!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMMIT !OHIO !+000004000000!N!N!000010251024!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!023!E! !Z!Y!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 $10.2 million to LOCKHEED MARTIN CORPORATION for work described as: 200609!000854!5700!FA8750!AFRL/IFK !FA875006C0050 !A!N! !Y! ! !20060602!20080519!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMM… Key points: 1. Contract value of $101.9M for research and development in electronics and communication equipment. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Contract duration of approximately 2 years, indicating a focused research effort. 4. Classified under R&D/Other Defense-Advanced Tech Development, suggesting innovation focus. 5. The North American Industry Classification System (NAICS) code 541710 points to R&D in physical, engineering, and life sciences. 6. This contract represents a significant investment in advanced defense technologies.

Value Assessment

Rating: fair

The contract value of $101.9 million for a two-year research and development effort appears within a reasonable range for advanced defense technology projects. Benchmarking against similar R&D contracts for electronics and communication equipment is challenging due to the specialized nature of the work. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs were estimated and a fixed fee was negotiated, which can sometimes lead to cost overruns if not managed tightly. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar technological advancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes reduce competitive pressure and potentially impact pricing. The number of bidders is not explicitly stated, but the limited nature of the competition suggests fewer than a fully open solicitation.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a broader bidding process. This approach warrants scrutiny to ensure fair pricing and value for government funds.

Public Impact

The primary beneficiaries are the Department of Defense and potentially national security through advancements in electronics and communication technology. The contract supports research and development activities, aiming to produce innovative solutions for defense applications. The geographic impact is primarily within the United States, likely involving Lockheed Martin's research facilities. The contract supports a specialized workforce in research and development within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery.
Cost-plus-fixed-fee contracts can carry inherent risks of cost escalation if not rigorously monitored.
The specific nature of 'exclusion of sources' requires further investigation to ensure fairness and prevent anti-competitive practices.

Positive Signals

Awarded to a prime contractor with extensive experience in defense R&D.
Focus on advanced technology development aligns with strategic defense modernization goals.
Contract duration suggests a defined scope for research objectives.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on research and development for electronics and communication equipment. This is a critical area for military modernization, involving significant investment in innovation. The market for such specialized R&D is often dominated by a few large, experienced contractors like Lockheed Martin. Comparable spending benchmarks are difficult to establish without knowing the precise technological advancements sought, but R&D spending in defense is substantial.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of advanced R&D in defense electronics and the prime contractor, it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation as subcontractors is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and conditions. Accountability measures would be tied to the achievement of R&D milestones and adherence to the cost-plus-fixed-fee structure. Transparency is limited by the proprietary nature of defense R&D, but contract awards are publicly reported.

Related Government Programs

Advanced Technology Development Programs
Defense Electronics Research
Communication Systems Development
Aerospace R&D Contracts

Risk Flags

Limited competition may impact price.
CPFF contract type requires careful cost oversight.
Specific R&D objectives are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to LOCKHEED MARTIN CORPORATION. 200609!000854!5700!FA8750!AFRL/IFK !FA875006C0050 !A!N! !Y! ! !20060602!20080519!945757268!945757268!834951691!N!LOCKHEED MARTIN CORPORATION !1210 MASSILLON ROAD !AKRON !OH!44315!01000!153!39!AKRON !SUMMIT !OHIO !+000004000000!N!N!000010251024!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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 $10.2 million.

What is the period of performance?

Start: 2006-06-02. End: 2008-07-31.

What specific advancements in electronics and communication equipment were targeted by this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' with a specific focus on 'Electronics and Communication Equipment' under the 'RDTE/OTHER DEFENSE-ADV TECH DEV' category. However, the exact nature of the technological advancements sought is not detailed. Such contracts typically aim to develop next-generation communication systems, advanced sensor technologies, electronic warfare capabilities, or novel signal processing techniques critical for modern defense operations. The specific goals would be outlined in the Statement of Work (SOW) which is not publicly available in this data extract.

How does the $101.9 million contract value compare to similar R&D efforts in defense electronics?

Comparing the $101.9 million contract value requires context regarding the scope, duration, and technological novelty. For advanced defense R&D, especially involving a major contractor like Lockheed Martin, this figure is substantial but not extraordinary. Contracts for developing cutting-edge technologies can range from tens to hundreds of millions of dollars over several years. Without specific details on the project's complexity and objectives, a precise benchmark is difficult. However, it signifies a significant investment in a particular area of defense technology development.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, while providing flexibility for R&D, carry inherent risks. The primary risk for the government is that the contractor may have less incentive to control costs rigorously, as the fee is fixed regardless of the final cost. If the contractor underestimates the effort or encounters unforeseen challenges, costs can escalate significantly, potentially exceeding initial projections. Conversely, if the contractor is highly efficient, they retain a larger portion of the savings, which is the incentive. Effective oversight, detailed cost tracking, and strong program management are crucial to mitigate these risks and ensure value for money.

What does 'Full and Open Competition After Exclusion of Sources' imply for the bidding process?

This contracting method suggests that the initial solicitation was intended to be open to all responsible sources. However, 'exclusion of sources' implies that after the initial broad solicitation, certain potential bidders were disqualified or excluded from further consideration. The reasons for exclusion are not specified but could be due to factors like security clearances, specific technical capabilities, or proprietary technology limitations. This approach aims to ensure that only qualified entities participate but can limit the breadth of competition compared to a truly unrestricted 'full and open' process, potentially impacting price competitiveness.

What is the historical spending pattern for Lockheed Martin with the Department of Defense in similar R&D categories?

Lockheed Martin is a major defense contractor and consistently receives substantial funding from the Department of Defense across various R&D categories. Historical data would show significant annual awards for research, development, testing, and evaluation (RDT&E) in areas like aerospace, electronics, and advanced systems. While this specific $101.9 million contract is a single award, Lockheed Martin's overall portfolio with the DoD likely includes numerous similar or larger R&D investments over many years, reflecting its role as a key technology provider.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 23

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: YES

Timeline