DoD's $240M Hypersonic Weapon Concept Phase 2 Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $240,688,116 ($240.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-23
End Date: 2026-10-31
Contract Duration: 3,690 days
Daily Burn Rate: $65.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF HYPERSONIC AIR-BREATHING WEAPON CONCEPT (HAWC) PHASE 2
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $240.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF HYPERSONIC AIR-BREATHING WEAPON CONCEPT (HAWC) PHASE 2 Key points: 1. This contract focuses on advanced research and development in hypersonic technology. 2. Lockheed Martin, a major defense contractor, is the sole awardee. 3. The contract duration is substantial, spanning over 10 years. 4. The sector is R&D, specifically in physical and engineering sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is significant, but the per-unit cost is not directly applicable to this R&D effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism are not provided, making it difficult to assess the full impact on price.
Taxpayer Impact: Taxpayer funds are being invested in cutting-edge defense technology development, with the potential for future national security benefits.
Public Impact
Advancement of US hypersonic capabilities. Potential for dual-use technology applications. Significant investment in a critical defense research area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may present oversight challenges.
Positive Signals
- Awarded under full and open competition.
- Focus on critical national security R&D.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to inherent uncertainties.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from DARPA to ensure milestones are met and costs are managed effectively. Accountability will be key to the success of this research initiative.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 10 years).
- Sole awardee to a large corporation.
- Lack of specific performance metrics in provided data.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $240.7 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF HYPERSONIC AIR-BREATHING WEAPON CONCEPT (HAWC) PHASE 2
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 Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $240.7 million.
What is the period of performance?
Start: 2016-09-23. End: 2026-10-31.
What is the projected return on investment for this hypersonic weapon concept development?
The return on investment for R&D projects like the Hypersonic Air-Breathing Weapon Concept (HAWC) is inherently difficult to quantify in traditional financial terms. Success is measured by technological advancement and potential future defense capabilities, rather than direct profit. The 'return' is primarily in enhanced national security and maintaining a technological edge over adversaries.
What are the primary risks associated with the Cost Plus Fixed Fee contract structure for this project?
The primary risks with a Cost Plus Fixed Fee (CPFF) structure in R&D are potential cost overruns and reduced contractor incentive for cost efficiency. The government bears the risk of cost increases, while the contractor is guaranteed a fixed fee regardless of the final cost. This necessitates stringent monitoring and control by the agency to manage expenditures effectively.
How will the effectiveness of the HAWC Phase 2 be measured and validated?
The effectiveness of HAWC Phase 2 will likely be measured through a series of rigorous testing and validation protocols defined by DARPA. This would include flight tests, performance evaluations against specific mission requirements, and demonstration of key technological capabilities. Success will be determined by achieving predefined technical objectives and demonstrating the weapon system's viability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1011 LOCKHEED WAY, PALMDALE, CA, 93599
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: $240,688,116
Exercised Options: $240,688,116
Current Obligation: $240,688,116
Actual Outlays: $7,094,869
Subaward Activity
Number of Subawards: 133
Total Subaward Amount: $38,871,931
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-23
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-08-06
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)