DoD Awards $826M Contract to Lockheed Martin for Electronics & Communication Equipment Development
Contract Overview
Contract Amount: $274,938,630 ($274.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1997-01-06
End Date: 2006-12-31
Contract Duration: 3,646 days
Daily Burn Rate: $75.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: 199704!1700!1866!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6226 !A!*!P00011 !19970106!20051231!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000021970000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!A !N!R!2!002!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: MANASSAS, MANASSAS (CITY) County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $274.9 million to LOCKHEED MARTIN CORPORATION for work described as: 199704!1700!1866!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6226 !A!*!P00011 !19970106!20051231!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASS… Key points: 1. The contract, valued at $826,412,801, was awarded to Lockheed Martin Corporation for RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV. 2. This award represents a significant investment in advanced electronics and communication technology for the Department of the Navy. 3. The contract duration is substantial, spanning from January 1997 to December 2005, indicating a long-term development project. 4. Competition was full and open, suggesting a robust procurement process aimed at securing the best value for the government.
Value Assessment
Rating: good
The contract value of $826.4 million is substantial for R&D in electronics and communication. Benchmarking against similar complex R&D contracts is difficult without more specific technical details, but the award to a major defense contractor like Lockheed Martin suggests a competitive pricing structure for advanced development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and ensures the government receives competitive pricing for complex technological development.
Taxpayer Impact: The significant investment in R&D aims to enhance national defense capabilities, with the ultimate taxpayer benefit being improved technology and security.
Public Impact
Enhances U.S. Navy's communication and electronic warfare capabilities. Supports advanced research and development in a critical defense sector. Long-term contract provides stability for Lockheed Martin and its supply chain. Potential for technological advancements with dual-use applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or cost overruns if not managed effectively.
- Complexity of R&D can make precise cost estimation challenging.
- Reliance on a single contractor for critical technology development.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Invests in cutting-edge technology for national security.
- Significant contract value indicates a substantial project with potential for innovation.
Sector Analysis
This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on electronics and communication equipment manufacturing development. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
While the prime contractor is Lockheed Martin Corporation, a large aerospace and defense company, the contract may involve subcontracts to small businesses for specialized components or services, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of Defense, specifically the Naval Sea Systems Command, is responsible for overseeing this contract. Robust oversight is crucial for R&D contracts to ensure milestones are met, costs are controlled, and the final technology meets requirements.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of cost overruns and obsolescence.
- Complexity of R&D makes precise cost and schedule forecasting difficult.
- Potential for reliance on a single source for critical technology.
- Lack of specific technical details hinders a deeper value assessment.
- Contract awarded in 1997, technology may be nearing end-of-life or superseded.
Tags
department-of-defense, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $274.9 million to LOCKHEED MARTIN CORPORATION. 199704!1700!1866!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002496C6226 !A!*!P00011 !19970106!20051231!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000021970000!N!N!000000000000!AC65!RDTE/ELECTRONICS & COMMUNICATION EQ-ENG/MANUF DEV !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !3812!3!*!*!C!B!A!*!A !N!R!2!0
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 Navy).
What is the total obligated amount?
The obligated amount is $274.9 million.
What is the period of performance?
Start: 1997-01-06. End: 2006-12-31.
What specific technological advancements are expected from this contract, and how do they align with current and future naval operational needs?
The contract focuses on RDTE for electronics and communication equipment. Specific advancements are not detailed, but it likely aims to improve radar, signal processing, secure communication systems, or electronic warfare capabilities. These align with the Navy's need for enhanced situational awareness, command and control, and survivability in complex operational environments.
How will the long duration (nearly 9 years) impact the cost-effectiveness and relevance of the developed technologies?
A long duration can lead to cost efficiencies through economies of scale and learning curve benefits. However, it also risks technological obsolescence if not managed proactively with phased reviews and potential re-baselining. The relevance depends on agile development practices and continuous adaptation to evolving threats and technological landscapes.
What mechanisms are in place to ensure accountability and measure the success of this R&D investment beyond initial delivery?
Accountability is typically managed through contract milestones, performance metrics, and regular reporting requirements. Success measurement for R&D often extends beyond initial delivery to include successful integration into naval platforms, demonstrated performance in operational tests, and contribution to overall mission effectiveness, potentially evaluated over the system's lifecycle.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 9500 GODWIN DR, MANASSAS, VA, 10
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 1997-01-06
Current End Date: 2006-12-31
Potential End Date: 2006-12-31 00:00:00
Last Modified: 2008-12-23
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