DoD awards $1.4B for logistics support, with Lockheed Martin securing the majority of task orders
Contract Overview
Contract Amount: $14,048,696 ($14.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2001-11-05
End Date: 2014-12-31
Contract Duration: 4,804 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200210!024547!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7025 !A!N! !N!0001 !20011105!20021104!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000100000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2ACC!C-3 !541330!E! !5!B!M!A!A!D!20060331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200210!024547!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7025 !A!N! !N!0001 !20011105!20021104!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!50000!001!11!WASHINGTON !DISTR… Key points: 1. Contract awarded for comprehensive logistics support services, indicating a significant need for sustainment and operational readiness. 2. The contract's duration and value suggest a long-term commitment to maintaining complex defense systems. 3. Multiple task orders indicate a flexible approach to fulfilling diverse logistical requirements. 4. The primary contractor, Lockheed Martin, has a substantial presence in defense contracting, suggesting established capabilities. 5. The contract falls under engineering services, highlighting the technical expertise required for modern defense logistics. 6. A significant portion of the contract value was allocated to task orders, demonstrating the dynamic nature of defense procurement.
Value Assessment
Rating: good
The total award value of $1.4 billion over its life cycle suggests a substantial investment in logistics support. Benchmarking this against similar large-scale defense logistics contracts is challenging without more specific service details. However, the allocation of funds across multiple task orders indicates a structured approach to managing costs and delivering specific services as needed. The cost-plus-fixed-fee (CPFF) contract type, while common in defense, can sometimes lead to cost overruns if not closely managed, but it also allows for flexibility in evolving requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 21 task orders indicates a robust and ongoing need for these services, likely managed through a competitive process for each individual order. This level of competition, especially if task orders were competed among multiple qualified bidders, generally promotes price discovery and ensures the government receives competitive pricing for the services rendered.
Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation among defense contractors.
Public Impact
The primary beneficiaries are the various branches of the U.S. military requiring logistical support for their operations and equipment. Services delivered include a broad range of logistics support, likely encompassing supply chain management, maintenance, and technical assistance. The geographic impact is likely nationwide and potentially global, supporting deployed forces and military installations. Workforce implications include the creation and sustainment of jobs in logistics, engineering, and technical support roles, primarily within Maryland and potentially other locations where Lockheed Martin operates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost growth inherent in Cost Plus Fixed Fee (CPFF) contracts if not rigorously managed.
- Long contract duration could lead to vendor lock-in if not periodically re-competed effectively.
- Reliance on a single primary contractor for a large portion of logistics support could pose risks if their performance falters.
Positive Signals
- Awarded under full and open competition, ensuring a broad base of potential suppliers and competitive pricing.
- Multiple task orders allow for flexibility and adaptation to evolving logistical needs.
- The contract's substantial value indicates a critical need for these services, suggesting strong program support.
Sector Analysis
This contract falls within the broader defense logistics and support services sector, a critical component of the Department of Defense's overall spending. This sector encompasses a wide array of services essential for maintaining military readiness, including supply chain management, maintenance, repair, and overhaul (MRO), and technical support for complex weapon systems. The market is characterized by large, established defense contractors with specialized capabilities and significant government contracts. Comparable spending benchmarks would typically involve analyzing the total DoD budget allocated to logistics and sustainment across various service branches and contract types.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Lockheed Martin, may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. Without specific subcontracting data, it's difficult to assess the direct impact on small businesses.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. Accountability measures would be embedded within the contract's performance metrics and reporting requirements. Transparency is facilitated through contract awards databases like FPDS, though detailed task order specifics may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) Operations
- Naval Sea Systems Command (NAVSEA) Sustainment Programs
- Air Force Sustainment Center
- Army Sustainment Command
- Defense Contract Audit Agency (DCAA) Audits
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Long-term contract dependency.
- Reliance on a single prime contractor for critical support.
Tags
defense, logistics-support-services, navsea, lockheed-martin, cost-plus-fixed-fee, full-and-open-competition, engineering-services, maryland, department-of-defense, multi-year-contract, task-orders
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200210!024547!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002401D7025 !A!N! !N!0001 !20011105!20021104!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000100000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2ACC!C-3 !541330!E! !5!B!M!A!A!D!20060331!B
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2001-11-05. End: 2014-12-31.
What is the historical spending trend for logistics support services under NAVSEA for similar contracts?
Analyzing historical spending trends for logistics support services under NAVSEA requires examining contract awards over several fiscal years. While this specific contract (N0002401D7025) represents a significant award of $1.4 billion, understanding the trend involves looking at the aggregate spending on similar service codes (e.g., 541330 - Engineering Services, or specific logistics PSC codes) awarded by NAVSEA. Historically, the Department of Defense, including NAVSEA, has consistently allocated substantial budgets to sustainment and logistics, driven by the need to maintain aging fleets and complex weapon systems. Spending in this area can fluctuate based on geopolitical events, modernization programs, and budget appropriations. A detailed trend analysis would involve querying databases like FPDS for all relevant contracts awarded by NAVSEA over a 5-10 year period, categorizing them by service type and value, and identifying any patterns of increase or decrease in awarded dollar amounts.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar logistics support?
Determining the per-unit cost comparison for this contract is challenging without specific details on the services rendered and their associated units. The contract is a Cost Plus Fixed Fee (CPFF) type, and the total award value of $1.4 billion covers a broad scope of 'Logistics Support Services' and 'Engineering Services' (NAICS 541330). To benchmark per-unit costs, one would need to identify specific deliverables (e.g., hours of technical support, number of parts managed, specific maintenance actions performed) and their corresponding costs within the task orders. Industry benchmarks for logistics support can vary widely based on the complexity of the equipment, the level of service required (e.g., depot-level maintenance vs. field support), and geographic location. A thorough analysis would involve comparing the negotiated rates for labor categories, overhead, and profit margins against publicly available data or industry reports for comparable defense logistics contracts, which often remain proprietary.
What are the key performance indicators (KPIs) used to measure the success of this contract, and what has been the contractor's performance against them?
Key Performance Indicators (KPIs) for large defense logistics contracts typically revolve around readiness, availability, response times, cost control, and quality of service. For this contract, specific KPIs would be detailed within the individual task orders and the overarching contract. Examples might include metrics like "On-Time Delivery Rate" for parts and equipment, "Mean Time Between Failures" (MTBF) for supported systems, "System Availability" targets, "Cost Variance" against budgeted amounts for task orders, and "Customer Satisfaction" ratings from the end-users (military units). Contractor performance against these KPIs is usually tracked through contract performance reports, quality assurance surveillance plans (QASPs), and formal reviews. Without access to these internal performance reports, it is difficult to definitively assess Lockheed Martin's performance. However, the continued issuance of task orders suggests satisfactory performance to date.
What is the track record of Lockheed Martin Integrated Systems, LLC in fulfilling similar large-scale defense logistics contracts?
Lockheed Martin Integrated Systems, LLC, as a major defense contractor, has an extensive track record in fulfilling large-scale defense logistics and support contracts across various military branches and platforms. The company is known for its involvement in complex programs such as aircraft sustainment, naval ship maintenance, and integrated C4ISR systems support. Their performance history generally includes managing vast supply chains, providing technical expertise, and ensuring operational readiness for critical defense assets. While specific performance metrics for past contracts are often not publicly detailed, Lockheed Martin's continued success in securing significant government contracts, including this $1.4 billion award, suggests a generally positive performance record and established capabilities in meeting the demanding requirements of the Department of Defense. However, like any large contractor, they may have faced challenges or criticisms on specific programs.
How has the competition level for this contract type (logistics support services) evolved over the past decade within the Department of Defense?
The competition level for logistics support services within the Department of Defense (DoD) has seen a complex evolution over the past decade. Initially, there was a trend towards consolidating contracts and awarding large, long-term agreements to prime contractors, often through full and open competition, to achieve economies of scale and streamline support. However, concerns about contractor dependency, rising costs, and the desire to foster innovation have led to a more mixed approach. The DoD has increasingly emphasized "should-cost" management and sought to introduce more competition at the task order level, even within larger IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles. There's also been a push to leverage smaller businesses and encourage more agile, specialized providers where appropriate. Despite these efforts, the nature of complex, integrated logistics for major defense systems often still favors large, established companies like Lockheed Martin, meaning that while task orders might be competed, the prime contract itself can sometimes be concentrated.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 21
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002401D7025
IDV Type: IDC
Timeline
Start Date: 2001-11-05
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-10-29
More Contracts from Lockheed Martin Integrated Systems, LLC
- 200407!000098!5700!LA01 !11 Cons/Lgcw !FA701204C0003 !A!N! !N! ! !20031121!20130630!836196972!805258373!834951691!n!lockheed Martin Integrated SYS!6801 Rockledge Drive !bethesda !nj!20817!50000!001!11!washington !district of Columbia !D.C. !+000010350876!n!n!000530185344!d399!other Adp&telecommunication Services !S1 !services !000 !* !541690!A!B!3! ! ! ! ! !99990909!b!b!y!b! !a!n!l!2!007!b! !C!Y!F! ! !N!C!N! ! ! !b!z!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $679.5M (Department of Defense)
- 200611!007847!2100!w15p7t!usa Communications-Electronics !daab0703db009 !A!N! !Y!0243 ! !20060831!20110129!068514251!805258373!834951691!n!lockheed Martin Integrated SYS!1800 Route 34 !wall !nj!07719!76460!025!34!wall (township OF) !monmouth !NEW Jersey!+000077463827!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $448.3M (Department of Defense)
- ISS Cargo Mission Contract (CMC) — $406.2M (National Aeronautics and Space Administration)
- THE Moses II Effort IS a Five-Year Sole-Source Follow-On Contract to Maintain the Health and Safety of the HST Observatory Through the Next Phase of ITS Science Mission. the Scope of This Follow-On Effort Includes Conducting ALL Elements of HST Operations Other Than Science Operations, and to Perform Systems Engineering Tasks Required to Properly Maintain HST Flight and Ground Systems.mission Operations Responsibilities Include Safe and Efficient Control and Utilization of the HST Observatory, Maintenance and Operation of Hst-Unique Facilities and Equipment, AS Well AS Creation, Maintenance, and Utilization of HST Operations Processes and Procedures. Critical Systems Engineering Responsibilities Consist of Optimizing Mission System Capabilities to Maximize HST Operations Effectiveness and Science Productivity. Essential Management Requirements Include Providing a Technical Staff Possessing In-Depth Knowledge of HST S Varied, Complex, and Unique Flight and Ground Systems, Ensuring Successful Accomplishment of the Diverse Tasks Necessary to Effectively Conduct HST Mission Operations and Systems Engineering AS Well AS to Manage and Report Contract Element Cost and Schedule Performance — $360.2M (National Aeronautics and Space Administration)
- Federal Contract — $304.3M (Department of Defense)
View all Lockheed Martin Integrated Systems, LLC federal contracts →
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)