Lockheed Martin Services awarded $46.5M for engineering services to the Army Science and Technology Board

Contract Overview

Contract Amount: $46,492,811 ($46.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2006-08-14

End Date: 2012-09-30

Contract Duration: 2,239 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BOARD OF ARMY SCIENCE AND TECHNOLOGY

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $46.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: BOARD OF ARMY SCIENCE AND TECHNOLOGY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2239 days indicates a long-term need for these engineering services. 3. The firm-fixed-price contract type generally shifts risk to the contractor. 4. The contract was awarded by the Department of Defense, a major federal spender. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was managed by the Defense Contract Management Agency. 7. No small business set-aside was indicated for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this $46.5 million contract for engineering services is challenging without specific deliverables or performance metrics. However, the duration of over six years suggests a sustained need. Comparing the per-diem rate or total cost against similar long-term, complex engineering support contracts within the Department of Defense would be necessary for a more precise value assessment. The firm-fixed-price structure implies that the contractor is responsible for managing costs to meet the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, but the specific details of the bidding process and the qualifications of the bidders are not provided here.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary of this contract is the Army Science and Technology Board, which receives critical engineering support. The services delivered are engineering support, likely contributing to research, development, and technological advancement within the Army. The geographic impact is primarily centered around the contractor's operations and the Army facilities they support, with Maryland noted as the state of award. The contract supports a specialized workforce of engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the engineering services provided.
The significant dollar amount and long duration warrant close monitoring to ensure continued alignment with Army's strategic objectives.
Potential for scope creep or cost overruns if not managed diligently, despite the firm-fixed-price structure.

Positive Signals

Awarded through full and open competition, indicating a potentially robust selection process.
Firm-fixed-price contract type generally provides cost certainty for the government.
Long contract duration suggests a stable and ongoing requirement, potentially leading to efficiencies through contractor expertise.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports government research and development initiatives. The total federal spending on engineering services is substantial, with the Department of Defense being a primary consumer. This specific contract represents a portion of that spending, focused on supporting advanced scientific and technological endeavors for the Army.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely too large or specialized for small business capabilities, or that the competition was opened broadly. Consequently, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Lockheed Martin Services, LLC, may engage small businesses as subcontractors, but this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract shifts some cost risk to the contractor, but the government retains oversight of technical performance and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Army Research and Development Programs
Department of Defense Engineering Support Contracts
Scientific and Technical Services Contracts
Lockheed Martin Services Contracts

Risk Flags

Long-term contract duration requires sustained oversight.
Firm-fixed-price contracts can pose risks if not managed carefully.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 million to LOCKHEED MARTIN SERVICES, LLC. BOARD OF ARMY SCIENCE AND TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, 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 $46.5 million.

What is the period of performance?

Start: 2006-08-14. End: 2012-09-30.

What specific types of engineering services were provided under this contract?

The contract specifies 'Engineering Services' under NAICS code 541330. While the exact nature of these services is not detailed in the provided data, engineering services in this context typically encompass a broad range of activities. These could include research and development support, systems engineering, design and analysis, technical consulting, program management support, and lifecycle engineering for various Army projects and technologies. Given the 'BOARD OF ARMY SCIENCE AND TECHNOLOGY' as the recipient, the services likely focus on advancing scientific knowledge and developing new technological capabilities for military applications, potentially involving areas like advanced materials, propulsion, electronics, or cybersecurity.

How does the $46.5 million award compare to other engineering services contracts awarded by the Department of Defense?

The $46.5 million award for Lockheed Martin Services, LLC, for engineering support to the Army Science and Technology Board is a significant but not exceptionally large contract within the Department of Defense's vast procurement landscape. The DoD awards billions annually in engineering and technical services. Contracts of this magnitude are common for long-term support of major programs or research initiatives. To provide a precise comparison, one would need to analyze the specific scope of work, duration, and type of engineering services. However, it falls within the typical range for substantial, multi-year engineering support engagements for a major defense entity.

What are the primary risks associated with a firm-fixed-price contract of this duration?

The primary risks associated with a firm-fixed-price contract of this duration (over six years) include potential cost growth for the contractor if their initial cost estimates are inaccurate or if unforeseen challenges arise, which could lead to reduced profit margins or even losses. For the government, the risk lies in the contractor potentially cutting corners on quality or performance to maintain profitability if not adequately monitored, or the possibility that the fixed price may become uncompetitive over time if market rates decrease significantly. Additionally, defining and managing the scope of work over such an extended period can be challenging, increasing the risk of disputes or change orders if not meticulously managed.

What is the track record of Lockheed Martin Services, LLC in performing similar government contracts?

Lockheed Martin Services, LLC, as a subsidiary of Lockheed Martin Corporation, has an extensive track record of performing a wide array of complex services and defense-related contracts for the U.S. government, including the Department of Defense. They are a major defense contractor with significant experience in areas such as systems integration, logistics, technical support, and information technology. While specific performance details for this particular $46.5 million contract are not provided, the company's overall history suggests a capability to manage large-scale, long-term engagements. Government contract performance databases (like FPDS or SAM.gov) would offer more granular data on past performance ratings, past performance issues, and contract awards for this entity.

How does the competition level (4 bidders) impact the value received by the government?

A competition with four bidders generally indicates a healthy level of interest and a reasonable degree of competition. This number suggests that multiple companies found the opportunity attractive and believed they could offer a competitive solution. While more bidders could potentially drive prices lower, four is often considered a sufficient number to foster price discovery and encourage bidders to offer their best terms. The government benefits from having options and the ability to select the best value proposal, balancing price, technical merit, and past performance. However, the true impact on value also depends on the specific capabilities and pricing strategies of those four bidders.

What are the implications of the 'st': 'MD' (Maryland) designation for this contract?

The 'st': 'MD' designation indicates that the state of Maryland is associated with this contract award. This could mean several things: the contracting office is located in Maryland, the primary place of performance for the services is in Maryland, or the contractor's facility relevant to this award is in Maryland. Given that Lockheed Martin Services, LLC is a large defense contractor with significant operations in Maryland, it is highly probable that the contract performance or a key administrative function is based within the state. This has implications for local economic impact, workforce development, and potentially the geographic distribution of federal spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 2339 ROUTE 70 WEST, FLOOR, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,367,805

Exercised Options: $46,492,811

Current Obligation: $46,492,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6133905D6009

IDV Type: IDC

Timeline