Lockheed Martin Awarded $192M for C2BMC Systems Operations and Maintenance by Missile Defense Agency
Contract Overview
Contract Amount: $192,106,879 ($192.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-01-01
End Date: 2013-12-31
Contract Duration: 730 days
Daily Burn Rate: $263.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE OPERATIONS, MAINTENANCE AND SUSTAINMENT TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES. THE CONTRACTOR SHALL SUPPORT THE MISSILE DEFENSE AGENCY (MDA), C2BMC PROGRAM OFFICE IN ACHIEVING WARFIGHTER (WF) INTEGRATION ACROSS THE ENTIRE CAPABILITY DEVELOPMENT PROCESS FOR EACH SPIRAL. THE CONTRACTOR SHALL PERFORM SYSTEM DEPLOYMENT ACTIVITIES, INSTALLATION, CHECKOUT AND ACTIVATION OF DEPLOYED C2BMC HARDWARE (HW) AND SOFTWARE (SW), FOR EXPANDING CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) LOCATIONS AND COMBATANT COMMANDS (COCOMS).
Place of Performance
Location: NORTH POTOMAC, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $192.1 million to LOCKHEED MARTIN CORPORATION for work described as: THE CONTRACTOR SHALL PROVIDE OPERATIONS, MAINTENANCE AND SUSTAINMENT TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES. THE CONTRACTOR SHALL SUPPORT THE MISSIL… Key points: 1. Contract focuses on critical Command and Control, Battle Management, and Communications (C2BMC) systems for ballistic missile defense. 2. High value contract ($192M) awarded to a single, large defense contractor, Lockheed Martin. 3. Potential risk associated with sole-source or limited competition for specialized defense systems. 4. Spending falls within the IT sector, specifically Custom Computer Programming Services.
Value Assessment
Rating: questionable
The contract value of $192M over two years for specialized C2BMC systems operations and maintenance appears substantial. Benchmarking against similar complex defense system sustainment contracts is difficult without more detailed cost breakdowns, but the Cost Plus Fixed Fee (CPFF) structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited or sole-source award. This approach is common for highly specialized defense systems where only a few contractors possess the necessary expertise and security clearances. However, it limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may lead to higher costs for taxpayers compared to a fully competed contract, though the critical nature of the C2BMC system may justify the approach.
Public Impact
Ensures continued operational readiness of the Ballistic Missile Defense System's C2BMC component. Supports warfighter integration across the capability development process for missile defense. Involves deployment, installation, and activation of C2BMC hardware and software globally. Funds critical IT services for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Critical national security system
Positive Signals
- Supports vital missile defense capabilities
- Experienced contractor
- Global operational support
Sector Analysis
This contract falls under the Information Technology sector, specifically Custom Computer Programming Services. Spending on defense IT systems, particularly for command and control and battle management, is a significant portion of the federal IT budget, often characterized by high complexity and specialized requirements.
Small Business Impact
The contract data indicates that small business participation was not a factor (ss: false, sb: false). This is typical for large, complex defense system contracts awarded to prime contractors like Lockheed Martin, where subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award data.
Oversight & Accountability
The Missile Defense Agency (MDA) is responsible for overseeing this contract. The CPFF contract type requires diligent oversight to manage costs and ensure performance objectives are met. The lack of competition necessitates robust government oversight to ensure fair pricing and effective service delivery.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Cost Plus Fixed Fee contract type can incentivize overspending.
- Reliance on a single contractor for critical systems.
- Potential for vendor lock-in.
- Complexity of C2BMC systems requires significant oversight.
Tags
custom-computer-programming-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $192.1 million to LOCKHEED MARTIN CORPORATION. THE CONTRACTOR SHALL PROVIDE OPERATIONS, MAINTENANCE AND SUSTAINMENT TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES. THE CONTRACTOR SHALL SUPPORT THE MISSILE DEFENSE AGENCY (MDA), C2BMC PROGRAM OFFICE IN ACHIEVING WARFIGHTER (WF) INTEGRATION ACROSS THE ENTIRE CAPABILITY DEVELOPMENT PROCESS FOR EACH SPIRAL. THE CONTRACTOR SHALL PERFORM SYSTEM DEPLOYMENT ACTIVITIES, INSTALLAT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $192.1 million.
What is the period of performance?
Start: 2012-01-01. End: 2013-12-31.
What specific cost efficiencies or value-added services does Lockheed Martin provide under this CPFF contract that justify the lack of competition and the overall cost?
Without detailed cost breakdowns and performance metrics, it's challenging to assess the specific value. However, CPFF contracts often rely on the contractor's demonstrated expertise and historical performance on similar systems. The MDA would need to ensure Lockheed Martin's proposed fixed fee and cost projections are reasonable and that ongoing performance reviews validate the value delivered against the operational and test objectives for the C2BMC systems.
What are the primary risks associated with a limited competition, CPFF contract for a critical national security system like C2BMC?
The primary risks include potential cost overruns due to the CPFF structure, which incentivizes spending rather than cost savings. Limited competition reduces price pressure, potentially leading to higher costs than a fully competed contract. Furthermore, reliance on a single contractor for critical sustainment can create vendor lock-in and pose risks if performance degrades or if the contractor faces financial or operational challenges.
How effectively does this contract support the warfighter integration and operational readiness objectives of the Missile Defense Agency?
The contract explicitly states support for warfighter integration and meeting operational/test objectives. The effectiveness hinges on Lockheed Martin's ability to deliver seamless C2BMC system operations, maintenance, and sustainment, including timely deployment and activation globally. Success would be measured by the system's reliability, responsiveness, and its contribution to the overall effectiveness of the Ballistic Missile Defense System in supporting warfighter needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014711R0003
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20878
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: $201,130,795
Exercised Options: $201,130,795
Current Obligation: $192,106,879
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ014712D0003
IDV Type: IDC
Timeline
Start Date: 2012-01-01
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2020-02-18
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