DoD Awards $52.6M for ICS to Lockheed Martin, Raising Cost Concerns
Contract Overview
Contract Amount: $52,623,683 ($52.6M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2015-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ICS- INTERIM CONTRACTOR SUPPORT
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $52.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ICS- INTERIM CONTRACTOR SUPPORT Key points: 1. Significant contract value of $52.6M awarded to a single large business. 2. Limited competition noted, potentially impacting price discovery. 3. Long contract duration (2009-2015) may warrant review for cost efficiency. 4. Aircraft Manufacturing sector spending benchmark needs further analysis.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which offers less incentive for cost control. Without a clear benchmark or comparison, assessing the value for money is difficult, especially given the long duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as full and open competition, the award went to a single entity. The impact on price discovery is unclear without knowing the number of bids received and their pricing.
Taxpayer Impact: The $52.6M expenditure represents taxpayer funds. Without strong cost controls or competitive pricing, there's a risk of overspending.
Public Impact
Taxpayers funded a significant contract for interim contractor support. The duration of the contract suggests a long-term need for these services. The specific nature of 'ICS' and its impact on aircraft manufacturing is not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus No Fee contract type
- Long contract duration
- No small business participation
- Lack of clear pricing benchmarks
Positive Signals
- Awarded under full and open competition
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which often involves complex and high-value procurements. Benchmarking this cost against similar support contracts in the defense industry is crucial for assessing value.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that opportunities for small businesses in this specific procurement were either not pursued or not feasible.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight would involve reviewing performance reports and any cost audits conducted during the contract's lifecycle.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus No Fee contract type
- Long contract duration (6 years)
- No small business participation
- Potential for cost overruns
- Lack of detailed performance metrics
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ICS- INTERIM CONTRACTOR SUPPORT
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 $52.6 million.
What is the period of performance?
Start: 2009-09-30. End: 2015-03-31.
What was the justification for the 'Cost No Fee' contract type, and how did it impact cost control?
The 'Cost No Fee' (CPFF) contract type is typically used when the scope of work is uncertain or involves research and development. While it allows flexibility, it places the burden of cost control entirely on the government. Without a fee, the contractor has less direct financial incentive to minimize costs, potentially leading to higher overall expenditures if not rigorously managed and audited.
Given the full and open competition, why did only one entity, Lockheed Martin, receive the award?
While advertised as full and open, the award to a single entity suggests that either only one bid was received, or Lockheed Martin was the only one that met all the stringent technical and qualification requirements. This could indicate a highly specialized service or a lack of market interest from other potential bidders, impacting the government's leverage in price negotiations.
How does the $52.6M cost compare to industry benchmarks for interim contractor support in aircraft manufacturing over a six-year period?
Without specific details on the services provided, a direct benchmark is challenging. However, $52.6M over six years ($8.77M annually) for interim support in a specialized sector like aircraft manufacturing warrants scrutiny. Comparing this to similar contracts, considering inflation, scope, and duration, is essential to determine if the cost was reasonable and represented good value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $52,623,683
Exercised Options: $52,623,683
Current Obligation: $52,623,683
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853008D0008
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2017-01-09
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