DoD's $183.7M Facilities Support Contract Awarded to Lockheed Martin for Field Level Readiness
Contract Overview
Contract Amount: $183,725,370 ($183.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-11-16
End Date: 2013-04-30
Contract Duration: 1,992 days
Daily Burn Rate: $92.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FIELD LEVEL READINESS SUPPORT FT. STEWART, GA
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30310
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $183.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: FIELD LEVEL READINESS SUPPORT FT. STEWART, GA Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of 1992 days (approx. 5.5 years) indicates a long-term need for these services. 3. The cost-plus-fixed-fee (CPFF) pricing structure may incentivize cost overruns if not closely monitored. 4. Services provided are critical for maintaining military readiness at a key installation. 5. The award to a large, established defense contractor like Lockheed Martin is typical for complex support services. 6. The contract's value places it in the upper tier of facilities support service awards.
Value Assessment
Rating: good
The contract value of $183.7 million over approximately 5.5 years suggests a significant investment in facilities support. Benchmarking this against similar large-scale base operations and support contracts within the Department of Defense is crucial. While specific per-unit costs are not provided, the CPFF structure warrants scrutiny to ensure costs remain reasonable and aligned with the fixed fee. The scale of the award implies a comprehensive scope of services, aiming for value through consolidated support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bidders (no) suggests a competitive landscape, though the exact number of proposals received and their quality would provide a clearer picture of the competitive intensity. Full and open competition generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives the best value for its investment in facilities support services.
Public Impact
Military personnel and their families at Fort Stewart, Georgia, benefit from well-maintained facilities, directly impacting morale and operational effectiveness. The contract ensures the provision of essential facilities support services, including maintenance, repair, and potentially other base operations. The geographic impact is concentrated at Fort Stewart, Georgia, a significant Army installation. The contract likely supports a substantial workforce, including direct employees of Lockheed Martin and potentially subcontractors, contributing to the local economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee (CPFF) contract type can lead to cost escalations if not managed diligently.
- The long contract duration may reduce flexibility to adapt to changing requirements or adopt new technologies.
- Reliance on a single large contractor for critical base support could pose risks if performance issues arise.
Positive Signals
- Awarded through full and open competition, indicating a competitive market and potential for value.
- The contractor, Lockheed Martin, is a large, experienced defense contractor with a track record in complex support services.
- The contract addresses a critical need for readiness support at a major military installation.
Sector Analysis
Facilities support services represent a significant segment within the broader defense contracting industry. This contract falls under the category of base operations support (BOS), which encompasses a wide range of services necessary for the functioning of military installations. The market for BOS is typically dominated by large, established defense contractors due to the scale and complexity of requirements. Spending benchmarks for similar BOS contracts can vary widely based on installation size, scope of services, and geographic location, but contracts in the hundreds of millions of dollars are common for major installations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Large-scale facilities support contracts often involve significant subcontracting opportunities. While this specific award doesn't directly benefit small businesses through a set-aside, the prime contractor may engage small businesses for specialized services, contributing to the small business ecosystem. However, the primary focus of this award is on a large prime contractor's capabilities.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices at Fort Stewart. The CPFF structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Performance metrics and quality assurance surveillance plans (QASPs) would be in place to monitor service delivery. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Base Operations Support (BOS)
- Facilities Maintenance and Repair
- Logistics and Support Services
- Department of Defense Installation Services
Risk Flags
- Cost-plus-fixed-fee contract type
- Long contract duration
- Potential for cost overruns without strict oversight
Tags
defense, department-of-defense, department-of-the-army, facilities-support-services, full-and-open-competition, cost-plus-fixed-fee, lockheed-martin, fort-stewart, georgia, base-operations-support, readiness-support, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $183.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. FIELD LEVEL READINESS SUPPORT FT. STEWART, GA
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $183.7 million.
What is the period of performance?
Start: 2007-11-16. End: 2013-04-30.
What is the historical spending trend for facilities support services at Fort Stewart, Georgia, prior to this award?
Analyzing historical spending data for facilities support at Fort Stewart prior to November 2007 is essential for context. This $183.7 million contract, awarded in late 2007 and ending in April 2013, represents a significant investment over its ~5.5-year duration. Without specific prior contract data, it's difficult to establish a precise trend. However, the scale of this award suggests a sustained and substantial requirement for these services. Comparing this contract's total value to the sum of previous contracts for similar services at the installation would reveal whether spending increased, decreased, or remained relatively stable. Understanding this historical context helps assess if the current award represents a new baseline, an expansion of services, or a consolidation of previously fragmented support contracts.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support contracts?
Determining the precise per-unit cost for this contract is challenging without a detailed breakdown of services and their associated quantities. The contract type, Cost Plus Fixed Fee (CPFF), means that costs are reimbursed plus a fixed fee, making direct per-unit cost comparisons difficult without access to the contractor's detailed cost proposals and performance data. However, we can infer potential value by comparing the overall contract value ($183.7M) against the duration (~5.5 years) and the scope implied by 'Field Level Readiness Support' at a major installation like Fort Stewart. Industry benchmarks for Base Operations Support (BOS) contracts vary significantly based on factors like geographic location, scope (e.g., housing, maintenance, security, utilities), and service levels. Generally, contracts of this magnitude for large installations are expected to yield economies of scale. A thorough analysis would require comparing the cost per square foot maintained, cost per service request fulfilled, or cost per military personnel supported against similar contracts awarded by the DoD or other federal agencies in comparable regions.
What are the key performance indicators (KPIs) used to measure the success of this facilities support contract?
While the specific Key Performance Indicators (KPIs) for this particular contract are not detailed in the provided data, typical KPIs for large-scale facilities support contracts within the Department of Defense focus on reliability, responsiveness, and quality. Common metrics include response times for work orders (e.g., emergency, routine maintenance), completion rates for scheduled maintenance, facility condition assessments, energy consumption efficiency, and customer satisfaction surveys (often from base personnel). For a contract focused on 'Field Level Readiness Support,' KPIs would likely emphasize minimizing downtime for critical infrastructure, ensuring safety standards are met, and maintaining operational readiness of facilities. The effectiveness of the contractor's management and technical approach would be evaluated against these predefined metrics, often tied to performance incentives or penalties within the contract.
What is Lockheed Martin's track record with similar large-scale facilities support contracts for the Department of Defense?
Lockheed Martin Integrated Systems, LLC, as a major defense contractor, has a substantial track record in managing complex support services, including facilities operations and maintenance, for the Department of Defense. While this specific contract is for Fort Stewart, the company has likely managed similar large, multi-faceted support programs at other military installations. Their experience typically encompasses a wide range of services such as infrastructure maintenance, logistics, IT support, and sometimes even personnel services. Evaluating their performance on this contract would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any significant contract disputes or claims, and their ability to meet performance requirements and manage costs effectively across their portfolio of support contracts. Their established presence suggests they possess the organizational capacity and expertise required for such demanding roles.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for facilities support, and how are they mitigated?
Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Lockheed Martin for Fort Stewart, carry inherent risks, primarily the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the final cost. Mitigation strategies employed by the government typically include robust cost monitoring and control systems, detailed audits of contractor expenditures, and clearly defined contract terms regarding allowable costs. Strong program management oversight is crucial to ensure the contractor is operating efficiently and that costs are reasonable and allocable. Furthermore, the government often includes clauses that allow for negotiation or adjustment of the fixed fee under specific circumstances, or performance-based incentives that tie a portion of the fee to achieving certain outcomes, thereby aligning contractor and government interests more closely.
How does the geographic location (Fort Stewart, Georgia) influence the cost and scope of this facilities support contract?
The geographic location of Fort Stewart, Georgia, significantly influences the cost and scope of this facilities support contract. Labor costs in Georgia, while potentially lower than in high-cost coastal areas, still factor into the overall expense. The climate in Georgia, characterized by hot, humid summers and mild winters, necessitates specific maintenance strategies for infrastructure, HVAC systems, and groundskeeping, impacting the scope of services required. Furthermore, the logistical challenges of operating at a large installation in a specific region, including access to materials, specialized labor, and transportation, contribute to the contract's overall cost structure. The scope is tailored to the specific needs of an Army installation focused on field-level readiness, implying a focus on training areas, barracks, maintenance facilities, and associated infrastructure critical for deploying forces.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W911SE06R0013
Offers Received: 2
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
Financial Breakdown
Contract Ceiling: $1,075,005,465
Exercised Options: $902,760,060
Current Obligation: $183,725,370
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911SE07D0039
IDV Type: IDC
Timeline
Start Date: 2007-11-16
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2017-09-29
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