DoD Spends $20.2M on Lockheed Martin Training, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $20,197,706 ($20.2M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Defense
Start Date: 2012-06-29
End Date: 2015-12-31
Contract Duration: 1,280 days
Daily Burn Rate: $15.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DIRECT LABOR
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DIRECT LABOR Key points: 1. Significant investment in professional development training by the Department of the Army. 2. Lockheed Martin Services, LLC secured the contract, indicating established capabilities in this sector. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The Cost Plus Fixed Fee pricing structure requires careful monitoring of costs to ensure value.
Value Assessment
Rating: good
The $20.2 million contract for professional development training appears reasonable given the provider and scope. Benchmarking against similar large-scale training contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded through full and open competition, this method likely fostered competitive pricing. The fixed fee component provides some cost control, but the 'cost plus' element necessitates oversight.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary training services.
Public Impact
Enhances skills for military personnel, potentially improving operational effectiveness. Supports the professional growth of civilian employees within the Department of the Army. Contributes to the readiness and capability of the armed forces through specialized training.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Ensuring training directly translates to measurable performance improvements.
- Long-term relevance of training content in a rapidly evolving environment.
Positive Signals
- Awarded via full and open competition, promoting fairness.
- Experienced contractor with a strong track record.
- Clear objective of enhancing professional development.
Sector Analysis
This contract falls within the professional and management development training sector, a common area of government spending to enhance workforce capabilities. Benchmarks for similar training contracts vary widely based on scope and duration.
Small Business Impact
The contract was awarded to Lockheed Martin Services, LLC, a large business. There is no indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight to manage costs and ensure the fixed fee remains appropriate. The Department of the Army's contracting officers are responsible for monitoring performance and expenditures.
Related Government Programs
- Professional and Management Development Training
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost control challenges inherent in CPFF contracts.
- Potential for scope creep without diligent oversight.
- Ensuring training remains current and relevant.
- Measuring the direct impact on operational effectiveness.
Tags
professional-and-management-development-, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to LOCKHEED MARTIN SERVICES, LLC. DIRECT LABOR
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.2 million.
What is the period of performance?
Start: 2012-06-29. End: 2015-12-31.
How effectively does the training provided by Lockheed Martin Services, LLC translate into measurable improvements in job performance and mission readiness for Department of the Army personnel?
Assessing the effectiveness requires specific metrics beyond contract completion. This could include post-training performance evaluations, feedback from supervisors, and tracking of key performance indicators relevant to the trained skills. Without such data, the direct impact on mission readiness remains an assumption, though the intent of professional development is clear.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this professional development training, and how are they being mitigated?
The primary risk with CPFF is that the contractor may not be sufficiently incentivized to control costs, potentially leading to expenditures exceeding initial estimates, even with a fixed fee. Mitigation involves stringent oversight, detailed cost reviews, and clear performance standards. The government must actively manage the scope and ensure all costs are reasonable and allocable to the contract.
Given the $20.2 million investment, what is the anticipated return on investment in terms of enhanced workforce capabilities and long-term cost savings for the Department of the Army?
The ROI is projected through improved efficiency, reduced errors, better decision-making, and potentially lower turnover due to professional growth opportunities. Quantifying this precisely is challenging but can be estimated by comparing the cost of training against the potential cost of errors, rework, or the need for more extensive remedial training later. The long-term benefit is a more skilled and adaptable workforce.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911W412R0002
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, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,736,949
Exercised Options: $20,736,949
Current Obligation: $20,197,706
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $7,253,105
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911W412D0013
IDV Type: IDC
Timeline
Start Date: 2012-06-29
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2018-08-30
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