Missile Defense Agency awards $238M C2BMC program management task order to Lockheed Martin
Contract Overview
Contract Amount: $237,969,607 ($238.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-01-01
End Date: 2019-12-06
Contract Duration: 2,165 days
Daily Burn Rate: $109.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF THIS TASK ORDER IS ISSUED AGAINST IDIQ CONTRACT HQ0147-12-D-0003 FOR THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS SYSTEM (C2BMC) FOR THE MISSILE DEFENSE AGENCY'S BALLISTIC MISSILE DEFENSE SYSTEM. THIS TASK ORDER COVERS THE PROGRAM MANAGEMENT OFFICE ACTIVITIES FOR THE C2BMC PROGRAM.
Place of Performance
Location: NORTH POTOMAC, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $238.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THIS TASK ORDER IS ISSUED AGAINST IDIQ CONTRACT HQ0147-12-D-0003 FOR THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS SYSTEM (C2BMC) FOR THE MISSILE DEFENSE AGENCY'S BALLISTIC MISSILE DEFENSE SYSTEM. THIS TASK ORDER COVERS THE PROGRAM MANAGEMENT OFFICE A… Key points: 1. The task order focuses on program management for the Command and Control, Battle Management and Communications (C2BMC) system. 2. Lockheed Martin is the sole awardee, indicating a lack of competition for this specific task order. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. This spending falls under the IT sector, specifically custom computer programming services.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure, while common for complex programs, necessitates robust oversight to ensure fair pricing and prevent cost overruns. Benchmarking against similar program management contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, likely due to the specialized nature of the C2BMC program and the incumbent's established role. The lack of competition limits price discovery and potentially leads to higher costs.
Taxpayer Impact: The significant award amount of $238 million represents a substantial taxpayer investment in a critical defense system, with the absence of competition raising concerns about value for money.
Public Impact
Supports the Ballistic Missile Defense System, a critical national security asset. Ensures continued program management for a complex and vital communication system. Potential for cost efficiencies through performance incentives under the award fee structure. Lack of competition may limit innovation and cost savings for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Lack of transparency in cost breakdown
Positive Signals
- Supports critical national security infrastructure
- Experienced contractor in Lockheed Martin
Sector Analysis
This spending is within the Information Technology sector, specifically custom computer programming services. Defense IT contracts, especially for complex systems like C2BMC, often involve significant investment and long-term commitments.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific task order.
Oversight & Accountability
The Cost Plus Award Fee structure requires diligent oversight from the Missile Defense Agency to ensure that award fees are justified by performance and that costs remain reasonable. Regular audits and performance reviews are crucial.
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 Award Fee contracts require strong oversight to prevent overspending.
- Potential for contractor lock-in due to specialized system knowledge.
- Limited transparency on specific cost drivers for program management activities.
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 $238.0 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THIS TASK ORDER IS ISSUED AGAINST IDIQ CONTRACT HQ0147-12-D-0003 FOR THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS SYSTEM (C2BMC) FOR THE MISSILE DEFENSE AGENCY'S BALLISTIC MISSILE DEFENSE SYSTEM. THIS TASK ORDER COVERS THE PROGRAM MANAGEMENT OFFICE ACTIVITIES FOR THE C2BMC PROGRAM.
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 $238.0 million.
What is the period of performance?
Start: 2014-01-01. End: 2019-12-06.
What specific program management activities are covered under this task order, and how do they contribute to the overall C2BMC system's effectiveness?
This task order covers program management office activities for the C2BMC program. These activities likely include planning, execution, monitoring, and control of the program's technical, schedule, and cost aspects. Effective program management is crucial for ensuring the C2BMC system meets its operational requirements, integrates with other BMDS components, and stays within budget and schedule.
Given the sole-source nature of this award, what mechanisms are in place to ensure Lockheed Martin is providing services at a fair and reasonable price?
While the contract is sole-source, the Cost Plus Award Fee (CPAF) structure includes performance incentives. The agency must rigorously evaluate Lockheed Martin's performance against defined criteria to determine award fees. Additionally, cost realism analyses and audits are essential to verify that the costs incurred are reasonable and allowable under the contract terms.
How does the C2BMC program management, funded by this task order, contribute to the overall effectiveness and readiness of the Ballistic Missile Defense System?
Effective program management ensures the C2BMC system is developed, integrated, and maintained to meet the stringent requirements of the Ballistic Missile Defense System. This includes coordinating complex technical efforts, managing interfaces with other system elements, and ensuring the system's operational readiness to detect, track, and engage ballistic missile threats, thereby enhancing national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014711R0003
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $246,103,594
Exercised Options: $246,103,594
Current Obligation: $237,969,607
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ014712D0003
IDV Type: IDC
Timeline
Start Date: 2014-01-01
Current End Date: 2019-12-06
Potential End Date: 2019-12-06 00:00:00
Last Modified: 2025-07-23
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