DoD awards $68M to Lockheed Martin for C2BMC system operations and maintenance
Contract Overview
Contract Amount: $68,144,989 ($68.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-01-01
End Date: 2015-12-15
Contract Duration: 713 days
Daily Burn Rate: $95.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: IGF::OT::IGF THE CONTRACTOR WILL PROVIDE OPERATIONS, MAINTENANCE AND INFORMATION ASSURANCE TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $68.1 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THE CONTRACTOR WILL PROVIDE OPERATIONS, MAINTENANCE AND INFORMATION ASSURANCE TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES. Key points: 1. Contract supports critical Ballistic Missile Defense (BMD) operational and test objectives. 2. Lockheed Martin Corporation is the sole awardee. 3. The contract is for custom computer programming services. 4. Fixed Price Incentive contract type with a duration of 713 days.
Value Assessment
Rating: good
The contract value of $68.14M for a 713-day period appears reasonable for specialized IT operations and maintenance services supporting a complex defense system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are used for a critical defense system, but the lack of competition warrants scrutiny to ensure fair pricing.
Public Impact
Ensures continued operation of the Command and Control, Battle Management, and Communications (C2BMC) systems. Supports U.S. ballistic missile defense capabilities. Maintains information assurance for a vital defense network.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns due to fixed-price incentive structure.
Positive Signals
- Supports critical national security objectives.
- Experienced contractor with a history of performance.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Defense IT contracts often involve high complexity and specialized requirements, leading to significant investment.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA). The sole-source nature of the award necessitates robust oversight to ensure value for money.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Complexity of C2BMC systems
Tags
custom-computer-programming-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.1 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THE CONTRACTOR WILL PROVIDE OPERATIONS, MAINTENANCE AND INFORMATION ASSURANCE TO THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SYSTEMS, TO MEET THE GOVERNMENT S BALLISTIC MISSILE DEFENSE (BMD) OPERATIONAL AND TEST OBJECTIVES.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $68.1 million.
What is the period of performance?
Start: 2014-01-01. End: 2015-12-15.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or critical national security needs that only one contractor can meet. Agencies must conduct thorough market research and price analyses to ensure the negotiated price is fair and reasonable, even without competition. This might include reviewing historical pricing, using cost-plus-incentive-fee structures, or independent government cost estimates.
What are the potential risks associated with the fixed-price incentive contract type for this complex system?
Fixed-price incentive contracts aim to share risk between the government and contractor. However, for complex IT systems like C2BMC, unforeseen technical challenges or scope creep can lead to cost overruns. The incentive structure needs careful monitoring to ensure it effectively motivates performance without incentivizing excessive spending or compromising quality.
How does the performance of Lockheed Martin on this contract align with broader government IT modernization goals?
The effectiveness of this contract in supporting IT modernization depends on whether the operations and maintenance provided by Lockheed Martin enable future upgrades and integration. If the services maintain legacy systems without paving the way for modernization, it could hinder long-term goals. Performance metrics and future contract planning are key to assessing this alignment.
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: FIXED PRICE INCENTIVE (L)
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: $83,084,673
Exercised Options: $83,084,673
Current Obligation: $68,144,989
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: 2015-12-15
Potential End Date: 2015-12-15 00:00:00
Last Modified: 2025-04-26
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