DoD's $148M contract for equipment repair awarded to Lockheed Martin Services, Inc. shows potential value concerns

Contract Overview

Contract Amount: $14,798,227 ($14.8M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2000-09-13

End Date: 2001-09-30

Contract Duration: 382 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200012!2100!002295!SC01 !HQ USAINSCOM, DIR OF CONTRACTING!DASC0100D0007 !A!*!0011 !20000913!20010930!113168686!805258373!834951691!N!08YH6!LOCKHEED MARTIN SERVICES, INC.!1309 MOFFETT PARK DR !SUNNYVALE !CA!94089!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !0001!+000008705346!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!5!A!S!C!B!A!*!A !U!Y!2!002!B!* !C!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!A!N!*!*!*!*!*!

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200012!2100!002295!SC01 !HQ USAINSCOM, DIR OF CONTRACTING!DASC0100D0007 !A!*!0011 !20000913!20010930!113168686!805258373!834951691!N!08YH6!LOCKHEED MARTIN SERVICES, INC.!1309 MOFFETT PARK DR !SUNNYVALE !CA!94089!29008!059!51!FORT BELVOIR !FAI… Key points: 1. The contract's value of $148 million over approximately 1.2 years raises questions about cost-effectiveness. 2. Awarded under full and open competition, the pricing and value for money require deeper scrutiny. 3. The contractor, Lockheed Martin Services, Inc., has a significant presence in defense contracting. 4. The contract's performance period of just over a year limits long-term performance assessment. 5. This contract falls within the broader category of IT and defense support services. 6. The lack of specific performance metrics makes it difficult to gauge true value. 7. The contract type (Time and Materials) can sometimes lead to cost overruns if not managed tightly.

Value Assessment

Rating: fair

The total award amount of $147,982,26.73 for maintenance and repair of electronic and communication equipment appears substantial for a period of roughly 1.2 years. Benchmarking against similar contracts for similar services is crucial to determine if this represents a fair market price. Without detailed breakdowns of labor hours, rates, and material costs, it is difficult to definitively assess value for money. The Time and Materials contract type, while flexible, can pose a risk for cost control compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of multiple bidders generally promotes price discovery and can lead to more competitive pricing. However, the specific number of bids received and the details of the bidding process are not provided, which limits a full assessment of the competition's effectiveness in securing the best value.

Taxpayer Impact: The full and open competition suggests that taxpayers benefited from a potentially competitive bidding process, which should theoretically drive down costs and improve service quality.

Public Impact

The primary beneficiaries are likely components of the Department of Defense requiring maintenance and repair for electronic and communication equipment. The services delivered include the maintenance and repair of various types of electronic and communication equipment. The geographic impact is centered around Fort Belvoir, Virginia, where the contract was administered. Workforce implications may include the employment of skilled technicians and support staff by Lockheed Martin Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to uncontrolled costs if not closely monitored.
Limited contract duration (approx. 1.2 years) may not reflect long-term sustainment needs or costs.
Lack of specific performance metrics makes it hard to evaluate contractor efficiency and effectiveness.
The sheer scale of the award warrants close examination of the underlying cost drivers.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor, Lockheed Martin Services, Inc., is a well-established entity in the defense sector.
Contract is for essential maintenance and repair services, critical for operational readiness.

Sector Analysis

This contract falls within the broader defense services sector, specifically focusing on the maintenance and repair of electronic and communication equipment. The market for such services is substantial within the Department of Defense, driven by the need to maintain complex and often aging technological assets. Comparable spending benchmarks would involve analyzing other contracts for similar repair and maintenance services across different military branches and defense agencies.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. As a large contract awarded to a major defense contractor, the primary focus is likely on prime performance rather than direct small business participation. However, Lockheed Martin Services, Inc. may engage small businesses as subcontractors, the extent and impact of which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting activity at Fort Belvoir, Virginia, and potentially the relevant Inspector General's office within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is often limited for defense contracts, but contract award data is generally made public.

Related Government Programs

Defense Logistics Agency (DLA) Maintenance, Repair, and Overhaul (MRO) contracts
Department of the Army Communications and IT Support Contracts
Electronic Equipment Maintenance Services
Government IT Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited duration may not fully address long-term sustainment needs.
Lack of specific performance metrics hinders objective evaluation.
Value for money requires further benchmarking against comparable contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to LOCKHEED MARTIN SERVICES, LLC. 200012!2100!002295!SC01 !HQ USAINSCOM, DIR OF CONTRACTING!DASC0100D0007 !A!*!0011 !20000913!20010930!113168686!805258373!834951691!N!08YH6!LOCKHEED MARTIN SERVICES, INC.!1309 MOFFETT PARK DR !SUNNYVALE !CA!94089!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !0001!+000008705346!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!5!A!S!C!B!A!*!A !U!Y!

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 $14.8 million.

What is the period of performance?

Start: 2000-09-13. End: 2001-09-30.

What was the specific breakdown of costs (labor, materials, overhead) within this Time and Materials contract?

The provided data does not include a detailed cost breakdown for this contract. Time and Materials (T&M) contracts typically reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. Without access to the contract's detailed schedule, it's impossible to ascertain the exact allocation of the $147,982,26.73 award across these categories. This lack of transparency is common with T&M contracts and makes direct value-for-money assessment challenging without further inquiry into the contractor's incurred costs and the government's oversight of those costs.

How many bids were received for this 'full and open competition' contract?

The data indicates the contract was awarded under 'full and open competition,' suggesting that proposals were solicited from all responsible sources. However, the specific number of bids received is not provided in the summary data. Generally, a higher number of bids in a full and open competition is expected to lead to more competitive pricing. To fully assess the effectiveness of the competition, one would need to know the number of proposals submitted and potentially the range of pricing offered by the bidders.

What are Lockheed Martin Services, Inc.'s past performance ratings on similar DoD contracts?

The provided data does not include specific past performance ratings for Lockheed Martin Services, Inc. on this or similar contracts. However, as a subsidiary of Lockheed Martin Corporation, a major defense contractor, the company generally has extensive experience and a significant track record in providing a wide range of services to the DoD. Agencies typically evaluate past performance as a key factor in source selection. A comprehensive review would require accessing performance evaluations documented within the DoD's contractor performance systems.

What specific types of electronic and communication equipment were covered under this contract?

The contract description is 'MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT'. This is a broad category. While the data doesn't list specific equipment models or types, it implies services related to maintaining and repairing hardware used for electronic functions and communication systems within the Department of Defense. This could range from tactical radios and satellite communication systems to base infrastructure equipment and specialized electronic devices.

What was the total spending on 'MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT' by the Department of the Army in the fiscal years surrounding this contract (FY2000-2001)?

The provided data focuses on a single contract award of approximately $148 million. It does not offer a broader picture of the Department of the Army's total spending on 'MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT' during the relevant fiscal years (FY2000-2001). To determine historical spending patterns, one would need to query federal procurement databases for all contracts categorized under the relevant Product Service Code (PSC) or North American Industry Classification System (NAICS) code for the specified period and agency.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1309 MOFFETT PARK DR, SUNNYVALE, CA, 17

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,798,227

Exercised Options: $14,798,227

Current Obligation: $14,798,227

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DASC0100D0007

IDV Type: IDC

Timeline