DoD's $145M C2BMC O&M Task Order to Lockheed Martin Raises Questions on Competition and Value
Contract Overview
Contract Amount: $144,862,213 ($144.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2015-12-10
End Date: 2018-01-19
Contract Duration: 771 days
Daily Burn Rate: $187.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THIS TASK ORDER (TO) PROVIDES OPERATIONS&MAINTENANCE, INTEGRATED LOGISTICS, COCOM INTEGRATION, DEPLOYMENT, AND DISPOSAL OF THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SPIRAL 6.4 SYSTEM. THIS EFFORT IS A FOLLOW-ON AND CONTINUATION OF THE SUSTAINMENT AND WARFIGHTER INTEGRATION EFFORT PROVIDED UNDER HQ0147-12-D-0003, TASK ORDER 9 - OPERATIONS&MAINTENANCE, TASK ORDER 10 - SUSTAINMENT, AND TASK ORDER 11 - DEPLOYMENT.
Place of Performance
Location: NORTH POTOMAC, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $144.9 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THIS TASK ORDER (TO) PROVIDES OPERATIONS&MAINTENANCE, INTEGRATED LOGISTICS, COCOM INTEGRATION, DEPLOYMENT, AND DISPOSAL OF THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SPIRAL 6.4 SYSTEM. THIS EFFORT IS A FOLLOW-ON AND CONTINUATION OF THE SU… Key points: 1. The contract focuses on critical Command and Control, Battle Management, and Communications (C2BMC) system operations and maintenance. 2. Lockheed Martin is the incumbent, suggesting a potential lack of new competition for this follow-on effort. 3. The firm-fixed-price contract type aims to control costs, but the absence of competition warrants scrutiny. 4. This spending falls within the IT sector, specifically custom computer programming services.
Value Assessment
Rating: questionable
The $144.9 million contract value for a 2.1-year period for C2BMC system O&M appears substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and may result in higher costs than if the contract had been competitively bid.
Taxpayer Impact: The lack of competition for this significant contract could lead to taxpayers paying more than necessary for essential C2BMC system support.
Public Impact
Ensures the continued operation and maintenance of the C2BMC system, crucial for national defense. Supports integrated logistics, COCOM integration, deployment, and disposal of the system. Impacts warfighter readiness by providing essential battle management and communication capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated costs due to sole-source award
- Follow-on nature of the contract without re-competition
Positive Signals
- Firm-fixed-price contract type
- Focus on critical defense system sustainment
Sector Analysis
This contract falls under the Information Technology sector, specifically Custom Computer Programming Services. The Missile Defense Agency's spending on such services is critical for maintaining advanced defense systems like C2BMC.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation and does not provide information on small business participation. Given the sole-source nature and the prime contractor, it's unlikely small businesses were directly involved in this specific task order's competition.
Oversight & Accountability
The contract is a delivery order under a larger contract, and its follow-on nature suggests prior oversight. However, the lack of re-competition for this significant task order raises questions about the effectiveness of ongoing oversight in ensuring competitive pricing.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Reliance on incumbent contractor
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 $144.9 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THIS TASK ORDER (TO) PROVIDES OPERATIONS&MAINTENANCE, INTEGRATED LOGISTICS, COCOM INTEGRATION, DEPLOYMENT, AND DISPOSAL OF THE COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) SPIRAL 6.4 SYSTEM. THIS EFFORT IS A FOLLOW-ON AND CONTINUATION OF THE SUSTAINMENT AND WARFIGHTER INTEGRATION EFFORT PROVIDED UNDER HQ0147-12-D-0003, TASK ORDER 9 - OPERATIONS&MAINTENANCE, TASK ORDER 10 - SUSTAINMENT, AND TASK ORDER 11 - DEPLOYMENT.
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 $144.9 million.
What is the period of performance?
Start: 2015-12-10. End: 2018-01-19.
What was the justification for not competing this task order, given its significant value and the critical nature of the C2BMC system?
The justification for not competing this task order is not explicitly provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or the need for continuity with prior efforts. However, the specific rationale for this C2BMC task order requires further investigation by the agency.
How does the cost of this contract compare to similar C2BMC sustainment efforts, if any, that were competitively bid?
Direct cost comparison is challenging without access to data on other competitively bid C2BMC sustainment efforts. The absence of competition for this $144.9 million task order means there's no benchmark to assess if Lockheed Martin's pricing is reasonable. A thorough cost analysis by the agency, or a review of historical competitive data for similar services, would be necessary to evaluate value for money.
What measures are in place to ensure the ongoing effectiveness and efficiency of the C2BMC system under this sole-source contract?
While the contract is sole-source, effectiveness and efficiency are typically managed through performance metrics, service level agreements, and regular reporting requirements outlined in the contract. The Missile Defense Agency would be responsible for monitoring Lockheed Martin's performance against these standards. However, the lack of competitive pressure might reduce the incentive for proactive innovation or cost-saving measures.
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: FIRM FIXED PRICE (J)
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: $155,448,318
Exercised Options: $155,448,318
Current Obligation: $144,862,213
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: 2015-12-10
Current End Date: 2018-01-19
Potential End Date: 2018-01-19 00:00:00
Last Modified: 2023-12-14
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