Lockheed Martin awarded $31.3M for Joint Command and Control Systems, highlighting engineering services for DoD
Contract Overview
Contract Amount: $31,333,218 ($31.3M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-05-19
End Date: 2013-06-30
Contract Duration: 1,868 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: JOINT COMMAND AND CONTROL CAPABILITY PORTFOLIO MANAGEMENT PROGRAMS AND SYSTEMS
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: JOINT COMMAND AND CONTROL CAPABILITY PORTFOLIO MANAGEMENT PROGRAMS AND SYSTEMS Key points: 1. Contract value represents a significant investment in critical defense infrastructure. 2. Engineering services are essential for maintaining and upgrading complex command and control systems. 3. The contract duration suggests a long-term need for specialized technical support. 4. Competition dynamics will be analyzed to assess price discovery and value for taxpayer dollars. 5. Performance context is crucial to understand the effectiveness of these systems. 6. Sector positioning indicates a focus on advanced defense technology and integration.
Value Assessment
Rating: fair
The total award of $31.3 million over approximately five years for engineering services related to Joint Command and Control Capability Portfolio Management Programs and Systems appears to be within a reasonable range for complex defense systems. However, without specific benchmarks for similar portfolio management contracts or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) contract type allows for performance incentives, which can drive efficiency, but also carries inherent cost risks if not managed tightly. Further analysis of the award fee structure and historical performance against targets would be beneficial.
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 had the opportunity to submit proposals. The presence of full and open competition is generally a positive sign for price discovery and ensuring that the government receives competitive pricing. The number of bidders and the specific evaluation criteria used would provide further insight into the intensity of the competition and its impact on the final award price.
Taxpayer Impact: Full and open competition generally leads to better price discovery, potentially saving taxpayer money by ensuring the government obtains services at a competitive market rate.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, which rely on robust command and control systems for operational effectiveness. Services delivered include portfolio management, program support, and system engineering for critical defense capabilities. The geographic impact is likely national, supporting defense operations across various theaters. Workforce implications include the need for highly skilled engineers and program managers, potentially supporting specialized jobs within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a potential risk with Cost Plus Award Fee contracts if performance targets are not well-defined or if scope creep occurs.
- Dependency on a single large contractor for critical systems could pose long-term strategic risks.
- The complexity of Joint Command and Control systems may lead to integration challenges and extended development timelines.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contract duration indicates a sustained need and commitment to these critical systems.
- Lockheed Martin is a major defense contractor with extensive experience in complex systems integration.
Sector Analysis
The defense sector, particularly within command, control, communications, computers, and intelligence (C4I) systems, represents a significant portion of federal IT and engineering services spending. This contract fits within the broader market for defense modernization and sustainment, where companies like Lockheed Martin are key players. Comparable spending benchmarks would involve looking at other large-scale C4I system development and management contracts within the DoD and allied nations.
Small Business Impact
This contract does not appear to have a specific small business set-aside. As a large prime contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent to which Lockheed Martin engages small businesses as subcontractors will determine the broader impact on the small business ecosystem within this sector.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant program executive office within the Department of Defense. Accountability measures are embedded within the Cost Plus Award Fee structure, incentivizing performance. Transparency is generally maintained through contract award databases and reporting requirements, though detailed cost and performance data may be sensitive.
Related Government Programs
- Joint All-Domain Command and Control (JADC2)
- Command and Control Systems Modernization
- Defense Information Systems Agency (DISA) Contracts
- Tactical Data Links
- Battle Management Systems
Risk Flags
- Cost Plus Award Fee (CPAF) contract type carries inherent cost risk.
- Complexity of Joint Command and Control systems may lead to integration challenges.
- Long-term dependency on a single contractor for critical systems.
Tags
defense, department-of-defense, engineering-services, command-and-control, systems-integration, full-and-open-competition, cost-plus-award-fee, lockheed-martin, virginia, defense-contract-management-agency, portfolio-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. JOINT COMMAND AND CONTROL CAPABILITY PORTFOLIO MANAGEMENT PROGRAMS AND SYSTEMS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $31.3 million.
What is the period of performance?
Start: 2008-05-19. End: 2013-06-30.
What is Lockheed Martin's track record with similar Joint Command and Control (JC2) portfolio management contracts?
Lockheed Martin has a long and extensive history of developing and managing complex command and control systems for the Department of Defense and allied nations. Their experience spans various platforms, including air, ground, and naval systems, as well as integrated joint capabilities. They have been a prime contractor on numerous large-scale defense programs requiring sophisticated C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) solutions. While specific details on past JC2 portfolio management contracts are often proprietary, their overall portfolio demonstrates a deep capability in systems engineering, integration, and lifecycle support for mission-critical defense applications. Analyzing their performance on related programs, such as F-35 mission systems or Aegis Combat System, can provide insights into their ability to manage large, complex, and high-stakes defense contracts.
How does the $31.3 million award compare to the average cost of similar engineering services for defense portfolio management?
Benchmarking the $31.3 million award for Joint Command and Control Capability Portfolio Management Programs and Systems against similar contracts is challenging without access to detailed cost breakdowns and specific service scopes. However, for large-scale, multi-year engineering services supporting complex defense systems, this figure appears to be within a plausible range. The nature of portfolio management often involves strategic planning, system integration oversight, lifecycle cost analysis, and risk management, which are high-value services. Factors influencing cost include the specific technologies involved, the number of systems managed, the level of integration required, and the duration of the contract. A more precise comparison would require analyzing contracts with identical or highly similar North American Industry Classification System (NAICS) codes (e.g., 541330 - Engineering Services) and similar contract types (e.g., CPAF) awarded by the DoD over comparable periods.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential cost overruns due to the Cost Plus Award Fee (CPAF) structure, technical challenges in integrating and managing diverse command and control systems, and schedule delays. CPAF contracts, while incentivizing performance, can lead to increased costs if award fees are consistently maximized without corresponding efficiencies. Technical risks stem from the inherent complexity of joint command and control capabilities, which often involve integrating legacy systems with new technologies across different military branches. Mitigation strategies likely include robust program management, clearly defined performance metrics and award fee criteria, rigorous testing and validation processes, and proactive risk identification and management by both the contractor and the government oversight team. Regular program reviews and audits are crucial for monitoring progress and addressing issues promptly.
How effective has Lockheed Martin been in delivering similar complex defense systems in the past?
Lockheed Martin has a generally strong track record in delivering complex defense systems, evidenced by its role in major programs like the F-35 fighter jet, THAAD missile defense system, and various satellite and communication systems. These programs, while facing their own challenges and scrutiny, demonstrate the company's capacity for large-scale engineering, integration, and production. Performance metrics for past contracts, often available through sources like the Government Accountability Office (GAO) reports or contract performance databases, would provide a more granular assessment. However, as a leading defense contractor, Lockheed Martin is expected to meet stringent performance requirements. For this specific JC2 portfolio management contract, the effectiveness will be measured against the defined objectives and award fee criteria outlined in the contract.
What are the historical spending patterns for Joint Command and Control capability portfolio management programs and systems within the Department of Defense?
Historical spending on Joint Command and Control (JC2) capability portfolio management programs and systems within the Department of Defense has been substantial and generally increasing, reflecting the growing emphasis on networked warfare and integrated military operations. The DoD consistently invests billions annually in C4ISR and related systems to maintain situational awareness, enable rapid decision-making, and ensure interoperability across services. Spending trends are influenced by evolving threats, technological advancements, and strategic priorities like the push towards Joint All-Domain Command and Control (JADC2). This specific $31.3 million award represents a component of that larger, ongoing investment. Analyzing historical spending data for similar contract vehicles and program elements would reveal patterns of sustained funding and potential growth areas within JC2 modernization efforts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3077
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1293 PERIMETER PKWY, VIRGINIA BEACH, VA, 23454
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,176,625
Exercised Options: $33,176,625
Current Obligation: $31,333,218
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4079
IDV Type: IDC
Timeline
Start Date: 2008-05-19
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2018-09-19
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