DoD Awards $59.5M Fixed-Price Labor Contract to Lockheed Martin for Management Consulting
Contract Overview
Contract Amount: $59,476,131 ($59.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2011-05-12
End Date: 2013-03-19
Contract Duration: 677 days
Daily Burn Rate: $87.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIXED PRICED LABOR - BASE PERIOD
Place of Performance
Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23320
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $59.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: FIXED PRICED LABOR - BASE PERIOD Key points: 1. Contract value of $59.5 million for a fixed-price labor services. 2. Awarded to Lockheed Martin Integrated Systems, LLC, a major defense contractor. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. Services fall under Administrative Management and General Management Consulting. 5. Contract duration is 677 days.
Value Assessment
Rating: good
The contract uses a Firm Fixed Price (FFP) structure, which shifts risk to the contractor and provides cost certainty for the government. The award amount of $59.5 million for approximately two years of consulting services appears reasonable within the context of large-scale government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Supports critical administrative and management functions within the Department of the Army. Leverages expertise from a large, established defense contractor. Ensures continuity of essential consulting services for military operations. Potential for improved efficiency and effectiveness in management practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price labor can lead to cost overruns if scope creeps.
- Reliance on a single large contractor may limit future flexibility.
- Specific performance metrics are not detailed in the provided data.
Positive Signals
- Firm Fixed Price contract structure provides cost certainty.
- Full and open competition promotes best value.
- Award to a reputable contractor with relevant experience.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this area is common across government agencies for strategic planning, operational efficiency, and program management support. Benchmarks vary widely based on service type and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large contracts like this are often awarded to major prime contractors, though they may utilize small businesses as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers, program managers, and potentially inspectors general to ensure compliance and performance.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Reliance on a single large contractor.
- Lack of specific performance metrics in the provided data.
- Contract duration is relatively long (677 days).
Tags
administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. FIXED PRICED LABOR - BASE PERIOD
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $59.5 million.
What is the period of performance?
Start: 2011-05-12. End: 2013-03-19.
What specific management consulting services were provided under this contract, and how did they contribute to the Army's mission objectives?
The contract specifies 'Administrative Management and General Management Consulting Services' (NAICS 541611). While the exact services aren't detailed, they likely encompassed areas such as organizational efficiency, strategic planning, process improvement, and policy development. These services are crucial for optimizing resource allocation, enhancing operational effectiveness, and supporting the Army's overall strategic goals and readiness.
Given the fixed-price nature, what mechanisms were in place to manage potential scope creep and ensure the contractor delivered within the agreed budget?
Firm Fixed Price contracts inherently place the risk of cost overruns on the contractor. However, effective management requires clear contract scope definition, robust change control processes, and regular performance monitoring. The government likely relied on detailed statements of work, regular progress reviews, and strict adherence to modification procedures to prevent uncontrolled scope expansion and ensure adherence to the $59.5 million budget.
How did the 'Full and Open Competition' process ensure the best value was achieved for the government compared to other contracting methods?
Full and Open Competition allows a wide range of qualified vendors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. By evaluating proposals based on both price and technical merit, the Army could select the offer that provided the optimal balance of cost-effectiveness and capability, ensuring taxpayer funds were used to secure the most advantageous solution for their management consulting needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91WAW08R0008
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1408 STEPHANIE WAY, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,034,531
Exercised Options: $60,034,531
Current Obligation: $59,476,131
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW08D0011
IDV Type: IDC
Timeline
Start Date: 2011-05-12
Current End Date: 2013-03-19
Potential End Date: 2013-03-19 00:00:00
Last Modified: 2024-06-28
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