DoD's $31M ENCORE II IT R&D Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $31,042,825 ($31.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-01
End Date: 2010-09-30
Contract Duration: 394 days
Daily Burn Rate: $78.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ENCORE II IT SOLUTIONS
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23551
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ENCORE II IT SOLUTIONS Key points: 1. The contract value is $31.04 million. 2. Lockheed Martin Integrated Systems, LLC was the awardee. 3. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 4. The awarding agency is the Department of Defense, specifically the Defense Information Systems Agency.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking is difficult without specific deliverables and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Award Fee structure are not detailed.
Taxpayer Impact: Taxpayer funds are being used for R&D, with the ultimate value dependent on the successful development of new technologies or solutions.
Public Impact
This contract supports research and development efforts within the Department of Defense. The awardee, Lockheed Martin, is a major defense contractor. The contract duration is approximately one year, indicating a focused R&D effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize cost overruns.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical R&D for national defense.
Sector Analysis
This contract is in the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be high-risk.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Large prime contractors often subcontract, but direct involvement is not indicated.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA) to ensure contract performance and proper use of funds. The Cost Plus Award Fee structure requires diligent monitoring of performance and costs.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Award Fee structure
- Lack of specific R&D deliverables
- Limited performance metrics provided
- Potential for cost overruns
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ENCORE II IT SOLUTIONS
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 Information Systems Agency).
What is the total obligated amount?
The obligated amount is $31.0 million.
What is the period of performance?
Start: 2009-09-01. End: 2010-09-30.
What specific R&D objectives were defined for this contract, and how will their achievement be measured to ensure value for money?
The specific R&D objectives are not detailed in the provided data. To ensure value for money, the contract should have clearly defined technical milestones, performance metrics, and objective criteria for award fees. Without these, it's difficult to assess if the $31 million investment will yield the desired technological advancements or solutions for the Department of Defense.
What are the potential risks associated with a Cost Plus Award Fee contract for R&D, and how are they mitigated?
Cost Plus Award Fee (CPAF) contracts carry inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. For R&D, this is amplified by the uncertainty of technical outcomes. Mitigation strategies include robust government oversight, clearly defined performance standards for the award fee, and strong negotiation of the base fee and potential award amounts.
How does this contract contribute to the broader technological capabilities of the Department of Defense, and what is the expected long-term impact?
The contract's contribution to broader DoD capabilities depends entirely on the specific R&D undertaken, which is not detailed. Successful R&D could lead to advancements in areas like cybersecurity, communication systems, or advanced materials. The long-term impact could range from enhanced operational effectiveness and cost savings to maintaining a technological edge over adversaries, provided the research yields practical and deployable solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,042,825
Exercised Options: $31,042,825
Current Obligation: $31,042,825
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2022
IDV Type: IDC
Timeline
Start Date: 2009-09-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2024-02-09
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