DoD awards $132M for Combat Systems Activation, Operation, Maintenance & Admin to Lockheed Martin
Contract Overview
Contract Amount: $132,151,352 ($132.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-03-25
End Date: 2016-10-31
Contract Duration: 2,412 days
Daily Burn Rate: $54.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SCSC COMBAT SYSTEMS ACTIVATION, OPERATION, MAINTENANCE AND ADMINISTRATION
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $132.2 million to LOCKHEED MARTIN CORPORATION for work described as: SCSC COMBAT SYSTEMS ACTIVATION, OPERATION, MAINTENANCE AND ADMINISTRATION Key points: 1. Significant contract value of $132.15M over 6 years. 2. Sole awardee is Lockheed Martin Corporation, a major defense contractor. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Engineering Services (NAICS 541330) sector. 5. No indication of small business participation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns, as contractor profit is guaranteed regardless of efficiency. Without detailed cost breakdowns or benchmarks, assessing the value for money is difficult.
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 award mechanism (Delivery Order) and the nature of specialized combat systems may limit the pool of truly competitive bidders.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The CPFF structure necessitates close oversight to ensure costs are reasonable and necessary to achieve the contract objectives.
Public Impact
Ensures operational readiness of critical combat systems for the Department of Defense. Supports advanced engineering and maintenance services vital for national security. Potential for cost inefficiencies due to the CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Long contract duration (2412 days)
Positive Signals
- Full and open competition awarded
- Critical defense systems support
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. Spending in this area is typically high due to the complexity and critical nature of military technology. Benchmarks for similar large-scale defense system support contracts are often in the hundreds of millions.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss=false, sb=false). This suggests that the prime contractor, Lockheed Martin, is a large corporation and that subcontracting opportunities for small businesses were either not pursued or not mandated.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight from the Defense Contract Management Agency (DCMA) to monitor costs, ensure performance, and prevent contractor overcharging. The long duration of the contract necessitates sustained vigilance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Potential for cost overruns
- Long contract duration
- Sole awardee for specialized systems
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $132.2 million to LOCKHEED MARTIN CORPORATION. SCSC COMBAT SYSTEMS ACTIVATION, OPERATION, MAINTENANCE AND ADMINISTRATION
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $132.2 million.
What is the period of performance?
Start: 2010-03-25. End: 2016-10-31.
What specific metrics are used to evaluate the 'effectiveness' of the combat systems activation, operation, maintenance, and administration under this CPFF contract?
Effectiveness is likely measured through performance metrics tied to system readiness, operational availability, response times for maintenance, and successful execution of activation protocols. The CPFF structure, however, focuses more on cost control and adherence to scope rather than incentivizing peak efficiency or innovation, making direct 'effectiveness' measurement crucial for value assessment.
Given the CPFF structure and the sole award to Lockheed Martin, what are the primary risks to taxpayer value and how are they mitigated?
The primary risk is cost escalation due to the contractor's incentive to incur costs to increase profit. Mitigation relies heavily on stringent DCMA oversight, detailed cost audits, negotiation of fair fixed fees, and clear performance standards. Without effective oversight, the government risks paying inflated prices for services.
How does the 'full and open competition' for this specialized defense contract ensure genuine price discovery and prevent potential market concentration issues?
While 'full and open competition' indicates the solicitation was broadly advertised, the specialized nature of combat systems may limit the number of capable bidders. Genuine price discovery depends on the government's ability to attract multiple qualified proposals and effectively evaluate them. Market concentration risk exists if only a few large prime contractors can realistically compete for such complex systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002409R3387
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $208,802,302
Exercised Options: $151,854,781
Current Obligation: $132,151,352
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: 2010-03-25
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2025-04-24
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