DoD awards $278.7M to Lockheed Martin for CSCS training, raising value concerns
Contract Overview
Contract Amount: $278,673,539 ($278.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-09-15
End Date: 2011-09-14
Contract Duration: 364 days
Daily Burn Rate: $765.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TRAINING SERVICES FOR THE CSCS DOMAIN
Place of Performance
Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $278.7 million to LOCKHEED MARTIN CORPORATION for work described as: TRAINING SERVICES FOR THE CSCS DOMAIN Key points: 1. High contract value of $278.7M for training services. 2. Sole provider, Lockheed Martin, suggests potential lack of competition. 3. Risk of overpayment due to limited competition and cost-plus contract type. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: questionable
The contract's total value of $278.7M for training services appears high, especially given the cost-plus fixed fee structure. Benchmarking against similar training contracts is difficult without more specific service details, but the overall cost warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'FULL AND OPEN COMPETITION', the award to a single entity, Lockheed Martin, raises questions about the actual competitive landscape. This could limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The significant expenditure of $278.7M represents a substantial taxpayer investment. Ensuring competitive pricing and efficient service delivery is crucial to maximize the value of this spending.
Public Impact
Taxpayers are funding extensive training services for a critical defense system. The reliance on a single contractor may impact future innovation and cost-effectiveness. The Department of Defense is investing heavily in maintaining its operational capabilities through this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type can incentivize higher spending.
- Limited competition despite 'full and open' designation.
- High total contract value.
Positive Signals
- Contract supports critical defense training needs.
- Established contractor with domain expertise.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), which often involves complex technical support and training. The $278.7M award is substantial for this sector, particularly for specialized training.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large corporation like Lockheed Martin suggests a focus on established prime vendors.
Oversight & Accountability
The contract was awarded via a Delivery Order under a larger agreement. Oversight would typically involve the Defense Contract Management Agency (DCMA) to ensure compliance with terms and conditions, and proper cost accounting.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High contract value.
- Potential for limited competition despite designation.
- Cost-plus contract type.
- Lack of small business participation.
- Limited transparency on specific training services.
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 $278.7 million to LOCKHEED MARTIN CORPORATION. TRAINING SERVICES FOR THE CSCS DOMAIN
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 $278.7 million.
What is the period of performance?
Start: 2010-09-15. End: 2011-09-14.
What specific training services are included in this $278.7M contract, and how does their scope justify the high cost?
The contract details for 'TRAINING SERVICES FOR THE CSCS DOMAIN' are not fully specified in the provided data. To justify the $278.7M cost, a detailed breakdown of training modules, duration, personnel involved, and expected outcomes would be necessary. Benchmarking against industry standards for similar complex system training is essential to assess value for money.
Given the 'FULL AND OPEN COMPETITION' designation but a single awardee, what mechanisms were in place to ensure genuine competition and prevent price inflation?
While the contract is designated 'FULL AND OPEN COMPETITION', the award to Lockheed Martin Corporation as the sole entity raises concerns. Further investigation into the solicitation process, evaluation criteria, and any pre-qualification requirements is needed. Understanding if multiple bids were received and why only one was selected is crucial for assessing price discovery effectiveness.
What is the long-term effectiveness and strategic impact of this extensive training investment on the CSCS domain's operational readiness?
The effectiveness of this $278.7M investment hinges on the quality and relevance of the training provided by Lockheed Martin. Measuring its impact requires tracking improvements in operator proficiency, system uptime, and mission success rates related to the CSCS domain. The strategic value lies in ensuring the DoD maintains a highly skilled workforce capable of leveraging this technology.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3019
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: $557,971,540
Exercised Options: $554,263,209
Current Obligation: $278,673,539
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: 2010-09-15
Current End Date: 2011-09-14
Potential End Date: 2015-09-14 00:00:00
Last Modified: 2025-04-24
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