DoD awards $138.8M engineering services contract to Lockheed Martin for Army support
Contract Overview
Contract Amount: $138,766,459 ($138.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2009-02-03
End Date: 2012-03-13
Contract Duration: 1,134 days
Daily Burn Rate: $122.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: TASK ORDER 0024
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $138.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: TASK ORDER 0024 Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Competition dynamics suggest a potentially competitive bidding process for this task order. 3. Contract duration and type warrant scrutiny for potential cost overruns and scope creep. 4. Performance context is tied to Department of the Army requirements, indicating critical mission support. 5. Sector positioning places this within the broader defense engineering services market.
Value Assessment
Rating: fair
The contract's value of $138.8 million over three years for engineering services appears substantial. Benchmarking against similar large-scale engineering support contracts for the Department of the Army is necessary to determine if the pricing is competitive. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed closely, especially given the $1,223,690 in task orders already issued. Further analysis of the specific services rendered and their necessity would provide a clearer picture of value for money.
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 were likely solicited. The presence of two bids suggests a degree of competition, but the specifics of the bidding process, including the number of proposals received and the evaluation criteria, are not detailed here. A competitive process is generally favorable for price discovery and ensuring the government receives the best value.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and leading to more cost-effective solutions.
Public Impact
The Department of the Army benefits from specialized engineering services to support its operations. This contract likely supports critical defense infrastructure and technological development. Geographic impact is concentrated around the Army's operational areas, primarily Maryland. Workforce implications include employment opportunities for engineers and technical specialists within Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
- The substantial contract value necessitates robust oversight to ensure efficient use of funds.
- Limited details on specific performance metrics make it difficult to assess effectiveness comprehensively.
Positive Signals
- Awarded under full and open competition, suggesting a potentially competitive pricing environment.
- Contractor's established presence in defense contracting indicates experience in delivering complex services.
- Task order structure allows for phased delivery and management of services.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader defense industry. The market for defense engineering services is substantial, driven by the continuous need for technological advancement, maintenance, and modernization of military systems. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense and its branches to major defense contractors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Lockheed Martin, may engage small businesses as subcontractors for specialized services, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army program office. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Army Command and Control Systems Support
- Lockheed Martin Defense Contracts
- Time and Materials Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need for robust oversight to ensure efficient use of funds.
- Limited public data on specific performance metrics.
- Contract duration requires careful management to avoid scope creep.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, lockheed-martin, time-and-materials, full-and-open-competition, delivery-order, task-order, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $138.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. TASK ORDER 0024
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 $138.8 million.
What is the period of performance?
Start: 2009-02-03. End: 2012-03-13.
What is Lockheed Martin's track record with similar Department of the Army engineering contracts?
Lockheed Martin Integrated Systems, LLC, has a long and extensive history of performing complex engineering and technical services for the Department of Defense, including the Department of the Army. Their track record typically involves large-scale, mission-critical programs requiring advanced technological solutions and integration. While specific performance metrics for this particular task order (0024) are not publicly detailed, the company's overall reputation is that of a major defense contractor capable of handling significant engineering challenges. Historical data from other contracts would reveal patterns in their ability to meet deadlines, manage budgets, and deliver on technical specifications, though direct comparisons require access to detailed performance evaluations which are often not public.
How does the $138.8 million value compare to other engineering services contracts for the Army?
The $138.8 million award for engineering services to Lockheed Martin is a substantial figure, placing it among significant contract awards for the Department of the Army. To benchmark its value, one would compare it to other large-scale engineering support contracts awarded over similar timeframes (2009-2012) to various prime contractors for Army-wide or major command-level support. The average value of such contracts can vary widely based on the scope of services, duration, and specific technological requirements. Without a detailed breakdown of the services rendered under this task order, a precise comparison is difficult, but it represents a significant investment in specialized engineering capabilities, likely for a critical program or set of programs.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?
The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($138.8 million) is the potential for cost overruns and a lack of defined scope, which can lead to inefficient spending. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed with rigorous oversight, including detailed tracking of labor hours, material costs, and strict adherence to a defined ceiling, the total cost can escalate beyond initial estimates. For this contract, the risk lies in ensuring that the labor rates are fair, the materials are necessary and cost-effective, and that the work performed directly aligns with the evolving needs of the Department of the Army without scope creep.
How effective is 'full and open competition' in ensuring value for money in defense engineering services?
Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and technical solutions to win the contract. This process increases the pool of potential bidders, reducing the likelihood of inflated prices and encouraging innovation. For a contract of this size and complexity, a competitive process helps the government identify the most capable contractor at the most reasonable cost. However, the effectiveness is contingent on the clarity of the solicitation, the fairness of the evaluation criteria, and the government's ability to adequately assess the proposals received.
What are the historical spending patterns for engineering services within the Department of the Army?
Historical spending patterns for engineering services within the Department of the Army are characterized by significant and consistent investment, driven by the need to maintain, modernize, and develop complex military systems and infrastructure. Spending in this category typically fluctuates based on geopolitical events, technological advancements, and specific program requirements. Major defense contractors like Lockheed Martin are frequent recipients of such contracts. Analysis of past spending would reveal trends in the types of engineering services procured (e.g., R&D, systems integration, logistics support, cybersecurity engineering), the dominant contract vehicles used (e.g., IDIQs, task orders), and the overall budget allocated to external engineering support, which often runs into billions of dollars annually across the DoD.
What are the implications of this contract type (Delivery Order) on program flexibility and cost control?
This contract is a 'Delivery Order' under a larger contract vehicle, which implies a specific order for goods or services placed against an existing agreement. As a 'Task Order' (indicated by 'TASK ORDER 0024'), it represents a specific assignment of work within a broader contract, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) or similar framework. Delivery Orders and Task Orders offer flexibility by allowing the government to procure services or items as needed, adapting to changing requirements. However, this flexibility comes with the inherent risk of cost control challenges, especially if the underlying contract is Time and Materials (T&M). Each order needs careful management to ensure it stays within budget and scope, and that the cumulative cost of all orders does not exceed the contract ceiling. The 'no' field indicating 2 task orders suggests this is one of multiple orders under a parent contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $138,766,459
Exercised Options: $138,766,459
Current Obligation: $138,766,459
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE405
IDV Type: IDC
Timeline
Start Date: 2009-02-03
Current End Date: 2012-03-13
Potential End Date: 2012-03-13 12:03:00
Last Modified: 2022-09-02
More Contracts from Lockheed Martin Integrated Systems, LLC
- 200407!000098!5700!LA01 !11 Cons/Lgcw !FA701204C0003 !A!N! !N! ! !20031121!20130630!836196972!805258373!834951691!n!lockheed Martin Integrated SYS!6801 Rockledge Drive !bethesda !nj!20817!50000!001!11!washington !district of Columbia !D.C. !+000010350876!n!n!000530185344!d399!other Adp&telecommunication Services !S1 !services !000 !* !541690!A!B!3! ! ! ! ! !99990909!b!b!y!b! !a!n!l!2!007!b! !C!Y!F! ! !N!C!N! ! ! !b!z!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $679.5M (Department of Defense)
- 200611!007847!2100!w15p7t!usa Communications-Electronics !daab0703db009 !A!N! !Y!0243 ! !20060831!20110129!068514251!805258373!834951691!n!lockheed Martin Integrated SYS!1800 Route 34 !wall !nj!07719!76460!025!34!wall (township OF) !monmouth !NEW Jersey!+000077463827!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $448.3M (Department of Defense)
- ISS Cargo Mission Contract (CMC) — $406.2M (National Aeronautics and Space Administration)
- THE Moses II Effort IS a Five-Year Sole-Source Follow-On Contract to Maintain the Health and Safety of the HST Observatory Through the Next Phase of ITS Science Mission. the Scope of This Follow-On Effort Includes Conducting ALL Elements of HST Operations Other Than Science Operations, and to Perform Systems Engineering Tasks Required to Properly Maintain HST Flight and Ground Systems.mission Operations Responsibilities Include Safe and Efficient Control and Utilization of the HST Observatory, Maintenance and Operation of Hst-Unique Facilities and Equipment, AS Well AS Creation, Maintenance, and Utilization of HST Operations Processes and Procedures. Critical Systems Engineering Responsibilities Consist of Optimizing Mission System Capabilities to Maximize HST Operations Effectiveness and Science Productivity. Essential Management Requirements Include Providing a Technical Staff Possessing In-Depth Knowledge of HST S Varied, Complex, and Unique Flight and Ground Systems, Ensuring Successful Accomplishment of the Diverse Tasks Necessary to Effectively Conduct HST Mission Operations and Systems Engineering AS Well AS to Manage and Report Contract Element Cost and Schedule Performance — $360.2M (National Aeronautics and Space Administration)
- Federal Contract — $304.3M (Department of Defense)
View all Lockheed Martin Integrated Systems, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)