Lockheed Martin awarded $18M contract for JMIS Information Assurance, highlighting engineering services for the Navy
Contract Overview
Contract Amount: $18,000,000 ($18.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2010-03-19
End Date: 2011-03-18
Contract Duration: 364 days
Daily Burn Rate: $49.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CPFF - JMIS INFORMATION ASSURANCE (IA)
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $18.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: CPFF - JMIS INFORMATION ASSURANCE (IA) Key points: 1. Contract value of $18 million for a 364-day duration suggests a significant investment in information assurance. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not closely monitored. 4. The award to Lockheed Martin, a major defense contractor, places this within the context of large-scale government IT and engineering support. 5. The specific focus on Information Assurance (IA) is critical given the increasing cyber threats to defense systems. 6. The contract's duration of one year suggests a need for ongoing, specialized support rather than a one-time project.
Value Assessment
Rating: fair
The contract value of $18 million for a one-year duration for Information Assurance services appears substantial. Benchmarking against similar contracts for IA support within the Department of Defense is necessary for a precise value assessment. The CPFF structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. The number of bidders (6) suggests some level of competition, but the ultimate value for money depends on the quality and effectiveness of the services delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with six bids received. This indicates a robust bidding environment where multiple qualified contractors had the opportunity to compete for the work. The presence of six bidders suggests that the market for these specialized information assurance services is likely competitive, which can contribute to more favorable pricing and better service offerings for the government.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a competitive price, preventing potential overpayment and ensuring that government funds are used efficiently.
Public Impact
The Department of the Navy benefits from enhanced information assurance for its critical systems. This contract supports the delivery of essential cybersecurity and information protection services. The primary geographic impact is likely within the operational areas of the U.S. Navy. The contract supports specialized engineering and IT workforce roles within Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not managed effectively.
- The specific details of the 'JMIS Information Assurance' scope are not fully elaborated, posing a potential risk if requirements are not clearly defined.
- Reliance on a single large contractor for critical IA functions could present long-term dependency risks.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market.
- The focus on Information Assurance is a positive signal for national security.
- Lockheed Martin is a well-established defense contractor with significant experience in this domain.
Sector Analysis
This contract falls within the broader Information Technology and Engineering Services sector, specifically focusing on cybersecurity and information assurance. The defense sector heavily relies on such services to protect sensitive data and operational systems. The market for cybersecurity services is substantial and growing, driven by increasing digital threats. Comparable spending benchmarks would typically involve analyzing other large-scale IA contracts awarded by the DoD and other federal agencies for similar scope and duration.
Small Business Impact
There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting plans for small businesses. Given the large contract value and the nature of the work, it is likely that the prime contractor, Lockheed Martin, will handle the majority of the work. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures would be defined in the contract terms and conditions, including performance metrics and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Information Technology Services
- Navy Cybersecurity Contracts
- Information Assurance Services
- Engineering Services for Defense
- Lockheed Martin Defense Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Potential for vendor lock-in with large, sole-source-like engagements over time.
- Scope definition for 'JMIS Information Assurance' needs clear articulation to ensure effective service delivery.
Tags
it, defense, information-assurance, cybersecurity, department-of-defense, department-of-the-navy, lockheed-martin, cost-plus-fixed-fee, full-and-open-competition, engineering-services, south-carolina, cpff
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. CPFF - JMIS INFORMATION ASSURANCE (IA)
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 Navy).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2010-03-19. End: 2011-03-18.
What is the specific scope of 'JMIS Information Assurance' and what are the key performance indicators (KPIs) for this contract?
The specific scope of 'JMIS Information Assurance (IA)' refers to the services required to protect the Joint Mission Information System (JMIS) from cyber threats and ensure the confidentiality, integrity, and availability of its data. This typically includes activities such as vulnerability assessments, penetration testing, security monitoring, incident response, security policy development and enforcement, and system hardening. Key performance indicators (KPIs) would likely be defined in the contract's Statement of Work (SOW) and could include metrics like the number of vulnerabilities identified and remediated, response times to security incidents, compliance with security standards (e.g., NIST, DoD directives), and the successful prevention of security breaches. Without access to the detailed SOW, these are general expectations for IA contracts of this nature.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IA services, and what are its implications for cost control?
The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to fixed-price contracts (like FFP), CPFF offers more flexibility for the contractor to adapt to evolving requirements, which can be beneficial for complex or R&D-intensive projects where the scope is not fully defined at the outset. However, CPFF contracts carry a higher risk of cost overruns for the government because the contractor is incentivized to incur costs to maximize reimbursement, while the fee remains constant. Effective cost control under CPFF relies heavily on robust government oversight, detailed cost accounting, and stringent review of incurred expenses to ensure they are reasonable, allocable, and allowable. For IA services, where requirements can change rapidly due to evolving threats, CPFF might be chosen, but it necessitates diligent management to prevent costs from escalating beyond the initial $18 million estimate.
What is Lockheed Martin's track record with the Department of the Navy and specifically with Information Assurance contracts?
Lockheed Martin is a major defense contractor with an extensive and long-standing relationship with the Department of the Navy, undertaking a wide array of complex programs across various domains, including IT, aerospace, and naval systems. Their track record with the Navy includes numerous large-scale contracts for systems integration, platform development, and support services. Regarding Information Assurance, Lockheed Martin possesses significant capabilities and experience, often providing cybersecurity solutions, network defense, and intelligence support for military operations. They are known to invest heavily in cybersecurity research and development and hold numerous certifications relevant to government security standards. While specific performance metrics for past IA contracts with the Navy are not publicly detailed in this summary, their position as a prime contractor on this $18 million JMIS IA contract suggests a demonstrated ability to meet the Navy's stringent requirements and security protocols.
Given the $18 million value and 364-day duration, how does this contract's spending pattern compare to historical IA spending by the Navy?
An $18 million contract for a one-year IA service is a significant award, reflecting the critical nature of cybersecurity for naval operations. To compare historical spending patterns, one would need to analyze the Navy's budget allocations and contract awards for IA and related cybersecurity services over several fiscal years. The Navy, like the broader Department of Defense, has consistently increased its spending on cybersecurity due to the escalating threat landscape. This $18 million contract likely represents a portion of the Navy's overall IA budget, which could range from hundreds of millions to billions of dollars annually, depending on the scope of systems covered. Factors such as the specific systems being protected (e.g., command and control, logistics, intelligence platforms) and the level of threat sophistication influence the per-system or per-user cost. Without detailed historical data on the Navy's IA spending broken down by specific systems or service types, a precise comparison is difficult, but this contract aligns with the trend of substantial investment in defense cybersecurity.
What are the potential risks associated with relying on a single large contractor like Lockheed Martin for critical Information Assurance functions?
Relying on a single large contractor like Lockheed Martin for critical Information Assurance (IA) functions presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes overly dependent on the contractor's proprietary systems, processes, or expertise, making it difficult and costly to switch providers or bring the function in-house. Secondly, a lack of robust competition over time could lead to complacency and potentially higher costs or reduced innovation, as the contractor may face less pressure to improve efficiency or offer better value. Thirdly, concentrating critical IA functions with one entity could create a single point of failure; a significant security breach or operational failure by the contractor could have widespread repercussions across naval systems. Finally, while Lockheed Martin is a reputable firm, the sheer scale of their involvement could mean that any systemic issues within the contractor's organization (e.g., staffing shortages, internal security lapses) could directly impact the government's security posture.
What is the estimated value of the Information Assurance market within the defense sector, and how does this contract fit into that market?
The global defense cybersecurity market is substantial and rapidly growing, driven by geopolitical tensions, evolving cyber threats, and the increasing digitization of military operations. Estimates vary, but the defense cybersecurity market is often valued in the tens of billions of dollars annually worldwide, with significant portions allocated by major military powers like the United States. Within the U.S. Department of Defense, cybersecurity spending constitutes a significant fraction of the overall IT and defense budgets. This $18 million contract for JMIS Information Assurance represents a specific, targeted investment within that larger market. It addresses a critical need for the Navy's Joint Mission Information System, indicating that this particular system requires specialized and robust protection. Such contracts are essential components of the DoD's broader strategy to maintain information superiority and protect its networks and data from sophisticated adversaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6523607R0034
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,000,000
Exercised Options: $18,000,000
Current Obligation: $18,000,000
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523608D6801
IDV Type: IDC
Timeline
Start Date: 2010-03-19
Current End Date: 2011-03-18
Potential End Date: 2011-03-18 00:00:00
Last Modified: 2011-03-11
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