Lockheed Martin awarded $32.7M contract for JMIS Information Assurance by Department of the Navy
Contract Overview
Contract Amount: $32,704,867 ($32.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-01
End Date: 2011-08-31
Contract Duration: 364 days
Daily Burn Rate: $89.8K/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 $32.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: CPFF - JMIS INFORMATION ASSURANCE (IA) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The contract duration is 364 days, indicating a short-term or project-specific need. 4. The awarded amount is $32.7 million, representing a significant investment in information assurance services. 5. The contractor, Lockheed Martin, is a major defense contractor with extensive experience. 6. The contract is for Engineering Services, specifically Information Assurance, within the Department of Defense.
Value Assessment
Rating: fair
The contract value of $32.7 million for a one-year information assurance service contract appears substantial. Benchmarking against similar contracts for IA services within the DoD is necessary to determine true value for money. The CPFF contract type introduces risk, as costs can escalate beyond initial estimates if not tightly controlled. Without specific performance metrics or comparison data, assessing the overall value is challenging, but the scale suggests a critical need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The Department of the Navy benefits from enhanced information assurance for its systems. This contract supports the delivery of critical cybersecurity and information protection services. The primary geographic impact is likely within the operational areas of the Department of the Navy. The contract supports specialized IT and engineering workforce roles within Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost overruns if not managed diligently.
- Information assurance is a critical but complex field, requiring constant vigilance and adaptation to evolving threats.
- Reliance on a single large contractor for critical IA services may present long-term strategic risks.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contractor (Lockheed Martin) is a well-established entity with significant experience in defense contracting.
- The contract addresses a vital need for information assurance within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on Information Assurance (IA) within the broader defense IT market. The defense sector heavily invests in IA to protect sensitive data and critical infrastructure. Comparable spending benchmarks for IA services within the DoD are typically in the tens to hundreds of millions of dollars annually, depending on the scope and criticality of the systems protected.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is unlikely that significant portions would be subcontracted to small businesses unless specifically mandated or if specialized services are required. This contract does not appear to directly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Information Assurance Programs
- Navy Cyber Security Initiatives
- Defense Information Systems Agency (DISA) Contracts
- Federal Information Security Management Act (FISMA) Compliance
Risk Flags
- CPFF contract type carries inherent cost overrun risk.
- Short contract duration may indicate a project-specific need rather than long-term strategic support.
- Information Assurance is a critical but constantly evolving field requiring continuous adaptation.
Tags
it, defense, information-assurance, engineering-services, cost-plus-fixed-fee, full-and-open-competition, department-of-the-navy, lockheed-martin, cyber-security, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.7 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 $32.7 million.
What is the period of performance?
Start: 2010-09-01. End: 2011-08-31.
What is Lockheed Martin's track record with similar Information Assurance contracts within the Department of Defense?
Lockheed Martin is a major defense contractor with extensive experience in information assurance (IA) and cybersecurity across various branches of the U.S. military, including the Department of the Navy. They have historically secured numerous large contracts related to system integration, network security, and IA services. Their track record includes managing complex projects, developing security protocols, and providing ongoing support for critical defense systems. While specific performance data for individual contracts is often proprietary, their consistent award of significant IA-related contracts suggests a perceived capability and reliability by the DoD. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects, which would be detailed in contract performance reports and agency evaluations not publicly available in aggregate.
How does the $32.7 million contract value compare to other IA contracts awarded by the Navy in the same period?
The $32.7 million contract value for a one-year IA services contract awarded in 2010-2011 is substantial but falls within the typical range for specialized IT and security services within a major military branch like the Department of the Navy. During that period, the DoD was significantly increasing its focus and spending on cybersecurity and information assurance due to evolving threats. Contracts for similar services, such as network defense, vulnerability assessments, and secure system development, could range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and criticality of the systems involved. This particular contract's value suggests it covered a significant scope of IA support for a key Navy system or set of systems.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Information Assurance services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for Information Assurance (IA) services is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed projections, the government bears the burden of these increased expenses. For IA services, which can be highly dynamic and subject to unforeseen technical challenges or evolving threat landscapes, cost estimation can be particularly difficult. This can incentivize contractors to incur higher costs if they believe it will lead to a larger overall payment, or conversely, lead to corners being cut if they are trying to stay within budget while maximizing their fixed fee. Effective government oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks.
What does the 'Engineering Services' classification (NAICS 541330) imply about the nature of the IA work performed?
The NAICS code 541330, 'Engineering Services,' indicates that the primary focus of this contract is on applying engineering principles to the Information Assurance (IA) domain. This suggests the work goes beyond routine IT support or help desk functions. It likely involves the design, development, analysis, and integration of secure systems and networks. Tasks could include conducting security architecture reviews, developing cryptographic solutions, performing risk assessments, engineering security controls into new systems, and providing technical expertise on complex IA challenges. The 'engineering' aspect implies a higher level of technical problem-solving, design, and implementation related to ensuring the confidentiality, integrity, and availability of Navy information systems.
How does the contract's duration (364 days) impact the assessment of its value and strategic importance?
A contract duration of 364 days, essentially one year, suggests that this was likely intended for a specific project, a defined phase of work, or to bridge a gap until a longer-term solution could be established. For IA services, a one-year duration might be sufficient for specific assessments, upgrades, or the implementation of particular security measures. However, it also implies that the need for IA is ongoing, and this contract represents a short-term commitment. Assessing its value requires understanding the specific deliverables within that year. Strategically, a series of such one-year contracts might indicate a less cohesive long-term IA strategy or a preference for agile, short-term engagements, which can sometimes be less cost-effective than longer-term, integrated support contracts.
What is the significance of the 'AW: DO' designation?
The 'AW: DO' designation likely refers to the award type or status. 'DO' often stands for 'Department of Defense,' indicating that the award was made by an entity within the Department of Defense. The 'AW' prefix might signify 'Awarded.' Therefore, 'AW: DO' suggests this contract was officially awarded by a component or agency within the Department of Defense. This is consistent with the 'ag' field indicating 'Department of Defense' and 'sa' indicating 'Department of the Navy'.
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: $32,704,867
Exercised Options: $32,704,867
Current Obligation: $32,704,867
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523608D6801
IDV Type: IDC
Timeline
Start Date: 2010-09-01
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2012-11-13
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