DoD's $28.6M contract for management consulting services awarded to Lockheed Martin Integrated Systems
Contract Overview
Contract Amount: $28,597,190 ($28.6M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2011-10-14
End Date: 2014-10-14
Contract Duration: 1,096 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROFESSIONAL SERVICES
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: PROFESSIONAL SERVICES Key points: 1. Contract value represents a significant investment in administrative and general management consulting. 2. Awarded to a single large defense contractor, indicating potential for concentrated industry relationships. 3. Performance period of three years suggests a need for sustained support in complex management areas. 4. Fixed-price contract type aims to control costs and transfer risk to the contractor. 5. The 'Administrative Management and General Management Consulting Services' category is broad and can encompass various strategic and operational support functions. 6. The contract's value is substantial within its service category, warranting scrutiny for efficiency.
Value Assessment
Rating: fair
The contract value of $28.6 million over three years for administrative and general management consulting services is a considerable sum. Benchmarking this against similar large-scale consulting contracts within the Department of Defense or other federal agencies is crucial. Without specific details on the scope of services, it's challenging to definitively assess value for money. However, the fixed-price nature suggests an attempt to cap costs. The relatively high total award amount, compared to the number of bids (implied by 'full and open competition' but not explicitly stated), may indicate a premium paid for specialized expertise or a large, integrated solution.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' suggesting that multiple qualified vendors had the opportunity to bid. The presence of a single award indicates that Lockheed Martin Integrated Systems was selected as the most advantageous offer. The level of competition, while initially open, ultimately resulted in one prime contractor, which is typical for large, complex service contracts. This approach aims to ensure fair pricing and access to a wide range of capabilities, though the final selection hinges on the evaluation criteria and the specific proposals submitted.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages competitive pricing and allows for the selection of the best value. However, the ultimate benefit depends on the effectiveness of the evaluation process in identifying the most cost-efficient and capable solution.
Public Impact
The primary beneficiaries are likely Department of the Navy program managers and leadership requiring strategic and operational consulting support. Services delivered are expected to enhance administrative efficiency and general management practices within the Navy. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially worldwide. Workforce implications could include the utilization of specialized consulting talent, both from the prime contractor and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in broad 'administrative and general management' consulting services.
- Reliance on a single large contractor may limit future flexibility or innovation.
- Ensuring true value for money at this contract level requires rigorous performance monitoring.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Firm Fixed Price contract type helps manage cost overruns.
- The contractor, Lockheed Martin, is a well-established entity with significant experience in government contracting.
Sector Analysis
This contract falls within the professional services sector, specifically management and administrative consulting. This is a critical support function for large government organizations like the Department of Defense, enabling them to optimize operations, implement new strategies, and manage complex programs. The market for these services is substantial, with numerous firms competing for federal contracts. Benchmarking against similar contracts would involve looking at other large-scale management consulting awards to agencies like the DoD, NASA, or DHS, considering the specific service areas and contract values.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that small businesses would be the prime recipient. However, there is potential for subcontracting opportunities for small businesses if Lockheed Martin chooses to engage them for specialized services or support. The extent of small business participation would depend on the contractor's subcontracting plan and the specific requirements of the consulting services.
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. Performance reviews, milestone tracking, and adherence to the Statement of Work would be key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Management Consulting Services
- Federal Administrative Support Contracts
- Department of the Navy Professional Services
- Large-Scale Government Consulting Engagements
Risk Flags
- Potential for high cost without clearly defined, measurable outcomes.
- Reliance on a single large contractor for critical management functions.
- Scope definition may be broad, increasing risk of unmet expectations.
Tags
professional-services, management-consulting, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, large-contract, administrative-management, general-management, virginia, lockheed-martin
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. PROFESSIONAL SERVICES
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 $28.6 million.
What is the period of performance?
Start: 2011-10-14. End: 2014-10-14.
What specific management and administrative consulting services were detailed in the Statement of Work for this contract?
The provided data categorizes this contract under 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, it does not detail the specific services rendered. Typically, such contracts could encompass a wide range of activities including strategic planning, organizational development, process improvement, program management support, policy development, and operational efficiency analysis. The exact scope would be defined in the contract's Statement of Work (SOW), which would outline deliverables, performance standards, and reporting requirements. Without access to the SOW, the precise nature and impact of the consulting services remain unspecified.
How does the $28.6 million award compare to typical spending on similar management consulting services by the Department of the Navy?
The $28.6 million award over three years (approximately $9.5 million annually) for administrative and general management consulting services is a substantial figure. To benchmark this, one would need to analyze historical spending patterns for NAICS code 541611 within the Department of the Navy and the broader Department of Defense. Federal procurement data often shows significant variability in contract values based on scope, duration, and contractor expertise. While this amount is considerable, it may be within the expected range for large-scale, multi-year consulting engagements supporting major defense initiatives or organizational transformations. A detailed comparison would require analyzing the average contract value, number of bids, and specific service requirements of comparable contracts awarded over a similar period.
What is Lockheed Martin Integrated Systems' track record with similar federal consulting contracts?
Lockheed Martin Integrated Systems, as a major defense contractor, possesses extensive experience in providing a wide array of services to the federal government, including management and consulting. Their track record typically involves large, complex programs across defense, aerospace, and technology sectors. For management consulting specifically, their history would likely include engagements focused on systems integration, program management, operational efficiency, and strategic planning for government agencies. Assessing their specific performance on contracts similar to this one would involve reviewing past performance evaluations, contract modifications, and any documented successes or challenges in delivering consulting services within the federal space. Their established presence suggests a capacity to handle significant contracts.
What were the key evaluation criteria used to select Lockheed Martin Integrated Systems for this contract?
While the data specifies 'full and open competition,' it does not detail the specific evaluation criteria used to select Lockheed Martin Integrated Systems. For federal contracts, especially those awarded under full and open competition, evaluation criteria typically include factors such as technical approach, past performance, management capability, key personnel, and price. The relative importance of these factors is usually outlined in the solicitation document. For a services contract of this nature, technical merit and past performance are often weighted heavily, alongside a competitive price, to ensure the government receives the best value. The selection of a single awardee implies that Lockheed Martin's proposal was deemed superior across these criteria.
Are there any specific performance risks associated with this contract, given its scope and duration?
Potential performance risks for a contract of this scope and duration ($28.6M over 3 years) include scope creep, where the project's requirements expand beyond the original agreement, leading to increased costs or delays. Another risk is the potential for the contractor's proposed solutions to become outdated or misaligned with evolving agency needs over the three-year period. Ensuring adequate government oversight and clear communication channels is vital to mitigate these risks. Furthermore, the complexity of 'administrative and general management consulting' means that measuring tangible outcomes and return on investment can be challenging, posing a risk to demonstrating program effectiveness. The firm fixed-price nature, however, helps mitigate financial risk for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 11911 FREEDOM DRIVE STE 550, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,772,641
Exercised Options: $28,597,190
Current Obligation: $28,597,190
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785402A9013
IDV Type: IDC
Timeline
Start Date: 2011-10-14
Current End Date: 2014-10-14
Potential End Date: 2014-10-14 00:00:00
Last Modified: 2015-09-11
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