DoD Awards $836M for Engineering Technical Services to Lockheed Martin, Raising Cost Concerns
Contract Overview
Contract Amount: $26,005,914 ($26.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-08-23
End Date: 2014-07-31
Contract Duration: 3,629 days
Daily Burn Rate: $7.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200411!000388!5700!GJ40 !WARNER ROBINS ALC/LUK !F0960301D0207 !A!N! !N!0085 ! !20040823!20060831!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000009204000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !336411!E! !5!B!M! !C! !99990909!B! ! !A! !A!N!J!2!010!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200411!000388!5700!GJ40 !WARNER ROBINS ALC/LUK !F0960301D0207 !A!N! !N!0085 ! !20040823!20060831!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!53000!095!12!ORLANDO !ORAN… Key points: 1. The contract, valued at $836,196,972, was awarded to Lockheed Martin Integrated Systems, LLC. 2. This award represents a significant portion of spending within the Aircraft Manufacturing sector. 3. Potential risks include cost overruns and the impact of a sole-source justification on price discovery. 4. The contract's duration of over 9 years warrants close monitoring for efficiency and value.
Value Assessment
Rating: concerning
The total value of $836,196,972 over approximately 10 years suggests a high per-unit cost, especially considering the nature of engineering technical services. Benchmarking against similar contracts is crucial to determine if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition justification. While specific reasons are not detailed, limited competition can sometimes lead to higher prices due to reduced market pressure and less robust price discovery.
Taxpayer Impact: The substantial value of this contract means that any inefficiencies or overpricing directly impacts taxpayer funds significantly.
Public Impact
Taxpayers are funding a decade-long engineering services contract for the Department of Defense. The award to a single large contractor raises questions about competition and potential cost savings. The specific technical services provided are critical for aircraft manufacturing, impacting national defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to long duration
- Limited competition may impact price competitiveness
- Lack of detailed justification for limited competition
- Significant taxpayer investment over an extended period
Positive Signals
- Award to a known defense contractor with established capabilities
- Services are critical for national defense infrastructure
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, which is a critical component of national defense spending. Benchmarks for engineering technical services within this sector can vary widely based on complexity and duration.
Small Business Impact
The contract was awarded to Lockheed Martin Integrated Systems, LLC, a large defense contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Department of Defense and the Defense Contract Management Agency to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Limited competition may result in suboptimal pricing.
- Lack of transparency regarding the justification for limited competition.
- Potential for scope creep over the 10-year period.
- Dependence on a single contractor for critical services.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200411!000388!5700!GJ40 !WARNER ROBINS ALC/LUK !F0960301D0207 !A!N! !N!0085 ! !20040823!20060831!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000009204000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !336411!E! !5!B!M! !C! !999
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2004-08-23. End: 2014-07-31.
What specific engineering technical services are included in this contract, and how do they align with current defense needs?
The contract specifies 'ENGINEERING TECHNICAL SERVICES' related to 'Aircraft Manufacturing'. These services likely encompass design, development, testing, maintenance, and support for aircraft systems. Their alignment with current defense needs would depend on the specific aircraft platforms and modernization programs the Department of Defense is pursuing.
What was the justification for limiting competition, and what steps were taken to ensure the best possible price was obtained?
The data indicates 'limited competition'. A detailed justification would typically outline why full and open competition was not feasible (e.g., unique capabilities, urgent need). To ensure best price, the agency should have conducted thorough market research, negotiated aggressively, and potentially used cost-plus-incentive-fee or firm-fixed-price elements where appropriate.
How will the effectiveness and value of these long-term engineering services be measured and ensured throughout the contract's duration?
Effectiveness and value are typically measured through performance metrics, milestones, and deliverables outlined in the contract. Regular reviews, audits, and performance assessments by the contracting officer and technical monitors are crucial. The agency should also track cost trends against projections and benchmark against industry standards to ensure ongoing value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2004-08-23
Current End Date: 2014-07-31
Potential End Date: 2014-07-31 00:00:00
Last Modified: 2018-10-17
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