DoD's $18.67M contract for ISR management services awarded to Lockheed Martin shows potential for cost savings

Contract Overview

Contract Amount: $18,666,130 ($18.7M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2006-07-13

End Date: 2011-07-29

Contract Duration: 1,842 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000005289765!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!E! !5!B!M! !A! !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 $18.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONT… Key points: 1. The contract's firm-fixed-price structure provides cost certainty for the government. 2. A high number of bids suggests a competitive market for these specialized services. 3. The duration of the contract (over 4 years) indicates a long-term need for these capabilities. 4. The specific Product Service Code (PSC) points to a niche but critical area of defense support. 5. The contract's performance is managed by the Defense Contract Management Agency, a key oversight body.

Value Assessment

Rating: good

While a direct per-unit cost comparison is not readily available without more granular data, the firm-fixed-price nature of this contract is a positive indicator for value. The total award amount of $18.67 million over approximately four years suggests a managed expenditure. Benchmarking against similar Intelligence, Surveillance, and Reconnaissance (ISR) management contracts would be necessary for a definitive value assessment, but the competitive award process implies a reasonable price was likely achieved.

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 data shows 10 bids were received, which is a strong indicator of a healthy competitive environment for ISR management services. A robust competition typically drives down prices and encourages innovation as contractors vie for the award.

Taxpayer Impact: The full and open competition and multiple bids suggest that taxpayer dollars were likely used efficiently, as the government benefited from a competitive bidding process that aimed to secure the best value.

Public Impact

The primary beneficiaries are the Department of Defense units requiring Intelligence, Surveillance, and Reconnaissance (ISR) management and support. The services delivered are crucial for maintaining situational awareness and operational effectiveness in various defense contexts. The contract's geographic impact is likely national, supporting defense operations globally, with a specific mention of Georgia as the contractor's state. This contract supports a specialized workforce within the defense industry, requiring expertise in ISR systems and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on intelligence, surveillance, and reconnaissance (ISR) management. The ISR market is a critical and growing segment within defense, encompassing technologies and services for data collection, analysis, and dissemination. Comparable spending in this area is substantial across various defense agencies, reflecting the increasing reliance on advanced ISR capabilities for modern warfare and national security. The market is characterized by a few large prime contractors and numerous specialized subcontractors.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. As a large prime contract awarded to a major defense corporation, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities. The extent of small business participation would depend on Lockheed Martin's subcontracting strategy and the availability of small businesses capable of providing specialized support services.

Oversight & Accountability

Oversight for this contract is primarily handled by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of financial oversight by capping the government's liability. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically not publicly disclosed.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, intelligence-surveillance-reconnaissance, lockheed-martin, firm-fixed-price, full-and-open-competition, delivery-order, aircraft-manufacturing, engineering-technical-services, georgia, defense-contract-management-agency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000005289765!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!E! !5!B!M! !A! !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 $18.7 million.

What is the period of performance?

Start: 2006-07-13. End: 2011-07-29.

What is the historical spending trend for ISR management services within the Department of Defense?

Historical spending on ISR management services within the Department of Defense has shown a consistent upward trend over the past two decades, driven by the increasing complexity of global security challenges and the proliferation of advanced sensor technologies. While specific figures for 'ISR management' as a distinct category can be difficult to isolate due to varied contract classifications, overall defense spending on intelligence and surveillance capabilities has surged. Factors contributing to this include the demand for real-time data, advanced analytics, and integrated C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems. This particular contract, awarded in 2006, reflects a period of significant investment in enhancing ISR capabilities following operations in Afghanistan and Iraq, where ISR assets proved critical.

How does Lockheed Martin's performance on similar ISR contracts compare to industry benchmarks?

Lockheed Martin is a major defense contractor with a long history of performance on complex ISR programs. Benchmarking their performance requires access to detailed contract performance reports, which are often not publicly available. However, general industry assessments and past performance reviews available through sources like the Government Accountability Office (GAO) bid protest decisions and contractor capability assessments suggest Lockheed Martin generally meets or exceeds performance expectations on large-scale defense contracts. Their extensive experience in aerospace, defense electronics, and systems integration positions them as a capable provider. Specific metrics like on-time delivery, quality adherence, and cost control would be evaluated on a contract-by-contract basis by the contracting officer's representative (COR).

What are the key risks associated with managing long-term ISR contracts, and how are they mitigated?

Key risks in long-term ISR contracts include technological obsolescence, evolving threat landscapes requiring rapid adaptation, potential for cost overruns if not managed tightly, and contractor performance issues. Mitigation strategies employed by the DoD include robust contract structuring (like firm-fixed-price where appropriate), clear performance metrics and milestones, regular performance reviews, and incorporating flexibility clauses for technological upgrades or changes in mission requirements. For this specific contract, the firm-fixed-price structure helps mitigate cost risks. The management by DCMA and the potential for contract modifications or re-competition at the end of the term also serve as risk management tools. Furthermore, fostering open communication channels with the contractor is crucial for early identification and resolution of potential issues.

What is the typical profit margin for ISR management services contracts in the defense sector?

Profit margins for ISR management services contracts within the defense sector can vary significantly based on contract type, complexity, risk, and the specific services provided. For firm-fixed-price contracts, which aim to provide cost certainty to the government, contractor profit margins are typically built into the initial price. While exact figures are proprietary, industry averages for defense contracting can range from 7% to 15% profit on contract value. However, specialized, high-technology services like advanced ISR management might command slightly higher margins due to the required expertise and intellectual property involved. Government regulations and negotiation play a significant role in determining the final profit margins realized by contractors.

How has the role of ISR management evolved within the DoD since this contract was awarded?

The role of ISR management has evolved dramatically since this contract's award in 2006. Initially focused on managing the acquisition and deployment of specific ISR platforms and data processing systems, the emphasis has shifted towards integrated, network-centric ISR operations. This includes leveraging artificial intelligence (AI) and machine learning (ML) for automated data analysis, enhancing multi-INT (intelligence) fusion, and enabling faster dissemination of actionable intelligence across distributed forces. Cloud computing and secure data sharing platforms have also become central. While this contract likely focused on more traditional ISR management, subsequent contracts and evolving DoD strategies emphasize agile, data-driven ISR capabilities that are more responsive to dynamic threats and operational needs.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

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: 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

Parent Contract

Parent Award PIID: F0960301D0207

IDV Type: IDC

Timeline

Start Date: 2006-07-13

Current End Date: 2011-07-29

Potential End Date: 2011-07-29 00:00:00

Last Modified: 2016-03-04

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