DoD Awards $71.4M for Systems Engineering Services to Lockheed Martin, Full and Open Competition
Contract Overview
Contract Amount: $71,380,821 ($71.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-09-28
End Date: 2008-09-27
Contract Duration: 1,460 days
Daily Burn Rate: $48.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: SYSTEMS ENGINEERING SERVICES DEOB FROM ACRN AR
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $71.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: SYSTEMS ENGINEERING SERVICES DEOB FROM ACRN AR Key points: 1. Significant contract value of $71.4 million for specialized engineering services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of 4 years (2004-2008) suggests a long-term need. 4. The NAICS code 541710 points to R&D in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract value of $71.4M over 4 years averages to $17.85M annually. Without specific deliverables or comparable contracts, assessing value is difficult. The Time and Materials pricing structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the Time and Materials (T&M) contract type can still present cost control challenges.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently. However, the T&M pricing structure requires diligent oversight to prevent unnecessary costs.
Public Impact
Supports critical research and development in engineering and physical sciences. Enhances national defense capabilities through advanced systems engineering. Potential for technological advancements and innovation stemming from the R&D focus.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Long contract duration requires ongoing performance monitoring.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Supports critical R&D for the Department of Defense.
- Experienced contractor with a significant contract award.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS 541710. Spending in this area is crucial for technological advancement and maintaining a competitive edge in defense.
Small Business Impact
The contract was awarded to Lockheed Martin Integrated Systems, LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's duration and T&M nature necessitate robust oversight from the Department of the Army to ensure cost control and adherence to scope. Regular performance reviews and audits would be critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics makes outcome assessment difficult.
- Long contract duration requires sustained oversight.
- No explicit small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. SYSTEMS ENGINEERING SERVICES DEOB FROM ACRN AR
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 Army).
What is the total obligated amount?
The obligated amount is $71.4 million.
What is the period of performance?
Start: 2004-09-28. End: 2008-09-27.
What specific systems engineering tasks were performed under this contract, and how did they contribute to the Department of Defense's objectives?
The contract focused on 'SYSTEMS ENGINEERING SERVICES DEOB FROM ACRN AR'. While the exact tasks are not detailed, systems engineering typically involves the design, integration, and management of complex systems throughout their life cycles. For the DoD, this could encompass areas like weapon systems development, C4ISR integration, or platform modernization, directly supporting operational readiness and technological superiority.
Given the Time and Materials pricing, what measures were in place to control costs and ensure the $71.4M award did not exceed its intended value?
With a Time and Materials (T&M) contract, cost control relies heavily on stringent oversight, defined labor categories with capped rates, and clear task orders. The Department of the Army would need to actively monitor hours billed, ensure personnel were working on authorized tasks, and potentially implement cost ceilings or award-fee provisions to incentivize efficiency and prevent overspending beyond the $71.4M.
How effective was the full and open competition in achieving competitive pricing for these specialized R&D services?
Full and open competition is designed to foster a competitive environment, which generally leads to better pricing. However, the effectiveness in this specific case depends on the number and quality of bids received, the complexity of the R&D requirements, and the chosen contract type. While competition is a positive signal, the T&M structure means the final price is heavily influenced by actual effort, making a definitive assessment of price effectiveness challenging without further data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2004-09-28
Current End Date: 2008-09-27
Potential End Date: 2008-09-27 00:00:00
Last Modified: 2015-05-07
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