DoD's $181.9M contract for systems engineering services awarded to Lockheed Martin Integrated Systems
Contract Overview
Contract Amount: $181,932,952 ($181.9M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-14
End Date: 2010-07-13
Contract Duration: 1,460 days
Daily Burn Rate: $124.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200610!005629!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0233 ! !20060714!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONMOUTH !NEW JERSEY!+000003000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $181.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200610!005629!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0233 ! !20060714!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONM… Key points: 1. This contract represents a significant investment in specialized systems engineering capabilities. 2. The award to a single, large contractor suggests a focus on established expertise and capacity. 3. The duration of the contract indicates a long-term need for these services. 4. The contract's value places it among substantial federal procurements in its category. 5. The specific NAICS code points to a focus on advanced research and development activities. 6. The 'Time and Materials' pricing structure may introduce cost variability over the contract's life.
Value Assessment
Rating: fair
The contract value of $181.9 million over approximately four years for systems engineering services is substantial. Benchmarking this against similar large-scale R&D and engineering support contracts is challenging without more specific service details. However, the 'Time and Materials' pricing model, while common for evolving R&D needs, can lead to less predictable costs compared to fixed-price contracts. The absence of a specific benchmark for per-unit cost makes a direct value-for-money assessment difficult, but the scale suggests a significant commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The data shows 14 offers were received, suggesting a robust competitive environment for this requirement. A higher number of bidders generally supports better price discovery and can lead to more favorable terms for the government. The selection of Lockheed Martin Integrated Systems from these 14 offers implies they presented the most advantageous proposal.
Taxpayer Impact: Full and open competition with 14 offers is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the value of federal investment.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Department of the Army, which receives advanced systems engineering support. The services delivered are crucial for the development, integration, and sustainment of complex defense systems. The contract's geographic impact is primarily within New Jersey, where the contractor is located, but the services likely support national defense objectives. This contract supports a highly skilled workforce in systems engineering and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' contract type can lead to cost overruns if not closely managed.
- The large contract value concentrated with one provider raises concerns about vendor lock-in and future competition.
- Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the services delivered.
- The broad 'Systems Engineering Services' category could encompass a wide range of activities, making precise value assessment difficult.
Positive Signals
- Awarded under full and open competition with 14 offers, indicating a healthy market response.
- The contractor, Lockheed Martin, is a major defense contractor with extensive experience in systems engineering.
- The contract duration suggests a stable, long-term need that the contractor is positioned to meet.
- The specific NAICS code (541710) points to a focus on R&D, potentially leading to technological advancements.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541710). This sector is characterized by high innovation, significant government investment, and the involvement of large, specialized contractors. The market size for defense-related R&D and systems engineering is substantial, with the Department of Defense being a primary customer. Comparable spending benchmarks would typically involve other large, multi-year R&D or complex systems integration contracts within the defense industrial base.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and the nature of systems engineering services for major defense systems, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or easily accommodated within the prime contract structure. The focus is likely on large, specialized capabilities rather than broad distribution among smaller firms.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to technical specifications, delivery schedules, and quality standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Systems Engineering Support Services
- Lockheed Martin Federal Contracts
- Army Information Technology and Engineering Services
- Major Defense Acquisition Programs
Risk Flags
- Time and Materials contract type may lead to cost uncertainty.
- Large contract value concentrated with a single provider.
- Potential for scope creep without rigorous oversight.
- Limited transparency on specific performance metrics in provided data.
Tags
department-of-defense, department-of-the-army, systems-engineering, research-and-development, lockheed-martin, new-jersey, full-and-open-competition, time-and-materials, large-contract, defense-contracting, naics-541710
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $181.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200610!005629!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0233 ! !20060714!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONMOUTH !NEW JERSEY!+000003000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $181.9 million.
What is the period of performance?
Start: 2006-07-14. End: 2010-07-13.
What is the historical spending trend for systems engineering services by the Department of the Army?
Historical spending on systems engineering services by the Department of the Army has generally trended upwards, reflecting the increasing complexity of modern defense systems and the critical role of robust engineering support. While specific figures fluctuate year-to-year based on program needs and budget allocations, the Army consistently invests billions annually in R&D and associated engineering services. This particular $181.9 million contract, awarded in 2006, represents a significant single award within that broader spending context. Analyzing trends requires examining aggregated data across multiple fiscal years and contract types, looking for patterns in prime contractors, service categories (like systems engineering), and overall R&D investment levels to understand the Army's long-term commitment to these capabilities.
How does the per-unit cost of this contract compare to industry benchmarks for systems engineering?
Determining a precise per-unit cost for this contract is challenging because the provided data lacks specific metrics for 'units' of service delivered. The contract is 'Time and Materials,' meaning costs are based on labor hours and material costs incurred, rather than a fixed price per deliverable. Industry benchmarks for systems engineering are highly variable, depending on the complexity of the system, the level of expertise required (e.g., senior engineers vs. junior staff), and the specific domain (e.g., software, hardware, aerospace). Without defined units like 'engineering hours per system component' or 'design review per milestone,' a direct comparison to a per-unit benchmark is not feasible. The total value of $181.9 million over approximately four years suggests a significant average annual spend, implying a substantial team of highly skilled personnel.
What is Lockheed Martin Integrated Systems' track record with similar large-scale defense engineering contracts?
Lockheed Martin Integrated Systems, as a major defense contractor, possesses an extensive track record with large-scale defense engineering and systems integration contracts. The company is a prime contractor on numerous complex programs across various military branches, including significant work for the Department of the Army. Their history includes managing multi-billion dollar portfolios involving research, development, production, and sustainment of advanced platforms and technologies. While specific details of past performance on contracts identical in scope to this $181.9 million systems engineering award require deeper investigation into contract databases and performance reports, Lockheed Martin's overall profile indicates a capacity and experience level commensurate with such requirements. Their involvement suggests a proven ability to handle complex technical challenges and manage large government contracts.
What are the potential risks associated with the 'Time and Materials' contract type for this scope of work?
The 'Time and Materials' (T&M) contract type, used for this $181.9 million systems engineering award, carries inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can lead to cost uncertainty and potential overruns if the scope of work expands unexpectedly or if labor hours are not efficiently utilized. For the government, effective oversight is crucial to ensure that the hours billed are reasonable and allocable to the contract's objectives, and that material costs are fair. Without stringent monitoring and well-defined task orders, the total cost could exceed initial estimates, impacting the overall value proposition compared to a more predictable contract type.
How does this contract's value compare to the overall R&D spending within the Department of the Army for the period?
This $181.9 million contract for systems engineering services, awarded in 2006, represents a notable portion of the Department of the Army's Research and Development (R&D) spending for that fiscal year and the subsequent contract period. While the Army's total R&D budget typically runs into the tens of billions of dollars annually, individual contracts of this magnitude are significant investments within specific capability areas. To provide precise context, one would need to compare this figure against the Army's total R&D appropriations for FY2006 and subsequent years (e.g., FY2007-2010). Such a comparison would reveal whether this contract constituted a major program or a component of a larger acquisition effort, highlighting its relative importance within the Army's strategic R&D priorities during that timeframe.
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: 2006-07-14
Current End Date: 2010-07-13
Potential End Date: 2010-07-13 00:00:00
Last Modified: 2015-05-12
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