DoD Awards $122M for Systems Engineering Services to Lockheed Martin, Research & Development Sector
Contract Overview
Contract Amount: $122,118,870 ($122.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-08-16
End Date: 2011-01-30
Contract Duration: 1,628 days
Daily Burn Rate: $75.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200611!007320!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0236 ! !20060816!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONMOUTH !NEW JERSEY!+000001000000!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: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $122.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200611!007320!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0236 ! !20060816!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONMOUTH !NEW JERSEY!+000001000000!N!N!00000000… Key points: 1. Contract awarded to Lockheed Martin Integrated Systems for $122.1M. 2. Services are for Systems Engineering, falling under the R&D sector. 3. Competition was full and open, suggesting potential for competitive pricing. 4. Contract duration is over 4 years, indicating a significant, long-term need. 5. The award was a delivery order under a larger contract.
Value Assessment
Rating: good
The contract value of $122.1M over approximately 4.5 years suggests a substantial investment. Benchmarking against similar large-scale systems engineering contracts would be necessary for a precise value assessment, but the amount is significant.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The specific mechanism was a delivery order, indicating it was part of a pre-existing contract vehicle.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
This contract supports critical systems engineering functions for the Department of Defense. The award to Lockheed Martin, a major defense contractor, highlights their role in national security infrastructure. The duration of the contract suggests ongoing and evolving technological requirements within the DoD. The R&D classification indicates investment in future capabilities and technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns in long-term R&D contracts.
- Reliance on a single large contractor for critical systems engineering.
Positive Signals
- Awarded through full and open competition.
- Significant investment in R&D suggests focus on future capabilities.
- Long contract duration implies sustained need and potential for stable support.
Sector Analysis
This contract falls within the Research and Development sector, specifically for Systems Engineering Services. The R&D sector often involves high-value, complex projects with long lead times and significant technological innovation. Benchmarks for similar large-scale engineering services contracts in the defense sector would be in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Integrated Systems, LLC, a large prime contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific award, which is common for large prime contracts.
Oversight & Accountability
As a delivery order under a larger contract, oversight would likely be managed through the existing contract's framework. The Department of Defense generally has robust oversight mechanisms for R&D and systems engineering contracts to ensure progress and accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 4 years).
- High contract value ($122M+).
- Awarded to a single large prime contractor.
- R&D classification implies inherent uncertainty.
- Delivery order under a larger contract vehicle.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200611!007320!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0236 ! !20060816!20110129!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!1800 ROUTE 34 !WALL !NJ!07719!76460!025!34!WALL (TOWNSHIP OF) !MONMOUTH !NEW JERSEY!+000001000000!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! !
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 $122.1 million.
What is the period of performance?
Start: 2006-08-16. End: 2011-01-30.
What specific systems engineering challenges does this contract aim to address for the Department of the Army?
The contract likely addresses complex challenges related to the integration, development, and sustainment of advanced communication and electronics systems. This could involve ensuring interoperability between different platforms, managing technological obsolescence, and developing next-generation capabilities to maintain a strategic advantage for the Army in electronic warfare and communication.
What are the primary risks associated with a long-term, high-value R&D contract like this?
Key risks include technological obsolescence, where the developed systems may become outdated before deployment; cost overruns due to the inherent uncertainties in R&D; and potential performance issues if the contractor fails to meet evolving technical requirements. There's also a risk of scope creep, where the project expands beyond its original objectives, further increasing costs and timelines.
How does this investment in systems engineering contribute to the overall effectiveness of the Department of Defense?
Effective systems engineering is crucial for ensuring that complex defense systems are reliable, interoperable, and meet operational requirements. This contract's focus on R&D suggests an investment in future capabilities, aiming to enhance the DoD's technological superiority, improve mission effectiveness, and provide warfighters with advanced tools necessary to succeed in diverse and challenging environments.
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, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2006-08-16
Current End Date: 2011-01-30
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2016-10-04
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