DoD Awards $110.6M for Engineering/Integration Support to Lockheed Martin, Full and Open Competition

Contract Overview

Contract Amount: $110,592,920 ($110.6M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-08

End Date: 2011-01-30

Contract Duration: 1,424 days

Daily Burn Rate: $77.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: ENGINEERING/INTEGRATION AND PROGRAM SUPPORT TO CNTPO OFFICE - NEW TASK ORDER

Place of Performance

Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $110.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ENGINEERING/INTEGRATION AND PROGRAM SUPPORT TO CNTPO OFFICE - NEW TASK ORDER Key points: 1. Significant contract value awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 1424 days indicates a long-term need for these services. 4. Research and Development sector, specifically physical, engineering, and life sciences.

Value Assessment

Rating: good

The total award of $110.6 million over approximately 4 years suggests a substantial investment. Benchmarking against similar R&D support contracts would be necessary for a precise value assessment, but the scale indicates significant program requirements.

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 possible range of bidders and promotes price discovery. This method is generally expected to yield competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the award.

Public Impact

Supports critical engineering and program integration for the CNTPO office. Potential for technological advancements stemming from R&D activities. Impacts the defense industrial base through a large contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to evolving requirements and scientific uncertainty.

Small Business Impact

The contract data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small business participation, which could be a missed opportunity for smaller innovative firms.

Oversight & Accountability

The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, nj, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ENGINEERING/INTEGRATION AND PROGRAM SUPPORT TO CNTPO OFFICE - NEW TASK ORDER

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 $110.6 million.

What is the period of performance?

Start: 2007-03-08. End: 2011-01-30.

What specific R&D areas are covered by this contract, and how do they align with current defense priorities?

The contract broadly covers 'ENGINEERING/INTEGRATION AND PROGRAM SUPPORT TO CNTPO OFFICE'. While the specific R&D areas are not detailed, the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests work in areas like advanced materials, systems engineering, simulation, or biological sciences relevant to defense applications. Alignment with current priorities would require further investigation into the CNTPO's mission.

What are the potential risks associated with a Time and Materials contract for this type of R&D support?

Time and Materials (T&M) contracts, especially for R&D, carry inherent risks of cost escalation if not meticulously managed. The contractor is reimbursed for direct labor hours and materials, creating less incentive for cost efficiency compared to fixed-price contracts. Without strong oversight, scope creep, inefficient labor practices, or inflated material costs can significantly increase the final price beyond initial estimates.

How effectively did the full and open competition process ensure the best value was obtained for the government?

The full and open competition method is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals and achieving best value. However, the ultimate effectiveness depends on the clarity of the solicitation, the evaluation criteria used, and the responsiveness of the market. Without access to the proposals and evaluation, it's difficult to definitively assess the value obtained beyond the process itself.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch 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: 2

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

Financial Breakdown

Contract Ceiling: $110,592,920

Exercised Options: $110,592,920

Current Obligation: $110,592,920

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB009

IDV Type: IDC

Timeline

Start Date: 2007-03-08

Current End Date: 2011-01-30

Potential End Date: 2011-01-30 00:00:00

Last Modified: 2015-05-12

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