DoD awards $81.7M for satellite and communications support, with Lockheed Martin as prime
Contract Overview
Contract Amount: $81,715,601 ($81.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-07-11
End Date: 2011-09-30
Contract Duration: 1,542 days
Daily Burn Rate: $53.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: NEW TASK ORDER FOR GLOBAL SATELLITE AND COMMUNICATIONS SUPPORT SERVICES
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $81.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: NEW TASK ORDER FOR GLOBAL SATELLITE AND COMMUNICATIONS SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code points to R&D in physical, engineering, and life sciences. 6. The contractor, Lockheed Martin, is a major defense contractor with extensive experience. 7. The contract was awarded in New Jersey, indicating a specific geographic focus for performance.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. The Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed closely. Comparing this to similar satellite and communications support contracts would require access to detailed pricing data and scope of work for those contracts. The awarded amount of $81.7 million over approximately 4 years suggests a significant but not exceptionally high annual spend for specialized R&D support.
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 presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the actual level of competition can vary based on the specialized nature of the services and the number of capable contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a competitive bidding process, ensuring the government receives the best value for its investment.
Public Impact
The Department of Defense benefits from advanced satellite and communications support services, crucial for national security operations. This contract supports research and development activities, potentially leading to advancements in communication technologies. The contract's performance in New Jersey may imply a localized impact on the state's technology and defense sectors. Specialized technical expertise is likely required, potentially benefiting a skilled workforce in the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- The duration of the contract (over 4 years) requires sustained oversight to ensure continued value.
- Specialized R&D services can be difficult to benchmark for cost-effectiveness.
- Reliance on a single large contractor for critical support services may present a risk.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contractor, Lockheed Martin, has a strong track record in defense contracting.
- The contract addresses critical support services for satellite and communications, vital for DoD operations.
- The contract is for R&D, potentially driving innovation and technological advancement.
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 innovation and the pursuit of new technologies. The aerospace and defense industry, a significant part of this sector, heavily relies on advanced communication and satellite technologies. Spending in this area is often driven by national security requirements and the need to maintain a technological edge. Comparable spending benchmarks would typically be found within R&D contracts for similar specialized technical services within the defense industry.
Small Business Impact
This contract does not appear to have a small business set-aside (ss=false, sb=false). Given the specialized nature of satellite and communications support services, it is unlikely that significant subcontracting opportunities for small businesses would be mandated unless specified in the contract's statement of work. The primary contractor, Lockheed Martin, is a large defense firm, and their subcontracting practices would determine any indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army, the awarding agency. Given the R&D nature and the Time and Materials contract type, robust oversight would be crucial to monitor costs, performance, and adherence to the statement of work. Transparency would depend on the agency's reporting practices and any specific clauses within the contract requiring public disclosure of progress or outcomes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Satellite Communications Programs
- Aerospace Research and Development Contracts
- Defense Communications Infrastructure
- Information Technology Support Services
- National Security Space Programs
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Long Contract Duration Requires Sustained Oversight
- Specialized R&D Services Difficulty in Benchmarking
Tags
department-of-defense, department-of-the-army, research-and-development, satellite-communications, lockheed-martin, time-and-materials, full-and-open-competition, new-jersey, large-contract, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. NEW TASK ORDER FOR GLOBAL SATELLITE AND COMMUNICATIONS SUPPORT SERVICES
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 $81.7 million.
What is the period of performance?
Start: 2007-07-11. End: 2011-09-30.
What is Lockheed Martin's track record with similar Time and Materials contracts for the Department of Defense?
Lockheed Martin, as a major defense contractor, has extensive experience with various contract types, including Time and Materials (T&M). T&M contracts are often used when the scope of work is not clearly defined or is expected to evolve, common in R&D settings. While T&M offers flexibility, it also carries a higher risk of cost overruns if not managed diligently. Lockheed Martin's track record with T&M contracts would involve reviewing past performance evaluations, any documented cost overruns or efficiencies, and their ability to deliver within estimated budgets on similar projects. Specific data on their T&M performance for satellite and communications support would require a deeper dive into contract databases and performance reports, looking for trends in cost growth, schedule adherence, and overall customer satisfaction.
How does the $81.7 million award compare to other R&D contracts for satellite communications support?
Comparing the $81.7 million award requires context regarding the duration, scope, and specific services rendered. This contract spans approximately 4 years (1542 days). Annualized, this represents roughly $20.4 million per year. To benchmark effectively, one would need to identify similar contracts awarded by the DoD or other agencies for satellite and communications R&D support over comparable periods. Factors such as the level of technological innovation required, the complexity of the systems involved, and the specific research objectives would influence the cost. Without access to a comprehensive database of comparable contract values and detailed scopes of work, a precise comparison is difficult. However, for specialized R&D in a high-tech field like satellite communications, an $81.7 million award over four years is substantial, reflecting the critical and complex nature of the work.
What are the primary risks associated with a Time and Materials contract for R&D in this sector?
The primary risk with a Time and Materials (T&M) contract, especially for Research and Development (R&D) in satellite and communications, is cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs incurred, plus a fee. If the scope of work is not well-defined or if project requirements change frequently, the contractor's hours and material costs can increase significantly, leading to expenditures exceeding initial estimates. For R&D, where innovation and exploration are key, the path to a solution is often uncertain, making accurate cost prediction difficult. Effective oversight, clear task definitions, and strong project management are essential to mitigate these risks and ensure the government receives value for its investment.
What is the historical spending pattern for satellite and communications support services within the Department of the Army?
Analyzing historical spending patterns for satellite and communications support services within the Department of the Army requires access to historical contract data. This would involve querying databases like FPDS-NG or USAspending.gov for contracts awarded under relevant NAICS codes (e.g., 541710 for R&D, or others related to telecommunications and IT services) and specific product/service codes related to satellite and communications. Trends to look for would include the total annual spend, the number of contracts awarded, the dominant contract types (e.g., T&M vs. fixed-price), and the primary contractors receiving awards. Understanding these patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether there's a shift towards certain types of services or contractors, providing context for the current $81.7 million award.
How does the competition level (3 bidders) impact the value received by the government for this contract?
A competition level of 3 bidders for a full and open contract suggests a moderate degree of market interest and capability for this specific requirement. While more bidders generally lead to more competitive pricing, three bidders can still provide sufficient pressure to achieve fair market value. The impact on value depends on several factors: the uniqueness of the required services (which might limit the number of capable bidders), the clarity and attractiveness of the government's solicitation, and the strategic importance of the contract to the bidders. If these three bidders were highly capable and actively competed, the government likely received a reasonable price. However, a larger pool of bidders might have potentially yielded even lower prices or more innovative solutions.
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: 3
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: $81,715,601
Exercised Options: $81,715,601
Current Obligation: $81,715,601
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2007-07-11
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2015-05-13
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