Lockheed Martin awarded $120M for Joint Intelligence Operations Center analysis, a significant R&D investment
Contract Overview
Contract Amount: $119,641,327 ($119.6M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-07-19
End Date: 2010-07-19
Contract Duration: 1,096 days
Daily Burn Rate: $109.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: JOINT INTELLIGENCE OPERATIONS CENTER (JIOC) ALL SOURCE ANALYSIS
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719
Plain-Language Summary
Department of Defense obligated $119.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: JOINT INTELLIGENCE OPERATIONS CENTER (JIOC) ALL SOURCE ANALYSIS Key points: 1. Contract value represents a substantial commitment to intelligence analysis capabilities. 2. The full and open competition suggests a robust market for these specialized services. 3. A 3-year duration indicates a medium-term need for ongoing intelligence support. 4. The 'Research and Development' NAICS code points to innovation and advanced technical services. 5. The contract's focus on intelligence operations highlights its critical national security role. 6. The award to a single large contractor may warrant scrutiny for potential future competition.
Value Assessment
Rating: good
The $119.6 million award for JIOC All Source Analysis appears reasonable given the specialized nature of intelligence research and development. Benchmarking against similar large-scale R&D contracts for intelligence agencies is challenging due to data limitations. However, the duration of the contract and the scope of work suggest a significant investment in advanced analytical capabilities. The pricing structure, likely reflecting complex labor and technology integration, needs to be assessed against industry standards for similar high-level R&D efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bidders suggests a competitive landscape for this type of intelligence analysis service. A healthy number of bidders generally leads to better price discovery and potentially more innovative solutions for the government. The government's ability to select from multiple proposals likely resulted in a more favorable outcome in terms of both cost and technical merit.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of advanced capabilities. This process ensures that the government is not locked into a single provider, fostering a more dynamic and cost-effective market.
Public Impact
The primary beneficiaries are U.S. intelligence agencies requiring advanced all-source analysis to support national security objectives. The services delivered likely involve the integration and analysis of diverse intelligence data streams to produce actionable insights. The geographic impact is national, supporting federal intelligence operations from various locations. Workforce implications include the need for highly skilled analysts, data scientists, and intelligence professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single large contractor for critical intelligence analysis functions.
- The complexity of R&D contracts can sometimes lead to cost overruns if not managed tightly.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The contractor, Lockheed Martin, is a well-established defense and aerospace company with extensive experience.
- The contract duration suggests a stable, long-term need for these critical services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on intelligence analysis. The market for intelligence R&D is highly specialized, dominated by large defense contractors and niche technology firms. Spending in this area is driven by evolving geopolitical threats and the need for advanced technological solutions to process and analyze vast amounts of data. Comparable spending benchmarks are difficult to establish due to the classified nature of much intelligence work, but this award represents a significant investment in a critical capability.
Small Business Impact
This contract was awarded to Lockheed Martin, a large prime contractor, and there is no indication of a small business set-aside. Given the nature of the work, it is likely that Lockheed Martin may utilize small business subcontractors for specialized components or services. However, the primary award does not directly benefit small businesses through a set-aside mechanism. The subcontracting plan, if any, would determine the extent of small business involvement.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting activity within the Department of Defense. Accountability measures would include performance reviews, milestone tracking, and adherence to contract terms. Transparency in intelligence R&D contracts can be limited due to national security considerations, but standard government contracting oversight processes apply.
Related Government Programs
- Intelligence Community Information Technology Enterprise (IC ITE)
- National Geospatial-Intelligence Agency (NGA) Contracts
- Defense Intelligence Agency (DIA) Support Services
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Risk Flags
- Contract awarded as Time and Materials, which can pose cost control risks if not closely managed.
- The contract duration is substantial (1096 days), requiring sustained oversight.
- Focus on R&D inherently carries risks of technical challenges and potential schedule slips.
Tags
defense, department-of-defense, intelligence, research-and-development, lockheed-martin, full-and-open-competition, time-and-materials, new-jersey, national-security, analysis, all-source-analysis, jioc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $119.6 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. JOINT INTELLIGENCE OPERATIONS CENTER (JIOC) ALL SOURCE ANALYSIS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $119.6 million.
What is the period of performance?
Start: 2007-07-19. End: 2010-07-19.
What is the historical spending trend for Joint Intelligence Operations Center (JIOC) All Source Analysis contracts?
Analyzing historical spending trends for specific intelligence contracts like the JIOC All Source Analysis can be challenging due to the classified nature of much of this spending. However, general trends in defense R&D and intelligence support services indicate a consistent and often increasing investment over time. Factors driving this include evolving threats, technological advancements, and the growing volume of data requiring analysis. While the specific $119.6 million award to Lockheed Martin is a single data point, it reflects a broader pattern of significant federal investment in intelligence capabilities. Without access to detailed historical contract awards for this specific program or similar ones, a precise trend analysis is not feasible. However, it is reasonable to infer that the need for advanced intelligence analysis is a sustained requirement for the Department of Defense.
How does the cost per unit or labor rate for this contract compare to industry benchmarks?
Determining a precise 'cost per unit' or labor rate benchmark for this contract is difficult without more granular data on the specific services rendered and the labor categories involved. Intelligence R&D contracts, especially those involving advanced analysis and technology integration, often have complex pricing structures that are not easily comparable to standard commercial rates. Factors such as security clearances, specialized expertise, proprietary software, and the high-risk, high-reward nature of R&D contribute to unique cost profiles. Lockheed Martin, as a major defense contractor, likely operates with rates that reflect these specialized requirements and overheads. A thorough benchmark would require access to detailed cost breakdowns and comparisons with similar classified or sensitive government R&D contracts, which are not publicly available.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key Performance Indicators (KPIs) for a contract like the Joint Intelligence Operations Center (JIOC) All Source Analysis are likely to be highly specialized and potentially classified, focusing on the effectiveness and timeliness of intelligence products. General KPIs for such R&D and analysis contracts might include metrics related to the accuracy and relevance of intelligence assessments, the speed at which critical information is delivered, the successful integration of new analytical tools or methodologies, and the overall contribution to decision-making processes. Performance would also be assessed against defined milestones, technical objectives, and adherence to security protocols. The government would evaluate whether the contractor is meeting the defined requirements for producing actionable intelligence derived from diverse data sources.
What is Lockheed Martin's track record with similar intelligence analysis contracts?
Lockheed Martin has a long and extensive track record of providing complex intelligence, surveillance, and reconnaissance (ISR) solutions, as well as advanced research and development services to the U.S. government, particularly the Department of Defense and intelligence agencies. They are a major prime contractor on numerous programs involving data analysis, systems integration, and advanced technology development. Their experience spans decades and includes work on classified programs critical to national security. While specific details of their performance on all intelligence analysis contracts are not publicly disclosed, their continued success in securing large, high-value contracts in this domain suggests a strong performance history and a high level of trust from government clients. This specific award builds upon that established relationship and capability.
What are the potential risks associated with this contract, and how are they being mitigated?
Potential risks associated with this intelligence analysis contract include technical challenges in developing and implementing advanced analytical tools, the possibility of cost overruns in a complex R&D environment, schedule delays, and the risk of data breaches or security vulnerabilities. Mitigation strategies employed by the government and the contractor would likely involve rigorous project management, phased development with regular reviews, robust cybersecurity measures, clear performance metrics, and contingency planning. The full and open competition process itself helps mitigate risks by ensuring the selection of a capable contractor. Furthermore, ongoing oversight by the Defense Contract Management Agency (DCMA) and the contracting agency is crucial for monitoring progress and addressing issues proactively.
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: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $193,815,640
Exercised Options: $119,641,327
Current Obligation: $119,641,327
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2007-07-19
Current End Date: 2010-07-19
Potential End Date: 2010-07-19 00:00:00
Last Modified: 2025-04-29
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