DoD Awards $68.8M Delivery Order to Lockheed Martin for Wired Telecommunications, Citing Technical Issues
Contract Overview
Contract Amount: $68,793,442 ($68.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-19
End Date: 2014-06-30
Contract Duration: 649 days
Daily Burn Rate: $106.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: THIS ORDER IS BEING PLACED AS AN ADMINISTRATIVE SOLUTION FOR TECHNICAL DIFFICULTIES WITH CURRENT TO W91QUZ-06-D-0017-0007. TO 0007 HAS REACHED THE MAXIMUM NUMBER OF ACRNS AND CAN NOT LONGER TAKE ADDITIONAL FUNDING LOAS.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22207
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: THIS ORDER IS BEING PLACED AS AN ADMINISTRATIVE SOLUTION FOR TECHNICAL DIFFICULTIES WITH CURRENT TO W91QUZ-06-D-0017-0007. TO 0007 HAS REACHED THE MAXIMUM NUMBER OF ACRNS AND CAN NOT LONGER TAKE ADDITIONAL FUNDING LOAS. Key points: 1. This award addresses a technical limitation on a previous contract, not a new requirement. 2. Lockheed Martin is the incumbent contractor, suggesting a continuation of existing services. 3. The administrative nature of this order raises questions about proactive contract management. 4. The IT sector, specifically telecommunications, is critical for military operations.
Value Assessment
Rating: fair
The award amount of $68.8M for a delivery order is substantial. Without a clear breakdown of services or comparison to similar contracts for wired telecommunications, assessing value for money is difficult. The pricing is likely tied to the base contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract states 'full and open competition,' but the context of an administrative solution for a previous order suggests this might be a modification or extension rather than a new competitive procurement. The price discovery impact is unclear without more details on the base contract's competition.
Taxpayer Impact: Taxpayer funds are being used to address a contractual administrative issue, which could indicate inefficiencies in contract management if not handled proactively.
Public Impact
Ensures continued telecommunications support for Department of the Army operations. Highlights potential contract management challenges within the DoD. Impacts the IT services sector, specifically wired telecommunications providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract administrative solution
- Potential for contract mismanagement
- Lack of detailed service breakdown
Positive Signals
- Continued essential service provision
- Utilizes incumbent contractor expertise
Sector Analysis
This award falls within the Information Technology sector, specifically wired telecommunications. Spending in this area is crucial for maintaining communication infrastructure. Benchmarks are difficult without knowing the specific services provided under this order.
Small Business Impact
The data indicates the awardee is Lockheed Martin Integrated Systems, LLC, a large business. There is no indication of small business participation in this specific delivery order.
Oversight & Accountability
The need for an administrative solution due to technical difficulties suggests potential oversight gaps in managing contract ceilings and technical limitations. Further review of contract management practices is warranted.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for contract mismanagement
- Lack of transparency on specific services
- Administrative solution may mask underlying issues
- Limited opportunity for new competition
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. THIS ORDER IS BEING PLACED AS AN ADMINISTRATIVE SOLUTION FOR TECHNICAL DIFFICULTIES WITH CURRENT TO W91QUZ-06-D-0017-0007. TO 0007 HAS REACHED THE MAXIMUM NUMBER OF ACRNS AND CAN NOT LONGER TAKE ADDITIONAL FUNDING LOAS.
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 $68.8 million.
What is the period of performance?
Start: 2012-09-19. End: 2014-06-30.
What specific technical difficulties led to the previous contract reaching its ACRN limit, and could these have been foreseen?
The provided data does not specify the exact technical difficulties. However, contracts reaching maximum funding or line item limits often stem from unforeseen scope expansion, extended performance periods, or inadequate initial ceiling estimations. Proactive contract management and regular reviews are essential to anticipate and mitigate such issues, preventing the need for administrative workarounds.
How does the pricing of this delivery order compare to market rates for similar wired telecommunications services, given it's an administrative solution?
Assessing the pricing against market rates is challenging without knowing the specific services rendered and the terms of the original contract (W91QUZ-06-D-0017-0007). As an administrative solution, the pricing is likely derived from the base contract's established rates. If the base contract was competitively awarded, these rates may be reasonable, but the lack of new competition for this specific order limits direct market comparison.
What is the long-term strategy for managing contract ceilings and technical limitations to avoid recurring administrative solutions?
The long-term strategy should involve enhanced contract planning and oversight. This includes more accurate initial scope and funding estimations, regular performance reviews to identify potential ceiling issues early, and flexible contract vehicles that can accommodate growth without requiring administrative workarounds. Implementing robust contract management systems and training can help prevent such situations.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91QUZ05R0004
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5290 SHAWNEE RD, ALEXANDRIA, VA, 22312
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $77,420,001
Exercised Options: $77,420,001
Current Obligation: $68,793,442
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $871,721
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0017
IDV Type: IDC
Timeline
Start Date: 2012-09-19
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2017-03-09
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