LOCKHEED MARTIN INTERNATIONAL awarded $11.15M contract by EPA for environmental services

Contract Overview

Contract Amount: $11,150,174 ($11.2M)

Contractor: Lockheed Martin International

Awarding Agency: Environmental Protection Agency

Start Date: 2000-09-15

End Date: 2005-09-11

Contract Duration: 1,822 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89119

State: Nevada Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $11.2 million to LOCKHEED MARTIN INTERNATIONAL for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 3. Performance period spans over 1800 days, indicating a long-term engagement. 4. The award was made by the Environmental Protection Agency, aligning with the agency's mission. 5. The contract value is substantial, requiring robust oversight to ensure value for money.

Value Assessment

Rating: fair

The contract value of $11.15 million over approximately five years averages to about $2.23 million per year. Without specific benchmarks for similar environmental services contracts from the EPA or other agencies, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This necessitates strong oversight to ensure costs remain reasonable and the fixed fee is appropriate for the effort involved. Benchmarking against industry standards for environmental consulting and remediation services would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bidders (no: 2) suggests some level of competition, but the exact number of proposals received and the nature of the competition are not detailed. A low number of bidders in a full and open competition could potentially limit price discovery and may warrant further investigation into market dynamics or barriers to entry.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings. However, with only two bidders, the potential for significant cost savings may have been limited compared to a scenario with more robust competition.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving environmental services. Services delivered likely pertain to environmental assessment, remediation, or consulting, supporting the EPA's regulatory and operational functions. The contract's geographic impact is not specified but could potentially cover various regions requiring EPA intervention. Workforce implications may include employment opportunities for environmental scientists, engineers, and technicians, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can lead to cost overruns if not tightly managed.
Limited competition (2 bidders) may have restricted price negotiation advantages for the government.
Lack of specific details on services rendered makes it hard to assess performance outcomes.
The long duration of the contract (1822 days) increases the risk of scope creep or changing requirements.

Positive Signals

Awarded under full and open competition, ensuring a broad solicitation.
The contractor, LOCKHEED MARTIN INTERNATIONAL, is a large, established entity with significant resources.
The contract is managed by the EPA, a key agency for environmental oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically environmental consulting and support. The market for environmental services is substantial, driven by regulatory compliance, remediation needs, and sustainability initiatives. Companies like Lockheed Martin International often leverage their broad capabilities to secure large government contracts across various domains, including environmental management. Benchmarking would involve comparing this contract's value and scope to other EPA contracts for similar environmental services or contracts awarded to other large aerospace and defense contractors that also have environmental divisions.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature of the contractor (LOCKHEED MARTIN INTERNATIONAL) and the potential scale of environmental services, it is possible that subcontracting opportunities may exist for specialized small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains justified. The EPA's contracting officers and program managers are responsible for performance monitoring, invoice approval, and ensuring compliance with contract terms. Transparency would depend on the EPA's internal reporting and public disclosure policies regarding contract performance and expenditures.

Related Government Programs

EPA Environmental Services Contracts
Cost Plus Fixed Fee Contracts
Environmental Consulting Services
Government Environmental Remediation

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition may impact price discovery
Lack of specific service details hinders performance assessment

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $11.2 million to LOCKHEED MARTIN INTERNATIONAL. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2000-09-15. End: 2005-09-11.

What specific environmental services were rendered under this contract?

The provided data does not specify the exact environmental services rendered under this $11.15 million contract awarded to LOCKHEED MARTIN INTERNATIONAL by the Environmental Protection Agency (EPA). Typically, contracts of this nature could encompass a wide range of activities such as environmental assessments, site investigations, feasibility studies, remediation design and oversight, hazardous waste management, compliance monitoring, and technical support for regulatory programs. The Cost Plus Fixed Fee (CPFF) structure suggests that the contractor was reimbursed for allowable costs incurred in performing these services, plus a predetermined fixed fee. To understand the specific services, one would need to consult the contract's statement of work (SOW) or related award documentation, which are not included in the provided data.

How does the $11.15 million contract value compare to similar EPA environmental service contracts?

Comparing the $11.15 million contract value to similar EPA environmental service contracts requires access to a broader dataset of historical EPA awards. However, for a contract spanning approximately five years (1822 days), the average annual value is roughly $2.23 million. This figure can be considered moderate to substantial depending on the complexity and scope of the environmental services required. Larger, multi-year contracts for major site cleanups or comprehensive environmental management programs could easily exceed this amount, while smaller, specialized consulting tasks might be valued lower. Without specific comparable contract data, it's challenging to definitively benchmark this award. The fact that it was competed under 'full and open' suggests the EPA sought competitive proposals for the defined scope.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this $11.15 million award to LOCKHEED MARTIN INTERNATIONAL, is the potential for cost overruns. While the contractor's profit (the fixed fee) is predetermined, they are reimbursed for all allowable costs. This can create less incentive for the contractor to control costs rigorously compared to fixed-price contracts. If the government's oversight is insufficient, or if the initial cost estimates were inaccurate, the total expenditure could exceed initial projections. Another risk is 'scope creep,' where the project's requirements expand beyond the original agreement, potentially leading to increased costs and delays. Effective management by the EPA, including robust cost monitoring and clear definition of the statement of work, is critical to mitigate these risks.

What does the limited competition (2 bidders) imply for the EPA and taxpayers?

The fact that this contract received only two bids, despite being awarded under 'full and open competition,' raises questions about the level of market interest or the specific requirements of the solicitation. For the EPA, limited competition might mean they did not receive the full range of innovative solutions or the most competitive pricing available in the market. For taxpayers, it could imply that the government may not have achieved the lowest possible price for the services rendered. While 'full and open' competition was utilized, the low number of bidders suggests that further analysis might be warranted to understand potential barriers to entry for other qualified firms or whether the solicitation's scope was highly specialized, naturally limiting the bidder pool.

How does LOCKHEED MARTIN INTERNATIONAL's track record influence the assessment of this contract?

LOCKHEED MARTIN INTERNATIONAL is a subsidiary of Lockheed Martin Corporation, a major global security and aerospace company with extensive experience in large-scale government contracting across various sectors, including environmental services. Their established presence and resources suggest a capacity to manage complex projects and meet demanding performance requirements. While their track record generally indicates competence in executing large contracts, the specific performance on this particular EPA contract would depend on the project's execution details, which are not provided. Assessing this contract's success would require reviewing performance reports, any incurred cost variances, and client satisfaction feedback specific to this award, rather than relying solely on the corporation's overall reputation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 W FL 3, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business

Timeline