DOT's $117.9M contract for technical services awarded to Lockheed Martin, spanning nearly 8 years

Contract Overview

Contract Amount: $117,903,036 ($117.9M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2009-10-24

End Date: 2017-10-27

Contract Duration: 2,925 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $117.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. The contract's value of over $117 million for professional, scientific, and technical services indicates a significant investment in specialized support. 2. Awarded to a single, large contractor, this suggests a focus on established capabilities rather than broad market engagement. 3. The long duration of the contract (over 8 years) implies a need for sustained, long-term support for ongoing federal operations. 4. The firm-fixed-price structure aims to provide cost certainty for the government, shifting cost overrun risks to the contractor. 5. The absence of small business set-asides or subcontracting requirements may limit opportunities for smaller firms in this contract's execution. 6. The contract's focus on 'All Other Professional, Scientific, and Technical Services' is broad, making specific performance assessment challenging without further detail.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contracts. However, a nearly $118 million award over eight years for professional and technical services suggests a substantial investment. The firm-fixed-price nature provides some cost control, but the lack of detailed performance metrics or comparisons makes a definitive value-for-money assessment difficult. It appears to be a significant, long-term commitment to a single provider.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the data does not specify the number of bids received. A full and open competition generally promotes price discovery and allows the government to select from a wide range of potential contractors, theoretically leading to better pricing and service.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are likely the agencies within the Department of Transportation that require specialized professional, scientific, and technical services. The services delivered are broadly categorized as 'All Other Professional, Scientific, and Technical Services,' suggesting support for a range of operational, analytical, or research functions. The contract's geographic impact is likely concentrated where the Department of Transportation's operations requiring these services are located, with Maryland noted as the place of performance. Workforce implications could include the direct employment of personnel by Lockheed Martin to fulfill the contract requirements, potentially in specialized technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad service category ('All Other Professional, Scientific, and Technical Services') lacks specificity for performance evaluation.
Long contract duration could lead to potential for complacency or reduced innovation if not actively managed.
No explicit mention of small business subcontracting goals may limit broader economic impact.

Positive Signals

Awarded via full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term nature indicates a stable, ongoing need for the services provided.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide array of support functions for government agencies. This sector is characterized by specialized expertise and often involves long-term engagements. The market size for such services is substantial, with federal agencies being significant consumers. This specific contract represents a notable investment within this sector for the Department of Transportation.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may have been limited, potentially through direct subcontracting opportunities if they arose, rather than through a mandated set-aside program. The overall impact on the small business ecosystem would depend on whether Lockheed Martin engaged small businesses as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within the Department of Transportation, and potentially Inspector General reviews. Accountability is driven by the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Department of Transportation IT Services
Federal Aviation Administration Support Contracts
Professional and Technical Services Procurement
Government-wide IT and Technical Support

Risk Flags

Broad service description may obscure specific performance issues.
Long contract duration requires sustained oversight to prevent complacency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $117.9 million to LOCKHEED MARTIN SERVICES, LLC. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $117.9 million.

What is the period of performance?

Start: 2009-10-24. End: 2017-10-27.

What specific types of professional, scientific, and technical services were rendered under this contract?

The contract is broadly classified under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This classification is highly general and encompasses a wide range of activities that do not fit into more specific categories. Without access to the detailed contract statement of work (SOW) or task orders issued against this contract, it is impossible to determine the precise nature of the services provided. These could range from research and development support, specialized consulting, data analysis, technical assistance, or program management support, among many other possibilities. The broadness of the category suggests a flexible contract vehicle designed to address diverse and evolving needs within the Department of Transportation.

How does the $117.9 million contract value compare to similar contracts within the Department of Transportation for technical services?

Comparing the $117.9 million contract value requires context regarding the specific services rendered and the duration of the contract. As a definitive contract spanning nearly eight years (October 2009 to October 2017), the annual average value was approximately $15 million. This figure is substantial but not extraordinary for long-term, comprehensive technical support contracts within a large federal agency like the Department of Transportation. Many IT modernization, infrastructure support, or specialized research contracts can reach or exceed this magnitude. However, without knowing the exact services (e.g., cybersecurity, air traffic control system maintenance, policy analysis), a direct comparison remains difficult. It signifies a significant, sustained investment in specialized expertise.

What were the key performance indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance. Typically, for a firm-fixed-price contract, performance is assessed against the requirements outlined in the Statement of Work (SOW). This often includes metrics related to timeliness of delivery, quality of deliverables, adherence to technical specifications, and overall customer satisfaction. For a broad contract like this, specific KPIs would have been detailed in the contract's SOW or subsequent task orders. The effectiveness of oversight would depend on how rigorously these metrics were monitored and enforced by the contracting officer's representative (COR) and the agency program office.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' within the Department of Transportation?

Historical spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) within the Department of Transportation (DOT) can be significant, given the agency's diverse operational needs. While this specific $117.9 million contract represents a substantial portion of spending in this category during its performance period (2009-2017), DOT also procures a wide array of other professional services. Analyzing historical data would reveal trends in outsourcing specific functions, the reliance on large prime contractors versus multiple smaller ones, and the overall budget allocation towards technical and scientific support. Without a broader dataset covering multiple fiscal years and contract vehicles, it's difficult to establish a definitive pattern solely from this single contract.

Were there any notable risks or challenges associated with this contract, and how were they managed?

Potential risks associated with a contract of this magnitude and duration include scope creep, contractor performance issues, cost overruns (though mitigated by FFP), and technological obsolescence. Given the broad nature of 'All Other Professional, Scientific, and Technical Services,' a key risk is the potential for ambiguity in requirements, leading to disputes or inefficient service delivery. Management of these risks would typically involve robust contract administration, clear communication channels, regular performance reviews, and potentially contract modifications to address evolving needs or unforeseen issues. The firm-fixed-price structure inherently transfers some financial risk to the contractor, incentivizing them to manage operational challenges effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $257,253,870

Exercised Options: $256,533,281

Current Obligation: $117,903,036

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline