DOT's $23.7M Lockheed Martin Contract for Engineering Services Lacked Competition

Contract Overview

Contract Amount: $23,702,366 ($23.7M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2010-12-08

End Date: 2016-09-30

Contract Duration: 2,123 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MICRO-EARTS ENGINEERING SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $23.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: MICRO-EARTS ENGINEERING SERVICES Key points: 1. Significant spending on engineering services for the FAA. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Contract duration of 2123 days (approx. 5.8 years) is substantial. 4. Lack of competition may lead to suboptimal pricing. 5. Engineering Services sector is critical for infrastructure projects.

Value Assessment

Rating: questionable

The contract value of $23.7M over nearly 6 years for engineering services appears high given the lack of competition. Benchmarking is difficult without comparable sole-source contracts, but the absence of a competitive process suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no formal competition was sought. This method limits price discovery and potentially allows for higher costs than a competed contract.

Taxpayer Impact: Taxpayers may have paid more than necessary due to the lack of competitive bidding on this significant engineering services contract.

Public Impact

Federal Aviation Administration relies on engineering services for critical infrastructure. Sole-source awards can reduce transparency and increase costs for taxpayers. Long-term contracts require careful oversight to ensure value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration

Positive Signals

Contract awarded to a major defense contractor
Services provided to FAA

Sector Analysis

The Engineering Services sector (NAICS 541330) is vital for government infrastructure and defense projects. Spending in this sector can vary widely based on project scope and agency needs. This contract represents a notable investment by the FAA.

Small Business Impact

This contract was awarded to Lockheed Martin Services, LLC, a large business. There is no indication that small businesses were involved in the prime contract, limiting their opportunities.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny regarding the justification for not competing. Oversight should focus on ensuring the necessity of the sole-source award and the reasonableness of costs incurred.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.7 million to LOCKHEED MARTIN SERVICES, LLC. MICRO-EARTS ENGINEERING SERVICES

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 $23.7 million.

What is the period of performance?

Start: 2010-12-08. End: 2016-09-30.

What was the specific justification for awarding this engineering services contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. A thorough review would be required to validate this justification and ensure it was appropriate.

How does the lack of competition impact the overall risk profile of this contract?

The lack of competition significantly increases the risk of overpayment and reduced quality. Without competitive pressure, the contractor has less incentive to offer the best possible price or innovate. This also raises concerns about the government's ability to secure the most effective solutions for its needs.

What is the potential long-term effectiveness of engineering services procured through sole-source contracts?

The long-term effectiveness can be compromised. While a sole-source award might ensure continuity with a known provider, it can stifle innovation and prevent the government from benefiting from potentially better or more cost-effective solutions from other qualified firms. This can lead to suboptimal outcomes over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: CT1100052A1

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,077,776

Exercised Options: $23,702,366

Current Obligation: $23,702,366

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline