DoD Awards $117M Waterfront Support Services Contract to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $117,065,635 ($117.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-07-27
End Date: 2013-11-16
Contract Duration: 2,304 days
Daily Burn Rate: $50.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ILS AND WATERFRONT INSTALLATION SUPOORT SERVICES REQUIRED TO SUPPORT PEO IWS5
Place of Performance
Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23320
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $117.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ILS AND WATERFRONT INSTALLATION SUPOORT SERVICES REQUIRED TO SUPPORT PEO IWS5 Key points: 1. Contract awarded to Lockheed Martin for essential PEO IWS5 support. 2. Significant value of $117M highlights the scale of the requirement. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract spans over 6 years, indicating a long-term need. 5. Engineering Services (NAICS 541330) is the primary sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar CPAF contracts for engineering services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific award mechanism (Delivery Order) and the Cost Plus Award Fee structure warrant scrutiny to ensure value for money.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment. The final cost will depend on performance and award fee payouts.
Public Impact
Supports critical PEO IWS5 programs, ensuring operational readiness. Long-term contract provides stability for a key defense contractor. Potential for innovation and efficiency gains through award fee structure. Impacts the defense industrial base and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contract type can incentivize cost overruns.
- Long duration may reduce flexibility for future technological advancements.
- Limited information on specific performance metrics and award fee triggers.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense mission requirements.
- Contractor has a significant role in program execution.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the defense industrial base. Spending in this area is often driven by complex system development and sustainment needs, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Integrated Systems, LLC, a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), responsible for oversight. The Cost Plus Award Fee structure requires diligent monitoring of performance and costs to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contract type.
- Long contract duration (over 6 years).
- Potential for cost overruns due to CPAF structure.
- Limited visibility into specific performance metrics and award fee criteria.
- Large incumbent contractor may limit future competition.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ILS AND WATERFRONT INSTALLATION SUPOORT SERVICES REQUIRED TO SUPPORT PEO IWS5
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 $117.1 million.
What is the period of performance?
Start: 2007-07-27. End: 2013-11-16.
What specific performance metrics are tied to the award fee structure, and how are they measured to ensure fair and objective payouts?
The award fee structure is designed to incentivize contractor performance beyond minimum requirements. Specific metrics typically relate to technical execution, schedule adherence, cost control, and customer satisfaction. Objective measurement is crucial, often involving independent government assessments and data analysis to validate performance against pre-defined criteria before any award fees are disbursed.
How does the Cost Plus Award Fee (CPAF) structure compare to other contract types in terms of overall cost efficiency for similar engineering services?
CPAF contracts offer flexibility for complex projects where cost and performance are difficult to define upfront. While they can incentivize superior performance, they also carry a risk of higher final costs compared to fixed-price contracts if not rigorously managed. Benchmarking against fixed-price or cost-plus-fixed-fee contracts for comparable services would reveal potential cost differentials.
What is the potential impact of this long-term contract on future competition for similar waterfront installation support services?
A long-term contract, especially with a large incumbent like Lockheed Martin, can create barriers to entry for potential competitors in the future. It may reduce the perceived market opportunity for smaller or newer firms, potentially limiting future competition and innovation unless specific provisions are made for market access.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002406R3262
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1293 PERIMETER PKWY, VIRGINIA BEACH, VA, 23454
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $141,943,102
Exercised Options: $123,112,399
Current Obligation: $117,065,635
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4079
IDV Type: IDC
Timeline
Start Date: 2007-07-27
Current End Date: 2013-11-16
Potential End Date: 2013-11-16 00:00:00
Last Modified: 2018-09-19
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