Lockheed Martin Awarded $874.5M for Missile and Space Systems Maintenance and Repair
Contract Overview
Contract Amount: $216,753,214 ($216.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1996-12-06
End Date: 2009-06-20
Contract Duration: 4,579 days
Daily Burn Rate: $47.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 199704!5700!0012!GZ80 !SMC/PKS !F0470196C0033 !A!*!P00008 !19961206!19961030!874543135!931114334!834951691!N!1BV49!LOCKHEED MARTIN CORPORATION !700 N FREDERICK AVE !GAITHERSBURG !MD!20879!31175!031!24!GAITHERSBURG !MONTGOMERY !MARYLAND !0001!+000000533200!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!R!2!002!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $216.8 million to LOCKHEED MARTIN CORPORATION for work described as: 199704!5700!0012!GZ80 !SMC/PKS !F0470196C0033 !A!*!P00008 !19961206!19961030!874543135!931114334!834951691!N!1BV49!LOCKHEED MARTIN CORPORATION !700 N FREDERICK AVE !GAITHERSBURG !MD!20879!31175!031!24!GAITHERSBURG !MONTGO… Key points: 1. Significant contract value of $874.5 million awarded to Lockheed Martin Corporation. 2. Contract covers maintenance and repair of equipment and communication systems. 3. Research and Development in Physical, Engineering, and Life Sciences sector. 4. Potential for long-term engagement with an estimated duration of 4579 days.
Value Assessment
Rating: good
The contract value of $874.5 million appears substantial for maintenance and repair services. Benchmarking against similar contracts for complex systems would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Ensures continued operational readiness of critical missile and space systems. Supports advanced technological capabilities within the defense sector. Contributes to the economic activity of the contractor and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Reliance on a single contractor for critical maintenance may pose supply chain risks.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contract supports essential defense infrastructure and technological advancement.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on the maintenance and repair of complex communication equipment for missile and space systems. Spending in this area is critical for national security and technological advancement.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the long duration necessitates continuous monitoring for performance and cost control.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Dependency on a single contractor for critical systems.
- Need for continuous monitoring of performance and cost controls.
- Risk of technological obsolescence over the contract's lifespan.
Tags
research-and-development-in-the-physical, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $216.8 million to LOCKHEED MARTIN CORPORATION. 199704!5700!0012!GZ80 !SMC/PKS !F0470196C0033 !A!*!P00008 !19961206!19961030!874543135!931114334!834951691!N!1BV49!LOCKHEED MARTIN CORPORATION !700 N FREDERICK AVE !GAITHERSBURG !MD!20879!31175!031!24!GAITHERSBURG !MONTGOMERY !MARYLAND !0001!+000000533200!N!N!000000000000!J058!MAINT & REPAIR OF EQ/COMMUNICATION EQUIPMENT !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!R!2!0
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $216.8 million.
What is the period of performance?
Start: 1996-12-06. End: 2009-06-20.
What is the specific scope of 'maintenance and repair' for these missile and space systems, and how does it align with current technological needs?
The scope likely encompasses routine upkeep, diagnostics, and repair of hardware and software components critical to the operation of missile and space systems. This includes ensuring communication equipment remains functional and up-to-date with evolving technological requirements and threat landscapes. The contract's duration suggests a long-term commitment to maintaining these assets.
How were the cost-plus award fee (CPFF) elements structured to incentivize performance and control costs effectively over the contract's lifespan?
Cost-plus award fee contracts allow for the reimbursement of allowable costs plus an incentive fee based on performance. The structure likely involved predefined performance metrics and award criteria related to technical execution, schedule adherence, and cost management. Effective oversight is crucial to ensure the 'award' portion genuinely reflects superior performance and doesn't inflate costs.
What are the potential risks associated with the long contract duration (over 12 years) and the reliance on a single large contractor for critical system maintenance?
Long durations increase the risk of technological obsolescence, potential cost escalations due to unforeseen market changes, and contractor performance degradation. Reliance on a single entity can create dependency and limit flexibility in adopting new technologies or responding to evolving threats. Robust contract management and contingency planning are essential to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1996-12-06
Current End Date: 2009-06-20
Potential End Date: 2009-06-20 00:00:00
Last Modified: 2021-11-01
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