DoD awards $116M for Engineering Services to Lockheed Martin, highlighting firm fixed-price contract
Contract Overview
Contract Amount: $116,314,086 ($116.3M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2002-03-20
End Date: 2004-09-30
Contract Duration: 925 days
Daily Burn Rate: $125.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $116.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: Key points: 1. Contract Value: $116.3 million awarded. 2. Competition: Full and open competition was utilized. 3. Risk: Firm fixed-price contract may shift risk to contractor. 4. Sector: Engineering services for the Department of the Air Force.
Value Assessment
Rating: good
The contract value of $116.3 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment.
Public Impact
Supports critical Air Force engineering and technical requirements. Potential for technology development and innovation within the defense sector. Ensures continued operational readiness through specialized engineering support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 925 days.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope expands beyond initial estimates.
Positive Signals
- Firm fixed-price contract structure.
- Awarded through full and open competition.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls within the engineering services sector, which is crucial for defense readiness and technological advancement. Spending in this area is often substantial due to the complexity and specialized nature of defense projects.
Small Business Impact
The provided data does not indicate any specific subcontracting goals for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed-price nature of the contract implies that contractor performance and cost management are key areas for oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is lengthy (925 days).
- Potential for scope creep impacting final cost.
- Limited visibility into specific performance metrics.
- Reliance on a single large contractor for critical services.
Tags
engineering-services, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. See the official description on USAspending.
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $116.3 million.
What is the period of performance?
Start: 2002-03-20. End: 2004-09-30.
What specific engineering services are covered under this contract, and how do they align with current Air Force modernization priorities?
The contract, NAICS code 541330, covers engineering services. While the exact services aren't detailed, they likely encompass design, development, testing, and integration for Air Force systems. Alignment with modernization priorities would depend on the specific projects undertaken, but engineering services are fundamental to maintaining and upgrading complex military platforms.
What are the key performance indicators (KPIs) for this contract, and how is Lockheed Martin's performance being measured?
The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for engineering services, KPIs might include adherence to technical specifications, timely delivery of milestones, quality of deliverables, and cost control. The Department of the Air Force would have established metrics to evaluate Lockheed Martin's performance throughout the contract duration.
How does the $116.3 million award compare to the estimated cost or budget for these engineering services?
The data indicates an award amount of $116.3 million. Without knowing the initial budget or estimated cost for these services, it's difficult to definitively assess if the award represents good value. However, the use of full and open competition suggests that the awarded price is likely competitive and reflects market conditions at the time of award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 SAND LAKE ROAD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-03-20
Current End Date: 2004-09-30
Potential End Date: 2004-09-30 00:00:00
Last Modified: 2009-09-18
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