DoD's $20M Engineering Services Contract Awarded to Lockheed Martin in 1999, Ending in 2008
Contract Overview
Contract Amount: $20,138,397 ($20.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 1999-11-17
End Date: 2008-09-30
Contract Duration: 3,240 days
Daily Burn Rate: $6.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
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 $20.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. Long contract duration (nearly 9 years) suggests a sustained requirement for the services. 3. Sole-source award raises questions about potential lack of competition and price optimization. 4. Firm Fixed Price contract type aims to control costs, but initial pricing is key. 5. Awarded by the Department of the Air Force, aligning with defense sector needs. 6. Contractor, Lockheed Martin, is a major defense industry player with extensive experience.
Value Assessment
Rating: questionable
The contract value of $20,138,397 over nearly nine years averages to approximately $2.24 million per year. Without specific deliverables or performance metrics, it's difficult to benchmark this value effectively. However, given the sole-source nature and the long duration, there's a risk that the pricing may not have been optimized through competitive bidding. Comparing this to similar long-term, sole-source engineering service contracts within the DoD would be necessary for a more robust assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Integrated Systems, LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, national security urgency), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can result in taxpayers paying a premium due to the absence of competitive pressure on pricing.
Public Impact
The primary beneficiary is the Department of the Air Force, receiving engineering services to support its operations. Services likely contributed to the development, maintenance, or enhancement of defense systems and infrastructure. The geographic impact is centered in Florida, where the contractor is located. Workforce implications include employment for engineers and technical staff at Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to inflated costs for taxpayers.
- Long contract duration without clear performance benchmarks makes value assessment difficult.
- Sole-source awards can stifle innovation by limiting the pool of potential contractors.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Award to a major defense contractor like Lockheed Martin suggests access to specialized expertise.
- Contract supported critical defense needs for the Air Force over an extended period.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and support for complex military systems. Comparable spending benchmarks would involve analyzing other long-term, sole-source engineering contracts awarded by the DoD or other federal agencies for similar types of specialized technical support.
Small Business Impact
This contract does not appear to have involved small business set-asides, as indicated by 'sb': false. The award was made to a large prime contractor, Lockheed Martin. There is no information provided regarding subcontracting plans or actual subcontracting to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless significant subcontracting occurred.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially Inspector General investigations within the Department of Defense. Transparency is limited due to the sole-source nature and the age of the award. Accountability would be tied to the fulfillment of the contract's terms and conditions under the Firm Fixed Price structure.
Related Government Programs
- Defense Engineering Services
- Aerospace and Defense Contracts
- Department of the Air Force Procurement
- Sole-Source Defense Contracts
Risk Flags
- Sole-source award limits competition
- Long contract duration may obscure value for money
- Lack of specific performance metrics hinders assessment
Tags
defense, department-of-defense, air-force, engineering-services, sole-source, firm-fixed-price, lockheed-martin, long-term-contract, florida, 1999-contract, services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 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 $20.1 million.
What is the period of performance?
Start: 1999-11-17. End: 2008-09-30.
What specific engineering services were provided under this contract, and how did they align with Air Force objectives?
The provided data indicates the contract was for 'Engineering Services' (NAICS 541330) awarded by the Department of the Air Force to Lockheed Martin Integrated Systems, LLC. Specific details regarding the exact nature of these services, such as system design, development, testing, or maintenance, are not available in the abbreviated data. However, given the contractor and the awarding agency, it is highly probable that these services supported critical Air Force platforms, technologies, or infrastructure. The long duration (1999-2008) suggests a sustained need, potentially related to lifecycle support, upgrades, or integration of complex defense systems. Without further documentation, the precise alignment with specific Air Force objectives remains inferred.
How does the $20.1 million total contract value compare to similar engineering service contracts awarded by the DoD during that period?
Benchmarking the $20.1 million contract value requires context regarding the specific type and duration of engineering services. Awarded in 1999 and ending in 2008, this represents an average annual value of approximately $2.24 million. For long-term, sole-source contracts for specialized engineering support within the defense sector, this value might be considered moderate. However, without knowing the scope, complexity, and deliverables, a direct comparison is challenging. Contracts for R&D, system integration, or sustainment of major platforms could range significantly higher or lower. A comprehensive analysis would involve examining other sole-source or competed engineering contracts of similar duration and complexity awarded by the Air Force or DoD around the same timeframe.
What were the justifications for awarding this contract on a sole-source basis instead of through full and open competition?
The provided data explicitly states the contract was 'NOT COMPETED' (ct: NOT COMPETED), indicating a sole-source award. Typical justifications for sole-source contracts include situations where only one responsible source can provide the required supplies or services, urgent and compelling needs that preclude competition, or when a specific technology or capability is uniquely held by a single contractor. For a defense engineering services contract of this magnitude and duration, potential justifications could involve proprietary technology, specialized expertise developed by Lockheed Martin, or the need for seamless integration with existing systems where only they possessed the necessary knowledge. The specific justification would have been documented by the Air Force at the time of the award.
What are the potential risks associated with a sole-source contract of this length for engineering services?
Sole-source contracts, especially those spanning nearly nine years like this one, carry several inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved through a competitive process. This can result in inefficient use of taxpayer funds. Another risk is potential complacency from the contractor, as there is no competitive pressure to innovate or improve efficiency once the contract is secured. Furthermore, over-reliance on a single contractor can create vendor lock-in, making it difficult and costly to switch providers in the future. Finally, without robust oversight and clear performance metrics, the government may not receive the best possible value or quality of services.
How does the contractor's track record with the Department of Defense influence the assessment of this contract?
Lockheed Martin Integrated Systems, LLC, as part of the larger Lockheed Martin Corporation, has an extensive and long-standing track record as a major contractor for the Department of Defense. This includes experience in developing, integrating, and supporting a wide array of defense systems, from aircraft and missiles to IT and C4ISR systems. Their deep involvement in the defense sector suggests they possess the technical capabilities and security clearances necessary for complex engineering projects. While a strong track record can provide confidence in a contractor's ability to perform, it does not inherently mitigate the risks associated with a sole-source award, such as potentially higher costs due to lack of competition. The assessment should consider both their capability and the procurement method used.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 SAND LAKE RD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1999-11-17
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2009-09-24
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