DoD awards $805M contract to Lockheed Martin for radar and navigational facilities, with a $211M initial obligation

Contract Overview

Contract Amount: $211,480,580 ($211.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2001-07-05

End Date: 2008-11-30

Contract Duration: 2,705 days

Daily Burn Rate: $78.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: 200110!000168!5700!AC42 !ACC CONS/CC !F4465001C0005 !A!N!*!Y! !20010705!20010614!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!16000!550!51!CHESAPEAKE !CHESAPEAKE (CITY) !VIRGINIA !+000000076119!N!N!000000000000!M123!OPERATION/RADAR & NAVIGATIONAL FACILITIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !513390!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!M!2!002!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE (CITY) County, VIRGINIA, 23323

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $211.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200110!000168!5700!AC42 !ACC CONS/CC !F4465001C0005 !A!N!*!Y! !20010705!20010614!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!16000!550!51!CHESAPEAKE !CHESA… Key points: 1. The contract is for Operation/Radar & Navigational Facilities, indicating a focus on critical defense infrastructure. 2. Lockheed Martin Services, Inc. is the sole awardee, suggesting a specialized capability or prior relationship. 3. The contract has a significant duration of 2705 days, implying a long-term need for these services. 4. The award type is Fixed Price Award Fee, which aims to balance cost control with performance incentives.

Value Assessment

Rating: good

The initial obligation of $211,480,579.55 represents a substantial portion of the total contract value, suggesting a significant upfront investment. Benchmarking against similar complex defense system contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific nature of radar and navigational facilities may limit the number of truly competitive bidders.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers. The fixed-price award fee structure also provides some incentive for cost efficiency.

Public Impact

Ensures continued operation of vital radar and navigational systems for national security. Supports advanced technological capabilities within the Department of Defense. Potential for job creation and economic activity related to defense contracting in Virginia. Long-term commitment to a specific technology area may influence future defense spending priorities.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Potential for cost overruns if performance incentives are not met effectively.
Long contract duration could lead to technological obsolescence if not managed proactively.
Reliance on a single contractor for critical infrastructure.

Positive Signals

Awarded under full and open competition.
Fixed Price Award Fee structure incentivizes performance.
Contract supports critical national security infrastructure.

Sector Analysis

This contract falls within the Defense sector, specifically supporting operational and navigational facilities. Spending in this area is crucial for maintaining military readiness and technological superiority, with significant government investment typically allocated to complex systems and long-term support contracts.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine if small businesses are participating in the supply chain for these services.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program management offices ensuring contract compliance, performance standards, and financial accountability throughout the contract lifecycle.

Related Government Programs

Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration increases risk of technological obsolescence.
Sole awardee may limit future competitive pricing.
Complexity of radar and navigational systems requires specialized expertise.
Potential for cost growth if award fee criteria are not well-defined or managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $211.5 million to LOCKHEED MARTIN SERVICES, LLC. 200110!000168!5700!AC42 !ACC CONS/CC !F4465001C0005 !A!N!*!Y! !20010705!20010614!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!16000!550!51!CHESAPEAKE !CHESAPEAKE (CITY) !VIRGINIA !+000000076119!N!N!000000000000!M123!OPERATION/RADAR & NAVIGATIONAL FACILITIES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !513390!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, 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 $211.5 million.

What is the period of performance?

Start: 2001-07-05. End: 2008-11-30.

What specific radar and navigational systems are covered under this contract, and what is their current operational status?

The contract specifies 'OPERATION/RADAR & NAVIGATIONAL FACILITIES'. Without further details, it's difficult to pinpoint the exact systems. However, these likely include critical air traffic control, surveillance, and guidance systems essential for military operations. Their current status would be assumed to be operational, necessitating this long-term support contract to maintain their functionality and readiness.

How does the 'Fixed Price Award Fee' structure incentivize Lockheed Martin to control costs while ensuring high performance for these critical facilities?

The Fixed Price Award Fee (FPAF) contract establishes a base fixed price and a potential award fee based on performance against defined criteria. Lockheed Martin is incentivized to meet or exceed these performance metrics to earn the award fee, while the fixed price component provides a ceiling. This structure aims to balance cost certainty for the government with rewards for superior service delivery in complex, high-stakes operations.

What is the government's strategy for managing technological obsolescence over the 2705-day duration of this contract?

Managing technological obsolescence over a nearly 7.5-year contract requires proactive government oversight. Strategies likely include built-in review periods, requirements for contractor-provided technology refresh plans, and potentially contract modifications to incorporate upgrades. The government would need to closely monitor industry advancements and ensure the contracted facilities remain effective and secure.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE (M)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 WEST, FLOOR, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline