DoD Awards $60.5M for System Engineering to Lockheed Martin, Raising Value Concerns
Contract Overview
Contract Amount: $60,461,872 ($60.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-02-03
End Date: 2009-03-31
Contract Duration: 1,883 days
Daily Burn Rate: $32.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: IT
Official Description: SYSTEM ENGINEER
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $60.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: SYSTEM ENGINEER Key points: 1. Significant contract value of $60.5M over 5 years. 2. Sole provider Lockheed Martin raises competition concerns. 3. Potential for taxpayer overspending due to limited competition. 4. IT sector contract for computer systems design services.
Value Assessment
Rating: questionable
The contract value of $60.5M for system engineering services over five years appears high, especially given the lack of demonstrated competitive pricing. Without benchmarks or comparative data, assessing its value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, but the specific award type (Delivery Order) and the single awardee suggest limited subsequent competition for this specific task order. This could impact price discovery.
Taxpayer Impact: The substantial value of this contract necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively, particularly given the potential for cost overruns without robust competition.
Public Impact
Taxpayers may be paying a premium for system engineering services due to limited competition. The long duration of the contract could lock in potentially inefficient pricing. Lack of transparency in pricing makes it hard for the public to assess fairness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for delivery order
- High contract value
- Lack of clear performance metrics
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Experienced contractor
- Services critical to defense operations
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a lack of opportunity for smaller, specialized firms in this particular procurement.
Oversight & Accountability
Oversight is crucial for this contract to ensure that Lockheed Martin delivers on its system engineering requirements effectively and that the pricing remains reasonable throughout the contract's life.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value
- Potential for cost overruns
- Limited competition for delivery orders
- Lack of transparency in pricing
- Long contract duration
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. SYSTEM ENGINEER
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 Army).
What is the total obligated amount?
The obligated amount is $60.5 million.
What is the period of performance?
Start: 2004-02-03. End: 2009-03-31.
What specific system engineering tasks were performed, and how do they align with the $60.5M cost?
The contract details do not specify the exact system engineering tasks performed. A thorough review of performance reports and deliverables would be necessary to assess if the $60.5M expenditure accurately reflects the value and scope of services rendered. Without this, it's difficult to confirm if the cost is justified by the work completed.
Were there opportunities missed to foster competition for subsequent delivery orders under this contract?
While the initial award was full and open, the nature of delivery orders can sometimes limit subsequent competition if not managed carefully. Agencies should actively seek opportunities to break down requirements or solicit competitive bids for future task orders to ensure the best value and prevent vendor lock-in.
How does the cost per unit for these system engineering services compare to industry benchmarks?
Without specific unit cost data or detailed task breakdowns, a direct comparison to industry benchmarks is not feasible. The provided data lacks the granularity to determine if the per-unit cost is competitive. Further analysis of the contract's CLIN structure and labor rates would be required.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $96,468,694
Exercised Options: $69,373,692
Current Obligation: $60,461,872
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5009
IDV Type: IDC
Timeline
Start Date: 2004-02-03
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2017-09-24
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