DoD Awards $253.6M for Orbital Operations and Logistics to Lockheed Martin
Contract Overview
Contract Amount: $253,596,746 ($253.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2019-11-21
End Date: 2024-01-03
Contract Duration: 1,504 days
Daily Burn Rate: $168.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COMBINED ORBITAL OPERATIONS, LOGISTICS, AND RESILIENCY
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $253.6 million to LOCKHEED MARTIN CORP for work described as: COMBINED ORBITAL OPERATIONS, LOGISTICS, AND RESILIENCY Key points: 1. Significant contract value for complex defense services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1504 days) suggests a critical, ongoing need. 4. Engineering services sector is vital for national security.
Value Assessment
Rating: questionable
The contract is a Cost Plus Incentive Fee type, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a large contract like this could mean taxpayers are not receiving the best possible price.
Public Impact
Ensures continued operation and resilience of critical orbital assets. Supports advanced engineering and logistics for space-based systems. Impacts national security through sustained defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Critical national security service
- Long-term contract stability
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's technological advancements and operational readiness. Spending in this area is often high due to the complexity and specialized nature of defense engineering.
Small Business Impact
The data indicates no specific allocation or set-aside for small businesses (sb=false). This suggests a missed opportunity to foster small business participation in a significant defense contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, which is responsible for oversight. However, the sole-source nature and cost-plus fee structure warrant close monitoring to ensure cost control and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited small business inclusion
- Long contract duration may indicate lack of alternatives
Tags
engineering-services, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $253.6 million to LOCKHEED MARTIN CORP. COMBINED ORBITAL OPERATIONS, LOGISTICS, AND RESILIENCY
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $253.6 million.
What is the period of performance?
Start: 2019-11-21. End: 2024-01-03.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should have documented reasons for not competing this contract. To ensure fair pricing, robust negotiation and ongoing cost monitoring by the Defense Contract Management Agency are essential, especially given the Cost Plus Incentive Fee structure.
What are the key performance indicators (KPIs) for this contract, and how is Lockheed Martin's performance being measured against them?
Key performance indicators would likely focus on mission success rates, system availability, response times for logistics, and successful implementation of resiliency measures. The Defense Contract Management Agency would track these metrics, and the incentive fee portion of the contract would be tied to achieving or exceeding these targets.
How does the cost of this contract compare to similar orbital operations and logistics contracts awarded competitively?
Direct comparison is challenging due to the sole-source nature of this award. However, the agency should conduct internal cost analyses and benchmark against industry standards for similar services, even if not directly competitive. This helps identify potential overpricing and informs future procurement strategies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $254,583,819
Exercised Options: $254,583,819
Current Obligation: $253,596,746
Actual Outlays: $41,456,975
Subaward Activity
Number of Subawards: 159
Total Subaward Amount: $1,065,614,023
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA882320D0001
IDV Type: IDC
Timeline
Start Date: 2019-11-21
Current End Date: 2024-01-03
Potential End Date: 2024-01-03 00:00:00
Last Modified: 2025-05-08
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