DoD Awards $207.6M C2BMC Contract to Lockheed Martin for Custom Computer Programming
Contract Overview
Contract Amount: $207,631,663 ($207.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2029-03-31
Contract Duration: 1,795 days
Daily Burn Rate: $115.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: C2BMC NEXT - PRODUCT EXECUTION
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $207.6 million to LOCKHEED MARTIN CORPORATION for work described as: C2BMC NEXT - PRODUCT EXECUTION Key points: 1. Significant contract value of $207.6 million awarded to a single large business. 2. Sole-source award to Lockheed Martin Corporation raises questions about competition. 3. Custom Computer Programming Services sector is critical for defense operations. 4. Potential risk associated with lack of competitive bidding impacting price discovery.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without further data. Benchmarking against similar custom programming contracts is challenging due to the specialized nature of C2BMC.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition could result in suboptimal pricing, impacting the efficient use of taxpayer funds for this critical defense system.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The sole-source nature of the award could stifle innovation from other potential vendors. Dependence on a single contractor for critical defense system programming poses a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus-fixed-fee contract type
- No small business participation indicated
Positive Signals
- Critical defense system development
- Long-term contract duration
- Experienced contractor
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, which is vital for developing and maintaining complex defense systems like the Command and Control, Battle Management, and Communications (C2BMC) system. Spending in this sector is often high due to the specialized nature of the work.
Small Business Impact
The data indicates no small business participation in this contract. This sole-source award to a large corporation bypasses opportunities for small businesses to contribute to critical defense projects.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. Accountability will be key to verifying value for taxpayer dollars.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of competitive bidding.
- No small business participation.
- Cost-plus-fixed-fee contract can incentivize spending.
- High contract value concentrated with one large business.
Tags
custom-computer-programming-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $207.6 million to LOCKHEED MARTIN CORPORATION. C2BMC NEXT - PRODUCT EXECUTION
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $207.6 million.
What is the period of performance?
Start: 2024-05-01. End: 2029-03-31.
What specific justifications were provided for the sole-source award, and how do they align with federal procurement regulations for competitive sourcing?
Federal regulations typically require agencies to justify sole-source awards based on unique capabilities, urgent needs, or lack of market availability. A thorough review of the justification document is necessary to assess its validity and ensure it meets the stringent criteria for bypassing full and open competition, thereby safeguarding taxpayer interests.
How will the Missile Defense Agency ensure cost control and prevent potential overruns in this cost-plus-fixed-fee contract awarded without competition?
The agency must implement robust oversight mechanisms, including detailed cost tracking, regular performance reviews, and stringent milestone verification. Establishing clear performance metrics and incentivizing efficiency, even within a sole-source context, is crucial for managing costs and ensuring the program delivers value within the fixed fee.
What is the long-term strategy for developing and maintaining the C2BMC system, and will future procurements involve competitive bidding to ensure ongoing value?
The long-term strategy should ideally include a plan for future competition to leverage market dynamics for better pricing and innovation. Agencies should explore opportunities to break down the system into smaller, more competitive components or conduct market research to identify potential new vendors for future phases.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ085223R0003
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9970 FEDERAL DR, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $417,371,698
Exercised Options: $417,371,698
Current Obligation: $207,631,663
Actual Outlays: $17,043,086
Subaward Activity
Number of Subawards: 123
Total Subaward Amount: $26,659,666
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ085224D0003
IDV Type: IDC
Timeline
Start Date: 2024-05-01
Current End Date: 2029-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2025-12-17
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