DoD's $31.5M Lockheed Martin contract awarded without competition, spanning 10 years

Contract Overview

Contract Amount: $31,570,468 ($31.6M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 1999-10-01

End Date: 2009-06-30

Contract Duration: 3,560 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to LOCKHEED MARTIN SERVICES, LLC for work described as: Key points: 1. Significant long-term commitment to a single vendor. 2. Lack of competition raises concerns about price optimization. 3. Contract awarded to a major defense contractor, indicating established relationship. 4. Sector focus on Defense suggests critical national security or operational needs.

Value Assessment

Rating: questionable

The contract value of $31.5 million over 10 years is difficult to assess without specific deliverables. The lack of competition makes direct pricing comparisons challenging, potentially leading to suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and competitive pressure, potentially resulting in higher costs for the government.

Taxpayer Impact: The absence of competition may lead to taxpayers paying more than necessary for the services rendered over the decade-long contract period.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Long-term reliance on one provider could stifle innovation in defense contracting. The extended duration suggests a critical, ongoing need for these specific services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of transparency in pricing

Positive Signals

Established vendor relationship
Potential for specialized expertise

Sector Analysis

This contract falls within the Defense sector, which often involves complex, high-value procurements. Benchmarks for similar long-term, sole-source IT services within the DoD are difficult to establish without more detail on the scope of work.

Small Business Impact

The award to Lockheed Martin Services, LLC, a large, established defense contractor, suggests that small businesses were not involved in this specific procurement. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that pricing remains reasonable throughout the contract's 10-year term.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of competitive pressure may lead to reduced efficiency.
Long-term dependency on a single vendor.
Limited transparency on specific service details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to LOCKHEED MARTIN SERVICES, LLC. See the official description on USAspending.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 1999-10-01. End: 2009-06-30.

What specific IT services were procured under this contract, and how do they align with the Department of Defense's strategic objectives?

The provided data does not specify the exact IT services. However, given the duration and sole-source nature, it likely pertains to critical, specialized systems or ongoing support essential for defense operations. Understanding the precise services is crucial for assessing their strategic alignment and necessity.

What justification was provided for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. Without further documentation, it's unclear if alternatives were explored or if the justification was robust enough to warrant foregoing competition for a decade.

How is the 'cost plus fixed fee' structure being managed to ensure value for money over the 10-year period?

A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover costs plus a fixed fee. Effective management requires stringent cost monitoring, clear definition of allowable costs, and performance incentives to ensure the fixed fee remains appropriate and the overall cost to the government is controlled.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline