DoD's $28.8M Towed Systems Support Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $28,825,722 ($28.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-12-14
End Date: 2012-11-30
Contract Duration: 1,813 days
Daily Burn Rate: $15.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SERVICES FOR INTERMEDIATE MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: SERVICES FOR INTERMEDIATE MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS Key points: 1. Significant contract value for specialized engineering services. 2. Lockheed Martin is a major defense contractor, indicating potential market concentration. 3. The contract duration of 1813 days suggests a long-term need for these services. 4. Engineering services sector is critical for defense readiness and technological advancement.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without specific benchmarks for similar towed systems maintenance, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms and their effectiveness are not detailed.
Taxpayer Impact: Taxpayer funds are utilized for essential defense maintenance, with the ultimate impact depending on the efficiency and necessity of the services provided.
Public Impact
Ensures operational readiness of critical towed defense systems. Supports advanced engineering and maintenance capabilities within the defense industrial base. Contributes to the technological superiority of U.S. military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Long contract duration could lead to scope creep or outdated technology if not managed.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related systems. Spending in this area is crucial for maintaining military readiness and technological edge, with benchmarks often tied to system complexity and service duration.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin, a large corporation. There is no explicit information on small business participation in this specific contract award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, implying oversight. However, details on specific oversight mechanisms, performance reviews, or accountability measures are not provided.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Risk of technological obsolescence of towed systems over the contract duration.
- Lack of detailed performance metrics and benchmarks for value assessment.
- Limited insight into small business participation.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. SERVICES FOR INTERMEDIATE MAINTENANCE AND OPERATIONAL SUPPORT OF TOWED SYSTEMS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2007-12-14. End: 2012-11-30.
What is the cost-effectiveness of the Cost Plus Fixed Fee structure for this specific type of maintenance service?
The Cost Plus Fixed Fee (CPFF) structure can be effective when the scope of work is not precisely defined or is subject to change, common in complex engineering services. However, it carries a risk of cost escalation if the contractor's costs are not rigorously monitored and controlled by the agency. For towed systems maintenance, the effectiveness hinges on the agency's ability to establish realistic cost ceilings and performance metrics to ensure value for money.
What are the primary risks associated with the long duration and potential for technological obsolescence of the towed systems being maintained?
The primary risks include the potential for the towed systems themselves to become technologically obsolete during the contract's 1813-day term, rendering the maintenance services less valuable. Additionally, a long duration increases the risk of cost overruns due to unforeseen technical challenges or inflation. Effective risk mitigation would involve regular reviews of system relevance and contract terms, with options for modification or termination if the systems' operational value diminishes significantly.
How does the performance of Lockheed Martin on this contract compare to industry benchmarks for similar engineering support services?
Without specific performance data or access to industry benchmarks for comparable towed systems maintenance contracts, a direct comparison is challenging. Key performance indicators would typically include on-time delivery, adherence to technical specifications, and cost control. Evaluating Lockheed Martin's performance would require analyzing delivery order specifics, any reported issues or successes, and comparing these against established metrics for engineering services within the defense sector.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3523
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1293 PERIMETER PKWY, VIRGINIA BEACH, VA, 23454
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,745,456
Exercised Options: $29,745,456
Current Obligation: $28,825,722
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4079
IDV Type: IDC
Timeline
Start Date: 2007-12-14
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2018-09-19
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