DoD Awards $265M Lockheed Martin Contract for Systems Engineering Services
Contract Overview
Contract Amount: $26,531,003 ($26.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-07-29
End Date: 2012-08-03
Contract Duration: 2,927 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000009065904!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!010!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONT… Key points: 1. Contract awarded to Lockheed Martin for $265M for systems engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is approximately 8 years, indicating a long-term need. 4. The sector is Defense, specifically Aircraft Manufacturing, a significant area of government spending.
Value Assessment
Rating: fair
The contract value of $265M over 8 years is substantial. Benchmarking against similar systems engineering contracts is difficult without more specific service details, but the duration suggests a significant scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. However, the specific impact on price for this particular contract is not detailed.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value. The total value of $265M represents a significant taxpayer investment.
Public Impact
This contract supports critical defense systems, potentially impacting national security. Lockheed Martin, a major defense contractor, will receive substantial revenue. The long-term nature of the contract suggests ongoing government reliance on these services. The specific services provided could influence the efficiency and effectiveness of defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service description makes value assessment difficult.
- Long contract duration could lead to cost overruns if not managed effectively.
- Reliance on a single large contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Contract supports a key defense sector.
- Established contractor with a track record.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing through systems engineering services. Spending in this area is substantial, driven by national security requirements and technological advancements.
Small Business Impact
The contract was awarded to Lockheed Martin, a large prime contractor. There is no explicit information on subcontracting to small businesses, which could be an area for improvement in ensuring broader economic participation.
Oversight & Accountability
The contract is managed by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on performance, cost control, and adherence to contract terms over its 8-year duration.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detailed service scope.
- Potential for cost overruns in CPFF contracts.
- Long contract duration increases risk.
- Limited visibility into small business participation.
- Dependency on a single large contractor.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000009065904!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !999
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 $26.5 million.
What is the period of performance?
Start: 2004-07-29. End: 2012-08-03.
What specific systems engineering services are included in this contract, and how do they align with current defense needs?
The data indicates 'SYSTEMS ENGINEERING SERVICES' but lacks granular detail. These services likely encompass design, integration, testing, and lifecycle support for complex defense systems, potentially related to aircraft or communication equipment. Alignment with current needs would depend on the specific platforms and technologies being supported, which are not specified in the provided data.
How was the 'COST PLUS FIXED FEE' pricing structure determined to be fair and reasonable given the long duration and potential for scope creep?
Determining fairness for a Cost Plus Fixed Fee (CPFF) contract requires robust cost realism analysis and negotiation. The government likely assessed historical costs, projected expenses, and profit margins. The fixed fee component incentivizes the contractor to control costs, but the long duration necessitates vigilant oversight to prevent scope creep and ensure the fee remains appropriate.
What mechanisms are in place to ensure effective performance and accountability from Lockheed Martin over the 8-year contract period?
Effective performance and accountability are typically ensured through contract clauses mandating regular progress reports, performance metrics (Key Performance Indicators - KPIs), and potential award fees or penalties. The Defense Contract Management Agency (DCMA) would be responsible for monitoring contractor performance, ensuring compliance with technical specifications, and managing payments based on achieved milestones.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2004-07-29
Current End Date: 2012-08-03
Potential End Date: 2012-08-03 00:00:00
Last Modified: 2016-09-20
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