DoD Defense IT Contract Awarded to Lockheed Martin for $168.9M
Contract Overview
Contract Amount: $29,454,018 ($29.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-08-16
End Date: 2011-08-01
Contract Duration: 2,176 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 200512!006422!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!FA877104D0008 !A!N! !Y!VP03 ! !20050816!20060831!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002073931!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!S! ! ! !20200930!B!F!Y!A! !A!N!Y!2!001!C! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200512!006422!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!FA877104D0008 !A!N! !Y!VP03 ! !20050816!20060831!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. The contract is for Defense Information Technology services, a critical area for national security. 2. Lockheed Martin is a major defense contractor, indicating a competitive landscape for large-scale IT solutions. 3. The contract's Time and Materials pricing structure presents a potential risk for cost overruns if not closely managed. 4. Spending in the IT sector for defense is substantial, making efficient contract management crucial for taxpayer value.
Value Assessment
Rating: fair
The contract value of $168.9 million over its duration appears significant. Benchmarking against similar large-scale defense IT contracts would be necessary to definitively assess its value, but the Time and Materials pricing model inherently carries higher risk than fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing type can sometimes lead to less predictable final costs compared to fixed-price contracts.
Taxpayer Impact: While competition is positive for price discovery, the T&M structure necessitates vigilant oversight to ensure taxpayer funds are used efficiently and not inflated by uncontrolled labor hours or material costs.
Public Impact
Ensures continued operation and modernization of critical defense information technology infrastructure. Supports national security by providing essential communication and data processing capabilities. Impacts the defense industrial base, particularly large aerospace and defense IT providers. Potential for job creation within Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns.
- Contract duration is substantial, requiring long-term oversight.
- Potential for scope creep without strict management.
Positive Signals
- Awarded under full and open competition.
- Major contractor with proven capabilities.
- Supports critical defense functions.
Sector Analysis
This contract falls within the broader Defense Information Technology sector, which is a significant area of government spending. Benchmarks for similar large-scale IT service contracts within the DoD often run into hundreds of millions or billions of dollars over multiple years.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin, a large prime contractor. There is no explicit information on small business participation within this specific award, which is a common area for oversight in large defense contracts.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Department of Defense and the Defense Information Systems Agency to ensure performance, cost control, and adherence to contract terms. Regular reviews and audits would be essential.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration requires sustained oversight.
- Lack of explicit small business subcontracting data.
- Dependence on a single large prime contractor.
Tags
wired-telecommunications-carriers, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200512!006422!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!FA877104D0008 !A!N! !Y!VP03 ! !20050816!20060831!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002073931!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!S! ! ! !202
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 Information Systems Agency).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2005-08-16. End: 2011-08-01.
What specific IT services are covered under this contract, and how do they align with current and future defense needs?
The contract specifies 'OTHER ADP & TELECOMMUNICATION SERVICES' with a PSC code of 541519. This broad category likely encompasses a range of IT support, network management, and telecommunications infrastructure services. Alignment with future needs would depend on the specific tasks performed and the contract's flexibility for evolving technological requirements and strategic defense objectives.
How effectively was the Time and Materials pricing model managed to control costs throughout the contract's lifecycle?
Assessing the effectiveness of T&M cost control requires access to detailed financial reports and performance metrics beyond this summary data. Key indicators would include variance analysis against initial estimates, justification for labor hours and material costs, and any cost-saving initiatives implemented. Without this granular data, the effectiveness remains an assumption based on contractor performance and agency oversight.
What was the competitive landscape like for this specific type of defense IT service at the time of award?
The award indicates 'FULL AND OPEN COMPETITION,' suggesting multiple capable vendors could have bid. However, the specialized nature of large-scale defense IT integration often limits the pool of prime contractors to a few major players like Lockheed Martin, Northrop Grumman, and Raytheon. The specific number of bids received would provide a clearer picture of the actual competition intensity.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: FIBER OPTIC
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1701 NORTH ST, ENDICOTT, NY, 19
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0008
IDV Type: IDC
Timeline
Start Date: 2005-08-16
Current End Date: 2011-08-01
Potential End Date: 2011-08-01 00:00:00
Last Modified: 2013-02-14
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