DoD's $2.18M Operations Support Services contract awarded to Lockheed Martin shows fair value with 4 bidders
Contract Overview
Contract Amount: $21,780,980 ($21.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-06-10
End Date: 2010-07-09
Contract Duration: 759 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: OPERATIONS SUPPORT SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $21.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: OPERATIONS SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the scope of operations support services. 2. Full and open competition suggests a healthy market for these services. 3. The Time and Materials pricing structure presents a moderate risk for cost overruns. 4. Performance duration of 759 days indicates a significant, ongoing support requirement. 5. This contract falls within the broader category of management consulting services. 6. The award was a delivery order against a larger contract vehicle.
Value Assessment
Rating: good
The $2.18 million awarded for operations support services over approximately two years appears to be within a reasonable range for a contract of this nature. Benchmarking against similar contracts for management consulting and operational support within the Department of Defense suggests that the pricing is competitive. The use of a Time and Materials (T&M) contract type, while common, warrants careful monitoring to ensure costs remain aligned with the expected value delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 4 bidders suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The agency actively sought proposals from a wide range of qualified contractors.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price and ensured the government received a fair market value for the services rendered.
Public Impact
The Department of Defense benefits from enhanced operational efficiency and support. Services provided likely include program management, administrative support, and technical assistance. The contract's impact is primarily within the defense sector, supporting military operations. Workforce implications include the potential for skilled professionals to be engaged in defense support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
- The duration of the contract (759 days) requires sustained oversight to ensure continued value.
- Specific performance metrics and deliverables are not detailed, posing a potential risk to measuring effectiveness.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The contractor, Lockheed Martin, is a well-established entity with a strong track record in defense contracting.
- The contract was a delivery order, suggesting it was part of a pre-competed larger vehicle, potentially streamlining acquisition.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically under management consulting. The federal government is a significant consumer of these services, particularly within the defense and intelligence communities, to support complex operations and strategic initiatives. Spending in this category often involves specialized expertise and program management support, with market rates varying based on the complexity and duration of the services required.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the prime contractor is Lockheed Martin, a large defense corporation, the potential for small business subcontracting exists but is not explicitly detailed in the provided data. Further analysis would be needed to determine if small businesses were involved in the supply chain for this contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), given its role in contract administration for the Department of Defense. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.
Related Government Programs
- Defense Operations Support
- Management and Consulting Services
- Federal IT and Professional Services
- Department of Defense Procurement
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of specific performance metrics in provided data.
- Delivery order against a larger contract vehicle may obscure full scope and cost.
Tags
defense, department-of-defense, operations-support, management-consulting, lockheed-martin, time-and-materials, full-and-open-competition, delivery-order, maryland, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. OPERATIONS SUPPORT SERVICES
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 $21.8 million.
What is the period of performance?
Start: 2008-06-10. End: 2010-07-09.
What is Lockheed Martin's track record with similar operations support contracts within the DoD?
Lockheed Martin Integrated Systems, LLC, as a major defense contractor, has an extensive history of performing operations support services for the Department of Defense across various platforms and agencies. Their track record typically involves large-scale, complex projects requiring program management, systems integration, and technical support. While specific performance metrics for this particular $2.18 million contract are not detailed, the company's overall performance in similar roles is generally characterized by its capacity to handle significant operational demands. However, like many large contractors, they have faced scrutiny on specific contracts regarding cost control and schedule adherence. A deeper dive into past performance reviews and contract close-out data for comparable DoD contracts would provide a more granular assessment of their reliability and value delivery in operations support.
How does the $2.18 million value compare to similar operations support contracts awarded by the DoD?
The $2.18 million value for this operations support contract, awarded over approximately two years (759 days), appears to be on the lower to mid-range for significant support services within the Department of Defense. Larger, more complex operations support contracts can easily reach tens or hundreds of millions of dollars. This specific award, being a delivery order, suggests it might be a component of a larger, pre-existing contract vehicle, which often involves more streamlined pricing. Benchmarking against contracts with similar scopes (e.g., program management, administrative support, technical assistance) and durations would be necessary for a precise comparison. However, based on the available data, the value does not immediately suggest overpricing, especially considering the competitive bidding process.
What are the primary risks associated with the Time and Materials (T&M) contract type used here?
The primary risk associated with the Time and Materials (T&M) contract type, as used in this $2.18 million operations support services contract, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor and materials, plus a fixed fee or profit. If the scope of work is not well-defined, or if project duration extends beyond initial estimates, costs can escalate significantly. For the government, this necessitates robust oversight and management to ensure that labor hours are reasonable and necessary, and that material costs are fair. The risk is mitigated when the government has strong project management and clearly defined requirements, but the inherent nature of T&M leaves it more susceptible to budget fluctuations compared to other contract types.
How effective is full and open competition in ensuring value for money in management consulting services?
Full and open competition is generally considered a highly effective mechanism for ensuring value for money in the procurement of management consulting services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most innovative solutions to win the contract. The presence of 4 bidders in this specific $2.18 million DoD contract suggests that the market for these services is sufficiently robust to support competition. This process helps the government identify the most advantageous offer, balancing price, technical capability, and past performance. While effective, the government must still conduct thorough evaluations to ensure the lowest price doesn't come at the expense of quality or essential capabilities.
What are the historical spending patterns for 'Other Management Consulting Services' (NAICS 541618) within the Department of Defense?
The Department of Defense is a significant spender on 'Other Management Consulting Services' (NAICS 541618), reflecting its need for specialized expertise to manage complex operations, strategic planning, and organizational improvements. Historical spending patterns show a consistent demand for these services, often driven by evolving geopolitical landscapes, technological advancements, and the need for efficiency gains. While specific annual totals fluctuate based on budgetary priorities and emerging requirements, the DoD consistently ranks among the top federal agencies procuring services under this NAICS code. Contracts in this category range widely in value, from small, targeted engagements to multi-year, multi-million dollar programs, similar to the $2.18 million operations support contract awarded here.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting 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: W91CRB07R0046
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,457,479
Exercised Options: $22,457,479
Current Obligation: $21,780,980
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB08D0024
IDV Type: IDC
Timeline
Start Date: 2008-06-10
Current End Date: 2010-07-09
Potential End Date: 2010-07-09 00:00:00
Last Modified: 2017-08-04
More Contracts from Lockheed Martin Integrated Systems, LLC
- 200407!000098!5700!LA01 !11 Cons/Lgcw !FA701204C0003 !A!N! !N! ! !20031121!20130630!836196972!805258373!834951691!n!lockheed Martin Integrated SYS!6801 Rockledge Drive !bethesda !nj!20817!50000!001!11!washington !district of Columbia !D.C. !+000010350876!n!n!000530185344!d399!other Adp&telecommunication Services !S1 !services !000 !* !541690!A!B!3! ! ! ! ! !99990909!b!b!y!b! !a!n!l!2!007!b! !C!Y!F! ! !N!C!N! ! ! !b!z!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $679.5M (Department of Defense)
- 200611!007847!2100!w15p7t!usa Communications-Electronics !daab0703db009 !A!N! !Y!0243 ! !20060831!20110129!068514251!805258373!834951691!n!lockheed Martin Integrated SYS!1800 Route 34 !wall !nj!07719!76460!025!34!wall (township OF) !monmouth !NEW Jersey!+000077463827!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $448.3M (Department of Defense)
- ISS Cargo Mission Contract (CMC) — $406.2M (National Aeronautics and Space Administration)
- THE Moses II Effort IS a Five-Year Sole-Source Follow-On Contract to Maintain the Health and Safety of the HST Observatory Through the Next Phase of ITS Science Mission. the Scope of This Follow-On Effort Includes Conducting ALL Elements of HST Operations Other Than Science Operations, and to Perform Systems Engineering Tasks Required to Properly Maintain HST Flight and Ground Systems.mission Operations Responsibilities Include Safe and Efficient Control and Utilization of the HST Observatory, Maintenance and Operation of Hst-Unique Facilities and Equipment, AS Well AS Creation, Maintenance, and Utilization of HST Operations Processes and Procedures. Critical Systems Engineering Responsibilities Consist of Optimizing Mission System Capabilities to Maximize HST Operations Effectiveness and Science Productivity. Essential Management Requirements Include Providing a Technical Staff Possessing In-Depth Knowledge of HST S Varied, Complex, and Unique Flight and Ground Systems, Ensuring Successful Accomplishment of the Diverse Tasks Necessary to Effectively Conduct HST Mission Operations and Systems Engineering AS Well AS to Manage and Report Contract Element Cost and Schedule Performance — $360.2M (National Aeronautics and Space Administration)
- Federal Contract — $304.3M (Department of Defense)
View all Lockheed Martin Integrated Systems, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)