DoD's $12M SSI-K Production Installs contract awarded to Lockheed Martin Services, LLC shows potential value concerns

Contract Overview

Contract Amount: $11,998,901 ($12.0M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-23

End Date: 2011-12-31

Contract Duration: 1,530 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SSI-K PRODUCTION INSTALLS

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SSI-K PRODUCTION INSTALLS Key points: 1. Contract awarded in 2007 for production installs, raising questions about current relevance and technology obsolescence. 2. The firm fixed-price contract type suggests cost certainty, but the duration and total value warrant scrutiny. 3. Lack of small business participation noted, potentially limiting broader economic impact. 4. Awarded by the Defense Contract Management Agency, indicating a focus on defense-related procurement. 5. The contract's performance period spanned over four years, suggesting a significant project scope. 6. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a high-value sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable project data. The total award of over $11.9 million for production installs over a four-year period suggests a substantial investment. However, given the age of the award (2007-2011), the value proposition today would likely be significantly diminished due to technological advancements and potential obsolescence of the installed systems. Further analysis would require understanding the specific nature of the 'SSI-K Production Installs' and their lifecycle value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. While this generally promotes competitive pricing, the specific number of bidders and the evaluation criteria are not provided. The duration of the contract and the specialized nature of the work could influence the number and type of companies that chose to compete.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs.

Public Impact

The primary beneficiaries are likely the Department of Defense, receiving the installed systems. The services delivered were 'production installs,' implying the integration or setup of specific equipment or software. The geographic impact is likely concentrated within the areas where these installations occurred, potentially at military bases or contractor facilities. Workforce implications would involve skilled labor for installation and potentially maintenance, benefiting specialized technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract awarded in 2007, raising concerns about the technology's current relevance and potential obsolescence.
Limited information on performance metrics makes it difficult to assess the true value for money delivered.
No indication of small business participation suggests missed opportunities for economic inclusion.
The specific nature of 'SSI-K Production Installs' is not detailed, hindering a full understanding of the contract's scope and impact.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The contract was managed by the Defense Contract Management Agency, indicating adherence to established procurement standards.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically related to aircraft manufacturing (NAICS 336411). This is a high-value, technology-intensive industry characterized by long development cycles and significant government investment. Comparable spending benchmarks would typically involve large-scale production, integration, and sustainment contracts for military platforms. The market is dominated by a few large prime contractors, with significant subcontracting to specialized firms.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false) nor was there an explicit small business subcontracting goal noted (sb: false). This suggests that the prime contract was not specifically targeted towards small businesses, and there's no readily available information on whether Lockheed Martin subcontracted portions of this work to small businesses. This could represent a missed opportunity to leverage the small business industrial base for specialized tasks within this large defense contract.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to the Department of Defense. Oversight would typically involve monitoring contractor performance, ensuring compliance with contract terms, and verifying deliverables. Transparency for this specific contract is limited by the available data; however, the award through full and open competition suggests a degree of procedural transparency. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse were identified.

Related Government Programs

Aircraft Production Contracts
Defense Manufacturing Equipment Installs
Lockheed Martin Defense Contracts
DoD Procurement - Aircraft
Production Line Integration Services

Risk Flags

Potential technology obsolescence due to contract age.
Lack of detailed performance metrics hinders value assessment.
Limited information on small business participation.
Ambiguity in the specific nature of 'SSI-K Production Installs'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to LOCKHEED MARTIN SERVICES, LLC. SSI-K PRODUCTION INSTALLS

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 $12.0 million.

What is the period of performance?

Start: 2007-10-23. End: 2011-12-31.

What specific systems or equipment were involved in the 'SSI-K Production Installs'?

The provided data does not specify the exact nature of the 'SSI-K Production Installs.' The NAICS code 336411 indicates a connection to aircraft manufacturing. Therefore, it is plausible that these installs relate to the production, assembly, or integration of components, systems, or manufacturing equipment for aircraft. Without further documentation or context, the precise definition of 'SSI-K' and the scope of the 'production installs' remain unclear. This ambiguity makes it difficult to fully assess the contract's technical requirements and its alignment with current defense needs.

How does the $11.9 million award compare to similar production install contracts in the aerospace sector during that period?

Comparing the $11.9 million award for 'SSI-K Production Installs' to similar contracts requires access to a broader dataset of defense procurements from 2007-2011. However, for a four-year duration, this amount suggests a moderately sized project within the aerospace manufacturing domain. Larger contracts in this sector often involve the production of entire aircraft or major sub-assemblies, which could range from tens to hundreds of millions of dollars. Smaller contracts might focus on specific component manufacturing or specialized services. The value of this contract appears to be in the mid-range, likely pertaining to the installation of specialized production equipment or systems integral to aircraft manufacturing processes, rather than the production of the aircraft themselves.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for the 'SSI-K Production Installs' contract. Typically, for production install contracts, KPIs would focus on aspects such as installation timeliness, adherence to technical specifications, system functionality post-installation, defect rates, and operational readiness. Given the contract's age and the limited information, it is impossible to determine if these metrics were established, tracked, or met. Assessing the contractor's performance and the overall value derived from the contract is therefore challenging without this crucial performance data.

What is the current operational status or relevance of the systems installed under this contract?

As the contract concluded in December 2011, the systems installed are over a decade old. In the rapidly evolving fields of aircraft manufacturing and defense technology, systems installed during that period may be nearing or have already reached obsolescence. Their current operational status and relevance would depend heavily on the specific technology involved, the maintainability of the systems, and whether they have undergone upgrades or modernization. Without specific details on the 'SSI-K' systems, it's reasonable to assume that their technological relevance may have significantly decreased, potentially impacting their effectiveness and the return on the initial investment.

Were there any notable challenges or issues encountered during the performance of this contract?

The available data does not detail any specific challenges or issues encountered during the performance of the 'SSI-K Production Installs' contract. Contracts of this nature, especially those involving complex production environments, can face hurdles such as supply chain disruptions, technical integration problems, labor shortages, or changes in requirements. The firm fixed-price nature of the contract implies that Lockheed Martin would bear the brunt of cost overruns due to unforeseen issues. However, without access to contract performance reports, audit findings, or official correspondence, it is impossible to identify any specific difficulties that may have arisen.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 400 BROOKFIELD PARKWAY, GREENVILLE, SC, 29607

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,998,901

Exercised Options: $11,998,901

Current Obligation: $11,998,901

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0013

IDV Type: IDC

Timeline