Lockheed Martin awarded $22.1M contract for systems engineering services by the Department of the Army
Contract Overview
Contract Amount: $22,140,583 ($22.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-05-06
End Date: 2008-11-05
Contract Duration: 1,644 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200408!005026!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0093 ! !20040506!20070130!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!106 APPLE ST SUITE 202 !TINTON FALLS !NJ!07724!73020!025!34!TINTON FALLS !MONMOUTH !NEW JERSEY!+000001753483!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !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! !
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $22.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200408!005026!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0093 ! !20040506!20070130!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!106 APPLE ST SUITE 202 !TINTON FALLS !NJ!07724!73020!025!34!TINTON FALLS !MONM… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $22.1 million is moderate for systems engineering services. 3. Performance period of over 4 years indicates a significant, long-term need. 4. The contractor, Lockheed Martin, is a major defense contractor with extensive experience. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences, a critical sector. 6. The contract type is Time and Materials, which can pose cost control risks if not managed carefully.
Value Assessment
Rating: good
The contract value of $22.1 million for systems engineering services appears reasonable given the contractor's profile and the contract duration. Benchmarking against similar contracts for specialized engineering support within the Department of Defense would provide a more precise value-for-money assessment. The Time and Materials pricing structure warrants close monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 14 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, maximizing the value received for the allocated funds.
Public Impact
The Department of the Army benefits from specialized systems engineering expertise to support its technological advancements. Services delivered are critical for the development and integration of complex defense systems. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include employment opportunities for skilled engineers and technical professionals within Lockheed Martin and potentially its subcontractors.
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 and monitored for scope creep.
- The contractor is a large, established entity, which might limit opportunities for smaller, specialized firms in subcontracting roles.
- The specific nature of 'systems engineering services' can be broad, requiring clear performance metrics to ensure accountability.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- The contractor, Lockheed Martin, has a strong track record in defense contracting and systems integration.
- The contract duration of over 4 years suggests a stable, long-term requirement, allowing for focused development and execution.
- The contract falls under a critical R&D category, indicating investment in advanced technological capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a crucial area for defense modernization, involving the development and integration of advanced technologies. The market for systems engineering services is substantial, with major defense contractors like Lockheed Martin playing a significant role. Comparable spending benchmarks would typically be found within large-scale defense acquisition programs requiring complex system design and integration.
Small Business Impact
The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated in this award. As Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, but this is not explicitly detailed in the provided information. The lack of a small business set-aside means the primary focus was on securing the best overall solution through open competition.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing performance oversight are not publicly detailed.
Related Government Programs
- Department of Defense Research and Development
- Systems Engineering Services
- Defense Electronics and Communication Equipment
- Lockheed Martin Contracts
Risk Flags
- Time and Materials contract type carries inherent cost escalation risks.
- Potential for limited small business subcontracting opportunities.
- Scope definition and management are critical for success.
Tags
department-of-defense, department-of-the-army, systems-engineering, research-and-development, time-and-materials, full-and-open-competition, lockheed-martin, defense-electronics, communication-equipment, mid-size-contract, usa
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200408!005026!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!0093 ! !20040506!20070130!068514251!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!106 APPLE ST SUITE 202 !TINTON FALLS !NJ!07724!73020!025!34!TINTON FALLS !MONMOUTH !NEW JERSEY!+000001753483!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2004-05-06. End: 2008-11-05.
What is Lockheed Martin's track record with the Department of the Army for similar systems engineering contracts?
Lockheed Martin Integrated Systems, LLC, the contractor awarded this contract, has a substantial history of performing complex systems engineering and integration services for the Department of Defense, including the Army. Their extensive portfolio includes work on major defense platforms, communication systems, and command and control systems. While specific details on past performance for identical contracts are proprietary, their designation as a prime contractor on numerous large-scale defense programs indicates a generally positive and capable track record. Performance metrics and past performance evaluations from previous contracts would have been assessed during the bidding process for this current award.
How does the $22.1 million contract value compare to typical systems engineering contracts of similar scope and duration?
The $22.1 million contract value for systems engineering services over approximately 4 years (from May 2004 to November 2008) is within a moderate range for specialized technical support within the defense sector. Large, complex defense programs can involve systems engineering contracts worth hundreds of millions or even billions of dollars. However, for specific, focused engineering support or the development of particular system components, a $22.1 million award is not unusual. Benchmarking against contracts with similar North American Industry Classification System (NAICS) codes (like 541710 or 541330) and similar agencies would provide a more precise comparison, but the value appears reasonable for the stated services and duration.
What are the primary risks associated with a Time and Materials (T&M) contract for systems engineering services?
The primary risk associated with a Time and Materials (T&M) contract for systems engineering services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the government, the risk is that the total cost could exceed initial estimates if the scope of work expands or if labor hours are not efficiently utilized. Effective oversight, clear task definitions, and strong project management are crucial to mitigate these risks.
How effective is 'full and open competition' in ensuring value for money in defense R&D contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in defense R&D contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering innovation and driving down prices through competitive pressure. The record of 14 bids for this specific contract suggests that the requirement was attractive to multiple capable firms, leading to a robust bidding environment. This competition typically results in the government receiving the best combination of technical solution and price, thereby optimizing the use of taxpayer funds for critical research and development initiatives.
What is the significance of the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?
The NAICS code 541710 signifies that this contract is focused on research and development activities within the physical, engineering, and life sciences. This is a broad but critical category for the Department of Defense, encompassing efforts to advance scientific knowledge and apply it to develop new technologies, materials, and systems. Contracts under this code often involve innovation, experimentation, and the creation of prototypes or advanced concepts. For the Army, this R&D focus is essential for maintaining technological superiority and addressing future defense challenges through cutting-edge scientific and engineering solutions.
What are the potential implications of this contract on the broader defense electronics and communication equipment sector?
This contract, focused on systems engineering services for the Department of the Army, has implications for the defense electronics and communication equipment sector. It signifies continued investment in the development and integration of advanced communication and electronic systems, which are vital for modern military operations. The award to Lockheed Martin, a major player in this sector, reinforces their position and likely involves the utilization of various specialized components and technologies. This can stimulate innovation, create demand for specific sub-components, and influence the competitive landscape for other firms operating within this specialized segment of the defense industrial base.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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
Offers Received: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 3000 LINCOLN DR E, MARLTON, NJ, 08053
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,140,583
Exercised Options: $22,140,583
Current Obligation: $22,140,583
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2004-05-06
Current End Date: 2008-11-05
Potential End Date: 2008-11-05 00:00:00
Last Modified: 2018-09-14
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