DoD's $18.67M contract for ISR management services awarded to Lockheed Martin shows potential for cost savings
Contract Overview
Contract Amount: $18,666,130 ($18.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-13
End Date: 2011-07-29
Contract Duration: 1,842 days
Daily Burn Rate: $10.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000005289765!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!010!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $18.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONT… Key points: 1. The contract's firm-fixed-price structure provides cost certainty for the government. 2. A high number of bids suggests a competitive market for these specialized services. 3. The duration of the contract (over 4 years) indicates a long-term need for these capabilities. 4. The specific Product Service Code (PSC) points to a niche but critical area of defense support. 5. The contract's performance is managed by the Defense Contract Management Agency, a key oversight body.
Value Assessment
Rating: good
While a direct per-unit cost comparison is not readily available without more granular data, the firm-fixed-price nature of this contract is a positive indicator for value. The total award amount of $18.67 million over approximately four years suggests a managed expenditure. Benchmarking against similar Intelligence, Surveillance, and Reconnaissance (ISR) management contracts would be necessary for a definitive value assessment, but the competitive award process implies a reasonable price was likely achieved.
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 data shows 10 bids were received, which is a strong indicator of a healthy competitive environment for ISR management services. A robust competition typically drives down prices and encourages innovation as contractors vie for the award.
Taxpayer Impact: The full and open competition and multiple bids suggest that taxpayer dollars were likely used efficiently, as the government benefited from a competitive bidding process that aimed to secure the best value.
Public Impact
The primary beneficiaries are the Department of Defense units requiring Intelligence, Surveillance, and Reconnaissance (ISR) management and support. The services delivered are crucial for maintaining situational awareness and operational effectiveness in various defense contexts. The contract's geographic impact is likely national, supporting defense operations globally, with a specific mention of Georgia as the contractor's state. This contract supports a specialized workforce within the defense industry, requiring expertise in ISR systems and management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
- Dependence on a single contractor (Lockheed Martin) for critical ISR management functions could pose a risk if performance falters.
- The long contract duration might lead to less agile adaptation to rapidly evolving ISR technologies if not managed proactively.
Positive Signals
- Firm-fixed-price contract provides cost predictability and limits the government's exposure to cost overruns.
- Awarded through full and open competition with multiple bidders, suggesting a competitive price and selection process.
- The contractor, Lockheed Martin, is a major defense contractor with extensive experience in relevant technologies and services.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on intelligence, surveillance, and reconnaissance (ISR) management. The ISR market is a critical and growing segment within defense, encompassing technologies and services for data collection, analysis, and dissemination. Comparable spending in this area is substantial across various defense agencies, reflecting the increasing reliance on advanced ISR capabilities for modern warfare and national security. The market is characterized by a few large prime contractors and numerous specialized subcontractors.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. As a large prime contract awarded to a major defense corporation, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities. The extent of small business participation would depend on Lockheed Martin's subcontracting strategy and the availability of small businesses capable of providing specialized support services.
Oversight & Accountability
Oversight for this contract is primarily handled by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm-fixed-price nature of the contract provides a degree of financial oversight by capping the government's liability. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are typically not publicly disclosed.
Related Government Programs
- Intelligence, Surveillance, and Reconnaissance (ISR) Systems
- Aircraft Manufacturing
- Defense Logistics and Support Services
- Aerospace Engineering Services
- Command, Control, Communications, Computers, and Intelligence (C4I)
Risk Flags
- Long-term contract duration may require careful management to adapt to evolving technologies.
- Dependence on a single large contractor for critical services.
- Potential for scope creep if requirements are not precisely defined and managed.
Tags
defense, department-of-defense, intelligence-surveillance-reconnaissance, lockheed-martin, firm-fixed-price, full-and-open-competition, delivery-order, aircraft-manufacturing, engineering-technical-services, georgia, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200611!000003!5700!FA8530!WR-ALC-PKF ISR MGNT DIR !F0960301D0207 !A!N! !Y!0123 ! !20060713!20070712!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!2339 ROUTE 70 W !CHERRY HILL !NJ!08002!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000005289765!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !336411!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 $18.7 million.
What is the period of performance?
Start: 2006-07-13. End: 2011-07-29.
What is the historical spending trend for ISR management services within the Department of Defense?
Historical spending on ISR management services within the Department of Defense has shown a consistent upward trend over the past two decades, driven by the increasing complexity of global security challenges and the proliferation of advanced sensor technologies. While specific figures for 'ISR management' as a distinct category can be difficult to isolate due to varied contract classifications, overall defense spending on intelligence and surveillance capabilities has surged. Factors contributing to this include the demand for real-time data, advanced analytics, and integrated C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems. This particular contract, awarded in 2006, reflects a period of significant investment in enhancing ISR capabilities following operations in Afghanistan and Iraq, where ISR assets proved critical.
How does Lockheed Martin's performance on similar ISR contracts compare to industry benchmarks?
Lockheed Martin is a major defense contractor with a long history of performance on complex ISR programs. Benchmarking their performance requires access to detailed contract performance reports, which are often not publicly available. However, general industry assessments and past performance reviews available through sources like the Government Accountability Office (GAO) bid protest decisions and contractor capability assessments suggest Lockheed Martin generally meets or exceeds performance expectations on large-scale defense contracts. Their extensive experience in aerospace, defense electronics, and systems integration positions them as a capable provider. Specific metrics like on-time delivery, quality adherence, and cost control would be evaluated on a contract-by-contract basis by the contracting officer's representative (COR).
What are the key risks associated with managing long-term ISR contracts, and how are they mitigated?
Key risks in long-term ISR contracts include technological obsolescence, evolving threat landscapes requiring rapid adaptation, potential for cost overruns if not managed tightly, and contractor performance issues. Mitigation strategies employed by the DoD include robust contract structuring (like firm-fixed-price where appropriate), clear performance metrics and milestones, regular performance reviews, and incorporating flexibility clauses for technological upgrades or changes in mission requirements. For this specific contract, the firm-fixed-price structure helps mitigate cost risks. The management by DCMA and the potential for contract modifications or re-competition at the end of the term also serve as risk management tools. Furthermore, fostering open communication channels with the contractor is crucial for early identification and resolution of potential issues.
What is the typical profit margin for ISR management services contracts in the defense sector?
Profit margins for ISR management services contracts within the defense sector can vary significantly based on contract type, complexity, risk, and the specific services provided. For firm-fixed-price contracts, which aim to provide cost certainty to the government, contractor profit margins are typically built into the initial price. While exact figures are proprietary, industry averages for defense contracting can range from 7% to 15% profit on contract value. However, specialized, high-technology services like advanced ISR management might command slightly higher margins due to the required expertise and intellectual property involved. Government regulations and negotiation play a significant role in determining the final profit margins realized by contractors.
How has the role of ISR management evolved within the DoD since this contract was awarded?
The role of ISR management has evolved dramatically since this contract's award in 2006. Initially focused on managing the acquisition and deployment of specific ISR platforms and data processing systems, the emphasis has shifted towards integrated, network-centric ISR operations. This includes leveraging artificial intelligence (AI) and machine learning (ML) for automated data analysis, enhancing multi-INT (intelligence) fusion, and enabling faster dissemination of actionable intelligence across distributed forces. Cloud computing and secure data sharing platforms have also become central. While this contract likely focused on more traditional ISR management, subsequent contracts and evolving DoD strategies emphasize agile, data-driven ISR capabilities that are more responsive to dynamic threats and operational needs.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
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
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2006-07-13
Current End Date: 2011-07-29
Potential End Date: 2011-07-29 00:00:00
Last Modified: 2016-03-04
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)