DoD's $17.1M Army Transformation Support Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $17,132,581 ($17.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-04-28
End Date: 2011-08-31
Contract Duration: 1,951 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LABOR TO SUPPORT ARMY TRANSFORMATION
Place of Performance
Location: FORT BENNING, CHATTAHOOCHEE County, GEORGIA, 31905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: LABOR TO SUPPORT ARMY TRANSFORMATION Key points: 1. Contract awarded to a single, large vendor, Lockheed Martin. 2. Spending spans over 4 years, indicating a long-term need. 3. The contract type is Time and Materials, which can pose cost control risks. 4. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, without a clear ceiling, presents a risk for cost overruns. Benchmarking against similar consulting services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing could limit price discovery and potentially lead to higher costs than fixed-price contracts.
Taxpayer Impact: Taxpayers may face increased costs due to the Time and Materials pricing model, which offers less cost certainty compared to fixed-price contracts.
Public Impact
Supports critical Army transformation initiatives, impacting military readiness. Long-term engagement suggests ongoing reliance on external expertise. Potential for cost escalation due to contract type could impact overall defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific cost ceiling
- Long contract duration
Positive Signals
- Full and open competition
- Supports key government function
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending benchmarks for similar large-scale, long-duration consulting contracts can vary widely based on scope and complexity.
Small Business Impact
The contract was not awarded to small businesses, indicating a lack of opportunity for SMBs in this specific procurement.
Oversight & Accountability
Awarded as a delivery order under a larger contract, oversight would likely be managed by the Department of the Army. The Time and Materials nature necessitates diligent monitoring to control costs.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of a defined cost ceiling.
- Long contract duration (over 4 years) increases exposure to price changes and scope creep.
- Limited transparency on specific deliverables and outcomes.
- No small business participation noted.
Tags
administrative-management-and-general-ma, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. LABOR TO SUPPORT ARMY TRANSFORMATION
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 $17.1 million.
What is the period of performance?
Start: 2006-04-28. End: 2011-08-31.
What specific transformation initiatives did this contract support, and what were the measurable outcomes?
The contract supported Army transformation efforts, likely involving process improvements, organizational restructuring, or technology integration. Measurable outcomes would typically include enhanced operational efficiency, cost savings, or improved mission capabilities. Without specific project details, it's difficult to quantify the direct impact on transformation success.
How did the competitive bidding process ensure value for money given the Time and Materials pricing?
While full and open competition suggests a competitive field, the Time and Materials (T&M) pricing model inherently carries a higher risk of cost overruns. The government likely relied on pre-negotiated hourly rates and diligent oversight to manage costs. However, T&M contracts generally offer less price certainty than fixed-price alternatives, potentially impacting the overall value achieved.
What mechanisms were in place to mitigate cost risks associated with the Time and Materials contract type?
Mitigation strategies for T&M contracts typically include establishing labor rate ceilings, requiring detailed timesheets and expense reports, and implementing robust contract surveillance by government personnel. Regular performance reviews and milestone tracking are also crucial. The effectiveness of these measures would depend on the rigor of their application throughout the contract's duration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General 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
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,659,773
Exercised Options: $27,661,556
Current Obligation: $17,132,581
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DABK0103D0003
IDV Type: IDC
Timeline
Start Date: 2006-04-28
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2016-09-22
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