DHS Awards $42.1M C4ISR Engineering Services Contract to Lockheed Martin, Not Competed
Contract Overview
Contract Amount: $42,132,668 ($42.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2021-09-16
End Date: 2026-04-30
Contract Duration: 1,687 days
Daily Burn Rate: $25.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: C4ISR SEA COMMANDER ENGINEERING SERVICES
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Homeland Security obligated $42.1 million to LOCKHEED MARTIN CORPORATION for work described as: C4ISR SEA COMMANDER ENGINEERING SERVICES Key points: 1. Significant contract value of over $42 million for critical C4ISR systems. 2. Sole-source award to Lockheed Martin raises questions about competition and potential price inflation. 3. Engineering services are essential for maintaining and upgrading complex command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capabilities. 4. The contract spans nearly five years, indicating a long-term need for these specialized services.
Value Assessment
Rating: questionable
The contract's value of $42.1 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for C4ISR engineering.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for other qualified vendors to offer competitive bids.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these engineering services, as market forces were not leveraged to secure the best possible price.
Public Impact
Ensures continued operational readiness of U.S. Coast Guard C4ISR systems. Supports advanced technology integration for maritime security and surveillance. Potential for increased costs due to lack of competitive bidding impacts taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Time and Materials pricing
Positive Signals
- Essential C4ISR services for national security
- Long-term contract duration ensures stability
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex C4ISR systems for the Department of Homeland Security's U.S. Coast Guard. Spending in this area is critical for national security and often involves specialized, high-value contracts.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Transparency regarding the justification for not competing the contract is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award lacks competition.
- Time and Materials pricing offers limited cost certainty.
- Potential for inflated costs due to lack of competitive bidding.
- Extended contract duration increases dependency on a single vendor.
Tags
engineering-services, department-of-homeland-security, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $42.1 million to LOCKHEED MARTIN CORPORATION. C4ISR SEA COMMANDER ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $42.1 million.
What is the period of performance?
Start: 2021-09-16. End: 2026-04-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without further documentation, it's unclear if alternatives were explored. Agencies must provide detailed justifications for sole-source contracts to ensure they are used appropriately and not simply for convenience, which can lead to inflated costs and reduced innovation.
How does the 'Time and Materials' pricing structure impact cost control and taxpayer value for these engineering services?
Time and Materials (T&M) contracts can be risky for the government as they offer less cost certainty than fixed-price contracts. The contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer project durations and higher material costs, potentially leading to cost overruns if not closely monitored and managed by the contracting officer.
What are the potential risks associated with relying on a single contractor for critical C4ISR engineering services over a nearly five-year period?
Relying on a single contractor for critical C4ISR engineering services over an extended period carries risks such as vendor lock-in, potential complacency leading to reduced service quality, and a lack of incentive for innovation. It also makes the government vulnerable if the contractor experiences financial difficulties, undergoes mergers, or faces other operational disruptions. This dependency can limit the government's flexibility in adapting to new technologies or changing requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,165,668
Exercised Options: $42,132,668
Current Obligation: $42,132,668
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $218,200
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-16
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 09:27:05
Last Modified: 2026-03-12
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