DHS Coast Guard Awards $22.8M Engineering Services Contract to Lockheed Martin, Not Competed
Contract Overview
Contract Amount: $22,841,706 ($22.8M)
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: $13.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SEA COMMANDER SUSTAINMENT SUPPORT SERVICES
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Homeland Security obligated $22.8 million to LOCKHEED MARTIN CORPORATION for work described as: SEA COMMANDER SUSTAINMENT SUPPORT SERVICES Key points: 1. Significant contract value of $22.8 million for engineering services. 2. Sole-source award to Lockheed Martin Corporation raises questions about competition. 3. Potential risk associated with a single vendor for critical sustainment support. 4. The contract falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: questionable
The contract value of $22.8 million is substantial for engineering services. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $22.8 million contract means taxpayers may not have received the most cost-effective solution.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The U.S. Coast Guard relies on this contract for critical sustainment support. Dependence on a single contractor could pose risks to operational continuity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to a known entity (Lockheed Martin)
- Long-term support planned through 2026
Sector Analysis
Engineering services are crucial for maintaining complex assets like those operated by the Coast Guard. Benchmarks for similar large-scale engineering support contracts can vary widely, but a lack of competition often inflates costs.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific award, missing an opportunity for their participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving good value and that the justification for not competing is sound.
Related Government Programs
- Engineering Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited vendor options
- No small business participation
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 $22.8 million to LOCKHEED MARTIN CORPORATION. SEA COMMANDER SUSTAINMENT SUPPORT 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 $22.8 million.
What is the period of performance?
Start: 2021-09-16. End: 2026-04-30.
What was the justification for awarding this contract on a sole-source basis instead of conducting a competitive procurement?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's impossible to determine the specific rationale. However, sole-source contracts often bypass the price discovery benefits of competition, potentially leading to higher costs for the government and taxpayers.
What are the risks associated with relying solely on Lockheed Martin for the sustainment support services for the SEA COMMANDER program?
The primary risks include vendor lock-in, potential price increases without competitive pressure, and a lack of innovation that might come from a more competitive market. If Lockheed Martin faces internal issues or decides to discontinue services, the Coast Guard could face significant disruption in its operations due to the lack of alternative providers.
How does the Time and Materials pricing structure impact the overall cost-effectiveness and oversight of this contract?
Time and Materials (T&M) contracts can be cost-effective when the scope of work is not well-defined or is expected to change. However, they also present oversight challenges, as the government must diligently monitor labor hours and material costs to prevent overruns. Without strong oversight, T&M contracts can become more expensive than fixed-price alternatives.
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: $22,841,706
Exercised Options: $22,841,706
Current Obligation: $22,841,706
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $65,000
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 10:47:12
Last Modified: 2026-03-12
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