DoD's $20.5M Engineering Services Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $20,506,870 ($20.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-07-18
End Date: 2011-08-05
Contract Duration: 1,479 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: FUNDING FOR CLIN 0002
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: FUNDING FOR CLIN 0002 Key points: 1. Contract awarded for Engineering Services to Lockheed Martin. 2. Full and open competition was utilized. 3. The contract duration was 1479 days. 4. The award was a delivery order under a larger contract. 5. The contract was time and materials based.
Value Assessment
Rating: fair
The contract's value of $20.5 million over nearly four years suggests a moderate price point for engineering services. Benchmarking against similar DoD contracts for engineering services would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price for taxpayers, avoiding potential overpayment associated with sole-source or limited competition awards.
Public Impact
Taxpayers funded engineering services for the Department of Defense. The contract supported military readiness and technological advancement. The duration of the contract indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not closely monitored.
- The contract was awarded as a delivery order, suggesting it might be part of a larger, potentially less competitive, framework.
Positive Signals
- Full and open competition was used, promoting a fair marketplace.
- The contract was awarded to a well-established defense contractor.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense procurement. Spending in this sector can vary significantly based on defense priorities and technological development needs.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was awarded to a large prime contractor.
Oversight & Accountability
The use of delivery orders under a larger contract necessitates robust oversight to ensure adherence to scope, cost, and schedule. The Department of Defense typically has established oversight mechanisms for such awards.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific detail on the engineering services provided.
- Delivery order structure may obscure true competition level.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. FUNDING FOR CLIN 0002
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 $20.5 million.
What is the period of performance?
Start: 2007-07-18. End: 2011-08-05.
What was the specific nature of the engineering services provided under this contract, and how did they contribute to the Department of Defense's mission?
The provided data does not specify the exact engineering services. However, given the Department of the Army as the awarding agency and Lockheed Martin as the contractor, it likely involved complex systems engineering, design, integration, or technical support for military platforms or equipment. These services are critical for maintaining and advancing defense capabilities, ensuring operational readiness and technological superiority.
How did the 'time and materials' pricing structure impact the final cost compared to a fixed-price contract for similar engineering services?
Time and materials contracts offer flexibility but carry a higher risk of cost escalation compared to fixed-price agreements. Without a fixed price, the final cost is directly tied to the hours worked and materials used. If not managed diligently with strict oversight and defined labor rates, this structure can lead to costs exceeding initial estimates, potentially impacting overall value for money.
What mechanisms were in place to ensure the effectiveness and quality of the engineering services delivered by Lockheed Martin under this contract?
While the data doesn't detail specific quality assurance measures, defense contracts typically include performance standards, acceptance criteria, and inspection protocols. The Department of Defense would likely have assigned contracting officers' representatives (CORs) to monitor progress, ensure deliverables met specifications, and manage the overall performance of Lockheed Martin throughout the contract's duration.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $20,506,870
Exercised Options: $20,506,870
Current Obligation: $20,506,870
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T06DE405
IDV Type: IDC
Timeline
Start Date: 2007-07-18
Current End Date: 2011-08-05
Potential End Date: 2011-08-05 00:00:00
Last Modified: 2022-09-02
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