DOT's $12M DAFIS UDO RECONSTRUCT Contract Awarded to Lockheed Martin Services, LLC

Contract Overview

Contract Amount: $12,028,249 ($12.0M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2009-10-24

End Date: 2017-06-01

Contract Duration: 2,777 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $12.0 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Contract awarded to a single large business, raising questions about competition. 2. Significant duration of 2777 days suggests a long-term, potentially high-value project. 3. The 'Hardware Manufacturing' NAICS code and 'COST PLUS FIXED FEE' contract type warrant scrutiny for cost control. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar reconstruction or hardware manufacturing contracts is difficult without more specific details on the 'DAFIS UDO RECONSTRUCT' scope.

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 compared to a competitive process.

Taxpayer Impact: The lack of competition for a $12M contract means taxpayers may not have received the best possible price.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long contract duration could indicate a critical but potentially inefficiently procured system. Limited transparency into the justification for a sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Cost-plus contract type
No small business participation

Positive Signals

Awarded to a known entity (Lockheed Martin)
Long-term project addressing a specific need

Sector Analysis

The Federal Aviation Administration (FAA) within the Department of Transportation often procures complex IT and hardware systems. Spending benchmarks for similar large-scale reconstruction projects are highly variable, but a $12M sole-source award warrants careful review.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This suggests that opportunities for small businesses were either not sought or not feasible for this specific requirement.

Oversight & Accountability

The sole-source nature of this award raises concerns about oversight. A thorough review of the justification for not competing the contract and the subsequent cost controls would be essential for accountability.

Related Government Programs

Hardware Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Cost-plus contract type poses a risk of cost overruns.
No small business participation limits economic opportunity.
Long contract duration (2777 days) requires sustained oversight.
Potential for inefficient pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.0 million to LOCKHEED MARTIN SERVICES, LLC. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2009-10-24. End: 2017-06-01.

What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without the specific justification document, it's impossible to assess the validity of these claims. However, for a contract of this size, robust price negotiation and independent cost analysis should have been conducted to mitigate the risks associated with non-competitive procurement.

How effectively was the 'COST PLUS FIXED FEE' structure managed to control costs over the 2777-day period?

Cost Plus Fixed Fee contracts require diligent oversight to prevent scope creep and ensure the contractor remains incentivized to control expenses. The FAA would need to demonstrate rigorous monitoring of expenditures, adherence to the fixed fee, and effective change order management to confirm cost control effectiveness over the nearly 8-year duration.

What is the current operational status and effectiveness of the 'DAFIS UDO RECONSTRUCT' system, and did the $12M investment yield the intended benefits?

Assessing the effectiveness requires understanding the system's purpose and performance metrics. Without details on the DAFIS UDO RECONSTRUCT system's function and success criteria, it's difficult to determine if the $12M investment was fully realized. Post-implementation reviews and user feedback would be crucial for this evaluation.

Industry Classification

NAICS: Manufacturing › Hardware Manufacturing › Hardware Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,793,050,550

Exercised Options: $95,237,627

Current Obligation: $12,028,249

Timeline