DoD's $23.5M non-guard security support services contract awarded to Lockheed Martin Services, LLC

Contract Overview

Contract Amount: $23,477,927 ($23.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2009-08-31

Contract Duration: 152 days

Daily Burn Rate: $154.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NON-GUARD SECURITY SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: NON-GUARD SECURITY SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 152 days indicates a short-term or specific task-oriented requirement. 4. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 561612 points to security guards and patrol services. 6. The contract was awarded to a single entity, Lockheed Martin Services, LLC. 7. The contract was awarded in Alabama, indicating a specific geographic focus for the services.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's scope and pricing. The total award amount of $23.5 million for a 152-day period suggests a significant daily operational cost. Without comparable delivery orders or market data for similar security support services under IDIQ vehicles, a precise value-for-money assessment is difficult. The firm fixed-price nature provides cost certainty for the government, but the overall efficiency depends on the contractor's performance and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While two bidders participated, the level of competition might be considered moderate rather than robust, which could influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of offers. However, with only two bids, the potential for cost savings might be less than if a broader competitive field had emerged.

Public Impact

The Department of the Navy benefits from specialized security support services. The services delivered are related to non-guard security support, likely encompassing a range of protective and monitoring functions. The geographic impact is concentrated in Alabama, where the services were performed. The contract supports the operational readiness and security posture of naval installations or activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than a more robust bidding process.
The firm fixed-price contract places the burden of cost overruns on the contractor, which could incentivize cutting corners if not properly monitored.
The specific nature of 'non-guard security support' is broad and could encompass a wide range of services, making performance monitoring complex.

Positive Signals

Awarded under full and open competition, ensuring a fair process for all potential bidders.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Lockheed Martin Services, LLC, is a large, established defense contractor with significant experience.

Sector Analysis

The security services sector is a critical component of the defense industry, encompassing a wide array of protective and support functions. This contract falls under the broader category of security and protective services, often characterized by specialized personnel, technology, and operational expertise. Spending in this sector is driven by national security needs, facility protection, and personnel safety. Comparable spending benchmarks would typically involve analyzing other contracts for similar security support services, particularly those awarded by the Department of Defense or other federal agencies for base operations or specialized security requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The absence of small business set-aside provisions means the primary focus was on securing the best overall offer, potentially overlooking opportunities to bolster the small business defense industrial base.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a delivery order under a larger IDIQ, oversight might be managed at the task order level, focusing on performance against the specific requirements. Accountability measures would be tied to the firm fixed-price terms and the contract's statement of work. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Security Contracts
Naval Base Support Services
Federal Security Guard Services
Contracting for Protective Services
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns (if contractor performance is poor)
Contract Duration (short-term nature may indicate ongoing need)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to LOCKHEED MARTIN SERVICES, LLC. NON-GUARD SECURITY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2009-04-01. End: 2009-08-31.

What is the historical spending pattern for non-guard security support services by the Department of the Navy?

Analyzing historical spending for 'non-guard security support services' by the Department of the Navy requires access to comprehensive federal procurement data. Typically, such services are procured through various contract vehicles, including IDIQs, task orders, and direct awards, often categorized under broader NAICS codes like 561612 (Security Guards and Patrol Services) or related facility support services. Spending can fluctuate based on geopolitical events, base realignments, and evolving security threats. Without specific data for this exact service category over multiple fiscal years, it's difficult to establish a precise trend. However, federal agencies, particularly the DoD, consistently allocate significant resources to security and protective services to maintain operational integrity and personnel safety across their global installations.

How does the per-unit cost of this contract compare to similar security support services awarded by the DoD?

A direct per-unit cost comparison for this specific delivery order is challenging without a defined 'unit' and its associated cost. The total award of $23.5 million over 152 days represents a daily rate of approximately $154,460. However, this figure encompasses all aspects of the security support services, not a single quantifiable unit like 'per guard hour' or 'per patrol.' To benchmark effectively, one would need to identify comparable contracts with similar scopes of work, service levels, and geographic locations, and then extract their daily or monthly operational costs. Given the limited competition (two bids), it's plausible that the pricing might not be as aggressively competitive as a contract with numerous bidders, but without comparative data, this remains speculative.

What is Lockheed Martin Services, LLC's track record with similar federal security contracts?

Lockheed Martin Services, LLC, as a subsidiary of the larger Lockheed Martin Corporation, has an extensive track record in providing a wide array of services to the U.S. government, including defense, intelligence, and security-related support. While specific details on their performance for 'non-guard security support services' under this particular contract are not provided, the company is known for managing large, complex federal contracts. Their history includes significant work in logistics, base operations support, and technical services for various military branches. Performance on past contracts, including adherence to schedules, quality of service, and cost management, would be the primary indicators of their capability. Federal procurement databases often contain past performance information, which contracting officers use in source selection.

What are the potential risks associated with a firm fixed-price contract for security services?

A primary risk with firm fixed-price (FFP) contracts, including this one for security services, is that the contractor might be incentivized to reduce costs by cutting corners on quality or personnel if not adequately monitored. This could lead to substandard service delivery, inadequate security coverage, or insufficient training for personnel. Another risk is that if unforeseen circumstances significantly increase the contractor's costs beyond what was reasonably anticipated, the contractor might seek contract modifications or face financial distress, potentially impacting service continuity. Conversely, if the contractor significantly underbids or overestimates costs, the government might end up paying more than necessary or receiving less value than anticipated if performance is merely adequate.

How does the limited competition (2 bidders) impact the government's ability to achieve best value?

Limited competition, such as the two bids received for this contract, can constrain the government's ability to achieve the 'best value.' A robust competitive environment, with multiple bidders vying for the contract, typically drives down prices and encourages innovative solutions as contractors strive to differentiate themselves. With only two offers, the government's negotiating position is weaker, and the potential for receiving the most economically advantageous offer is reduced. While the contracting officer must still evaluate offers based on stated criteria, the range of options and the pressure on pricing are inherently less than in a scenario with, for example, five or more bidders. This can lead to higher costs for taxpayers and potentially less optimal service outcomes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018907RZ041

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 2339 RTE 70 W, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,477,927

Exercised Options: $23,477,927

Current Obligation: $23,477,927

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018908DZ003

IDV Type: IDC

Timeline