DoD's $39.6M Non-Guard Security Support Services Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $39,658,778 ($39.7M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2010-09-30
Contract Duration: 364 days
Daily Burn Rate: $109.0K/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 $39.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: NON-GUARD SECURITY SUPPORT SERVICES Key points: 1. Significant contract value for security support services. 2. Awarded to a major defense contractor, indicating potential for large-scale operations. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is one year, with potential for extensions.
Value Assessment
Rating: fair
The award amount of $39.6M for a one-year contract appears substantial. Benchmarking against similar large-scale security support contracts would be necessary to determine if this represents fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The specific number of bids received and the evaluation process would further clarify the price discovery effectiveness.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Ensures security operations for Department of the Navy assets. Supports national defense objectives through private sector security services. Potential impact on local employment in Alabama where services are rendered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract awarded in 2009, may not reflect current market rates.
- Limited contract duration (1 year) might lead to frequent re-competes and associated transition costs.
- No indication of small business participation.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type provides cost certainty.
- Awarded to a reputable large defense contractor.
Sector Analysis
This contract falls under professional services, specifically security and investigation services. Spending in this sector can vary widely based on geopolitical factors and specific agency needs. Benchmarks for similar contracts are crucial for assessing value.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to understand the overall small business utilization within this service category for the Department of the Navy.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would involve monitoring contractor performance against contract requirements and ensuring compliance with federal regulations.
Related Government Programs
- Security Guards and Patrol Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for price escalation in future contract periods.
- Lack of small business participation noted.
- Contract awarded over a decade ago, market conditions may have changed.
- Dependence on a single large contractor.
Tags
security-guards-and-patrol-services, department-of-defense, al, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.7 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 $39.7 million.
What is the period of performance?
Start: 2009-10-01. End: 2010-09-30.
What was the competitive landscape like for this specific security support service requirement?
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. However, the number of bids received and the specific nature of the services required would determine the actual level of competition and its effectiveness in driving down costs.
Are there any potential risks associated with relying on a single large contractor for critical security support?
Relying on a single large contractor can pose risks such as vendor lock-in, reduced flexibility, and potential price increases in future contract renewals. It also concentrates critical functions within one entity, which could be a vulnerability if that entity faces operational challenges or breaches.
How effectively does this contract leverage private sector capabilities to meet Department of Defense security needs?
The contract leverages private sector capabilities by outsourcing security support services, allowing the DoD to focus on its core military mission. The effectiveness is measured by the contractor's ability to provide reliable, high-quality security services that meet or exceed DoD requirements within the agreed-upon budget and timeframe.
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 (UEI: 834951691)
Address: 2339 RTE 70 W, CHERRY HILL, NJ, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,677,527
Exercised Options: $39,677,527
Current Obligation: $39,658,778
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018908DZ003
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-02-25
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