DoD awards $352M Lockheed Martin contract for Engineering Services, awarded via sole-source procurement
Contract Overview
Contract Amount: $352,428,520 ($352.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2000-10-06
End Date: 2005-07-26
Contract Duration: 1,754 days
Daily Burn Rate: $200.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $352.4 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Significant contract value of over $352 million. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Contract duration spans nearly five years. 4. Engineering services are critical for defense operations.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 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 competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this large contract may result in taxpayers paying a premium for engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract raises questions about ongoing cost-effectiveness. Dependence on a single contractor for critical engineering services could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Cost-plus contract type
- Long contract duration
Positive Signals
- Award to a major defense contractor
- Services critical to Department of Defense
Sector Analysis
This contract falls under Engineering Services, a sector vital for the Department of Defense's operational capabilities. Spending in this area is often characterized by complex requirements and long-term engagements, making competitive benchmarking challenging.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets expectations. Accountability for cost control within the cost-plus incentive framework is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (Cost Plus Incentive)
- Limited transparency on justification for sole-source
- Long contract duration without clear performance benchmarks
Tags
engineering-services, department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $352.4 million to LOCKHEED MARTIN CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $352.4 million.
What is the period of performance?
Start: 2000-10-06. End: 2005-07-26.
What specific engineering services were procured, and how do they align with the Department of Defense's strategic needs?
The contract is for Engineering Services (NAICS 541330). While the specific services are not detailed in the provided data, engineering services in the defense sector typically encompass a wide range of activities including design, development, testing, and technical support for military systems and platforms. These services are fundamental to maintaining and advancing the technological capabilities of the armed forces.
What justification was provided for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. Typically, such justifications involve reasons like unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's difficult to assess the fairness and reasonableness of the pricing, though the 'Cost Plus Incentive' type suggests some performance-based incentives were intended.
How will the effectiveness of these engineering services be measured, and what are the key performance indicators (KPIs)?
The effectiveness of engineering services is usually measured against defined performance metrics and milestones outlined in the contract. For a Cost Plus Incentive contract, KPIs would likely focus on technical performance, schedule adherence, and cost control relative to targets. The 'aw' field 'DCA' might relate to a specific performance metric or delivery requirement, but further detail is needed.
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: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1011 LOCKHEED WAY, PALMDALE, CA, 27
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2000-10-06
Current End Date: 2005-07-26
Potential End Date: 2005-07-26 00:00:00
Last Modified: 2011-07-25
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