Lockheed Martin Utility Contract for Dobbins ARB Exceeds $17M for Basic Year
Contract Overview
Contract Amount: $17,011,208 ($17.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2007-11-30
End Date: 2017-09-30
Contract Duration: 3,592 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Other
Official Description: LOCKHEED UTILITY CONTRACT: BASIC YEAR 1 OCT 2007-30 SEP 2008 THE GOVERNMENT WILL REIMBURSE THE CONTRACTOR FOR ALL WATER, ELECTRICITY AND SEWAGE SUPPLIES USED BY DOBBINS ARB ON A MONTHLY BASIS.
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30069
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to LOCKHEED MARTIN CORP for work described as: LOCKHEED UTILITY CONTRACT: BASIC YEAR 1 OCT 2007-30 SEP 2008 THE GOVERNMENT WILL REIMBURSE THE CONTRACTOR FOR ALL WATER, ELECTRICITY AND SEWAGE SUPPLIES USED BY DOBBINS ARB ON A MONTHLY BASIS. Key points: 1. The contract covers essential utilities (water, electricity, sewage) for Dobbins Air Reserve Base. 2. Awarded to Lockheed Martin Corp by the Department of Defense, Air Force. 3. Significant spending on basic utilities highlights operational costs for military installations. 4. The contract's long duration (2007-2017) suggests a stable, ongoing need for these services.
Value Assessment
Rating: fair
The contract is a cost-reimbursement type, meaning the government pays for actual utility usage. This structure can lead to cost overruns if not carefully managed and monitored.
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. However, the cost-reimbursement nature means the final price is tied to actual usage rather than a fixed bid.
Taxpayer Impact: Taxpayers bear the cost of actual utility consumption, which can fluctuate based on usage and energy prices over the contract's life.
Public Impact
Ensures continuous operation of Dobbins ARB by providing essential utilities. Supports military readiness and personnel by maintaining base infrastructure. Represents a significant, ongoing government expenditure for base operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-reimbursement contracts can incentivize higher spending if not properly controlled.
- Long-term utility contracts are subject to market price fluctuations.
- Monitoring actual utility consumption is crucial for cost control.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Provides essential services critical for military base operations.
Sector Analysis
This contract falls under general base operations and maintenance, specifically focusing on utility services. Spending benchmarks for such contracts vary widely based on base size, location, and energy demands.
Small Business Impact
This contract was awarded to Lockheed Martin Corp, a large defense contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The cost-reimbursement nature requires robust government oversight to ensure efficient use of taxpayer funds and prevent unnecessary expenditures on utilities.
Related Government Programs
- Electric Power Distribution
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to cost-reimbursement structure.
- Vulnerability to fluctuating energy market prices.
- Need for diligent government oversight of utility consumption.
- Long contract duration may not reflect current market efficiencies.
Tags
electric-power-distribution, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to LOCKHEED MARTIN CORP. LOCKHEED UTILITY CONTRACT: BASIC YEAR 1 OCT 2007-30 SEP 2008 THE GOVERNMENT WILL REIMBURSE THE CONTRACTOR FOR ALL WATER, ELECTRICITY AND SEWAGE SUPPLIES USED BY DOBBINS ARB ON A MONTHLY BASIS.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $17.0 million.
What is the period of performance?
Start: 2007-11-30. End: 2017-09-30.
What was the average monthly cost for utilities under this contract?
The basic year of the contract was valued at $17,011,207.53. To determine the average monthly cost, this total would be divided by the number of months in the contract period (typically 12 for a basic year). This would provide an average expenditure, though actual monthly costs would likely vary based on seasonal demand and usage patterns.
How did the actual utility costs compare to initial estimates or benchmarks?
Without access to the detailed billing and usage data, it's impossible to definitively state how actual costs compared to estimates. However, cost-reimbursement contracts inherently carry the risk of actual costs exceeding projections if usage is higher than anticipated or if utility prices increase significantly during the contract term.
What mechanisms were in place to ensure cost-effectiveness for utility consumption?
The contract type (Cost No Fee) implies the contractor is reimbursed for allowable costs but does not receive an additional fee. Effective oversight would involve monitoring utility usage data, comparing it against historical data and industry benchmarks, and potentially implementing energy conservation measures at the base to control consumption.
Industry Classification
NAICS: Utilities › Electric Power Generation, Transmission and Distribution › Electric Power Distribution
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,011,208
Exercised Options: $17,011,208
Current Obligation: $17,011,208
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-11-30
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-09-15
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