DoD awards $26M to Lockheed Martin for Global Broadcast Service sustainment and cybersecurity
Contract Overview
Contract Amount: $26,007,231 ($26.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-07-16
End Date: 2022-07-15
Contract Duration: 1,825 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THE PURPOSE IS TO PROVIDE SUSTAINMENT SUPPORT TO THE GLOBAL BROADCAST SERVICE (GBS)AS REQUIRED FOR TIER II OPERATIONS SUPPORT, DECC GBS DOMAIN EXPERTISE, CYBER SECURITY SUPPORT OF THE SBM AND RBM, SIGONELLA PRIMARY INJECTION POINT (PIP) AND REACH BACK SUPPORT, AND CYBER SECURITY SUPPORT.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THE PURPOSE IS TO PROVIDE SUSTAINMENT SUPPORT TO THE GLOBAL BROADCAST SERVICE (GBS)AS REQUIRED FOR TIER II OPERATIONS SUPPORT, DECC GBS DOMAIN EXPERTISE, CYBER SECURITY SUPPORT OF THE SBM AND RBM, SIGONELLA PRIMARY INJECTION POINT (PIP) AND REACH BACK SUPPORT, AND C… Key points: 1. Contract focuses on critical sustainment and cybersecurity for the Global Broadcast Service (GBS). 2. Lockheed Martin is the sole provider, raising questions about competition and pricing. 3. Significant risk associated with reliance on a single vendor for essential broadcast infrastructure. 4. Spending falls under IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract value of $26M over five years for specialized IT support appears high given the lack of competition. Benchmarking against similar sustainment contracts for complex systems is difficult without more data, but the sole-source nature suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided but is likely based on unique capabilities or existing infrastructure knowledge.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for services that could potentially be procured at a lower cost through a competitive process.
Public Impact
Ensures continuity of critical global broadcast services for military operations. Supports essential cybersecurity functions for sensitive broadcast infrastructure. Potential for taxpayer overpayment due to sole-source award. Lack of transparency regarding the justification for sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Reliance on a single vendor for critical infrastructure.
- Cybersecurity risks associated with a single point of failure.
Positive Signals
- Ensures critical GBS operations are maintained.
- Provides specialized cybersecurity expertise.
- Long-term support contract provides stability.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar sustainment and cybersecurity contracts for large-scale broadcast systems are difficult to ascertain due to the specialized nature and sole-source award.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a large corporation, Lockheed Martin, on a sole-source basis. Opportunities for small business participation were likely limited or non-existent.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the government is receiving adequate value. A review of the justification for the sole-source award is crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Reliance on a single vendor
- Cybersecurity risks
- Limited small business participation
Tags
other-computer-related-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THE PURPOSE IS TO PROVIDE SUSTAINMENT SUPPORT TO THE GLOBAL BROADCAST SERVICE (GBS)AS REQUIRED FOR TIER II OPERATIONS SUPPORT, DECC GBS DOMAIN EXPERTISE, CYBER SECURITY SUPPORT OF THE SBM AND RBM, SIGONELLA PRIMARY INJECTION POINT (PIP) AND REACH BACK SUPPORT, AND CYBER SECURITY SUPPORT.
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 $26.0 million.
What is the period of performance?
Start: 2017-07-16. End: 2022-07-15.
What was the specific justification for awarding this contract sole-source to Lockheed Martin, and were any alternatives considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the need for seamless integration with existing systems. Without the specific justification document, it's impossible to confirm the exact reasons. However, for critical infrastructure like the GBS, the government might argue that only Lockheed Martin possesses the necessary expertise and knowledge to provide sustainment and cybersecurity without disrupting operations.
How does the per-unit cost of this contract compare to industry benchmarks for similar IT sustainment and cybersecurity services, especially considering the sole-source nature?
Direct comparison is challenging due to the sole-source award and the specialized nature of GBS sustainment and cybersecurity. However, sole-source contracts often carry a price premium compared to competitively bid contracts. A thorough cost analysis by the agency, comparing proposed costs against independent government estimates and historical data for similar, albeit less specialized, services, would be necessary to assess if the pricing is fair and reasonable.
What measures are in place to mitigate the risks associated with relying on a single vendor for critical broadcast infrastructure and cybersecurity support?
Mitigation strategies for sole-source reliance typically include robust contract management, performance monitoring, and contingency planning. The Department of Defense likely has established protocols for managing critical vendor relationships, including regular performance reviews, cybersecurity audits, and potentially developing internal expertise or identifying potential future alternative providers. However, the inherent risk of a single point of failure remains a significant concern.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA822416R0072
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,007,231
Exercised Options: $26,007,231
Current Obligation: $26,007,231
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $170,593
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-07-16
Current End Date: 2022-07-15
Potential End Date: 2022-07-15 00:00:00
Last Modified: 2021-08-24
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)