DoD Awards $24.5M Lockheed Martin Contract for Sustaining Engineering Support
Contract Overview
Contract Amount: $24,524,278 ($24.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-01-24
End Date: 2025-03-12
Contract Duration: 1,874 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SUSTAINING ENGINEERING AND TECHNICL SUPPORT SERVICES (SETSS)
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to LOCKHEED MARTIN CORP for work described as: SUSTAINING ENGINEERING AND TECHNICL SUPPORT SERVICES (SETSS) Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term contract duration (over 5 years) requires careful oversight. 4. Focus on sustaining engineering suggests ongoing operational needs.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar sole-source engineering contracts is difficult without more data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher overall cost to taxpayers for these essential engineering services.
Public Impact
Ensures continued operational readiness for critical defense systems. Potential for cost inefficiencies due to sole-source nature. Long-term commitment impacts future budget allocations. Limited transparency in pricing due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Essential support for defense systems
- Experienced contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense operations. Spending in this area is critical for maintaining complex military equipment and systems.
Small Business Impact
The awardee is Lockheed Martin Corp, a large business. There is no indication that small businesses were involved in this specific contract, either as prime or subcontractors.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Defense Contract Management Agency to ensure cost control and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Long contract duration may reduce flexibility
- Limited transparency in pricing
Tags
engineering-services, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to LOCKHEED MARTIN CORP. SUSTAINING ENGINEERING AND TECHNICL SUPPORT SERVICES (SETSS)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2020-01-24. End: 2025-03-12.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The agency should provide documentation for this decision. Fair pricing in such cases relies heavily on robust negotiation, independent cost analysis, and stringent oversight to prevent contractor overcharging and ensure value for taxpayer money.
How will the Cost Plus Fixed Fee structure be managed to mitigate cost overruns?
Managing a CPFF contract requires diligent oversight of contractor costs and performance. The agency must establish clear baseline estimates, monitor expenditures closely, and implement performance metrics tied to fee adjustments. Regular audits and reviews are crucial to ensure costs are reasonable and allocable, preventing scope creep and unnecessary expenses.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Key performance indicators should align with the 'sustaining engineering' objective, focusing on system reliability, maintenance effectiveness, and response times for technical issues. Performance measurement should involve regular reporting from the contractor, independent verification by the agency, and potentially user feedback to ensure the services meet operational requirements.
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
Solicitation ID: FA852519R0001
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,524,278
Exercised Options: $24,524,278
Current Obligation: $24,524,278
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $2,523,894
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852519D0001
IDV Type: IDC
Timeline
Start Date: 2020-01-24
Current End Date: 2025-03-12
Potential End Date: 2025-03-12 00:00:00
Last Modified: 2025-03-12
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