DoD Awards $22.9M Engineering Services Contract to Lockheed Martin, Not Competed
Contract Overview
Contract Amount: $22,939,020 ($22.9M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-01-25
End Date: 2024-01-22
Contract Duration: 1,092 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SUSTAINING ENGINEERING AND TECHNICAL SUPPORT SERVICES (SETSS)
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to LOCKHEED MARTIN CORP for work described as: SUSTAINING ENGINEERING AND TECHNICAL SUPPORT SERVICES (SETSS) Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises concerns about potential overpricing. 3. Engineering services sector is critical for defense readiness. 4. Contract duration of nearly three years requires close monitoring.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value. Benchmarking against similar sole-source or limited-competition engineering services contracts is recommended to identify potential cost efficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to lack of competition. Critical engineering support for defense systems is consolidated with one provider. Limited transparency into cost drivers for this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Award to established contractor
- Long-term support for critical systems
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the Department of Defense's research, development, and sustainment activities. Spending in this sector can vary significantly based on program needs and technological advancements.
Small Business Impact
The contract was awarded to Lockheed Martin Corp and did not indicate any subcontracting goals for small businesses. This suggests limited direct benefit to the small business sector from this specific award.
Oversight & Accountability
The sole-source nature of this award warrants increased oversight to ensure costs are reasonable and performance meets requirements. The Department of Defense should conduct thorough reviews of cost submissions and performance metrics.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited small business participation
- Absence of clear performance metrics in provided data
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 $22.9 million to LOCKHEED MARTIN CORP. SUSTAINING ENGINEERING AND TECHNICAL 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 $22.9 million.
What is the period of performance?
Start: 2021-01-25. End: 2024-01-22.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other sources. For Cost Plus Fixed Fee contracts, the fixed fee is negotiated based on the contractor's proposed costs, complexity of the work, and risk. Without competition, ensuring this fee represents fair market value requires rigorous government cost analysis and negotiation.
What are the specific engineering services being provided, and how do they align with critical defense modernization or sustainment efforts?
The contract is for Sustaining Engineering and Technical Support Services (SETSS). These services are crucial for maintaining the operational readiness and extending the lifecycle of existing defense systems. Understanding the specific platforms or technologies supported would clarify their alignment with broader defense modernization or sustainment strategies and the necessity of this specific contractor's involvement.
What mechanisms are in place to monitor costs and performance under this Cost Plus Fixed Fee contract to prevent cost overruns?
Monitoring mechanisms for Cost Plus Fixed Fee contracts typically include detailed cost reporting, regular performance reviews, audits, and milestone tracking. The Defense Contract Management Agency (DCMA) plays a key role in overseeing contractor performance and costs. However, the inherent nature of cost-reimbursement contracts necessitates vigilant government oversight to ensure efficiency and prevent potential cost escalations.
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
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: $25,008,013
Exercised Options: $25,008,013
Current Obligation: $22,939,020
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,044,468
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: 2021-01-25
Current End Date: 2024-01-22
Potential End Date: 2024-01-22 00:00:00
Last Modified: 2025-12-05
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (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)