DoD's $300M Iraq Contractor Logistics Support Contract with Lockheed Martin Raises Concerns
Contract Overview
Contract Amount: $300,685,270 ($300.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-08-19
End Date: 2021-04-30
Contract Duration: 1,715 days
Daily Burn Rate: $175.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $300.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS SUPPORT Key points: 1. Significant contract value ($300.7M) for logistics support in a high-risk environment. 2. Sole-source award limits competition and potentially impacts price discovery. 3. Contract duration (2016-2021) spans a critical period in Iraq operations. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract's total value is substantial, but without a competitive bidding process, it's difficult to assess if the pricing is optimal. The Cost Plus Fixed Fee structure can incentivize cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces for better pricing and terms.
Taxpayer Impact: The absence of competitive bidding may lead to higher costs for taxpayers compared to a fully competed contract.
Public Impact
Ensures critical logistical support for U.S. operations in Iraq. Potential for cost inefficiencies due to sole-source award. Limited transparency on performance metrics and contractor effectiveness. Impacts the strategic objectives of military operations in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of small business participation
- Cost-plus contract type
- High-risk operational environment
Positive Signals
- Provides essential logistics support
- Long-term contract stability
Sector Analysis
This contract falls under 'All Other Support Services' within the defense sector. Benchmarks for similar large-scale logistics support contracts in conflict zones are difficult to establish due to unique operational demands and varying competitive landscapes.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses to contribute to or benefit from this significant contract were not pursued or realized.
Oversight & Accountability
Oversight of this sole-source, cost-plus contract is crucial to ensure funds are used efficiently and effectively. The Inspector General's office may play a role in monitoring performance and costs.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may incentivize higher costs.
- Lack of small business participation.
- High-risk operational environment.
- Limited transparency on performance metrics.
Tags
all-other-support-services, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $300.7 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS 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 $300.7 million.
What is the period of performance?
Start: 2016-08-19. End: 2021-04-30.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear if other competitive strategies were explored. This lack of competition raises concerns about potential overpayment and reduced innovation, impacting overall value for taxpayer dollars.
How were costs controlled and justified under the Cost Plus Fixed Fee structure in this high-risk environment?
Cost Plus Fixed Fee contracts can lead to cost overruns if not rigorously monitored. In a high-risk environment like Iraq, controlling costs is challenging due to operational complexities and potential unforeseen expenses. Robust oversight, detailed audits, and clear performance metrics are essential to mitigate risks and ensure reasonable expenditures.
What was the effectiveness of the logistics support provided in achieving mission objectives?
Assessing the effectiveness of logistics support is critical but often difficult to quantify directly. While the contract ensured the delivery of services, its ultimate impact on mission success would depend on factors like timeliness, reliability, and cost-efficiency. Independent evaluations or performance reviews would be needed for a comprehensive assessment.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108
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: $777,015,270
Exercised Options: $300,685,270
Current Obligation: $300,685,270
Subaward Activity
Number of Subawards: 125
Total Subaward Amount: $10,798,445
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-08-19
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2025-02-11
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