DoD's $15.8M Engineering Support Program Awarded to Lockheed Martin Faces Scrutiny Over Competition
Contract Overview
Contract Amount: $15,835,384 ($15.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-08-05
End Date: 2027-08-15
Contract Duration: 1,105 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: THIS EFFORT INCLUDES PLANNING AND MANAGING AN ENGINEERING SUPPORT PROGRAM TO CONDUCT DEVELOPMENT ENGINEERING TASKS WHICH INCLUDE ANY NON-REPETITIVE INVESTIGATION, INSPECTION, ANALYSIS, TEST, OR EVALUATION EFFORT NECESSARY DURING DEVELOPMENT.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to LOCKHEED MARTIN CORPORATION for work described as: THIS EFFORT INCLUDES PLANNING AND MANAGING AN ENGINEERING SUPPORT PROGRAM TO CONDUCT DEVELOPMENT ENGINEERING TASKS WHICH INCLUDE ANY NON-REPETITIVE INVESTIGATION, INSPECTION, ANALYSIS, TEST, OR EVALUATION EFFORT NECESSARY DURING DEVELOPMENT. Key points: 1. The contract focuses on engineering support for development tasks, including non-repetitive investigations and testing. 2. Lockheed Martin Corporation is the sole awardee, raising questions about competitive pricing and market alternatives. 3. The 'Other Guided Missile and Space Vehicle Parts' sector is highly specialized, potentially limiting competition. 4. The 'Cost Plus Fixed Fee' contract type may incentivize cost overruns if not closely monitored.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure can lead to higher costs compared to fixed-price contracts, especially without strong oversight. Benchmarking CPFF contracts in this specialized sector is difficult due to unique requirements.
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 as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition for this $15.8M contract means taxpayers may be paying a premium for the engineering support services.
Public Impact
Taxpayers may be overpaying due to the absence of a competitive bidding process. The specialized nature of guided missile and space vehicle parts manufacturing could justify sole-source awards, but transparency is crucial. Future procurements in this area should explore competitive strategies to ensure best value. The long duration (over 3 years) of the contract warrants close monitoring of performance and costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on pricing
Positive Signals
- Awarded to a known industry leader
- Addresses critical engineering support needs
Sector Analysis
This contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in defense-related manufacturing can be substantial, and competitive benchmarking is often challenging due to the high degree of specialization and proprietary technology involved.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on whether small business subcontracting opportunities were considered or mandated.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure the contractor is performing efficiently and costs are reasonable. Accountability will hinge on detailed performance reviews and cost audits.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Cost-plus contract type increases risk of cost overruns.
- Limited transparency on specific engineering tasks and deliverables.
- Potential for contractor to inflate costs without robust oversight.
- No indication of small business participation.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to LOCKHEED MARTIN CORPORATION. THIS EFFORT INCLUDES PLANNING AND MANAGING AN ENGINEERING SUPPORT PROGRAM TO CONDUCT DEVELOPMENT ENGINEERING TASKS WHICH INCLUDE ANY NON-REPETITIVE INVESTIGATION, INSPECTION, ANALYSIS, TEST, OR EVALUATION EFFORT NECESSARY DURING DEVELOPMENT.
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 $15.8 million.
What is the period of performance?
Start: 2024-08-05. End: 2027-08-15.
What is the justification for awarding this significant engineering support contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without further details, it's unclear if alternative competitive strategies were thoroughly explored. Agencies should document these considerations to ensure fair and open competition principles are upheld, even in specialized sectors.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to mitigate risks of cost overruns and ensure value for taxpayer money?
Effective management of a CPFF contract requires stringent oversight, detailed performance metrics, and regular audits. The agency must actively monitor Lockheed Martin's costs, ensure efficient resource allocation, and verify that the fixed fee remains appropriate for the work performed. Clear communication channels and defined milestones are essential to control expenditures.
What mechanisms are in place to assess the effectiveness and efficiency of the engineering support provided under this contract?
Effectiveness will be assessed through key performance indicators (KPIs) tied to the engineering tasks, such as successful completion of investigations, accuracy of analyses, and timely delivery of test results. Efficiency can be monitored by comparing actual costs against projected budgets and evaluating the contractor's resource utilization. Regular progress reports and technical reviews are critical.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
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: $19,729,596
Exercised Options: $19,729,596
Current Obligation: $15,835,384
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868222DB001
IDV Type: IDC
Timeline
Start Date: 2024-08-05
Current End Date: 2027-08-15
Potential End Date: 2027-08-15 00:00:00
Last Modified: 2025-12-01
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