DoD Awards $130M Lockheed Martin Contract for Engineering Services, Raising Oversight Concerns
Contract Overview
Contract Amount: $130,497,702 ($130.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2026-06-30
Contract Duration: 2,006 days
Daily Burn Rate: $65.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PEACE KRYPTON FOS VI PHASE II
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $130.5 million to LOCKHEED MARTIN CORPORATION for work described as: PEACE KRYPTON FOS VI PHASE II Key points: 1. Significant contract value of $130.5 million awarded to a single large corporation. 2. Sole-source award to Lockheed Martin suggests limited competition and potential for higher pricing. 3. Long contract duration (2026) and firm-fixed-price structure warrant close monitoring for cost overruns. 4. Engineering services sector is broad; specific value benchmarks are difficult without more detail.
Value Assessment
Rating: questionable
The $130.5 million contract value is substantial. Without specific deliverables or comparable contracts for similar engineering services, it's difficult to definitively assess value. The sole-source nature raises concerns about whether this price reflects competitive market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and may result in less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this large contract raises concerns about potential overspending of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract could lock the government into specific solutions or vendors. Lack of transparency in sole-source awards makes public scrutiny of spending more challenging.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls under Engineering Services (NAICS 541330). Spending in this sector is common across government agencies for complex technical support. Benchmarking is challenging without knowing the specific engineering disciplines involved.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight to ensure the government receives fair value and that the contractor meets all performance requirements. Transparency regarding the justification for the sole-source award is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated pricing due to sole-source award.
- Lack of transparency regarding the justification for sole-source procurement.
- Long contract duration may limit flexibility and increase long-term cost exposure.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.5 million to LOCKHEED MARTIN CORPORATION. PEACE KRYPTON FOS VI PHASE II
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 $130.5 million.
What is the period of performance?
Start: 2021-01-01. End: 2026-06-30.
What specific engineering services are being procured under this contract, and how does the pricing compare to industry standards for similar, competed services?
The contract is for general engineering services (NAICS 541330). Without detailed specifications of the services rendered, direct comparison to industry standards is difficult. However, sole-source awards often carry a price premium compared to competitively bid contracts, suggesting potential for higher costs for taxpayers.
What is the justification for awarding this contract on a sole-source basis, and what measures are in place to mitigate potential risks associated with limited competition?
The justification for the sole-source award is not provided in the data. Mitigation strategies typically involve rigorous negotiation, detailed cost analysis, and close performance monitoring by the contracting officer to ensure fair pricing and prevent contractor overreach.
How will the effectiveness and value of these engineering services be measured throughout the contract's duration, especially given the lack of competitive pressure?
Effectiveness will likely be measured through performance metrics outlined in the contract's statement of work, such as adherence to schedules, quality of deliverables, and technical performance. The firm-fixed-price nature provides some cost certainty, but ongoing oversight is key to ensuring value.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9970 FEDERAL DR, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $130,817,191
Exercised Options: $130,674,051
Current Obligation: $130,497,702
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $38,435,496
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-01-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-02-04
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