DoD Awards $25M Lockheed Martin Contract for Iraq Integrated Air Defense System Logistics Support
Contract Overview
Contract Amount: $25,036,055 ($25.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-01-31
End Date: 2020-10-06
Contract Duration: 1,344 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF IRAQ INTEGRATED AIR DEFENSE SYSTEM CONTRACTOR LOGISTICS SUPPORT FOLLOW ON CONTRACT.
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF IRAQ INTEGRATED AIR DEFENSE SYSTEM CONTRACTOR LOGISTICS SUPPORT FOLLOW ON CONTRACT. Key points: 1. Contract awarded to a single, established provider, indicating potential lack of competitive pricing. 2. Significant contract value suggests a critical need for air defense capabilities in Iraq. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about price discovery and potential overspending. 4. Engineering services sector is vital for complex defense systems, but competition is key for value.
Value Assessment
Rating: questionable
The contract type is 'COST NO FEE', which offers limited incentive for the contractor to control costs. Without a competitive bidding process, it's difficult to assess if the $25 million price is reasonable compared to similar logistics support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued operational readiness of critical air defense systems in a volatile region. Supports U.S. foreign policy objectives by providing security assistance to allies. Potential for cost overruns due to non-competitive award impacts taxpayer funds allocated for defense. Highlights reliance on specific contractors for specialized defense system maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency on pricing benchmarks
Positive Signals
- Supports critical defense infrastructure
- Long-term contract duration suggests sustained need
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for complex defense systems. Spending in this area is often high due to specialized expertise and technology required, but competitive bidding is essential to ensure value for money.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the contractor is performing efficiently and that costs are reasonable. Transparency in reporting and justification for the limited competition are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on pricing
- Reliance on a single contractor
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF IRAQ INTEGRATED AIR DEFENSE SYSTEM CONTRACTOR LOGISTICS SUPPORT FOLLOW ON CONTRACT.
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 $25.0 million.
What is the period of performance?
Start: 2017-01-31. End: 2020-10-06.
What specific justification was provided for awarding this contract on a limited or sole-source basis, and what steps were taken to ensure the price was fair and reasonable?
The justification for limited competition is critical. Agencies must document why full and open competition was not feasible, such as unique capabilities or urgent needs. Without this documentation, it's difficult to assess if taxpayer funds were used efficiently. Price reasonableness checks, even in sole-source scenarios, should involve market research and comparison to similar services or historical data.
How does the cost performance of this contract compare to similar air defense logistics support contracts awarded competitively?
Comparing cost performance is challenging without access to detailed financial data and benchmarks for similar contracts. However, the 'COST NO FEE' structure, combined with a lack of competition, suggests a higher risk of cost overruns. A thorough review would involve analyzing actual expenditures against budgeted amounts and benchmarking against industry standards for comparable services.
What mechanisms are in place to ensure the effectiveness and efficiency of the logistics support provided by Lockheed Martin for the Iraq Integrated Air Defense System?
Effectiveness and efficiency are typically monitored through performance metrics, service level agreements (SLAs), and regular reporting requirements outlined in the contract. The Department of Defense should have quality assurance personnel overseeing the contractor's performance, ensuring timely delivery, proper maintenance, and adherence to technical specifications. Regular performance reviews are essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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 NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,245,892
Exercised Options: $25,036,056
Current Obligation: $25,036,055
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-01-31
Current End Date: 2020-10-06
Potential End Date: 2020-10-06 00:00:00
Last Modified: 2023-08-16
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