DoD Awards Lockheed Martin $32.6M for Agile Software Development Services Under Alliant II GWAC
Contract Overview
Contract Amount: $32,603,630 ($32.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-11-01
End Date: 2027-01-31
Contract Duration: 1,917 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: GLOBAL STRIKE AND PRODUCT SUPPORT 2 (GSPS2) AGILE SOFTWARE DEVELOPMENT SERVICES, INITIAL BASE TASK ORDER AWARD AGAINST LOCKHEED GSA ALLIANT II GWAC CONTRACT NUMBER 47QTCK18D0002
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to LOCKHEED MARTIN CORPORATION for work described as: GLOBAL STRIKE AND PRODUCT SUPPORT 2 (GSPS2) AGILE SOFTWARE DEVELOPMENT SERVICES, INITIAL BASE TASK ORDER AWARD AGAINST LOCKHEED GSA ALLIANT II GWAC CONTRACT NUMBER 47QTCK18D0002 Key points: 1. The Department of the Air Force awarded a significant contract to Lockheed Martin for agile software development. 2. This contract falls under the GSA Alliant II GWAC, a large government-wide acquisition contract. 3. The award is for strike and product support services, indicating a focus on critical defense systems. 4. The use of a Time and Materials pricing structure warrants scrutiny for cost control.
Value Assessment
Rating: fair
The $32.6 million award for a 5-year period suggests a moderate level of spending for specialized software development. Benchmarking against similar agile development contracts within DoD would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition via the GSA Alliant II GWAC. This vehicle is designed to promote competition, but the specific task order's price discovery effectiveness depends on the proposals received and the negotiation process.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense software development, with the expectation of value derived from competitive procurement.
Public Impact
Supports critical Department of Defense strike and product capabilities. Leverages agile methodologies for potentially faster and more adaptable software delivery. Contract duration extends into 2027, indicating long-term support needs. Utilizes a government-wide contract vehicle, potentially streamlining procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not closely managed.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under a competitive GWAC vehicle.
- Supports critical national defense functions.
Sector Analysis
This contract falls within the IT and professional services sector, specifically computer systems design. Spending benchmarks for agile software development services within the Department of Defense can vary widely based on complexity and duration.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false) and does not appear to have specific small business set-aside provisions. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The use of a GSA GWAC implies a degree of established oversight. However, the Time and Materials pricing model necessitates robust monitoring by the Air Force to ensure cost efficiency and prevent scope creep.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Time and Materials pricing model.
- Potential for cost overruns.
- Lack of explicit small business participation.
- Long contract duration requires sustained oversight.
Tags
computer-systems-design-services, department-of-defense, ne, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to LOCKHEED MARTIN CORPORATION. GLOBAL STRIKE AND PRODUCT SUPPORT 2 (GSPS2) AGILE SOFTWARE DEVELOPMENT SERVICES, INITIAL BASE TASK ORDER AWARD AGAINST LOCKHEED GSA ALLIANT II GWAC CONTRACT NUMBER 47QTCK18D0002
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 $32.6 million.
What is the period of performance?
Start: 2021-11-01. End: 2027-01-31.
What is the expected return on investment for this agile software development contract, considering the Time and Materials pricing structure?
The return on investment is difficult to quantify precisely without detailed performance metrics and defined deliverables. The Time and Materials (T&M) pricing model, while offering flexibility, shifts cost risk to the government. Effective ROI hinges on Lockheed Martin's ability to deliver high-quality software efficiently within the estimated budget, requiring diligent oversight and clear performance indicators from the Department of the Air Force to ensure value for taxpayer money.
What are the primary risks associated with the Time and Materials (T&M) pricing model for this DoD contract?
The primary risk with T&M is the potential for cost overruns, as the government pays for the actual labor hours and materials used. Without strict controls, scope creep and inefficient work practices can inflate costs beyond initial expectations. There's also a risk of reduced incentive for the contractor to optimize efficiency, as higher hours directly translate to higher revenue, necessitating rigorous monitoring and clear task definitions.
How effectively does the GSA Alliant II GWAC facilitate price discovery for specialized agile software development services like those procured here?
The GSA Alliant II GWAC is designed to facilitate competition by providing a pre-vetted pool of contractors. For specialized services, its effectiveness in price discovery depends on the number and quality of proposals received for specific task orders. While the GWAC offers a competitive framework, the actual price discovery is realized during the proposal and negotiation phase for each individual task order, influenced by market conditions and the specific technical requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA873021R8505
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $32,603,630
Exercised Options: $32,603,630
Current Obligation: $32,603,630
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,292,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0002
IDV Type: GWAC
Timeline
Start Date: 2021-11-01
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-01-16
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