DoD Awards $14.6M for Theater Battle Management Core Systems Sustainment to Lockheed Martin
Contract Overview
Contract Amount: $14,648,956 ($14.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2026-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SUSTAINMENT SERVICES FOR THEATER BATTLE MANAGEMENT CORE SYSTEMS TBMCS FORCE LEVEL. TBMCS FL SERVES AS THE CJCS MANDATED AIR WAR PLANNING TOOL FOR AIR TASKING ORDER AND AIRSPACE CONTROL ORDER INTEROPERABILITY.
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $14.6 million to LOCKHEED MARTIN CORPORATION for work described as: SUSTAINMENT SERVICES FOR THEATER BATTLE MANAGEMENT CORE SYSTEMS TBMCS FORCE LEVEL. TBMCS FL SERVES AS THE CJCS MANDATED AIR WAR PLANNING TOOL FOR AIR TASKING ORDER AND AIRSPACE CONTROL ORDER INTEROPERABILITY. Key points: 1. The contract supports the critical Air Tasking Order and Airspace Control Order planning tool. 2. Lockheed Martin is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. This falls under Computer Systems Design Services, a key IT sector.
Value Assessment
Rating: fair
The award amount of $14.6M over three years for sustainment services appears reasonable given the system's critical nature. However, without specific benchmarks for similar complex military software sustainment, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process. However, the data indicates only one award was made, which warrants further investigation into the bidding process and the number of proposals received.
Taxpayer Impact: Taxpayer funds are being used for essential defense systems. The competitive award process aims to ensure fair pricing, but the Cost Plus Fixed Fee structure requires careful monitoring to prevent excessive costs.
Public Impact
Ensures continued operation of a vital tool for air warfare planning. Supports the U.S. Air Force's ability to generate air tasking orders. Impacts the efficiency and effectiveness of joint military operations. Potential for cost overruns due to the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Single award despite full and open competition
Positive Signals
- Critical system sustainment
- Long-term contract duration
Sector Analysis
This contract falls within the Computer Systems Design Services sector, specifically supporting military command and control systems. Spending in this area is substantial, driven by the need for advanced technological capabilities in defense.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met. Further details on specific oversight mechanisms are not provided.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition despite 'full and open' designation
- Lack of transparency on specific performance metrics and oversight details
- Reliance on a single contractor for a critical system
Tags
computer-systems-design-services, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to LOCKHEED MARTIN CORPORATION. SUSTAINMENT SERVICES FOR THEATER BATTLE MANAGEMENT CORE SYSTEMS TBMCS FORCE LEVEL. TBMCS FL SERVES AS THE CJCS MANDATED AIR WAR PLANNING TOOL FOR AIR TASKING ORDER AND AIRSPACE CONTROL ORDER INTEROPERABILITY.
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 $14.6 million.
What is the period of performance?
Start: 2023-04-01. End: 2026-03-31.
What was the competitive landscape during the bidding process, and why did only one award result from a full and open competition?
While the award is categorized as 'full and open competition,' the fact that only one award was made suggests potential barriers to entry for other bidders or a highly specialized requirement. Further analysis of the solicitation documents and proposal submissions would be needed to understand if the competition was truly robust or if specific technical requirements or market conditions limited the number of viable offers.
What are the projected cost efficiencies or potential cost overruns associated with the Cost Plus Fixed Fee (CPFF) contract type for this sustainment effort?
CPFF contracts carry inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. For sustainment of complex systems like TBMCS, this structure can incentivize contractors to incur costs to maximize their fee if not tightly managed. Robust government oversight, clear performance metrics, and detailed cost tracking are crucial to mitigate these risks and ensure value for taxpayer money.
How does the sustainment cost of TBMCS FL compare to similar military planning software sustainment contracts in terms of cost per system or per user?
Benchmarking the sustainment cost of TBMCS FL is challenging without access to detailed cost breakdowns and comparable contract data. The provided data lacks per-unit cost information. A comprehensive analysis would require comparing this contract's total cost, duration, and scope against other sustainment contracts for similarly complex, mission-critical defense software systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $32,050,805
Exercised Options: $16,204,891
Current Obligation: $14,648,956
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $70,275
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0002
IDV Type: GWAC
Timeline
Start Date: 2023-04-01
Current End Date: 2026-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-11-01
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