DoD Awards $11.7M to Lockheed Martin for Mark IV-B Weather System Sustainment
Contract Overview
Contract Amount: $11,693,871 ($11.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2025-02-01
End Date: 2032-01-31
Contract Duration: 2,555 days
Daily Burn Rate: $4.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVIDES SUSTAINMENT SERVICES FOR THE MARK IV-B (WEATHER) MDS, AN/UMQ-13 SYSTEM, AS PART OF THE USSF SPACE DOMAIN MISSION. THE MARK IV-B PRIMARY MISSION IS TO PROVIDE DATA INGEST, PROCESSING, AND DISTRIBUTION TO SUPPORT OUR WARFIGHTERS.
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $11.7 million to LOCKHEED MARTIN CORP for work described as: PROVIDES SUSTAINMENT SERVICES FOR THE MARK IV-B (WEATHER) MDS, AN/UMQ-13 SYSTEM, AS PART OF THE USSF SPACE DOMAIN MISSION. THE MARK IV-B PRIMARY MISSION IS TO PROVIDE DATA INGEST, PROCESSING, AND DISTRIBUTION TO SUPPORT OUR WARFIGHTERS. Key points: 1. Sustainment of critical weather data processing and distribution for warfighters. 2. Sole-source award to Lockheed Martin, raising potential competition concerns. 3. Long-term contract (2025-2032) with a firm fixed-price structure. 4. Focus on the Space Domain Mission, highlighting its strategic importance.
Value Assessment
Rating: fair
The contract value of $11.7 million over approximately 7 years appears reasonable for specialized sustainment services. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.
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 may result in higher costs compared to a competitive environment. The rationale for sole-sourcing should be clearly documented.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to a less efficient use of resources.
Public Impact
Ensures continued operational capability of a vital weather intelligence system for military operations. Supports the USSF Space Domain Mission, crucial for national security. Potential for increased costs due to lack of competition impacts overall defense budget efficiency. Long contract duration provides stability but also locks in current pricing without market adjustments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of price benchmark for similar services
- Long-term commitment without re-evaluation
Positive Signals
- Critical system sustainment
- Supports warfighter needs
- Firm fixed-price contract provides cost certainty
Sector Analysis
This contract falls under the Telecommunications sector, specifically supporting specialized weather data systems for defense. Spending in this area is often driven by unique technological requirements and national security imperatives, sometimes leading to less competitive markets.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corp, a large business. There is no information suggesting opportunities for small businesses within this specific contract award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing remains fair and reasonable throughout the contract's duration. Robust justification for the lack of competition is essential for accountability.
Related Government Programs
- All Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for cost overruns
- Dependency on a single contractor
Tags
all-other-telecommunications, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to LOCKHEED MARTIN CORP. PROVIDES SUSTAINMENT SERVICES FOR THE MARK IV-B (WEATHER) MDS, AN/UMQ-13 SYSTEM, AS PART OF THE USSF SPACE DOMAIN MISSION. THE MARK IV-B PRIMARY MISSION IS TO PROVIDE DATA INGEST, PROCESSING, AND DISTRIBUTION TO SUPPORT OUR WARFIGHTERS.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $11.7 million.
What is the period of performance?
Start: 2025-02-01. End: 2032-01-31.
What is the specific technical justification for awarding this contract sole-source to Lockheed Martin?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or essential integration with existing systems. A thorough review of the contract's justification documentation is needed to understand the specific technical reasons.
How will the government ensure cost-effectiveness over the 7-year period given the sole-source nature of the contract?
To ensure cost-effectiveness, the government should implement strong contract management practices. This includes regular price analysis, monitoring of performance metrics, and potentially negotiating price adjustments based on market shifts or cost reductions. Exercising options judiciously and seeking competitive alternatives for future needs are also crucial.
What is the potential impact on warfighter readiness if this sustainment service is disrupted?
Disruption of sustainment services for the Mark IV-B weather system could significantly impact warfighter readiness. This system provides critical data for processing and distribution, essential for operational planning and execution. Any interruption could lead to degraded situational awareness, delayed decision-making, and potentially compromised mission success in various operational environments.
Industry Classification
NAICS: Information › All Other Telecommunications › All Other Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA882025RB001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
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: $73,925,263
Exercised Options: $11,715,747
Current Obligation: $11,693,871
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-02-01
Current End Date: 2032-01-31
Potential End Date: 2032-01-31 00:00:00
Last Modified: 2025-12-12
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