DoD's $73M MARK IVB Contract with Lockheed Martin: All Other Professional Services
Contract Overview
Contract Amount: $73,112,172 ($73.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2007-06-01
End Date: 2017-11-30
Contract Duration: 3,835 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MARK IVB
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $73.1 million to LOCKHEED MARTIN CORP for work described as: MARK IVB Key points: 1. Contract awarded to a single, large defense contractor. 2. Significant contract value over a decade. 3. Services fall under a broad 'Other Professional, Scientific, and Technical Services' category. 4. Potential for cost overruns given the Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure suggests potential for costs to exceed initial estimates. Benchmarking against similar broad professional services contracts is difficult due to the category's generality.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the broad nature of the service category might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of competition in driving down costs for such a broad service category is a key consideration for taxpayer value.
Public Impact
Defense spending on specialized technical services. Impact on the broader professional services market. Long-term contract duration raises questions about adaptability and ongoing need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Broad service category may obscure specific value and performance.
- Long contract duration (10 years) may not reflect current needs or technological advancements.
Positive Signals
- Awarded under full and open competition.
- Contract managed by Defense Contract Management Agency, indicating oversight.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Defense spending in this area often supports specialized research, development, and technical support functions, with benchmarks varying widely based on specific sub-services.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no information provided on subcontracting opportunities for small businesses within this large contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, suggesting a level of oversight. However, the Cost Plus Fixed Fee structure necessitates robust monitoring to ensure cost efficiency and prevent overruns.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Broad and potentially vague service category.
- Long contract duration (10 years).
- No indication of small business participation.
Tags
all-other-professional-scientific-and-te, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.1 million to LOCKHEED MARTIN CORP. MARK IVB
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $73.1 million.
What is the period of performance?
Start: 2007-06-01. End: 2017-11-30.
What specific technical services were procured under the MARK IVB contract, and how did they align with evolving defense needs over its 10-year span?
The provided data categorizes the MARK IVB contract under 'All Other Professional, Scientific, and Technical Services,' a very broad classification. Without further details on the specific tasks performed, it's impossible to assess their alignment with evolving defense needs. The long duration suggests a potentially stable, long-term requirement, but also raises questions about the contract's adaptability to technological shifts or changes in strategic priorities.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure value for money for the taxpayer?
The Cost Plus Fixed Fee (CPFF) contract type inherently allows the contractor to recoup allowable costs plus a predetermined fixed fee. To ensure value, oversight agencies like the DCMA would typically monitor incurred costs, audit expenditures, and ensure the fixed fee remains appropriate for the scope of work. However, CPFF contracts generally carry a higher risk of cost overruns compared to fixed-price contracts if not meticulously managed.
How effective was the 'full and open competition' in ensuring competitive pricing for such a broadly defined professional services contract?
While 'full and open competition' is the preferred method for maximizing competition, its effectiveness can be limited when the scope of services is very broad and technical. It's possible that only a few large companies possessed the specific expertise or capacity to bid. Further analysis would be needed to determine if the bids received truly represented the most competitive pricing achievable for the services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $75,927,800
Exercised Options: $75,927,800
Current Obligation: $73,112,172
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-01
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2020-03-18
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