DoD Awards $28.7M for Advanced High Frequency Resiliency Phase II to Lockheed Martin
Contract Overview
Contract Amount: $28,740,628 ($28.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-01-29
End Date: 2023-12-31
Contract Duration: 1,066 days
Daily Burn Rate: $27.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ADVANCED EXTREMELY HIGH FREQUENCY RESILIENCY PHASE II
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $28.7 million to LOCKHEED MARTIN CORP for work described as: ADVANCED EXTREMELY HIGH FREQUENCY RESILIENCY PHASE II Key points: 1. Significant investment in advanced defense technology. 2. Sole-source award to a major defense contractor. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on engineering services within the defense sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type for $28.7M raises concerns about potential cost overruns. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, limiting price discovery and competition. The lack of competition may lead to less favorable pricing for the government.
Taxpayer Impact: Taxpayer funds are being spent without competitive bidding, potentially resulting in a higher overall cost than if multiple vendors had competed.
Public Impact
Enhances critical communication capabilities for the Department of Defense. Supports advanced engineering and technological development in the defense industry. Ensures the resilience of high-frequency communication systems against threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Lack of competition
Positive Signals
- Addresses critical defense need
- Investment in advanced technology
Sector Analysis
This contract falls within the Engineering Services sector, specifically for defense applications. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to complexity and specialized nature.
Small Business Impact
The award went to a large prime contractor, Lockheed Martin Corp, with no indication of small business subcontracting in the provided data. This suggests limited direct benefit to small businesses from this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that costs are reasonable and allocable. The Defense Contract Management Agency is responsible for oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and potentially inflates price.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of transparency on specific technological advancements.
- No clear indication of small business participation.
- Potential for contractor to prioritize profit over cost efficiency.
Tags
engineering-services, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to LOCKHEED MARTIN CORP. ADVANCED EXTREMELY HIGH FREQUENCY RESILIENCY PHASE II
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 $28.7 million.
What is the period of performance?
Start: 2021-01-29. End: 2023-12-31.
What specific technological advancements does this contract aim to achieve, and how do they align with current defense priorities?
This contract focuses on Phase II of 'Advanced Extremely High Frequency Resiliency,' likely aiming to improve the robustness and survivability of critical DoD communication systems. The specific advancements would detail enhancements to existing AEHF satellite communication capabilities, ensuring continued operational effectiveness in contested environments and aligning with the DoD's strategic priority of maintaining secure and resilient global communication networks.
Given the sole-source award and CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
While the CPFF structure inherently carries cost overrun risk, the government likely employs stringent oversight, including detailed cost audits and performance reviews by the Defense Contract Management Agency. Negotiation of fixed fee ceilings and clear definition of contract scope are crucial. The agency will monitor expenditures closely against the estimated cost to ensure the final price remains reasonable and justified.
How will the effectiveness of the 'resiliency' enhancements be measured and validated throughout the contract period?
Effectiveness will be measured through a combination of technical performance metrics (TPMs) defined in the contract, such as signal integrity, latency, and resistance to jamming or interference. Regular testing, simulations, and operational demonstrations will be conducted. Independent verification and validation (IV&V) by the government or a designated third party may also be employed to ensure the enhancements meet the resilience objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,556,580
Exercised Options: $30,556,580
Current Obligation: $28,740,628
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $15,019,075
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA882320D0001
IDV Type: IDC
Timeline
Start Date: 2021-01-29
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2024-08-29
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