DoD Awards $59M Sustainment Task Order to Lockheed Martin Services, LLC for Telecommunications

Contract Overview

Contract Amount: $59,169,205 ($59.2M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-31

End Date: 2022-12-31

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUSTAINMENT TASK ORDER

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $59.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SUSTAINMENT TASK ORDER Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises questions about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Telecommunications sector spending often involves complex sustainment needs.

Value Assessment

Rating: questionable

The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $59.17 million price represents fair value compared to market rates for similar sustainment services.

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 lead to less favorable terms for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these sustainment services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Air Force relies on Lockheed Martin for critical telecommunications sustainment. Future sustainment contracts should explore competitive options to ensure value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Firm fixed price contract type

Sector Analysis

This award falls within the telecommunications sector, specifically for sustainment services. Spending in this area can be substantial, and competitive procurement is crucial for managing costs effectively.

Small Business Impact

This contract was awarded to Lockheed Martin Services, LLC, a large business. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that proper justification for non-competition was documented.

Related Government Programs

All Other Telecommunications
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for price gouging
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.2 million to LOCKHEED MARTIN SERVICES, LLC. SUSTAINMENT TASK ORDER

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

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 $59.2 million.

What is the period of performance?

Start: 2022-12-31. End: 2022-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's impossible to determine the specific rationale, but it's a critical piece of information for assessing the procurement's legitimacy and value.

What are the risks associated with a sole-source sustainment contract of this magnitude?

The primary risk is the potential for inflated pricing due to the lack of competitive pressure. Additionally, there's a risk of vendor lock-in, reduced innovation, and a lack of transparency in cost structures, all of which can negatively impact long-term value for the government.

How can the Air Force ensure cost-effectiveness in future telecommunications sustainment efforts?

The Air Force can ensure cost-effectiveness by actively seeking competitive solicitations for sustainment services whenever possible. Implementing robust market research, exploring innovative contracting approaches, and establishing clear performance metrics can also drive better value and encourage contractor efficiency.

Industry Classification

NAICS: Information › 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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 480 WOOTEN RD STE 104, COLORADO SPRINGS, CO, 80916

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: $59,169,205

Exercised Options: $59,169,205

Current Obligation: $59,169,205

Subaward Activity

Number of Subawards: 95

Total Subaward Amount: $11,899,453

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA882319D0001

IDV Type: IDC

Timeline