DoD's Air Force awards $63.5M for Telecommunications Sustainment Services to Lockheed Martin

Contract Overview

Contract Amount: $63,460,812 ($63.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2023-12-31

Contract Duration: 364 days

Daily Burn Rate: $174.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST NO FEE

Sector: IT

Official Description: SUSTAINMENT SERVICES

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $63.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SUSTAINMENT SERVICES Key points: 1. Significant contract value for sustainment services. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns due to lack of competitive pricing. 4. Telecommunications sector is critical for defense operations.

Value Assessment

Rating: questionable

The contract value of $63.5M for sustainment services appears high given the 'All Other Telecommunications' NAICS code. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition for a substantial contract value suggests taxpayers may not be receiving the best possible price for these sustainment services.

Public Impact

Ensures continued operation of critical telecommunications infrastructure for the Air Force. Supports national defense capabilities by maintaining essential communication networks. Potential for taxpayer funds to be used inefficiently due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential service provision
Supports defense operations

Sector Analysis

This contract falls within the telecommunications sector, which is vital for government operations, especially defense. Spending benchmarks for sustainment services can vary widely based on the specific technology and support required.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award, suggesting limited direct impact on the small business sector for this particular contract.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Air Force should have robust internal controls to monitor this award.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for price inflation without competitive pressure.
Lack of transparency in pricing justification.
Risk of contractor lock-in.
Need for strong government oversight on costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.5 million to LOCKHEED MARTIN SERVICES, LLC. SUSTAINMENT SERVICES

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 $63.5 million.

What is the period of performance?

Start: 2023-01-01. End: 2023-12-31.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is typically based on unique capabilities or urgent needs. For this contract, the Department of Defense should provide detailed documentation explaining why Lockheed Martin was the only viable option and what steps were taken to explore competitive alternatives before resorting to a sole-source procurement.

How is the 'cost no fee' pricing structure being monitored to ensure it aligns with fair market value?

A 'cost no fee' contract means the contractor is reimbursed for allowable costs but does not receive a fee. Monitoring involves rigorous auditing of costs to ensure they are reasonable, allocable, and allowable. The government must actively scrutinize expenditures to prevent inflated costs from being passed on.

What are the performance metrics and key performance indicators (KPIs) for these sustainment services?

Effective sustainment services require clearly defined performance metrics and KPIs. These should include measures of system availability, response times for issues, resolution rates, and overall service quality. Regular performance reviews against these KPIs are essential to ensure the contractor is meeting contractual obligations.

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: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corporation

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: $71,915,372

Exercised Options: $71,915,372

Current Obligation: $63,460,812

Subaward Activity

Number of Subawards: 128

Total Subaward Amount: $19,084,456

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