DoD awards $64.9M sole-source task order to Lockheed Martin for telecommunications services

Contract Overview

Contract Amount: $64,925,643 ($64.9M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-31

End Date: 2025-12-31

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FISCAL YEAR 2025 TASK ORDER FOR THE AND FUNDING FOR THE INITIAL TASK ORDER

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $64.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: FISCAL YEAR 2025 TASK ORDER FOR THE AND FUNDING FOR THE INITIAL TASK ORDER Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Services fall under 'All Other Telecommunications,' a broad category. 3. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 4. Performance period is for Fiscal Year 2025, indicating immediate need. 5. No small business set-aside, potentially limiting opportunities for smaller firms. 6. Contract awarded by the Department of the Air Force, a major DoD component.

Value Assessment

Rating: questionable

The contract value of $64.9 million for a one-year telecommunications service task order is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price structure provides cost certainty for the government, but the absence of competition raises concerns about whether the pricing reflects market rates or if a more competitive process could have yielded better value. Further analysis would require understanding the specific services rendered and comparing them to similar sole-source procurements or industry benchmarks for telecommunications support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates the contract type is 'NOT COMPETED.' This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple qualified contractors. The lack of competition means there were no other bidders to compare against, and price discovery is limited to the negotiation between the Air Force and Lockheed Martin Services, LLC.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding. This limits the government's ability to secure the best possible price for telecommunications services.

Public Impact

The Department of the Air Force will receive essential telecommunications services. This contract supports the operational readiness and communication infrastructure of the Air Force. The services are likely to be delivered in Colorado, based on the 'SN' field. The contract supports Lockheed Martin Services, LLC, a large defense contractor, potentially impacting its workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value for taxpayers.
Broad 'All Other Telecommunications' category lacks specificity, making performance assessment challenging.
No small business set-aside may exclude smaller, specialized telecommunications providers.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a known contractor (Lockheed Martin) may indicate a reliance on established capabilities.
Task order for FY2025 suggests alignment with current operational needs.

Sector Analysis

The telecommunications sector is a critical enabler for all government functions, particularly within the Department of Defense. This contract falls under the broader IT and telecommunications services category, which is a significant area of federal spending. The North American Industry Classification System (NAICS) code 517919 ('All Other Telecommunications') covers a wide range of services, including wireless, satellite, and other non-classified telecommunications. Benchmarking this specific award is challenging without more detail on the services, but overall IT and telecommunications spending by the DoD is in the tens of billions annually.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This means that opportunities for subcontracting with small businesses were not explicitly mandated as part of the award. While Lockheed Martin may engage small businesses as subcontractors, the absence of a set-aside or specific subcontracting goals means there is no guarantee of direct benefit to the small business ecosystem for this particular award. This could limit the participation of smaller, specialized telecommunications firms in supporting this Air Force requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a task order under a larger contract vehicle (implied, though not explicitly stated in the provided data), oversight mechanisms would be defined by that parent contract. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Telecommunications Services
Air Force IT Procurement
Lockheed Martin Government Contracts
Sole-Source IT Awards

Risk Flags

Sole-source award
Lack of competition
Broad NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.9 million to LOCKHEED MARTIN SERVICES, LLC. FISCAL YEAR 2025 TASK ORDER FOR THE AND FUNDING FOR THE INITIAL 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 $64.9 million.

What is the period of performance?

Start: 2025-12-31. End: 2025-12-31.

What specific telecommunications services are being procured under this task order?

The provided data indicates the NAICS code is 517919, 'All Other Telecommunications.' This is a broad category that can encompass a wide array of services, including but not limited to satellite communications, wireless services, telecommunications infrastructure support, and network management. Without further details from the specific task order document, it is impossible to ascertain the precise nature of the services. However, given the award is to Lockheed Martin Services, LLC, and the agency is the Department of the Air Force, it is likely related to supporting critical communication networks, potentially for command and control, intelligence, or operational support systems. The lack of specificity in the NAICS code highlights a common challenge in federal procurement data analysis, where broader categories can obscure the exact nature of goods or services acquired.

What is the historical spending with Lockheed Martin Services, LLC for similar telecommunications services by the Department of the Air Force?

Analyzing historical spending with Lockheed Martin Services, LLC for similar telecommunications services by the Department of the Air Force requires access to comprehensive federal procurement databases. While the provided data shows a $64.9 million task order for FY2025, it does not offer historical context. Generally, Lockheed Martin is a major defense contractor with extensive experience across various domains, including IT and telecommunications. To assess historical patterns, one would typically look at previous task orders or contract awards to this vendor under the same or similar NAICS codes and agencies. A review might reveal if this $64.9 million represents an increase, decrease, or consistent level of spending for these types of services. Without that historical data, it's difficult to determine if this award is an anomaly or part of a sustained procurement relationship.

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

The primary risk associated with awarding a sole-source contract of this magnitude ($64.9 million) is the potential for inflated pricing and reduced value for money. Without competition, the government loses the leverage that multiple bids provide to drive down costs and encourage innovation. There's also a risk that the chosen contractor may not be the most capable or cost-effective provider available, as alternatives were not formally evaluated. Furthermore, sole-source awards can create a perception of favoritism or lack of transparency, potentially undermining public trust. Agencies typically justify sole-source awards based on specific criteria, such as the urgency of the requirement, the unique capabilities of a single contractor, or the unavailability of other sources. However, these justifications should be rigorously scrutinized to ensure they are valid and that competition was not feasible.

How does the 'All Other Telecommunications' (517919) category typically compare to other telecommunications NAICS codes in terms of spending and service scope?

The NAICS code 517919, 'All Other Telecommunications,' is a residual category designed to capture telecommunications services not specifically covered by more defined codes. This often includes services like satellite communications, wireless internet service providers (ISPs), and other specialized telecommunications infrastructure or support that doesn't fit neatly into categories like wired telecommunications (517110) or wireless telecommunications carriers (517210). Consequently, spending under 517919 can be highly variable, depending on the specific niche services being procured. It often represents a smaller portion of overall telecommunications spending compared to major carrier services, but can be critical for specialized government needs, such as secure satellite communications or unique network solutions. The broadness of 517919 means that contracts within it can range significantly in scope and value, making direct comparisons difficult without detailed service descriptions.

What is the significance of the 'ST' (COLORADO) field in relation to this contract?

The 'ST' field, indicating 'COLORADO,' likely signifies the state where the contractor, Lockheed Martin Services, LLC, is located or where the services are primarily performed. For federal contracts, especially those involving significant service delivery, the geographic location of the contractor or the place of performance can be relevant for several reasons. It might influence state and local tax implications, workforce considerations (e.g., using local labor), and logistical aspects of service delivery. In this case, it suggests that Lockheed Martin's operations in Colorado are involved in fulfilling this Department of the Air Force requirement. This could also be relevant for tracking economic impact within that specific state or region, although the primary focus of federal procurement analysis is usually on national-level value and performance.

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: $92,476,146

Exercised Options: $64,925,643

Current Obligation: $64,925,643

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,490,598

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