DoD awards $18.7M for GPS control segment sustainment, continuing sole-source contract with Lockheed Martin

Contract Overview

Contract Amount: $18,722,518 ($18.7M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $51.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GLOBAL POSITIONING SYSTEM CONTROL SEGMENT SUSTAINMENT II OPTION YEAR 7 SUSTAINMENT TASK ORDER

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: GLOBAL POSITIONING SYSTEM CONTROL SEGMENT SUSTAINMENT II OPTION YEAR 7 SUSTAINMENT TASK ORDER Key points: 1. Sustainment task order continues long-standing relationship with incumbent contractor. 2. Contract value represents a small fraction of overall GPS program spending. 3. Sole-source award raises questions about price competition and potential for cost savings. 4. Performance history of contractor and system is critical for mission success. 5. Contract duration aligns with typical sustainment cycles for complex systems. 6. Geographic concentration in Colorado for sustainment operations.

Value Assessment

Rating: fair

The contract value of $18.7 million for one year of sustainment is difficult to benchmark without detailed cost breakdowns. Given the sole-source nature, it's challenging to assess if this represents competitive pricing. However, the long-term nature of the GPS program and the specialized requirements suggest that incumbent contractor pricing might reflect established expertise and infrastructure. Further analysis would require comparing this task order's unit costs to historical sustainment costs for similar complex defense systems or previous GPS sustainment contracts.

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. The data indicates a 'NOT COMPETED' status. This approach is often used for follow-on work to an existing contract where only one source is capable of performing the work, or in cases of urgent need. The lack of competition means there was no opportunity for other vendors to bid, potentially limiting price discovery and the government's ability to secure the best possible price through a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the benefit of competitive pricing, as the government did not solicit bids from multiple vendors. This could result in a higher cost than if the contract had been competed.

Public Impact

Ensures the continued operational readiness and accuracy of the Global Positioning System (GPS) constellation. Supports critical military and civilian navigation, timing, and positioning services worldwide. Maintains the integrity and security of the GPS control segment infrastructure. Impacts users across defense, aviation, maritime, and commercial sectors relying on GPS. Sustainment activities are concentrated in Colorado, potentially supporting local technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Lack of open competition may reduce opportunities for innovative solutions from other vendors.
Dependence on a single contractor for critical sustainment raises long-term strategic risks.

Positive Signals

Continuation of services by an incumbent contractor likely ensures minimal disruption to critical GPS operations.
Specialized nature of GPS control segment sustainment may justify a sole-source award to ensure expertise.
Long-term relationship may foster efficiencies and deep understanding of system requirements.

Sector Analysis

The Global Positioning System (GPS) control segment is a vital component of national infrastructure, underpinning countless military and civilian applications. The market for sustainment services for such complex, mission-critical systems is highly specialized, often dominated by a few large defense contractors with the requisite security clearances and technical expertise. This contract fits within the broader defense IT and aerospace sector, where long-term sustainment contracts are common for ensuring the longevity and reliability of sophisticated platforms. Comparable spending benchmarks would typically involve analyzing other large-scale sustainment contracts for critical national security systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Lockheed Martin Services, LLC, is a large business. While the prime contractor may utilize small businesses for subcontracting, the primary award itself is not designated for small business participation. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the critical nature of the GPS system, there are likely robust internal oversight mechanisms, including performance reviews and quality assurance checks. Transparency may be limited due to the sole-source nature and classification of certain aspects of the control segment. The Inspector General of the Department of Defense would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Global Positioning System (GPS) Standard Positioning Service (SPS)
GPS Military GPS User Equipment (MGUE)
Space Based PNT (Positioning, Navigation, and Timing)
DoD Satellite Communications Systems
Air Force Satellite Control Network

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Dependence on incumbent contractor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to LOCKHEED MARTIN SERVICES, LLC. GLOBAL POSITIONING SYSTEM CONTROL SEGMENT SUSTAINMENT II OPTION YEAR 7 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 $18.7 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the historical spending trend for GPS control segment sustainment with Lockheed Martin?

Historical spending data for the GPS control segment sustainment with Lockheed Martin would reveal trends in contract values over time. This specific task order is for Option Year 7, suggesting a multi-year relationship. Analyzing previous years' contract awards for sustainment under this program, particularly those with Lockheed Martin, would indicate whether the current $18.7 million award represents an increase, decrease, or stable level of investment. Understanding these trends is crucial for assessing long-term cost projections and identifying any significant shifts in program expenditure. Without access to prior year data, it's difficult to provide a precise historical comparison, but the existence of an Option Year 7 implies consistent, ongoing funding for sustainment services.

How does the pricing of this contract compare to similar sustainment contracts for other critical defense systems?

Benchmarking the pricing of this $18.7 million GPS control segment sustainment contract against similar sustainment contracts for other critical defense systems is challenging without detailed cost breakdowns and specific contract terms. However, sustainment of complex, high-assurance systems like GPS typically involves significant costs related to specialized personnel, advanced technology maintenance, cybersecurity, and rigorous testing. Contracts for maintaining satellite constellations, command and control systems, or advanced aircraft platforms often run into tens or hundreds of millions of dollars annually. The value of this contract appears to be within a reasonable range for sustaining a critical national asset like the GPS control segment, especially considering its sole-source nature which may include factors beyond direct service delivery, such as maintaining specialized infrastructure and expertise.

What are the key performance indicators (KPIs) used to evaluate Lockheed Martin's performance on this contract?

Key Performance Indicators (KPIs) for sustainment contracts of critical systems like the GPS control segment typically focus on ensuring continuous availability, accuracy, and security of the system. While specific KPIs are not detailed in the provided data, common metrics would likely include system uptime/availability rates, response times for system anomalies, successful implementation of software/hardware updates, adherence to cybersecurity protocols, and timely completion of maintenance tasks. Performance is often measured against stringent service level agreements (SLAs). For the GPS control segment, maintaining signal accuracy and integrity would be paramount. Lockheed Martin's performance would be evaluated against these established metrics to ensure the GPS constellation remains fully operational and reliable for its users.

What is the potential impact of this contract on the overall readiness and capability of the GPS constellation?

This contract is directly tied to the sustainment of the GPS control segment, which is the brain of the GPS constellation. Therefore, its successful execution is critical for maintaining the overall readiness and capability of the entire GPS system. The control segment is responsible for monitoring, commanding, and updating the GPS satellites in orbit. Effective sustainment ensures that the ground infrastructure is robust, secure, and capable of performing these essential functions without interruption. This, in turn, guarantees the accuracy, reliability, and availability of GPS signals for military, civilian, and commercial users worldwide. Any lapse in sustainment could degrade signal quality, reduce availability, or introduce vulnerabilities, thereby impacting global PNT capabilities.

Are there any known risks associated with the sole-source nature of this contract?

The primary risk associated with the sole-source nature of this contract is the potential for reduced price competition, which could lead to higher costs for the government compared to a competitively awarded contract. Without multiple bidders vying for the work, there may be less incentive for the contractor to offer the lowest possible price. Additionally, sole-source awards can sometimes limit the introduction of new technologies or innovative approaches that might be brought forward by other potential vendors. There's also a strategic risk of over-reliance on a single provider for a critical function, potentially impacting long-term flexibility and contingency planning should issues arise with the incumbent.

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: $69,456,434

Exercised Options: $69,456,434

Current Obligation: $18,722,518

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