DoD's $20.4M Logistics Support Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $20,425,555 ($20.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-06-22
End Date: 2010-07-21
Contract Duration: 1,125 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOGISTICS SUPPORT SERVICES FOR CODE 809 MISSION REQUIREMENTS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to LOCKHEED MARTIN CORPORATION for work described as: LOGISTICS SUPPORT SERVICES FOR CODE 809 MISSION REQUIREMENTS Key points: 1. The contract, valued at $20.4 million, was awarded to Lockheed Martin Corporation for logistics support services. 2. Awarded by the Department of the Navy, this contract falls under Engineering Services (NAICS 541330). 3. The contract utilized a full and open competition method, suggesting a competitive bidding process. 4. The duration of the contract was 1125 days, ending in July 2010. 5. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not closely monitored. Benchmarking against similar logistics support contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as multiple bidders are encouraged to submit proposals. This process aims to secure the best value for the government.
Taxpayer Impact: The competitive nature of the award suggests efforts to ensure taxpayer funds are used efficiently, though the Cost Plus Fixed Fee structure warrants attention to cost control.
Public Impact
Ensures critical logistics support for a specific DoD mission (Code 809). Supports a major defense contractor, Lockheed Martin, potentially impacting jobs and the defense industrial base. The contract's duration and value indicate a significant, long-term commitment of federal resources. Transparency in the award process due to full and open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics or outcomes in the provided data.
- Potential for contractor lock-in if follow-on contracts are awarded without competition.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Supports a critical national defense mission.
- Established contractor with a track record in defense logistics.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to logistics support for defense missions. Spending in this sector is substantial, driven by the complex needs of military operations and technological advancements.
Small Business Impact
The data indicates the award went to Lockheed Martin Corporation, a large prime contractor. There is no information provided to suggest subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The award was made by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms. However, the effectiveness of oversight for Cost Plus Fixed Fee contracts is crucial for managing costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed performance metrics.
- Potential for cost overruns.
- No indication of small business participation.
- Long contract duration without clear end-of-contract review data.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to LOCKHEED MARTIN CORPORATION. LOGISTICS SUPPORT SERVICES FOR CODE 809 MISSION REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2007-06-22. End: 2010-07-21.
What were the key performance indicators and deliverables expected under this logistics support contract, and how were they measured to ensure value for money?
The provided data does not detail specific performance indicators or deliverables. For a Cost Plus Fixed Fee contract, effective oversight would involve rigorous tracking of costs against the fixed fee, ensuring that the contractor meets defined service levels and operational requirements without unnecessary expenditure. Without this information, assessing the true value derived from the $20.4 million is challenging.
Given the Cost Plus Fixed Fee structure, what measures were in place to mitigate the risk of cost escalation and ensure the government received fair pricing?
While the contract was awarded through full and open competition, the Cost Plus Fixed Fee structure inherently carries a risk of cost escalation. Mitigation typically involves robust government oversight, detailed cost audits, and clear definitions of allowable costs. The effectiveness of these measures would depend on the diligence of the contracting officer and the transparency of Lockheed Martin's cost reporting.
How did the logistics support provided by Lockheed Martin contribute to the overall effectiveness of the Code 809 mission requirements?
The data does not provide specific details on the mission's nature or the direct impact of the logistics support. However, the substantial contract value and duration suggest that the support was critical for the sustained operation of the Code 809 mission. The success of this support would be measured by the mission's ability to achieve its objectives without logistical hindrances.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3230
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $429,062,700
Exercised Options: $100,517,811
Current Obligation: $20,425,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4079
IDV Type: IDC
Timeline
Start Date: 2007-06-22
Current End Date: 2010-07-21
Potential End Date: 2012-06-21 00:00:00
Last Modified: 2025-04-24
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