GSA awards $36.4M to Lockheed Martin for top-secret Badger engineering services, lacking competition
Contract Overview
Contract Amount: $36,369,390 ($36.4M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: General Services Administration
Start Date: 2008-08-13
End Date: 2014-01-31
Contract Duration: 1,997 days
Daily Burn Rate: $18.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ENGINEERING SERVICES IN SUPPORT OF TOP SECRET / SPECIAL ACCESS PROGRAM KNOWN AS BADGER.
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $36.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: ENGINEERING SERVICES IN SUPPORT OF TOP SECRET / SPECIAL ACCESS PROGRAM KNOWN AS BADGER. Key points: 1. Significant contract value ($36.4M) for specialized engineering support. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. High-risk engagement due to top-secret program classification. 4. Engineering services sector sees substantial government investment.
Value Assessment
Rating: questionable
The contract value of $36.4M for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized engineering contracts.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may have paid a premium for these essential engineering services.
Public Impact
National security implications due to support for a top-secret program. Potential for significant taxpayer expenditure without competitive justification. Reliance on a single contractor for critical, classified services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High-risk program
- Time and Materials pricing
Positive Signals
- Essential support for national security program
- Experienced contractor
Sector Analysis
This contract falls within the engineering services sector, which is crucial for government operations, particularly in defense and intelligence. Benchmarks for specialized, top-secret engineering are difficult to establish due to classification.
Small Business Impact
The contract was awarded to Lockheed Martin Services, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Given the sole-source nature and the classified program, oversight is critical to ensure performance and cost control. The General Services Administration (GSA) awarded the contract, implying some level of oversight, but details are limited.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Sole-source award
- Lack of competition
- Time and Materials pricing
- Support for classified program
- High contract value
Tags
engineering-services, general-services-administration, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $36.4 million to LOCKHEED MARTIN SERVICES, LLC. ENGINEERING SERVICES IN SUPPORT OF TOP SECRET / SPECIAL ACCESS PROGRAM KNOWN AS BADGER.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $36.4 million.
What is the period of performance?
Start: 2008-08-13. End: 2014-01-31.
What is the justification for the sole-source award, and were any attempts made to compete this requirement?
The justification for the sole-source award is not detailed in the provided data, but it is likely tied to the highly classified nature of the 'BADGER' program. Typically, sole-source awards for such sensitive projects are based on unique capabilities or security requirements that only one contractor can meet. However, the absence of competition means taxpayers lack assurance that the pricing is optimal.
What are the specific risks associated with providing engineering services for a top-secret program under a Time and Materials contract?
Providing engineering services for a top-secret program under a Time and Materials (T&M) contract presents risks of cost overruns and potential inefficiencies. T&M contracts can incentivize longer project durations and higher labor hours, especially when oversight is challenging due to classification. This structure requires robust monitoring to ensure value for money and prevent scope creep.
How does the lack of competition impact the government's ability to ensure effective service delivery and value for money?
The lack of competition significantly hinders the government's ability to ensure effective service delivery and value for money. Without competitive pressure, there's less incentive for the contractor to innovate, optimize processes, or offer the most cost-effective solutions. The government relies heavily on contract management and negotiation skills to mitigate these risks, which is more challenging in sole-source scenarios.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 5TP57080334RFP
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1670 N NEWPORT RD STE 340, COLORADO SPRINGS, CO, 80916
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,170,827
Exercised Options: $43,022,641
Current Obligation: $36,369,390
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-08-13
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2019-12-09
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