Lockheed Martin awarded $54.7M for Tactical Flight Management System, a custom computer programming service

Contract Overview

Contract Amount: $54,680,238 ($54.7M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2021-03-31

End Date: 2024-06-01

Contract Duration: 1,158 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TACTICAL FLIGHT MANAGEMENT SYSTEM (TFMS)

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30063

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $54.7 million to LOCKHEED MARTIN CORP for work described as: TACTICAL FLIGHT MANAGEMENT SYSTEM (TFMS) Key points: 1. Contract awarded to a single, large defense contractor, raising questions about competition. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 3. Delivery Order indicates a specific task within a larger framework, requiring careful performance monitoring. 4. The duration of the contract (1158 days) suggests a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541511 points to custom software development. 6. The contract is for services in Georgia, potentially impacting the local tech workforce.

Value Assessment

Rating: fair

The contract value of $54.7 million for a Tactical Flight Management System appears to be within a reasonable range for complex custom programming services, especially given the specialized nature of defense applications. However, without specific benchmarks for similar TFMS systems or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, which needs diligent oversight to ensure the final cost remains justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while an initial broad competition may have occurred, specific exclusions were applied, potentially limiting the pool of eligible bidders. The exact reasons for these exclusions are not detailed, but they can sometimes indicate a need for specialized capabilities or existing system integration requirements. The limited nature of the competition may have implications for price negotiation and the potential for achieving the lowest possible cost.

Taxpayer Impact: The limited competition could mean taxpayers did not benefit from the most aggressive pricing that a fully open and unrestricted bidding process might have yielded.

Public Impact

The U.S. Special Operations Command is the primary beneficiary, receiving critical flight management capabilities. The services delivered are custom computer programming, likely involving software development and integration for flight operations. The geographic impact is concentrated in Georgia, where the contract is being performed. The contract may have implications for the specialized IT workforce in Georgia, particularly those with defense sector experience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not rigorously managed.
Limited competition may result in less favorable pricing for the government.
The specific nature of 'EXCLUSION OF SOURCES' warrants further investigation into the justification for limiting bidders.
Performance monitoring for a long-duration contract (1158 days) is crucial to ensure timely and effective delivery.

Positive Signals

Awarded to a major defense contractor with a known track record in complex systems.
The contract addresses a specific need for a Tactical Flight Management System, indicating a clear requirement.
Delivery Order structure suggests a phased approach to fulfilling the requirement.

Sector Analysis

The defense IT sector is characterized by high-value, complex contracts often involving custom software development and integration. Companies like Lockheed Martin are dominant players, leveraging extensive experience and security clearances. Spending in this area is driven by the need for advanced technological capabilities to support military operations. Benchmarks for similar custom programming services in defense can vary widely based on complexity, security requirements, and the specific technologies involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like Lockheed Martin suggests that opportunities for small businesses would likely be through subcontracting, the extent of which is not detailed here. This could limit direct opportunities for small businesses to engage with the government on this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command, with potential involvement from the Department of Defense's Inspector General. The CPFF contract type necessitates robust financial oversight to scrutinize costs and ensure they align with the fixed fee and the contracted scope. Transparency would be enhanced by regular reporting requirements and performance reviews, though the specifics of these are not provided in the data.

Related Government Programs

Defense Software Development Contracts
Special Operations Command IT Procurement
Custom Computer Programming Services
Flight Management Systems

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may impact price competitiveness.
Justification for 'exclusion of sources' requires scrutiny.
Long contract duration necessitates sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to LOCKHEED MARTIN CORP. TACTICAL FLIGHT MANAGEMENT SYSTEM (TFMS)

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2021-03-31. End: 2024-06-01.

What is Lockheed Martin's track record with similar Tactical Flight Management Systems or complex defense software development contracts?

Lockheed Martin is a major defense contractor with extensive experience in developing complex systems for military applications, including aviation and command and control. While specific details on their past TFMS projects are not provided here, their portfolio includes numerous large-scale software development and integration efforts for various branches of the U.S. military. Their history suggests a capacity to handle the technical challenges and security requirements associated with such systems. However, like any large contractor, they have also faced scrutiny over contract performance and costs on other programs, necessitating careful oversight on this specific award.

How does the $54.7 million contract value compare to similar Tactical Flight Management System procurements?

Benchmarking the $54.7 million value for this Tactical Flight Management System (TFMS) is challenging without more specific details on the system's scope, features, and the level of customization required. Defense IT contracts, especially those involving specialized software for unique operational needs like Special Operations Command, can vary significantly in price. Factors such as integration with existing platforms, cybersecurity requirements, and the complexity of algorithms used in flight management all influence cost. Generally, systems requiring deep customization and integration with sensitive military hardware tend to command higher prices than COTS (Commercial Off-The-Shelf) solutions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for custom programming services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, particularly for custom programming, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the project scope expands, unforeseen technical challenges arise, or inefficient practices are employed, the total cost to the government can increase significantly beyond initial estimates. Effective risk mitigation requires stringent cost tracking, clear scope definition, and proactive management to prevent scope creep and ensure contractor efficiency.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of the competition?

This contract clause indicates that while the procurement was intended to be competitive, certain sources were excluded after an initial period or consideration. This exclusion could be based on various factors, such as the need for specific security clearances, proprietary technology, or prior integration with existing systems where only certain contractors possess the necessary knowledge. While it aims to ensure the best-suited contractor is chosen, it inherently limits the number of potential bidders compared to true 'full and open' competition. This limitation can reduce price pressure and potentially lead to higher costs for the government if the excluded sources could have offered competitive alternatives.

What is the historical spending trend for Tactical Flight Management Systems or similar services by the U.S. Special Operations Command?

Analyzing historical spending trends for Tactical Flight Management Systems (TFMS) by the U.S. Special Operations Command (SOCOM) requires access to detailed procurement databases. SOCOM typically procures highly specialized systems tailored to unique operational requirements, which may not always align with standard TFMS definitions. Spending in this area is likely driven by evolving mission needs and technological advancements. Without specific historical data on TFMS procurements by SOCOM, it's difficult to establish a precise trend, but it can be inferred that spending on advanced aviation and mission management software is a consistent priority for the command.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: H9222218R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063

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: $54,680,238

Exercised Options: $54,680,238

Current Obligation: $54,680,238

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,529,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240318D0002

IDV Type: IDC

Timeline