Lockheed Martin awarded $24.7M for Ballistic Missile Defense System testing support

Contract Overview

Contract Amount: $24,741,264 ($24.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-07-01

End Date: 2020-07-06

Contract Duration: 736 days

Daily Burn Rate: $33.6K/day

Sector: Defense

Official Description: IGF::OT::IGF THIS TASK ORDER STATES THE PRIME CONTRACTOR REQUIREMENTS TO SUPPORT COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) PARTICIPATION AND SUPPORT (SYSTEM UNDER TEST (SUT) AND OFFLINE) OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) LEVEL TESTING AS BASELINED THROUGH THE INTEGRATED MASTER TEST PLAN (IMTP) PROCESS AND SELECTED REAL WORLD EVENTS (RWE), SPRINT OR FAST EVENTS, ELEMENT TO ELEMENT PAIRWISE EVENTS AND OTHER TARGETS OF OPPORTUNITY (TOO). REQUIREMENTS, CONFIGURATION AND DATA COLLECTION GERMANE TO EACH BMDS TEST EVENT ARE WELL DEFINED IN THE TEST RESOURCE MISSION PLANNING TOOL [TRMP-T(C)] AND SHALL BE ADJUDICATED BETWEEN THE GOVERNMENT AND THE CONTRACTOR

Place of Performance

Location: Colorado, 80921

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THIS TASK ORDER STATES THE PRIME CONTRACTOR REQUIREMENTS TO SUPPORT COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) PARTICIPATION AND SUPPORT (SYSTEM UNDER TEST (SUT) AND OFFLINE) OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) LEVEL TESTING AS BASEL… Key points: 1. Contract focuses on critical Command and Control, Battle Management, and Communications (C2BMC) support for missile defense. 2. Task order supports system under test and offline participation in BMDS level testing. 3. Requirements are well-defined through the Integrated Master Test Plan (IMTP) and real-world events. 4. Contract duration spans approximately two years, from July 2018 to July 2020. 5. This award represents a specific task order under a larger contract vehicle. 6. The work is essential for validating the effectiveness of the Ballistic Missile Defense System.

Value Assessment

Rating: good

The contract value of $24.7 million for a two-year period appears reasonable given the specialized nature of supporting the Ballistic Missile Defense System (BMDS). Benchmarking against similar complex defense testing and integration contracts suggests this is within expected cost ranges. The specific task order nature implies it's part of a pre-negotiated framework, likely benefiting from established pricing structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this particular task order. Task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts can vary in their competitive nature, ranging from full and open competition to directed awards based on specific capabilities or existing relationships. Without further information on the parent contract or the solicitation process for this task order, a definitive assessment of competition is not possible.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to better pricing and innovation, while limited competition may result in higher costs.

Public Impact

The U.S. Department of Defense, specifically the Missile Defense Agency, is the primary beneficiary, receiving critical support for BMDS testing. Services delivered include support for Command and Control, Battle Management, and Communications (C2BMC) during various testing phases. The geographic impact is national, focusing on the development and validation of a key national security system. Workforce implications include specialized technical and engineering roles required for complex defense system testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method for this task order.
Potential for cost overruns if not managed effectively due to the complexity of BMDS testing.
Dependence on a single contractor (Lockheed Martin) for critical C2BMC support could pose a risk if not adequately overseen.

Positive Signals

Contract is for a well-defined scope of work related to BMDS testing.
The task order is part of a larger framework, potentially benefiting from established oversight.
Lockheed Martin is a prime contractor with extensive experience in missile defense systems.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the Ballistic Missile Defense System (BMDS). The market for BMDS support is highly specialized, dominated by a few large defense contractors with the requisite expertise and security clearances. Spending in this area is driven by national security priorities and technological advancements in missile defense capabilities. Comparable spending benchmarks would likely involve other large-scale defense testing, integration, and sustainment contracts for complex weapon systems.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this task order. Large, complex defense contracts often involve significant subcontracting opportunities, but the extent to which small businesses participate would depend on the prime contractor's strategy and the specific requirements of the task order. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Missile Defense Agency (MDA) within the Department of Defense. As a task order under a larger contract, it likely benefits from the oversight mechanisms established for the parent contract. Transparency is assessed based on the availability of public contract data. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Ballistic Missile Defense System (BMDS)
Command and Control, Battle Management, and Communications (C2BMC)
Missile Defense Agency (MDA) Contracts
Department of Defense Test and Evaluation Contracts

Risk Flags

Potential for performance issues impacting critical defense system testing.
Schedule delays could impact overall BMDS deployment or upgrade timelines.
Cost overruns possible due to complexity and potential scope changes.
Dependency on a single contractor for essential C2BMC functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THIS TASK ORDER STATES THE PRIME CONTRACTOR REQUIREMENTS TO SUPPORT COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) PARTICIPATION AND SUPPORT (SYSTEM UNDER TEST (SUT) AND OFFLINE) OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) LEVEL TESTING AS BASELINED THROUGH THE INTEGRATED MASTER TEST PLAN (IMTP) PROCESS AND SELECTED REAL WORLD EVENTS (RWE), SPRINT OR FAST EVENTS, ELEMENT TO ELEMENT PAIRWISE EVENTS AND OTHER TARGETS OF OPPORTUNITY (TOO). REQUIREMENTS, CONFIGURAT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2018-07-01. End: 2020-07-06.

What is Lockheed Martin's track record with the Missile Defense Agency and BMDS programs?

Lockheed Martin Corporation is a long-standing and primary contractor for the Missile Defense Agency (MDA), playing a pivotal role in the development, integration, and sustainment of the Ballistic Missile Defense System (BMDS). The company has been involved in numerous aspects of BMDS, including the development of key components like the Aegis Ballistic Missile Defense system, Ground-based Midcourse Defense (GMD) elements, and various sensor and communication systems. Their extensive history with the MDA suggests a deep understanding of the program's complexities and requirements. This specific task order for C2BMC support aligns with their established expertise in integrating and managing critical command and control functions for missile defense operations. Past performance reviews and contract awards from the MDA would provide further detailed insights into their performance history on similar programs.

How does the $24.7 million value compare to similar BMDS testing support contracts?

The $24.7 million value for this two-year task order supporting BMDS testing, specifically C2BMC functions, appears to be within a reasonable range for specialized defense support services. Benchmarking requires comparison with contracts of similar scope, duration, and complexity. Given that BMDS is a highly sophisticated and critical national security system, the costs associated with its testing, integration, and operational support are inherently high. Contracts involving system-level testing, real-world event participation, and complex communication management often run into tens of millions of dollars over multi-year periods. Without access to a comprehensive database of all BMDS-related task orders and their specific deliverables, a precise comparison is difficult. However, the value is consistent with the significant investment required for maintaining and validating advanced missile defense capabilities.

What are the primary risks associated with this contract for the government?

The primary risks for the government associated with this contract revolve around performance, cost, and schedule. Performance risk includes the potential for Lockheed Martin to not meet the stringent requirements for C2BMC support during critical BMDS testing events, which could compromise the integrity of test results and the overall validation of the defense system. Schedule risk exists if delays in contractor support impact the planned testing timelines, potentially affecting the deployment or upgrade schedules of the BMDS. Cost risk, while seemingly contained within the task order's value, could arise from unforeseen technical challenges or scope creep that necessitate additional funding or contract modifications. Furthermore, reliance on a single contractor for such a critical function introduces a dependency risk, where any disruption to the contractor's operations could have significant consequences.

How effective is the Integrated Master Test Plan (IMTP) in defining requirements for this contract?

The Integrated Master Test Plan (IMTP) is a crucial document for defining and managing the testing of complex systems like the Ballistic Missile Defense System (BMDS). For this contract, the IMTP serves as the baseline for specifying the requirements, configuration, and data collection necessary for BMDS level testing. Its effectiveness lies in providing a structured, comprehensive, and government-directed framework that ensures all critical aspects of the system are tested systematically. By outlining test events, objectives, and success criteria, the IMTP helps to ensure that the contractor's support activities are aligned with the government's testing goals. The statement that requirements are 'well defined' through the IMTP suggests a high degree of clarity, which is essential for minimizing ambiguity and ensuring that the contractor delivers the precise support needed for effective validation of the BMDS.

What is the historical spending trend for BMDS C2BMC support by the Missile Defense Agency?

Historical spending trends for Ballistic Missile Defense System (BMDS) Command and Control, Battle Management, and Communications (C2BMC) support by the Missile Defense Agency (MDA) indicate a consistent and significant investment. The MDA's mission inherently requires substantial resources dedicated to the development, integration, testing, and sustainment of the BMDS, with C2BMC functions being a critical enabler. Over the years, spending in this area has generally increased in response to evolving threats, technological advancements, and program maturation. While specific figures for C2BMC support alone are not readily available without detailed contract analysis, the overall MDA budget reflects a multi-billion dollar annual expenditure. Task orders like this one, valued in the tens of millions, are typical components of the larger BMDS program's lifecycle sustainment and testing phases, reflecting ongoing needs for specialized contractor support.

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