Lockheed Martin awarded $29.6M for OSF capabilities development and SSF software sustainment by Missile Defense Agency

Contract Overview

Contract Amount: $29,613,351 ($29.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-24

End Date: 2021-10-15

Contract Duration: 752 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: PWS DEFINES THE EFFORTS REQUIRED TO: PROTOTYPE AND DEVELOP OSF CAPABILITIES TO SUPPORT CONCEPT EVALUATION AND DEVELOPMENTAL ENGINEERING INTENDED USE APPLICATIONS AND PROVIDE LIMITED SUSTAINMENT OF THE SSF SOFTWARE THROUGH ITS END OF LIFE.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to LOCKHEED MARTIN CORPORATION for work described as: PWS DEFINES THE EFFORTS REQUIRED TO: PROTOTYPE AND DEVELOP OSF CAPABILITIES TO SUPPORT CONCEPT EVALUATION AND DEVELOPMENTAL ENGINEERING INTENDED USE APPLICATIONS AND PROVIDE LIMITED SUSTAINMENT OF THE SSF SOFTWARE THROUGH ITS END OF LIFE. Key points: 1. Contract focuses on prototyping and developmental engineering for OSF capabilities. 2. Includes limited sustainment of SSF software through its end-of-life. 3. Awarded under a Cost Plus Award Fee (CPAF) contract type. 4. Competition was full and open, suggesting a broad market search. 5. Contract duration was 752 days, indicating a medium-term project. 6. The contract value is relatively modest for a major defense contractor. 7. No small business set-aside was utilized.

Value Assessment

Rating: fair

The contract value of $29.6 million for a period of approximately two years appears reasonable for the described services, which involve software development, prototyping, and sustainment. Benchmarking against similar custom computer programming services contracts within the Department of Defense is challenging without more specific details on the technical scope. However, the CPAF structure allows for performance-based incentives, which can drive value if managed effectively. The absence of a specific price per unit makes direct cost comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Missile Defense Agency sought proposals from all responsible sources. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Missile Defense Agency, through the development of enhanced capabilities. Services delivered include prototyping, concept evaluation, developmental engineering, and software sustainment. The geographic impact is primarily within the United States, with potential implications for defense infrastructure. Workforce implications may include specialized software engineers, developers, and sustainment personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs plus a fee that can be adjusted based on performance.
The 'limited sustainment' aspect might imply a need for future, potentially larger, sustainment contracts.
The specific nature of 'OSF capabilities' and 'SSF software' is not detailed, making it hard to assess the full scope of technical risk.
The contract ended in October 2021; performance outcomes and final award fees are not publicly detailed.

Positive Signals

Awarded under full and open competition, suggesting a robust market response and potential for competitive pricing.
The CPAF structure incentivizes contractor performance towards achieving specific objectives.
The contract addresses critical needs for missile defense capabilities and software lifecycle management.
Lockheed Martin is a well-established defense contractor with significant experience in complex systems.

Sector Analysis

This contract falls within the Information Technology and Defense sectors, specifically focusing on custom computer programming services. The market for defense-related software development and sustainment is substantial, driven by the continuous need for technological advancement in national security. Comparable spending benchmarks would typically involve other contracts for similar software development, system integration, and lifecycle support within defense agencies, often running into tens or hundreds of millions of dollars depending on complexity and duration.

Small Business Impact

This contract did not include a small business set-aside, as indicated by the 'ss' field being false. Consequently, there are no direct subcontracting implications mandated for small businesses through this specific award. The prime contractor, Lockheed Martin, is a large business. While large prime contractors often engage small businesses as subcontractors on broader programs, this particular contract does not create a specific set-aside opportunity.

Oversight & Accountability

Oversight for this contract would primarily reside with the Missile Defense Agency's contracting officers and program managers. The Cost Plus Award Fee structure necessitates close monitoring of costs and performance against defined award criteria. Transparency is generally limited for specific contract details beyond basic award information, though contract performance reports and audits would be conducted internally. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Ballistic Missile Defense Program
Advanced Technology Development Contracts
Software Development Services
Defense Information Technology Contracting

Risk Flags

Contract Type: Cost Plus Award Fee (CPAF) requires careful monitoring to ensure cost control.
Scope Ambiguity: 'OSF capabilities' and 'limited sustainment' could imply potential scope creep or future undefined needs.
End-of-Life Support: Managing software nearing end-of-life can present unique technical and security challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to LOCKHEED MARTIN CORPORATION. PWS DEFINES THE EFFORTS REQUIRED TO: PROTOTYPE AND DEVELOP OSF CAPABILITIES TO SUPPORT CONCEPT EVALUATION AND DEVELOPMENTAL ENGINEERING INTENDED USE APPLICATIONS AND PROVIDE LIMITED SUSTAINMENT OF THE SSF SOFTWARE THROUGH ITS END OF LIFE.

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 $29.6 million.

What is the period of performance?

Start: 2019-09-24. End: 2021-10-15.

What specific capabilities were developed or prototyped under the OSF effort?

The provided data indicates the effort was to 'PROTOTYPE AND DEVELOP OSF CAPABILITIES TO SUPPORT CONCEPT EVALUATION AND DEVELOPMENTAL ENGINEERING'. However, the specific nature of these OSF (Open Systems Foundation) capabilities is not detailed in the summary. These likely relate to foundational software architectures or frameworks intended to enhance flexibility and interoperability within missile defense systems. Further details would typically be found in the Performance Work Statement (PWS) or technical documentation associated with the contract, which are not publicly available in this context. The goal was to support concept evaluation and developmental engineering, suggesting early-stage development rather than a fully operational system.

How does the $29.6 million value compare to similar custom computer programming services contracts for missile defense?

Directly comparing the $29.6 million value is difficult without knowing the precise technical scope and duration of comparable contracts. However, for custom computer programming services within the defense sector, this value represents a mid-tier contract. Larger, more complex system development or integration efforts can easily exceed hundreds of millions or even billions of dollars. Smaller, more focused software enhancements or sustainment tasks might fall below $10 million. Given the description of prototyping, development, and limited sustainment over approximately two years, the $29.6 million appears within a reasonable range for a specialized effort within a major agency like the Missile Defense Agency, assuming the scope was well-defined.

What are the key performance indicators (KPIs) or award criteria for the Cost Plus Award Fee (CPAF)?

The specific Key Performance Indicators (KPIs) and award criteria for this Cost Plus Award Fee (CPAF) contract are not publicly detailed in the provided data. Typically, for CPAF contracts, these criteria are outlined in the contract's Performance Work Statement (PWS) and are designed to measure the contractor's success in meeting technical, schedule, and cost objectives. For a contract involving prototyping and software development, KPIs might include factors like the successful demonstration of prototypes, adherence to development schedules, achievement of specific technical performance metrics, quality of deliverables, and effective management of project risks. The 'award fee' portion is determined by the government's evaluation of the contractor's performance against these criteria, potentially leading to a higher or lower fee within a pre-defined range.

What is the significance of 'limited sustainment of the SSF software through its end of life'?

The phrase 'limited sustainment of the SSF software through its end of life' suggests that this contract covers the final phase of support for a specific software system (SSF). 'Limited sustainment' implies that the support provided may be restricted in scope, duration, or level of service, focusing on keeping the system operational until it is formally retired or replaced. This could involve essential maintenance, bug fixes, security patches, or user support, but likely not major upgrades or enhancements. The 'end of life' aspect indicates that the SSF software is nearing the end of its planned operational period, and this contract ensures continuity until that point, potentially paving the way for a successor system or a transition to a different support model.

What is the Missile Defense Agency's (MDA) typical spending pattern for custom computer programming services?

The Missile Defense Agency (MDA) is a significant consumer of advanced technology and IT services, including custom computer programming. Their spending patterns are characterized by large, complex, and often long-term contracts focused on developing and maintaining sophisticated missile defense systems. While specific figures fluctuate annually, MDA consistently awards substantial contracts for software development, systems engineering, integration, testing, and sustainment. These contracts often involve cutting-edge technologies and require specialized expertise. Spending on custom programming services is integral to MDA's mission, supporting everything from simulation and modeling to command and control systems and sensor data processing. The $29.6 million awarded here is one component within a much larger portfolio of MDA's technology investments.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014717R0047

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 9970 FEDERAL DR, COLORADO SPRINGS, CO, 80921

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,258,921

Exercised Options: $34,258,921

Current Obligation: $29,613,351

Actual Outlays: $3,814,859

Subaward Activity

Number of Subawards: 153

Total Subaward Amount: $89,741,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014719D0002

IDV Type: IDC

Timeline