DoD's $51.5M contract for satellite warning system migration awarded to Lockheed Martin

Contract Overview

Contract Amount: $51,479,769 ($51.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-08-03

End Date: 2023-11-30

Contract Duration: 119 days

Daily Burn Rate: $432.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CET 19-942, GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT OPS MIGRATION TO ENTERPRISE GROUND SERVICES

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $51.5 million to LOCKHEED MARTIN CORPORATION for work described as: CET 19-942, GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT OPS MIGRATION TO ENTERPRISE GROUND SERVICES Key points: 1. Contract value represents a significant investment in critical defense infrastructure. 2. Sole awardee suggests potential for limited competition or specialized capabilities. 3. Short performance period indicates a focused, project-specific objective. 4. Contract type (Cost Plus Fixed Fee) may allow for cost overruns. 5. Geographic location of awardee (New York) may have implications for local economic impact. 6. This contract supports the modernization of vital national security systems.

Value Assessment

Rating: fair

The contract value of $51.5 million for a 119-day period is substantial. Benchmarking against similar large-scale IT migration projects within the Department of Defense is challenging without more granular data on scope and complexity. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher final costs compared to fixed-price contracts if not managed tightly. The awarded amount appears to be within a reasonable range for complex system migrations, but a detailed cost breakdown would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the award to a single entity, Lockheed Martin Corporation, suggests that they were the most qualified or offered the best value proposition among the competitors. The level of competition, while present, may have been constrained by the highly specialized nature of the required services for migrating a GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT system.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to better value. However, the specific outcome here, a single awardee, means taxpayers are reliant on the government's negotiation and oversight to ensure a fair price.

Public Impact

The primary beneficiaries are the Department of Defense and national security interests, ensuring the continuity and modernization of critical warning systems. The services delivered involve the migration of complex operational systems, enhancing the reliability and efficiency of the GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT. The geographic impact is primarily national, focusing on the operational capabilities of defense infrastructure, though the contractor's location in New York may provide some localized economic benefits. Workforce implications include specialized engineering and IT roles required for system migration and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not meticulously managed.
Limited public information on the specific technical challenges of the migration makes independent value assessment difficult.
The short duration of the contract (119 days) might indicate a high-pressure, potentially rushed, execution phase.

Positive Signals

Awarded under full and open competition, suggesting a robust initial bidding process.
Contractor, Lockheed Martin, is a major defense contractor with extensive experience in complex systems.
Focus on migrating critical warning systems addresses a key national security requirement.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT and systems integration. The market for such specialized defense IT services is dominated by large, established aerospace and defense contractors. Spending in this area is driven by the need for continuous modernization of aging military systems and the adoption of new technologies to maintain a strategic advantage. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of the GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT system, but large-scale IT infrastructure migrations within the DoD often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Lockheed Martin Corporation is a large prime contractor. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is likely minimal, though large prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within the Defense Microelectronics Activity. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting on costs and progress. Transparency is facilitated by the contract award being publicly available, but detailed operational and technical aspects of the migration are likely classified or sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Modernization Programs
Space Force Satellite Operations and Maintenance
North American Aerospace Defense Command (NORAD) Systems Modernization
Tactical Warning/Attack Assessment Systems

Risk Flags

Potential for cost overruns due to CPFF contract type.
Short performance period may indicate schedule pressure.
Limited public data on specific technical challenges and success metrics.
Reliance on a single large contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.5 million to LOCKHEED MARTIN CORPORATION. CET 19-942, GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT OPS MIGRATION TO ENTERPRISE GROUND SERVICES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $51.5 million.

What is the period of performance?

Start: 2023-08-03. End: 2023-11-30.

What is Lockheed Martin's track record with similar critical defense system migration projects?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing, integrating, and modernizing complex defense systems, including satellite operations and command and control infrastructure. They have a long history of supporting the Department of Defense and other government agencies with large-scale IT projects and system upgrades. While specific details on past migrations of 'GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT' systems are not publicly available, their portfolio includes work on satellite ground systems, missile defense, and other high-stakes technological endeavors. Their established presence and past performance in the defense sector suggest a capacity to handle such critical migrations, though the success of any specific project depends on numerous factors including funding, technical challenges, and program management.

How does the awarded amount compare to the estimated value or budget for this migration?

The awarded amount of $51,479,769 is the definitive value for this specific delivery order. Without access to the original contract solicitation, independent government cost estimates, or detailed budget allocations for the broader program this migration falls under, it is impossible to definitively compare the awarded amount to an estimated budget. However, the contract was awarded under 'full and open competition,' which typically implies that the government sought competitive bids and negotiated a price deemed fair and reasonable. The Cost Plus Fixed Fee (CPFF) structure means the final cost could fluctuate based on actual expenses incurred, up to the negotiated fixed fee, making a direct pre-award budget comparison difficult without more context on the expected cost range and the government's target price.

What are the primary risks associated with migrating a GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT system?

Migrating a system as critical as the GEOSYNCHRONOUS EARTH ORBIT NON-INTEGRATED TACTICAL WARNING AND ATTACK ASSESSMENT (GEO NTIWAS) presents significant risks. Foremost is the risk of operational disruption; any downtime or malfunction during migration could compromise national security by delaying or preventing critical warning data. Technical risks include compatibility issues between legacy and new systems, data integrity loss during transfer, and cybersecurity vulnerabilities introduced during the transition. Schedule risks are also high, given the short 119-day performance period, which may not be sufficient for thorough testing and validation. Furthermore, the complexity of integrating with existing defense networks and ensuring seamless data flow to various end-users adds layers of complexity and potential failure points.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of project?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex projects where the scope and costs are not well-defined at the outset, which can be the case for system migrations. It provides flexibility for the contractor to incur costs while ensuring the government pays for allowable costs plus a predetermined fixed fee. This can be effective in encouraging contractors to take on challenging, uncertain projects. However, it shifts much of the cost risk to the government. If the contractor's costs exceed initial projections, the government pays more. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate the risk of cost overruns and ensure value for money under a CPFF arrangement.

What are the historical spending patterns for similar tactical warning and attack assessment systems?

Historical spending on tactical warning and attack assessment (TW/AA) systems within the Department of Defense has been substantial and ongoing, reflecting the critical nature of these capabilities. These systems are subject to continuous modernization to counter evolving threats and incorporate technological advancements. Spending encompasses research and development, procurement of new hardware and software, system integration, testing, and long-term sustainment and operational support. Major defense contractors like Lockheed Martin, Northrop Grumman, and Raytheon are frequent recipients of such contracts. While specific figures for the GEO NTIWAS migration are tied to this single award, broader DoD budgets for space-based defense systems, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and early warning capabilities often run into billions of dollars annually, indicating a consistent and significant investment in this domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

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: $53,479,769

Exercised Options: $53,479,769

Current Obligation: $51,479,769

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $180,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0001

IDV Type: IDC

Timeline