DoD awards $147.8M contract for integrated air and missile defense battle management system integration

Contract Overview

Contract Amount: $14,781,321 ($14.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-02-24

End Date: 2026-12-31

Contract Duration: 2,136 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS CONTRACT IS FOR THE INTEGRATION OF THE NAVY COOPERATIVE ENGAGEMENT CAPABILITY (CEC) AND ARMY INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) INTO THE MISSILE DEFENSE AGENCY'S (MDA) TOTAL BATTLE MANAGEMENT (TBM) SUITE.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to LOCKHEED MARTIN CORPORATION for work described as: THIS CONTRACT IS FOR THE INTEGRATION OF THE NAVY COOPERATIVE ENGAGEMENT CAPABILITY (CEC) AND ARMY INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) INTO THE MISSILE DEFENSE AGENCY'S (MDA) TOTAL BATTLE MANAGEMENT (TBM) SUITE. Key points: 1. Contract focuses on integrating Navy and Army air defense systems into a unified Missile Defense Agency battle management suite. 2. The chosen contractor, Lockheed Martin Corporation, has extensive experience in defense systems integration. 3. This contract represents a significant investment in modernizing joint force air and missile defense capabilities. 4. The contract type (Cost Plus Fixed Fee) suggests a degree of complexity and potential for cost overruns. 5. Performance is expected over a 5-year period, indicating a long-term commitment to system development and integration. 6. The contract is for Research and Development in Physical, Engineering, and Life Sciences, aligning with advanced defense technology.

Value Assessment

Rating: fair

The contract value of $147.8 million for a 5-year R&D effort for complex defense system integration appears within a reasonable range for such specialized work. However, without specific benchmarks for similar integration projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not closely managed. Benchmarking against other large-scale defense system integration efforts would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and innovative solutions. The number of bidders is not specified, but the full and open nature suggests a robust competition that should have driven down costs and ensured a fair market price.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value and prevents potential price gouging associated with sole-source or limited competitions.

Public Impact

The primary beneficiaries are the U.S. Navy and Army, who will gain enhanced integrated air and missile defense capabilities. The services delivered involve the complex integration of existing and future battle command systems. The geographic impact is national, supporting U.S. military readiness across various theaters. This contract will likely support a specialized workforce in defense R&D, engineering, and systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not meticulously managed and monitored.
The complexity of integrating disparate systems (Navy CEC and Army IBCS) presents significant technical risks.
Long-term R&D contracts can be subject to shifting technological landscapes and evolving threat assessments.

Positive Signals

Full and open competition suggests a competitive environment that should drive value and innovation.
The integration of Navy and Army systems into a unified MDA suite promises improved joint operational effectiveness.
Lockheed Martin's established presence in defense systems integration provides a degree of confidence in execution.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced command and control systems for air and missile defense. The market for such specialized defense integration is dominated by a few large prime contractors with deep expertise and existing relationships with the Department of Defense. Spending in this area is driven by the need to counter evolving threats and enhance interoperability between different military branches. Comparable spending benchmarks would likely be found in other large-scale defense system development and integration programs.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the primary contract was awarded to a large business, Lockheed Martin Corporation. While there may be subcontracting opportunities for small businesses, the primary award does not directly benefit them. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Missile Defense Agency (MDA) and potentially the Department of Defense's Inspector General, especially given the R&D nature and significant value. Accountability measures will be tied to contract milestones, performance metrics, and adherence to the Cost Plus Fixed Fee structure. Transparency will be facilitated through contract reporting requirements and potential public releases of non-sensitive program information.

Related Government Programs

Navy Cooperative Engagement Capability (CEC)
Army Integrated Air and Missile Defense Battle Command System (IBCS)
Missile Defense Agency Total Battle Management (TBM) Suite
Joint All-Domain Command and Control (JADC2)

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Complexity of integrating disparate Navy and Army systems.
Potential for schedule delays due to technical challenges.
Evolving threat landscape may necessitate program adjustments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to LOCKHEED MARTIN CORPORATION. THIS CONTRACT IS FOR THE INTEGRATION OF THE NAVY COOPERATIVE ENGAGEMENT CAPABILITY (CEC) AND ARMY INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) INTO THE MISSILE DEFENSE AGENCY'S (MDA) TOTAL BATTLE MANAGEMENT (TBM) SUITE.

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 $14.8 million.

What is the period of performance?

Start: 2021-02-24. End: 2026-12-31.

What is Lockheed Martin Corporation's track record with similar large-scale defense system integration contracts?

Lockheed Martin Corporation has a long and extensive history of successfully delivering complex defense systems and integration services to the U.S. military. They are a prime contractor on numerous major defense programs, including missile defense systems, advanced fighter aircraft, and communication networks. Their experience spans decades and includes integrating capabilities across different branches of the military. While specific details of past integration projects are often classified or proprietary, their consistent role as a prime contractor on high-value, technologically advanced programs indicates a strong capability in managing the technical and programmatic challenges inherent in projects like the TBM suite integration. This includes managing complex supply chains, ensuring interoperability between diverse systems, and meeting stringent performance requirements.

How does the $147.8 million contract value compare to similar R&D efforts for integrated defense systems?

Benchmarking the $147.8 million contract value for the integration of Navy CEC and Army IBCS into the MDA's TBM suite against similar R&D efforts is challenging without access to detailed cost data for comparable programs. However, large-scale defense system integration and R&D contracts often range from tens to hundreds of millions of dollars, and sometimes into the billions, depending on the scope, complexity, and duration. Given that this contract involves integrating two major service-specific command and control systems into a unified MDA capability over approximately five years, the value appears to be within a plausible range for such a critical and technically demanding undertaking. Factors influencing the cost include the maturity of the systems being integrated, the level of customization required, and the associated research and development activities.

What are the primary technical and programmatic risks associated with this integration contract?

The primary technical risks involve ensuring seamless interoperability between the Navy's Cooperative Engagement Capability (CEC) and the Army's Integrated Air and Missile Defense Battle Command System (IBCS) within the Missile Defense Agency's Total Battle Management (TBM) suite. Differences in architecture, data formats, and operational philosophies between the services can create significant integration challenges. Programmatic risks include potential cost overruns, given the Cost Plus Fixed Fee (CPFF) contract type, which incentivizes cost-reimbursement with a fixed fee. Schedule delays are also a risk due to the complexity of the integration, potential for unforeseen technical issues, and the need for extensive testing and validation. Furthermore, evolving threat landscapes and technological advancements could necessitate scope changes, impacting both cost and schedule.

What is the expected impact of this contract on the overall effectiveness of U.S. air and missile defense?

This contract is expected to significantly enhance the overall effectiveness of U.S. air and missile defense by creating a more unified and responsive command and control capability. By integrating the distinct capabilities of the Navy's CEC and the Army's IBCS into a single MDA TBM suite, the Department of Defense aims to achieve greater situational awareness, improved decision-making speed, and more coordinated defensive responses across different domains and services. This 'plug-and-fight' capability is crucial for countering increasingly sophisticated and diverse threats. The successful integration should lead to reduced fratricide, optimized resource allocation, and a more robust layered defense architecture, ultimately strengthening national security.

How has spending on integrated air and missile defense command and control systems evolved over the past five years?

Spending on integrated air and missile defense (IAMD) command and control (C2) systems has seen a consistent upward trend over the past five years, driven by a heightened awareness of evolving threats from state and non-state actors. The Department of Defense has prioritized programs aimed at improving interoperability between services and enhancing the speed and effectiveness of defensive responses. This includes investments in upgrading legacy systems, developing new architectures like the Joint All-Domain Command and Control (JADC2) concept, and integrating advanced technologies such as artificial intelligence and machine learning into C2 platforms. Contracts for system integration, software development, and hardware modernization within the IAMD C2 domain have consequently increased in both number and value, reflecting a strategic commitment to bolstering these critical capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HQ085221S0002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108

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: $14,781,321

Exercised Options: $14,781,321

Current Obligation: $14,781,321

Actual Outlays: $7,949,363

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $4,805,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline