DoD Awards $54.3M Custom Programming Task Order to Lockheed Martin for Missile Defense
Contract Overview
Contract Amount: $54,332,582 ($54.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2029-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $29.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: TASK ORDER 2
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $54.3 million to LOCKHEED MARTIN CORPORATION for work described as: TASK ORDER 2 Key points: 1. Significant contract value for specialized IT services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term duration (5 years) suggests critical, ongoing need. 4. Focus on missile defense highlights a high-priority national security sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar custom programming services for defense applications is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Impacts national security through advanced missile defense capabilities. Potential for technological advancements in defense programming. Taxpayer funds allocated to a single, large defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Award Fee contract type can inflate costs.
- Long contract duration may not reflect current market rates.
- Lack of small business participation noted.
Positive Signals
- Addresses critical national security needs.
- Leverages expertise of a major defense contractor.
- Long-term commitment ensures continuity of essential services.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming, supporting the Department of Defense's Missile Defense Agency. Spending in this area is substantial, driven by complex national security requirements and technological advancements.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Lockheed Martin, is handling the entire scope of work, potentially missing opportunities for subcontracting with small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and effective performance. Regular reviews of the Cost Plus Award Fee structure are crucial for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Lack of small business participation
- Long contract duration
Tags
custom-computer-programming-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.3 million to LOCKHEED MARTIN CORPORATION. TASK ORDER 2
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 $54.3 million.
What is the period of performance?
Start: 2024-05-01. End: 2029-04-30.
What specific factors justified the sole-source award, and were alternatives explored?
Justification for sole-source awards typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the Missile Defense Agency would need to document why Lockheed Martin was the only capable provider or why competition was not feasible or in the government's best interest at the time of award.
How is the 'Award Fee' component structured and evaluated to ensure performance and cost-effectiveness?
The Award Fee mechanism is performance-based, where the contractor earns a fee based on meeting or exceeding pre-defined performance objectives. The agency must have clear, objective criteria for evaluating performance and determining the award fee amount to incentivize efficiency and prevent cost overruns.
What is the projected cost efficiency compared to a competitive bid for similar custom programming services?
Without a competitive bidding process, it's challenging to definitively assess cost efficiency. However, sole-source contracts, especially Cost Plus Award Fee types, inherently carry a higher risk of inflated costs due to the absence of market pressure. Benchmarking against industry standards for similar complexity is essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ085223R0003
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $223,580,893
Exercised Options: $223,580,893
Current Obligation: $54,332,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ085224D0003
IDV Type: IDC
Timeline
Start Date: 2024-05-01
Current End Date: 2029-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-01-06
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