DoD's $34M Lockheed Martin contract for legacy GTN system awarded under full and open competition

Contract Overview

Contract Amount: $34,063,248 ($34.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2008-08-25

End Date: 2011-09-30

Contract Duration: 1,131 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LEGACY GTN SYSTEM

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to LOCKHEED MARTIN CORPORATION for work described as: LEGACY GTN SYSTEM Key points: 1. Contract awarded to a single, large defense contractor, indicating potential for limited future competition. 2. The firm-fixed-price contract type suggests cost certainty for the government. 3. Awarded in 2008, the contract predates many modern cybersecurity and data management standards. 4. The duration of over 3 years for a system design service contract is notable. 5. The contract was awarded to Lockheed Martin Corporation, a major defense industry player.

Value Assessment

Rating: fair

The total award amount of $34 million for computer systems design services over approximately three years is difficult to benchmark without more specific service details. Given the legacy nature of the system, the pricing may reflect older cost structures. Comparing this to similar large-scale system design contracts for defense logistics would provide better context for value for money. The absence of detailed performance metrics makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The fact that it resulted in an award to a single entity, Lockheed Martin Corporation, is typical for large, complex defense systems. The level of competition at the outset is positive for price discovery, but the long-term implications depend on whether this system remains a sole-source requirement for future modifications or sustainment.

Taxpayer Impact: A full and open competition at the initial award stage is beneficial for taxpayers as it allows for a broader range of potential solutions and competitive pricing, maximizing the initial value obtained.

Public Impact

The primary beneficiaries are the Department of Defense, specifically USTRANSCOM, through the provision of computer systems design services for a legacy GTN system. The services delivered likely involve the design, development, or modification of systems critical for transportation and logistics operations. The geographic impact is likely concentrated within military installations and operational theaters where USTRANSCOM operates. Workforce implications could include specialized IT and engineering roles within Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the legacy nature of the system and the single awardee.
Lack of transparency on specific performance metrics and outcomes achieved.
Aging technology may pose security and interoperability risks over time.

Positive Signals

Awarded through full and open competition, indicating initial market engagement.
Firm-fixed-price contract provides cost predictability for the government.
Award to a large, established contractor like Lockheed Martin suggests experience in complex defense systems.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The defense IT market is substantial, characterized by long procurement cycles, high security requirements, and significant investment in maintaining and upgrading complex systems. Benchmarking this contract's value against other large-scale IT system design contracts within the DoD or similar government agencies would be necessary for a comprehensive assessment. The market is often dominated by a few large prime contractors capable of handling such extensive projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that small businesses were primary awardees. However, Lockheed Martin may have utilized small business subcontractors, which is a common practice in the defense industry to meet subcontracting goals. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA). Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is often limited for specific contract details and performance metrics in defense contracts, but reporting requirements under the Federal Acquisition Regulation (FAR) would mandate certain levels of accountability.

Related Government Programs

DoD Logistics IT Systems
USTRANSCOM IT Modernization Efforts
Legacy System Sustainment Contracts
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for obsolescence of legacy system technology.
Limited visibility into specific performance metrics.
Single awardee may limit future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to LOCKHEED MARTIN CORPORATION. LEGACY GTN SYSTEM

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2008-08-25. End: 2011-09-30.

What specific functionalities did the legacy GTN system provide, and how critical were these to USTRANSCOM's operations?

The Global Transportation Network (GTN) system, managed by USTRANSCOM, is a critical component for planning, booking, and managing the movement of personnel and cargo worldwide. Its functionalities likely include shipment tracking, route optimization, carrier selection, and freight payment. The system's criticality stems from its role in ensuring the efficient and timely deployment of military assets and supplies, directly impacting operational readiness and logistical support. Without detailed documentation from the contract period, specific functionalities are inferred from the system's known purpose within USTRANSCOM's mission.

How did the $34 million cost compare to similar system design contracts awarded around 2008-2011 for defense logistics IT?

Benchmarking the $34 million cost for the legacy GTN system design contract against similar contracts from 2008-2011 is challenging without access to a comprehensive database of comparable procurements. However, large-scale IT system design and development for defense logistics were typically multi-million dollar endeavors. Factors influencing cost include system complexity, integration requirements with other DoD systems, security mandates, and the specific services provided (e.g., initial design, development, integration, testing). Given Lockheed Martin's expertise and the scope of USTRANSCOM's mission, the $34 million figure appears within a plausible range for a significant system design effort during that era, though a detailed comparative analysis would require specific contract data.

What were the key performance indicators (KPIs) or success metrics for this contract, and how was performance measured?

Specific Key Performance Indicators (KPIs) and success metrics for this legacy GTN system design contract are not publicly detailed in the provided data. Typically, for system design contracts, performance might be measured against criteria such as adherence to technical specifications, on-time delivery of milestones, system functionality and reliability post-development, user acceptance, and integration success with existing infrastructure. The firm-fixed-price nature of the contract suggests that the contractor was incentivized to meet defined deliverables within the agreed budget. However, without access to the contract's Statement of Work (SOW) or performance reports, a precise assessment of how performance was measured and achieved is not possible.

What is Lockheed Martin Corporation's track record with USTRANSCOM and similar large-scale IT system contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing and managing complex IT systems for various government agencies, including the Department of Defense and USTRANSCOM. They have a long history of delivering large-scale solutions in areas such as command and control, logistics, intelligence, and cybersecurity. Their track record with USTRANSCOM likely includes numerous contracts related to transportation and logistics IT infrastructure. While specific details of past performance on this particular GTN system contract are not provided, Lockheed Martin's general profile suggests a capacity to handle such significant projects, though performance can vary across individual contracts.

Were there any significant risks identified during the contract lifecycle, and how were they mitigated?

Without specific contract documentation or post-award reviews, identifying the exact risks associated with this legacy GTN system design contract is speculative. However, common risks in large IT system development projects include scope creep, schedule delays, budget overruns (less likely with FFP but possible through change orders), technical challenges, integration issues with legacy systems, cybersecurity vulnerabilities, and contractor performance issues. Mitigation strategies typically involve robust project management, clear communication channels, rigorous testing, phased deployments, and proactive risk assessment and management plans outlined in the contract. The firm-fixed-price structure itself acts as a risk mitigation tool for the government regarding cost certainty.

How has spending on similar computer systems design services by USTRANSCOM evolved since this contract was awarded?

Tracking the evolution of USTRANSCOM's spending on computer systems design services since 2008-2011 requires analyzing historical contract data. It is probable that spending has increased and shifted towards more modern technologies, including cloud computing, advanced analytics, and cybersecurity solutions, reflecting broader trends in IT modernization. Legacy system sustainment likely continues, but new development may focus on agile methodologies and service-oriented architectures. Comparing the $34 million award to current contract values for similar services would highlight changes in market rates, technological advancements, and potentially the scale of USTRANSCOM's IT needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,945,745

Exercised Options: $34,063,248

Current Obligation: $34,063,248

Parent Contract

Parent Award PIID: GS35F0400J

IDV Type: FSS

Timeline