DoD's $20.4M TBMCS Software Labor contract with Lockheed Martin awarded under full and open competition

Contract Overview

Contract Amount: $20,403,938 ($20.4M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2014-08-14

End Date: 2019-08-13

Contract Duration: 1,825 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TBMCS SOFTWARE LABOR

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: TBMCS SOFTWARE LABOR Key points: 1. Contract awarded for engineering services related to TBMCS software labor. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of the contract is 5 years, indicating a long-term need. 5. The contract was awarded to a single bidder, which warrants further investigation into competition dynamics. 6. The contract value of $20.4 million over five years suggests a significant investment in software labor.

Value Assessment

Rating: fair

The contract value of $20.4 million over five years for TBMCS software labor appears to be within a reasonable range for large-scale defense IT services. However, without specific benchmarks for TBMCS software labor costs or detailed scope of work, a precise value-for-money assessment is challenging. The firm fixed-price nature of the contract provides cost certainty for the government, but the ultimate value depends on the contractor's efficiency and the quality of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. However, the data shows only one bid was received. This could suggest that while the competition was open, the market for this specific service may be limited, or that other potential bidders chose not to participate for various reasons. A single bid can sometimes lead to less competitive pricing.

Taxpayer Impact: While the competition was open, receiving only one bid may have limited the government's ability to secure the lowest possible price, potentially impacting taxpayer value.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential software labor services for the TBMCS system. The services delivered are critical for the maintenance, development, and support of the Theater Battle Management Core System (TBMCS) software. The geographic impact is likely concentrated within DoD operations and potentially supporting personnel globally. Workforce implications include employment for skilled software engineers and technical personnel employed by Lockheed Martin Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite open solicitation could indicate potential for higher costs.
Lack of detailed performance metrics in the provided data makes assessing contractor performance difficult.
The long contract duration might lead to vendor lock-in if not managed carefully.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor.
Awarded under full and open competition, adhering to procurement regulations.
The contract supports a critical defense system (TBMCS), indicating strategic importance.

Sector Analysis

This contract falls within the broader Information Technology and Engineering Services sector, specifically supporting defense systems. The market for specialized defense software labor is often dominated by a few large contractors with established relationships and security clearances. Benchmarking this contract's value is difficult without comparable data on TBMCS-specific software labor costs, but it represents a significant investment in maintaining and evolving critical military operational software.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Services, LLC is a large business. There is no information provided on subcontracting plans or performance, so the impact on the small business ecosystem cannot be determined from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer within the Department of Defense. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed price. Transparency is generally maintained through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Defense Software Development Contracts
IT Services for Military Operations
Theater Battle Management Core System (TBMCS) Support
Engineering Services for Defense Agencies
Lockheed Martin Defense Contracts

Risk Flags

Single Bid Received
Long Contract Duration
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to LOCKHEED MARTIN SERVICES, LLC. TBMCS SOFTWARE LABOR

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2014-08-14. End: 2019-08-13.

What is the specific scope of 'TBMCS Software Labor' covered by this contract?

The provided data abbreviates the contract description as 'TBMCS SOFTWARE LABOR.' This typically encompasses a range of activities related to the Theater Battle Management Core System (TBMCS), a critical command and control system used by the U.S. Air Force and other military branches. These activities likely include software development, modification, integration, testing, maintenance, and technical support for various TBMCS software components. The specific tasks would be detailed in the Statement of Work (SOW) attached to the contract, outlining requirements for personnel, deliverables, and performance standards. Without the SOW, the precise nature of the labor is inferred from the system's known functions.

How does the $20.4 million contract value compare to similar TBMCS software labor contracts or broader defense IT services?

Directly comparing the $20.4 million value for TBMCS software labor over five years requires specific benchmark data for this niche service, which is not publicly available. However, for context, large-scale defense IT services contracts can range from tens to hundreds of millions of dollars annually. Given TBMCS's critical role, this contract value appears substantial but potentially reasonable for dedicated software support over a five-year period. Factors influencing this value include the complexity of the TBMCS system, the required skill sets (e.g., specialized programming languages, cybersecurity expertise), the number of personnel, and the contractor's overhead and profit margins. A firm fixed-price award suggests the government sought cost certainty.

What are the key performance indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance. However, for a contract of this nature, typical KPIs would likely include adherence to delivery schedules for software updates or fixes, software defect rates, system uptime and availability, response times for technical support, and successful completion of integration or testing phases. The Firm Fixed Price (FFP) contract type incentivizes the contractor to meet performance requirements efficiently to maximize profit. The Defense Contract Management Agency (DCMA) would likely monitor performance against the contract's Statement of Work (SOW) and any established metrics.

What is Lockheed Martin Services, LLC's track record with similar defense software contracts?

Lockheed Martin Services, LLC, as a subsidiary of Lockheed Martin Corporation, has an extensive track record in providing a wide array of services to the Department of Defense and other government agencies, including complex software development, integration, and sustainment for major defense platforms. They are a prime contractor on numerous large-scale defense programs involving command and control systems, aviation, and intelligence. Their history includes managing significant budgets and complex technical requirements. While specific performance details for every contract are not always public, Lockheed Martin is generally considered a major, experienced player in the defense sector, capable of handling substantial and critical IT service contracts.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include cost overruns (though mitigated by FFP), schedule delays, performance deficiencies, cybersecurity vulnerabilities, and contractor dependency. Mitigation strategies often involve robust contract oversight by the government (DCMA), clear performance metrics in the SOW, phased delivery schedules, cybersecurity requirements and audits, and contingency planning. The FFP structure itself mitigates cost risk for the government by fixing the price. However, if the contractor underperforms or faces unforeseen technical challenges, the risk shifts to them, potentially impacting delivery timelines or quality.

How has spending on TBMCS software labor evolved over time, and does this contract represent a significant shift?

Historical spending data on TBMCS software labor specifically is not provided. However, the TBMCS system has been operational for many years, undergoing continuous updates and sustainment. Spending on such systems typically reflects a lifecycle pattern: higher investment during initial development and major upgrades, followed by sustained funding for maintenance, modernization, and operational support. This $20.4 million, five-year contract suggests ongoing, significant investment in maintaining and potentially evolving the TBMCS software capabilities. Without historical context, it's difficult to determine if this represents a 'shift,' but it indicates continued reliance on and funding for this critical system.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785414R0200

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $20,458,539

Exercised Options: $20,458,539

Current Obligation: $20,403,938

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $122,724

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline