DoD Awards $9.6M for Software Sustainment to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $9,625,811 ($9.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2026-06-30
Contract Duration: 729 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE SUSTAINMENT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $9.6 million to LOCKHEED MARTIN CORPORATION for work described as: SOFTWARE SUSTAINMENT Key points: 1. Significant contract value for software sustainment services. 2. Awarded to a major defense contractor, indicating established capabilities. 3. Full and open competition suggests a robust price discovery process. 4. Potential for long-term sustainment needs given the contract duration.
Value Assessment
Rating: good
The contract value of $9.6M over two years for software sustainment appears reasonable given the nature of the services and the prime contractor's expertise. Benchmarking against similar sustainment contracts for complex software systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and fosters competitive pricing. This method is expected to yield a fair market price for the software sustainment services.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price through market forces.
Public Impact
Ensures continued operation and support for critical software systems. Supports the Department of the Navy's operational readiness. Potential for follow-on work or expanded sustainment needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends beyond one year, requiring ongoing monitoring.
- Reliance on a single large contractor for critical sustainment.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type helps control costs.
- Clear contract end date provides a defined period for services.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government agencies, with sustainment being a critical component of maintaining operational capabilities.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large business. There is no explicit indication of small business participation in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration
- Sole large business prime contractor
- Potential for scope creep
- Dependency on specific vendor expertise
Tags
custom-computer-programming-services, department-of-defense, co, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.6 million to LOCKHEED MARTIN CORPORATION. SOFTWARE SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.6 million.
What is the period of performance?
Start: 2024-07-01. End: 2026-06-30.
What is the specific software being sustained and its criticality to naval operations?
The provided data does not specify the exact software system. However, given the awardee and the agency, it is likely a mission-critical system for the Department of the Navy. Understanding the software's role is crucial for assessing the true value and risk associated with its sustainment.
How does the per-unit cost of sustainment compare to industry benchmarks for similar software?
Without specific details on the services included in the sustainment package (e.g., hours, types of support, updates), a direct per-unit cost benchmark is difficult. However, the overall contract value of $9.6M over two years for a large defense contractor suggests a significant investment, warranting comparison with similar complex software sustainment contracts.
What are the potential risks if sustainment services are interrupted or fall short of requirements?
Interruption or failure in sustainment services for critical naval software could lead to system downtime, reduced operational effectiveness, security vulnerabilities, and potential mission failure. This underscores the importance of robust performance monitoring and contingency planning by the Department of the Navy.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785424R0006
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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: $26,335,191
Exercised Options: $9,625,811
Current Obligation: $9,625,811
Actual Outlays: $15,736
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-23
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