DoD awards $206.8M to Lockheed Martin for Engineering Services, with no small business participation
Contract Overview
Contract Amount: $206,793,058 ($206.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2003-10-01
End Date: 2013-02-06
Contract Duration: 3,416 days
Daily Burn Rate: $60.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $206.8 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Significant contract value of $206.8 million awarded to a major defense contractor. 2. Lack of small business participation noted, potentially limiting broader economic impact. 3. Long contract duration (2003-2013) suggests a sustained need for services. 4. The 'Cost Plus Award Fee' structure can incentivize performance but may lead to higher costs.
Value Assessment
Rating: questionable
The contract type 'Cost Plus Award Fee' can be less price-transparent than fixed-price contracts. Benchmarking is difficult without specific award fee criteria and performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayer funds are directed to a single large corporation without competitive bidding, potentially reducing value for money.
Public Impact
Taxpayers fund a large contract for engineering services to a major defense contractor. The absence of small business involvement means potential benefits to smaller enterprises are missed. Long-term nature of the contract suggests ongoing reliance on this specific provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
- Cost-plus contract type
Positive Signals
- Awarded to a known, established contractor
Sector Analysis
This contract falls under Engineering Services within the Defense sector. Spending in this area is substantial, often involving complex, long-term projects requiring specialized expertise.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates that opportunities for small businesses were not pursued or available for this specific procurement.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on performance against award fee criteria and cost management.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for higher costs due to sole-source and cost-plus structure.
- Lack of competitive bidding limits price discovery.
- No small business participation misses economic opportunity.
- Contract duration is very long, potentially indicating lock-in.
- Award fee mechanism requires careful oversight to ensure value.
Tags
engineering-services, department-of-defense, nj, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $206.8 million to LOCKHEED MARTIN CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $206.8 million.
What is the period of performance?
Start: 2003-10-01. End: 2013-02-06.
What was the rationale for awarding this contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Without further documentation, the specific justification for this Lockheed Martin contract remains unclear, but it implies a lack of viable alternatives at the time of award.
How did the 'Cost Plus Award Fee' structure impact the final cost and contractor performance?
Cost Plus Award Fee (CPAF) contracts reimburse the contractor for allowable costs and provide a fee based on performance against predetermined criteria. While CPAF can incentivize high performance, it also carries a risk of cost overruns if not managed tightly. The final cost is influenced by both the incurred costs and the achieved award fee, making direct cost benchmarking challenging without insight into the award criteria and outcomes.
What is the long-term strategic value of this engineering services contract for the Department of Defense?
The long duration (nearly a decade) suggests this contract provided critical, ongoing engineering support essential for specific defense programs. The value likely lies in Lockheed Martin's specialized expertise and established relationship, ensuring continuity and potentially deep integration with DoD systems. However, the lack of competition raises questions about whether alternative solutions could have offered comparable or superior long-term value at a better price point.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 199 BORTON LANDING ROAD, MOORESTOWN, NJ, 08057
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-10-01
Current End Date: 2013-02-06
Potential End Date: 2013-02-06 00:00:00
Last Modified: 2019-10-23
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