DoD awards $80.5M for AN/BQR-15 Towed Array maintenance and repair to Lockheed Martin Services

Contract Overview

Contract Amount: $21,727,854 ($21.7M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2003-01-28

End Date: 2008-01-31

Contract Duration: 1,829 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200305!031395!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6205 !A!N! !N! !20030128!20040131!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000000050000!N!N!000026025685!J059!MAINT & REPAIR OF EQ/ELECTRICAL & ELCT EQUIP COMPS!A7 !ELECTRONICS AND COMMUNICATION !2GTR!AN/BQR-15 TOWED ARRAY !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200305!031395!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6205 !A!N! !N! !20030128!20040131!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!57000!710!51!NORFOLK !NORFO… Key points: 1. Contract value of $80.5M for maintenance and repair services. 2. Awarded to Lockheed Martin Services, Inc. for a period of 5 years. 3. The contract falls under Engineering Services (NAICS 541330). 4. This is a Cost Plus Fixed Fee contract type. 5. The contract was awarded under full and open competition. 6. The primary place of performance is Norfolk, Virginia.

Value Assessment

Rating: fair

The contract value of $80.5 million over five years averages to approximately $16.1 million annually. Benchmarking this against similar contracts for complex electronic equipment maintenance is challenging without more specific details on the scope of work. However, the Cost Plus Fixed Fee structure suggests that costs could exceed initial estimates, warranting close monitoring of expenditures to ensure value for money. The total obligated amount is $80.5M, indicating the full value was committed at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided in the data, but the designation suggests a competitive process was utilized. This level of competition is generally expected to drive better pricing and service offerings.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, potentially reducing overall costs for the government.

Public Impact

The Department of Defense benefits from the continued operational readiness of critical electronic warfare systems. Services include maintenance and repair of the AN/BQR-15 Towed Array system. The primary geographic impact is in Norfolk, Virginia, a major naval hub. This contract supports specialized technical roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The duration of the contract (5 years) requires sustained oversight to ensure performance standards are met throughout its life.
Reliance on a single contractor for critical maintenance could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, Lockheed Martin Services, Inc., is a well-established entity in the defense sector.
The contract specifies a clear period of performance, allowing for structured management and evaluation.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related electronic systems. The market for defense maintenance and repair services is substantial, driven by the continuous need to maintain complex military equipment. Comparable spending benchmarks would typically involve other contracts for similar specialized electronic systems maintenance within the Department of Defense, often awarded through competitive processes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). There is no explicit information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors are often encouraged or required to subcontract with small businesses for a portion of the work.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract reporting systems, though specific details of performance reviews are not publicly detailed.

Related Government Programs

Naval Sea Systems Command Contracts
Defense Electronic Systems Maintenance
Towed Array Systems Procurement
Lockheed Martin Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to LOCKHEED MARTIN SERVICES, LLC. 200305!031395!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002403C6205 !A!N! !N! !20030128!20040131!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!57000!710!51!NORFOLK !NORFOLK (CITY) !VIRGINIA !+000000050000!N!N!000026025685!J059!MAINT & REPAIR OF EQ/ELECTRICAL & ELCT EQUIP COMPS!A7 !ELECTRONICS AND COMMUNICATION !2GTR!AN/BQR-15 TOWED ARRAY !541330!E! !3! ! ! ! ! !99990909!B

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 $21.7 million.

What is the period of performance?

Start: 2003-01-28. End: 2008-01-31.

What is the historical spending trend for the AN/BQR-15 Towed Array maintenance and repair?

The provided data represents a single contract award of $80.5 million for maintenance and repair of the AN/BQR-15 Towed Array system. It covers a period from January 28, 2003, to January 31, 2008. Without access to prior or subsequent contracts for this specific system, it is impossible to establish a historical spending trend. This award signifies a significant investment during its performance period, but it does not provide context on whether spending has increased, decreased, or remained consistent over a longer timeframe. Further analysis would require searching for all contracts related to this system across different fiscal years and agencies.

How does the awarded amount compare to the estimated value of similar systems maintenance contracts?

Direct comparison of the $80.5 million award for the AN/BQR-15 Towed Array maintenance to similar systems is difficult without detailed specifications of the systems and the scope of work. The AN/BQR-15 is a sophisticated sonar system, and its maintenance likely involves complex electronic and mechanical expertise. Contracts for maintaining advanced military hardware can vary significantly based on system complexity, age, required service levels, and contract type. While $80.5 million over five years is substantial, it may be within the expected range for such specialized defense equipment. A more precise comparison would necessitate identifying contracts for comparable towed sonar arrays or other complex electronic warfare systems, considering factors like system criticality and technological sophistication.

What are the key performance indicators (KPIs) expected under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a maintenance and repair contract of complex electronic equipment like the AN/BQR-15 Towed Array, typical KPIs would likely include metrics such as system uptime, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), response time to service calls, quality of repairs (e.g., defect rates), and adherence to maintenance schedules. The Cost Plus Fixed Fee structure implies that the contractor is incentivized to perform the work efficiently while managing costs, and the government would monitor these KPIs to ensure operational readiness and value.

What is Lockheed Martin Services, Inc.'s track record with similar defense maintenance contracts?

Lockheed Martin Services, Inc. is a subsidiary of Lockheed Martin Corporation, a major defense contractor with extensive experience in maintaining and supporting complex military systems. While this specific data point focuses on one contract, the company's broader track record includes numerous contracts for aircraft, naval systems, and electronic warfare equipment. Their history suggests a capacity to handle large-scale, technically demanding maintenance and repair operations. However, a thorough assessment of their track record for this specific type of system would involve reviewing past performance evaluations, any contract disputes or awards, and their success in meeting performance metrics on similar contracts.

What is the potential risk associated with the Cost Plus Fixed Fee contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government, primarily related to cost control. While the 'fixed fee' provides the contractor with a predetermined profit margin, the 'cost' portion means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial projections, the total contract price will increase, potentially leading to a higher final cost than anticipated. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep or inefficient practices. The risk is that the final cost could be significantly higher than if a fixed-price contract had been used, especially if the scope of work is not well-defined or subject to change.

How does the geographic location of performance (Norfolk, VA) impact the contract's execution and cost?

Locating the primary place of performance in Norfolk, Virginia, is strategically significant as it is a major hub for the U.S. Navy's Atlantic Fleet. This proximity likely reduces travel time and logistical costs associated with deploying technicians and equipment to service naval vessels stationed there. It facilitates quicker response times for maintenance and repair, contributing to higher system availability and operational readiness. However, labor costs in a high-demand area like Norfolk might be higher compared to less populated regions. The concentration of naval assets also means potential for more frequent service needs, which could justify the location despite potentially higher overheads.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 WEST, FLOOR, CHERRY HILL, NJ, 01

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline