DoD Awards $673M Cost-Plus Contract to Lockheed Martin for RDTE/Services

Contract Overview

Contract Amount: $67,323,169 ($67.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2003-10-30

End Date: 2009-12-31

Contract Duration: 2,254 days

Daily Burn Rate: $29.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200406!040792!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5128 !A!N! !N! ! !20031030!20040930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000003271400!N!N!000093879375!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !371 !ACS !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!U!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $67.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200406!040792!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5128 !A!N! !N! ! !20031030!20040930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURL… Key points: 1. Contract awarded for Research, Development, Test, and Evaluation (RDTE) and related services. 2. Significant value of $673 million indicates a major program or long-term support. 3. Sole-source award raises questions about competition and potential for price optimization. 4. Lockheed Martin, a major defense contractor, is the recipient, suggesting specialized capabilities.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar RDTE contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing and increased taxpayer burden.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration (2003-2009) suggests a critical, long-term need for these services. Potential for cost growth inherent in Cost Plus Fixed Fee contracts requires vigilant oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of detailed service description

Positive Signals

Award to established defense contractor
Long-term commitment indicates critical need

Sector Analysis

This contract falls within the Defense sector, specifically for engineering and manufacturing development services. Spending in this area is common for major defense programs, but competitive bidding is crucial for cost efficiency.

Small Business Impact

The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific contract data, suggesting potential missed opportunities for small businesses.

Oversight & Accountability

The cost-plus nature of this contract necessitates robust oversight from the Department of Defense to ensure costs are reasonable and allocable. The Defense Contract Management Agency (DCMA) is listed as the servicing agency.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns (Cost Plus Fixed Fee)
Limited transparency on specific services
No clear small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.3 million to LOCKHEED MARTIN CORPORATION. 200406!040792!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5128 !A!N! !N! ! !20031030!20040930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000003271400!N!N!000093879375!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !371 !ACS !541330!E! !3! ! ! ! ! !999

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 $67.3 million.

What is the period of performance?

Start: 2003-10-30. End: 2009-12-31.

What specific RDTE and services are being procured under this contract, and how do they align with current defense priorities?

The contract specifies 'RDTE/SERVICES-ENG/MANUF DEVELOP' and 'SERVICES'. Without further details, it's difficult to ascertain the exact nature of the work. However, given the awardee and the Department of Defense as the agency, it likely pertains to advanced weapons systems, platforms, or related technological development critical to national security.

What justification was provided for the sole-source award, and were alternative competitive strategies considered?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. Common reasons include unique capabilities, proprietary technology, or urgent and compelling needs. The specific justification for this contract is not provided in the data, but it would be crucial for assessing the necessity of bypassing competition.

How effectively has the Cost Plus Fixed Fee structure been managed to control costs and ensure value for money over the contract's lifespan?

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns. Effective management requires stringent oversight, detailed cost tracking, and clear performance metrics. Assessing the value for money would involve comparing the final costs against the initial estimates, the achieved technical outcomes, and the overall program benefits realized by the DoD.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING ROAD, MOORESTOWN, NJ, 03

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline