DoD's $32.5M Combat Systems Engineering Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $32,494,218 ($32.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-06-30
End Date: 2011-06-30
Contract Duration: 1,826 days
Daily Burn Rate: $17.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Defense
Official Description: COMBAT SYSTEMS ENGINEERING
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $32.5 million to LOCKHEED MARTIN CORPORATION for work described as: COMBAT SYSTEMS ENGINEERING Key points: 1. Contract awarded for engineering services related to combat systems. 2. Significant duration of 1826 days suggests a long-term need for these services. 3. The contract was not competed, raising questions about potential cost efficiencies. 4. The sole contractor, Lockheed Martin, is a major defense industry player. 5. Awarded by the Department of the Navy, indicating a focus on naval combat capabilities. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The lack of competition suggests potential for higher costs than a competed contract might yield. However, the specific nature of combat systems engineering may necessitate specialized expertise that limits the pool of qualified contractors, potentially justifying the award structure. Further analysis would require understanding the scope of work and comparing it to similar sole-source engineering contracts within the DoD.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to competition. This approach is typically used when only one contractor possesses the unique capabilities or proprietary knowledge required for the work. The lack of competition means that price discovery through market forces was absent, potentially leading to a higher price for the government than if multiple bids had been solicited.
Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for goods or services, as the government does not benefit from competitive bidding to drive down costs.
Public Impact
The primary beneficiaries are the Department of the Navy and its combat readiness. Services delivered are critical for the development and maintenance of advanced combat systems. The geographic impact is likely concentrated in areas where naval combat systems are developed, tested, and deployed. Workforce implications include employment for highly skilled engineers and technical specialists within Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source awards can reduce transparency in pricing.
- Reliance on a single contractor could pose supply chain risks if not managed effectively.
Positive Signals
- Award to a major defense contractor suggests access to specialized expertise.
- Long contract duration indicates a sustained need and potential for stable program development.
- Focus on combat systems engineering is critical for national defense.
Sector Analysis
The defense engineering services sector is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships with government agencies. Lockheed Martin is a dominant player in this market, often securing large, complex contracts for advanced defense systems. This contract fits within the broader category of defense R&D and engineering services, which represents a significant portion of federal spending. Comparable spending benchmarks would typically involve other large-scale engineering support contracts for major defense platforms.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss: false' flag suggests it is not a small business prime award. While Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific technical requirements and subcontracting plans outlined in the contract. The absence of explicit small business set-asides means direct opportunities for small businesses as prime contractors are unlikely for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined by the contract's statement of work, performance metrics, and payment terms. Transparency is limited due to the sole-source nature of the award and the proprietary aspects of combat systems engineering. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Naval Combat Systems Development
- Defense Engineering Services
- Advanced Weapons Systems Support
- Department of Defense Research and Development
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, sole-source, lockheed-martin-corporation, combat-systems, large-contract, new-jersey, naics-541330
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to LOCKHEED MARTIN CORPORATION. COMBAT SYSTEMS ENGINEERING
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 $32.5 million.
What is the period of performance?
Start: 2006-06-30. End: 2011-06-30.
What specific combat systems are covered under this engineering services contract?
The provided data does not specify the exact combat systems covered under this contract. The description 'COMBAT SYSTEMS ENGINEERING' is broad and could encompass a range of naval platforms and their associated weapon, command, and control systems. Lockheed Martin's expertise spans various naval combat systems, including Aegis, missile defense, and integrated combat systems for surface ships and submarines. To determine the specific systems, one would need to access the detailed contract statement of work (SOW) or related procurement documents, which are not included in the abbreviated data.
How does the $32.5 million value compare to similar sole-source engineering contracts for combat systems?
Comparing the $32.5 million value requires context regarding the scope and duration of similar sole-source contracts. This contract has a duration of 1826 days (approximately 5 years), making the annual value around $6.5 million. This figure is moderate for large-scale defense engineering projects. Sole-source contracts for highly specialized areas like combat systems engineering can vary significantly based on the complexity of the technology, the level of research and development involved, and the contractor's unique capabilities. Without access to a database of comparable sole-source engineering contracts for naval combat systems, a precise benchmark is difficult. However, $32.5 million over five years suggests a focused effort rather than a comprehensive platform development.
What are the primary risks associated with awarding a contract of this nature on a sole-source basis?
The primary risks associated with sole-source awards, including this $32.5 million combat systems engineering contract, revolve around cost and competition. Without competitive bidding, the government may pay a higher price than necessary, as market forces are not engaged to drive down costs. There's also a risk of reduced innovation, as the sole contractor may have less incentive to propose novel or more cost-effective solutions. Furthermore, over-reliance on a single contractor can create dependency and potential vulnerabilities if that contractor faces financial difficulties, operational issues, or strategic shifts. Ensuring robust oversight and clear performance metrics becomes crucial to mitigate these risks.
What is Lockheed Martin's track record with the Department of the Navy for combat systems engineering?
Lockheed Martin Corporation has an extensive and well-established track record with the Department of the Navy, particularly in the realm of combat systems engineering. They are a prime contractor for numerous critical naval programs, including the Aegis Combat System, which is a cornerstone of U.S. naval air and missile defense. Their involvement spans development, integration, testing, and sustainment of complex combat systems across various naval platforms. Given their long history and significant contributions to naval warfare technology, awarding a sole-source contract for specialized combat systems engineering to Lockheed Martin aligns with their demonstrated capabilities and historical performance within the DoD.
How has federal spending on engineering services for defense purposes evolved over the contract's period?
This contract spanned from June 30, 2006, to June 30, 2011. During this period, federal spending on defense engineering services was substantial and generally increasing, driven by ongoing military operations, modernization efforts, and technological advancements. The U.S. Department of Defense consistently represents the largest share of federal R&D and procurement spending. The years encompassing this contract saw significant investment in areas like missile defense, network-centric warfare, and platform upgrades. While specific figures for 'engineering services' within defense fluctuate annually based on program priorities and budget allocations, the overall trend during this timeframe was one of robust federal investment in defense-related engineering and technical support.
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: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,156,504
Exercised Options: $33,156,504
Current Obligation: $32,494,218
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-06-30
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2011-04-21
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)