Lockheed Martin awarded $11.3M contract for custom computer programming services by the Department of Defense

Contract Overview

Contract Amount: $11,297,665 ($11.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2007-11-20

End Date: 2012-12-30

Contract Duration: 1,867 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MCS COMPUTER PROGRAMS (MCS) TAS::17 1804::TAS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to LOCKHEED MARTIN CORPORATION for work described as: MCS COMPUTER PROGRAMS (MCS) TAS::17 1804::TAS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1867 days indicates a long-term engagement for services. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges. 4. The contract was awarded by the Defense Contract Management Agency, a key oversight body. 5. The North American Industry Classification System (NAICS) code 541511 points to specialized custom software development. 6. The contract was awarded in Florida, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: fair

The contract value of $11.3 million over approximately five years averages to about $2.26 million annually. Benchmarking this against similar custom computer programming services contracts is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Without data on the specific services rendered and their market value, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The absence of specific bidder numbers prevents a deeper analysis of the intensity of the competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, maximizing the value of federal dollars spent.

Public Impact

The Department of Defense benefits from specialized custom computer programming services, likely for defense-related systems or operations. The contract supports the development and maintenance of critical software infrastructure within the defense sector. Services are geographically focused in Florida, potentially impacting the local tech workforce and economy. The contract may indirectly support jobs in the technology sector within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not meticulously managed.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The long contract duration could lead to vendor lock-in or reduced agility in adapting to evolving technological needs.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Lockheed Martin Corporation, is a major defense contractor with extensive experience.
The contract is managed by the Defense Contract Management Agency, implying a level of oversight.

Sector Analysis

The custom computer programming services sector is a vital component of the IT industry, supporting government and commercial entities with specialized software solutions. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a high demand for skilled professionals. The Department of Defense is a significant consumer of such services, often requiring complex and secure systems. Comparable spending benchmarks would typically be found within IT services procurement data for federal agencies, focusing on custom software development and integration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and the data does not indicate any specific subcontracting plans for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal. However, the prime contractor, Lockheed Martin, may engage small businesses as subcontractors, which is not detailed in this data. Without explicit set-aside provisions or reported subcontracting goals, it's difficult to quantify the benefit to small businesses.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance, cost, and schedule requirements. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring of allowable costs and the fixed fee. Transparency regarding specific deliverables and performance metrics would enhance oversight. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

Defense Information Technology Contracting
Custom Software Development Services
IT Services for Department of Defense
Lockheed Martin Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to manage costs.
Lack of detailed performance metrics in the provided data hinders effectiveness assessment.
Potential for cost overruns inherent in CPFF contracts for complex services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to LOCKHEED MARTIN CORPORATION. MCS COMPUTER PROGRAMS (MCS) TAS::17 1804::TAS

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 $11.3 million.

What is the period of performance?

Start: 2007-11-20. End: 2012-12-30.

What specific custom computer programming services were delivered under this contract?

The provided data identifies the contract as being for 'Custom Computer Programming Services' under NAICS code 541511. However, it does not detail the specific nature of these services. Given the contractor (Lockheed Martin) and the awarding agency (Department of Defense), these services likely pertain to specialized software development, integration, or maintenance for defense systems, intelligence platforms, or internal operational tools. Without further documentation, such as the Statement of Work (SOW) or contract modifications, the precise technical details of the programming services remain unspecified.

How does the $11.3 million contract value compare to similar custom programming contracts awarded by the DoD?

Comparing the $11.3 million value requires context regarding the scope and duration. This contract spans approximately five years (1867 days), making the average annual value around $2.26 million. The DoD awards numerous IT contracts, ranging from small software maintenance agreements to multi-billion dollar system development programs. To benchmark effectively, one would need to compare this contract to others for 'Custom Computer Programming Services' (NAICS 541511) with similar durations and complexity awarded by the DoD or other federal agencies. Without access to a broader dataset of comparable contracts, it's challenging to definitively state if $11.3 million represents a high, low, or average value for this type of service over this period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for custom programming?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are higher than anticipated, even though the fee is fixed. While the contractor is incentivized to control costs to protect their fee, there's less direct incentive to minimize costs compared to a fixed-price contract. For custom programming, where the scope can be fluid and unforeseen technical challenges arise, CPFF can lead to cost growth if not managed with rigorous oversight. The government bears the risk of cost overruns, while the contractor is guaranteed their fee plus reimbursement of allowable costs.

What is the track record of Lockheed Martin Corporation in delivering custom computer programming services to the federal government?

Lockheed Martin Corporation is a major defense contractor with a long and extensive history of delivering a wide array of services and products to the federal government, including complex IT and software development solutions. They are known for handling large-scale, mission-critical programs. While this specific contract is for $11.3 million, Lockheed Martin's portfolio includes significantly larger contracts. Their track record generally indicates a capacity to manage complex projects, though like any large contractor, they may have faced specific performance issues or contract disputes on individual projects. A detailed analysis would require examining their performance history across numerous contracts, including CPARS (Contractor Performance Assessment Reporting System) data.

How has federal spending on custom computer programming services (NAICS 541511) trended over the past decade?

Federal spending on custom computer programming services (NAICS 541511) has generally seen a consistent demand, particularly from defense and intelligence agencies. Over the past decade, there has been a significant push towards digital transformation, cloud computing, cybersecurity, and data analytics within the government, all of which rely heavily on custom software development. While specific figures fluctuate annually based on agency priorities and budget allocations, the overall trend indicates sustained or increasing investment in these specialized IT services. Agencies often require tailored solutions that off-the-shelf software cannot provide, driving continued spending in this category. Factors like national security needs and modernization efforts further contribute to this trend.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 12506 LAKE UNDERHILL RD, ORLANDO, FL, 32825

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

Financial Breakdown

Contract Ceiling: $17,533,117

Exercised Options: $14,276,513

Current Obligation: $11,297,665

Contract Characteristics

Cost or Pricing Data: YES

Timeline