DoD Awards $27.5M Contract to Lockheed Martin for CIS-RAN Tasking, Amidst Ongoing Operations
Contract Overview
Contract Amount: $27,460,458 ($27.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-09-29
End Date: 2024-10-01
Contract Duration: 2,559 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: BASE AWARD OF CIS- RAN TASKING
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to LOCKHEED MARTIN CORPORATION for work described as: BASE AWARD OF CIS- RAN TASKING Key points: 1. Significant award to a major defense contractor, indicating a substantial need for the specified systems. 2. The contract's duration extends over several years, suggesting long-term operational requirements. 3. Full and open competition was utilized, which is a positive sign for price discovery. 4. The sector is dominated by large, established players like Lockheed Martin.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. While this can incentivize contractors to control costs, it carries inherent risk of cost overruns compared to fixed-price contracts. Benchmarking against similar contracts is difficult without more specific task details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and selecting the best value. This method generally leads to more competitive pricing and ensures a wider range of potential contractors can participate.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continued operational capability for critical Navy search, detection, and navigation systems. Supports advanced technological development and maintenance within the defense sector. Impacts personnel and resources involved in the operation and maintenance of these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration may not reflect current market efficiencies.
- Lack of specific task details makes detailed cost analysis challenging.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical national defense functions.
- Long-term commitment suggests stable operational support.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on advanced navigation and guidance systems. Spending in this area is typically high due to the complex technological requirements and the critical nature of defense applications. Benchmarks are difficult without specific system details.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors, which is common in large defense contracts.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for defense acquisitions. The use of full and open competition suggests a degree of transparency in the initial award process.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Long contract duration may not capture potential technological obsolescence or market shifts.
- Limited visibility into small business subcontracting opportunities.
- Complexity of CIS-RAN systems makes detailed cost benchmarking difficult.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to LOCKHEED MARTIN CORPORATION. BASE AWARD OF CIS- RAN TASKING
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 $27.5 million.
What is the period of performance?
Start: 2017-09-29. End: 2024-10-01.
What is the projected cost efficiency of this Cost Plus Fixed Fee contract over its lifespan?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can vary. Efficiency depends heavily on the contractor's cost management and the government's oversight of allowable costs. Without detailed performance metrics and cost breakdowns, it's difficult to project cost efficiency definitively, but CPFF contracts generally carry a higher risk of cost overruns than fixed-price contracts.
How does the competitive landscape for CIS-RAN tasking compare to other defense system contracts?
The CIS-RAN (Command, Information, and Satellite - Radio Access Network) tasking likely involves specialized technology. While full and open competition was used, the market for such advanced systems may be concentrated among a few large defense contractors like Lockheed Martin. This suggests a competitive environment that is robust but potentially limited in the number of highly qualified bidders, impacting the degree of price reduction achievable compared to broader IT or manufacturing sectors.
What are the key performance indicators (KPIs) used to measure the effectiveness of this contract?
Effectiveness is likely measured against specific performance work statements (PWS) tied to the CIS-RAN systems' operational readiness, reliability, and technical performance. KPIs could include system uptime, response times, accuracy of navigation/detection, and successful completion of assigned tasks within defined parameters. The Department of the Navy would monitor these KPIs to ensure the systems meet mission requirements and the contractor fulfills contractual obligations.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N0002416R6414
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,188,557
Exercised Options: $30,398,060
Current Obligation: $27,460,458
Actual Outlays: $816,534
Subaward Activity
Number of Subawards: 96
Total Subaward Amount: $41,847,473
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-29
Current End Date: 2024-10-01
Potential End Date: 2024-10-01 00:00:00
Last Modified: 2025-07-14
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