DoD's $120M Systems Engineering Contract Awarded to Lockheed Martin Amidst Full and Open Competition
Contract Overview
Contract Amount: $120,134,310 ($120.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-02-26
End Date: 2025-12-01
Contract Duration: 1,739 days
Daily Burn Rate: $69.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: FY 21 SYSTEMS ENGINEERING/PROGRAM MGMT
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $120.1 million to LOCKHEED MARTIN CORPORATION for work described as: FY 21 SYSTEMS ENGINEERING/PROGRAM MGMT Key points: 1. Significant contract value of over $120 million for critical defense systems. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Incentive Fee (CPIF) structure. 4. The contract falls within the IT and Defense sectors, focusing on navigation and guidance systems.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee (CPIF) structure allows for shared savings and cost control, but can also lead to higher costs if targets are not met. Benchmarking against similar complex systems engineering contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition aims to secure competitive pricing, potentially leading to cost savings for taxpayers compared to sole-source or limited competition awards.
Public Impact
Enhances national security through advanced navigation and guidance systems. Supports technological advancements in defense capabilities. Creates jobs within the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) can lead to cost overruns if not managed effectively.
- Long contract duration (ending 2025) may introduce unforeseen economic or technological risks.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Focus on critical defense systems indicates strategic importance.
- Lockheed Martin is a major defense contractor with proven capabilities.
Sector Analysis
This contract is within the IT and Defense sectors, specifically focusing on manufacturing for search, detection, navigation, guidance, aeronautical, and nautical systems. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation, a large business. There is no explicit information on small business subcontracting in the provided data, which is a common requirement for large federal contracts.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The contract's duration and complexity necessitate robust program management and regular performance reviews to ensure accountability and value for taxpayer money.
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
- Cost overrun risk due to CPIF structure.
- Potential for technological obsolescence given the contract end date.
- Dependence on a single large contractor.
- Lack of explicit small business participation data.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $120.1 million to LOCKHEED MARTIN CORPORATION. FY 21 SYSTEMS ENGINEERING/PROGRAM MGMT
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 $120.1 million.
What is the period of performance?
Start: 2021-02-26. End: 2025-12-01.
What specific performance metrics are tied to the incentive fee in this CPIF contract, and how are they measured?
The specific performance metrics tied to the incentive fee are not detailed in the provided data. Typically, CPIF contracts link incentives to cost, schedule, or performance targets. Effective oversight would involve rigorous tracking of these metrics against baseline objectives to ensure the government realizes the intended benefits and avoids excessive costs.
How does the $120 million contract value compare to similar systems engineering and program management contracts within the DoD for FY21?
Without access to a comprehensive database of similar contracts, a direct comparison is challenging. However, $120 million is a substantial award, indicating a significant scope of work. It suggests a high level of complexity and criticality for the systems being developed or managed, placing it among larger contracts within this domain.
What is the potential impact of the 2025 end date on the long-term effectiveness and adaptability of the systems being developed?
A 2025 end date for a contract awarded in 2021 suggests a medium-term development or sustainment period. While this allows for significant progress, the rapid pace of technological change in defense systems means that by 2025, the systems might require upgrades or face obsolescence. Continuous evaluation and potential follow-on contracts will be crucial for long-term effectiveness.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R6200
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $123,877,345
Exercised Options: $123,877,345
Current Obligation: $120,134,310
Subaward Activity
Number of Subawards: 233
Total Subaward Amount: $97,627,603
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002419D6200
IDV Type: IDC
Timeline
Start Date: 2021-02-26
Current End Date: 2025-12-01
Potential End Date: 2025-12-01 00:00:00
Last Modified: 2025-09-29
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